Jaipur based Tijaria Polypipes ' Rs 60-crore initial public offering has opened for subscription today. The company is offering 1 crore equity shares through the issue at Rs 60 per equity share.
The issue to the public will constitute 42.33% of the fully diluted post-issue equity share capital of the company. The issue will close for subscription on September 29.
Tijaria Polypipes manufactures high-grade HDPE, MDPE and LDPE plastic pipes and sprinkler systems under the brand names of Tijaria and Vikas. At present, the company has an installed manufacturing capacity of 20,664MT HDPE pipes, 7,392MT PVC pipes and 7,200MT of PET flakes & granules per year. Its products are used in irrigation, telecommunication, industrial, infrastructure and housing sectors.
It achieved total sales of Rs 118.59 crore in the financial year 2010-11 and a profit after tax of Rs 6.90 core for the same period.
The company now proposes to expand its current manufacturing capacity and diversify into the manufacturing of polyster zippers long chains, mink blankets & PET sheets and also proposes to manufacture the raw materials required for it. The company will manufacture partially oriented yarn (POY), draw texturised yarn (TY) and monofilament yarn all under one roof. The company plans to set up two new units at industrial areas of Rajasthan Industrial and Investment Corporation (RIICO) at Ramachandrapura and Sitapura Extension, close to Jaipur.
The total project cost is estimated at Rs 108.52 crore. For implementing the new project the promoter group has contributed Rs 8.52 crore as equity capital and the company has arranged a term loan of Rs 40 crore from banks.
The lead manager to the issue is Hem Securities Limited, Mumbai and the registrar to the issue is Sharex Dynamic (India) Pvt. Limited.
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