Swastik Pipe Limited IPO : Company Info. and Financials

Swastik Pipe Limited initiated its business operation in 1973. The company is manufacturer and exporter of Hollow Steel Pipe, Stainless Steel tubes, API Pipes, CR Stripes, Mild Steel or Carbon Steel ERW Black and Galvanised Pipes, Swaged type Tubular Pipes and Solar structure. The company is one of the oldest manufacturers in the tube segment. It has 2 manufacturing facilities with an installed capacity of 201250 MT.

IPO DETAILS

Swastik Pipe Limited IPO is set to launch on  29th Sept., 2022. The subscription timeline extends till 3rd Oct., 2022. The size for the IPO is 62.52 Crore Rs.. Shares issued through fresh issues are worth 62.52 Crore Rs. No shares are issued through Offer For Sale mode. The lot size is 1200 shares and the price range is 97 Rs. – 100 Rs./ share. The company is going to get listed at both the exchanges NSE SME. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IMPORTANT DATES

Swastik Pipe Limited IPO begins for subscription from 29th Sept., 2022. The IPO subscription would continue till 3rd Oct., 2022. The allotment status for the shareholders who applied would come on 7th Oct., 2022. The refunds for the ones who did not get allotment would be initiated on 10th Oct., 2022. The DEMAT accounts of shareholders would be credited on 11th Oct., 2022. The listing of the company would be accompanied on 12th Oct., 2022.

Lead Managers

The lead managers are :

• Corporate Capital Ventures Private Limited

The minimum lot size for the company is decided at 1200 shares. This holding accounts to  120000 Rs.. The maximum lot size is decided at 1200 shares. This amounts to 120000 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• For General corporate purposes.
• To meet the future capital requirements.

COMPANY FINANCIALS

The company’s asset base has been increasing in a very slow manner. The Asset base of 2018-19 was 35608 Lakh Rs and since then the company’s assets haven’t reached the 35000 Lakh Rs mark. The revenue generated by the firm is ot stable. The revenue for 2019 was 65807 Lakh Rs. and the same for 2020 was 52823 Lakh Rs. This again went up to 61219 Lakh Rs. The COVID effect can be noticed in the revenue generation pace of the company. Also the effect can be seen in the profitability of the company. 

The loss for 2020 was (1389) and this went to a profit figure of 149 Lakh Rs. in 2021. However currently the profitability of the company has suddenly boosted to 2041 Lakh Rs in 2022. This shows a jump of more than 1890 Lakh Rs or 1270%. If we talk about the year 2022 then the company is a ripe fruit for the investors but looking at its track record one can be cautious about investing in the same.

PROS

• The company has 2 manufacturing facilities. 
• It has an installed capacity of 201250 MT.
• Swastik Pipe Limited is one of the oldest manufacturers in its segment. It has a varied product range consisting of Hollow Steel Pipe, Stainless Steel tubes, API Pipes, CR Stripes, Mild Steel or Carbon Steel ERW Black and Galvanised Pipes, Swaged type Tubular Pipes and Solar structure.

CONS

• The company’s financials are not stable and aren’t growing every year. The fluctuation can be noticed in assets as well as the revenue generated by the firm.

Swastik Pipe Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Swastik Pipe Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.