Pipe manufacturer Swastik Pipes gets approval from NSE Emerge for IPO  | The Financial Express

Pipe manufacturer Swastik Pipes gets approval from NSE Emerge for IPO 

Credit and Finance for MSMEs: Swastik Pipes said nearly 40 per cent of the issue will be reserved for qualified institutional buyers (QIB), around 20 per cent for HNIs, and 35 per cent for retail investors.

Pipe manufacturer Swastik Pipes gets approval from NSE Emerge for IPO 
The company counts Reliance Industries, BHEL, Coal India, DMRC, EIL, Hindustan Zinc, L&T, NALCO, NTPC, ABB Ltd. Etc., among its customers.

Credit and Finance for MSMEs: Pipe manufacturer Swastik Pipes on Monday said it has received approval from NSE’s SME platform Emerge for its initial public offering (IPO). The company had recently filed a draft red herring prospectus (DRHP) with NSE Emerge. The issue size comprises of issuance of up to 62.51 lakhs equity shares of the face value of Rs 10 each fully paid-up shares through the book-building process, it said.

Swastik Pipes said nearly 40 per cent of the issue will be reserved for qualified institutional buyers (QIB), around 20 per cent for HNIs, and 35 per cent for retail investors. The company has appointed Corporate Capital Ventures Private Ltd as the lead manager for the issue while Skyline Financial Service has been appointed as the Registrar. 

Promoted by Sandeep Bansal, Anupama Bansal, Shashwat Bansal and Geeta Devi Aggarwal, Swastik Pipes manufactures and exports mild steel and carbon steel electric-resistance-welded (ERW) black and galvanized pipes and tubes since 1973. The company has two manufacturing plants in Haryana and Uttar Pradesh with a production capacity of 20,000 MT per month and has expanded into the production of solar module mounting structures, steel tubular poles, GI Structure of rural electrification etc., according to a company statement. 

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The company counts Reliance Industries, BHEL, Coal India, DMRC, EIL, Hindustan Zinc, L&T, NALCO, NTPC, ABB Ltd. Etc., among its customers spread across the US, UK, UAE, Australia, Qatar, Germany, Belgium, Mauritius, Ethiopia and Kuwait. 

Meanwhile, NSE had earlier partnered with states including Telangana, Gujarat, etc., in order to encourage MSMEs through knowledge sessions, discussions, seminars, road shows etc., to raise funds by listing on Emerge and also support them in the listing procedure.

However, according to a working paper by the Reserve Bank of India (RBI) in August 2022, even as listed SMEs on BSE SME and NSE Emerge have better profitability ratios, higher return on assets and asset utilisation ratios and also debt-equity ratio in comparison to the smallest 25 per cent of firms listed on main boards, they have lower liquidity as reflected in a lower quick ratio, current ratio and cash to current liabilities. 

The paper had noted that the lack of aftermarket liquidity remains a problem in SME exchanges with the turnover ratios declining significantly even within the first 60 trading days after listing, indicating paltry trading in the SME exchanges in India.

Also read: RBI: HDFC Bank’s digital payments solution for merchants, customers in low network areas shortlisted for on-tap application facility

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