Shares of Tijaria Polypipes , a plastic pipes manufacturer, surged 13% in the opening trade to hit a high of Rs 67.75 on the National Stock Exchange. But, it could not hold those gains for long. It slipped to near its issue price of Rs 60 a share and was hovering around the same.
Total trade volume on both exchanges was nearly 72.6 lakh equity shares as against issue size of one crore shares.
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.
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 company raised Rs 60 crore through the issue.
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