Upcoming IPO: Malpani Pipes & Fittings Gets BSE Nod For Rs 25 Crore SME Public Issue; Check Details

The Bombay Stock Exchange (BSE) has granted in-principal approval to Malpani Pipes and Fittings Limited for its initial public offering (IPO). The SME-focused IPO aims to raise Rs 25 crore. This development positions Malpani Pipes to make its stock market debut by listing up to 30,00,000 shares on the BSE SME platform.

Key Stakeholders
Malpani Pipes received the official approval letter from the BSE on December 24, 2024, paving the way for the public issue. According to the company's Draft Red Herring Prospectus (DRHP), the BSE will serve as the designated stock exchange for the IPO.

The IPO process is being managed by Interactive Financial Services, the appointed lead manager, while Bigshare Services Private Limited has been named as the official registrar.

Purpose of the IPO
The ₹25 crore proceeds from the IPO will primarily fund capital expenditures, debt repayment, and general corporate purposes. Rs 3.50 crore will be allocated toward purchasing new machinery and equipment to expand production capacity. A portion of the funds will be used to reduce the company's financial liabilities.

The company highlighted in its DRHP that all machinery to be acquired is new, with orders to be placed based on current business requirements.

Promoters & Share Capital Expansion
Malpani Pipes and Fittings is led by its promoters, Rohit Malpani, Harsh Malpani, and Mohit Malpani. The company has undergone significant changes in its capital structure in recent years to prepare for its IPO.

On April 25, 2024, the company increased its authorized share capital from Rs 7.50 crore (comprising 75 lakh equity shares of Rs 10 each) to Rs 12 crore (comprising 1.20 crore equity shares of Rs 10 each).

Additionally, Malpani Pipes has a history of rewarding its shareholders. On August 31, 2024, the company allocated 54,67,500 bonus equity shares.

The IPO reflects Malpani Pipes' ambition to scale its business and enhance its competitive edge. By deploying the funds toward plant and machinery upgrades, the company seeks to boost production efficiency and meet rising market demand.