Surani Steel Tubes IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Nov 17, 2022Surani Steel Tubes Limited, the venture of Vinayak Group is engaged in the business of manufacturing Electric Resistance Welding Mild Steel Pipes in various Specifications, sizes ranging from 20NB to 100NB and also in the trading of the Hot Roll Coil, (HR Coil) and HR slit coils. Surani Steel Tubes IPO comprises of 2484000 Equity shares, face value of Rs.10 each.
Let’s have a detailed review of the company and analytics of the Surani Steel Tubes IPO release date, IPO offer price, subscription, Surani Steel Tubes IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
- Issue Price of this IPO is Rs 51 – Rs 52 . Check the Live Share Price here Surani Steel Tubes Share Price
- To track the performance of this IPO, click on this link – IPO Performance
Surani Steel Tubes IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.9/10 |
| Competitive Edge | 7.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 8.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
Summary of Surani Steel Tubes IPO
Surani Steel Tubes Limited, the venture of Vinayak Group is engaged in the business of manufacturing Electric Resistance Welding Mild Steel Pipes in various Specifications, sizes ranging from 20NB to 100NB and also in the trading of the Hot Roll Coil, (HR Coil) and HR slit coils. The Issue comprises of a Public Issue of 2484000 Equity shares of face value of Rs.10.00 each fully paid up.
From FY 2013-14 to FY 2016-2017, as per the Restated Financial Statements,
- The revenues have increased from INR 3599.92 lakhs in F.Y. 2013–14 to INR 5814.16 lakhs in F.Y. 2014–15, to INR 6845.89 lakhs in F.Y. 2015–16, to INR 7670.08 lakhs in F.Y. 2016-17 and further to INR 10079.72 lakhs in F.Y. 2017–18, reflecting a CAGR of 91.67%.
- The Net value of the company as on March 31, 2018 is Rs. 707.47 Lacs as per Restated Financial Statement.
- The Net Profit after tax for the above – mentioned periods are INR (2.99) lakhs, INR 16.25 lakhs, INR 109.60 lakhs, INR 99.90 lakhs and INR 172.44 lakhs, respectively, showing a growth at a CAGR of 179.94%.
The Promoter of this company is Mukesh Patel, Dinesh Patel, Karshan Patel, Prakash Patel, Mani Patel, Karsanbhai Devjibhai Patel Huf & Prakash Karsanbhai Patel Huf. The lead manager to the issue is Pantomath Capital Advisors Private Limited and the Registrar to this issue is Link Intime India Private Limited.
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Surani Steel Tubes IPO Date
The opening and the closing date of Surani Steel Tubes Limited IPO is Jan 25, 2019 – Jan 29, 2019.
Surani Steel Tubes IPO Subscription [BSE & NSE]
| Day / Date | QIB | NII | RII | Total Subscription |
| Day 1: Jan 25 | – | 0.68x | 0.29x | 0.51x |
| Day 2: Jan 28 | – | 0.93x | 0.47x | 0.74x |
| Day 3: Jan 29 | – | 1.70x | 1.23x | 1.55x |
| – | – | – | – | – |
| – | – | – | – | – |
| Shares Offered or Net Issue | 1,242,000 | 1,242,000 | 2,358,000 |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Surani Steel Tubes IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Surani Steel Tubes IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is Rs 51 – Rs 52.
Surani Steel Tubes IPO Equity Share Offering
2484000 Equity Shares of Rs 10/- each but Issue Price is Rs 52, aggregating up to Rs 12.92 Crores.
Surani Steel Tubes Limited – Company Overview
Surani Steel Tubes Limited, the venture of Vinayak Group is engaged in the business of manufacturing Electric Resistance Welding Mild Steel Pipes in various Specifications, sizes ranging from 20NB to 100NB and also in the trading of the Hot Roll Coil, (HR Coil) and HR slit coils.
Surani Steel Tubes Limited products have wide applications in varied industries like Architectural, Infrastructural, Industrial and Engineering Industry. They rely mainly on Dealers to sell their products and they are also engaged in selling of scraps. They are certified company for Supply and Manufacturing of ERW pipes. For the financial year the company has processed 23792 MT ERW MS pipes. The company has already purchased the land spread over an area of 32019 sq meters situated at Survey Block No. 104, 105, 107 of village sujana muvada, district- Gandhinagar- Gujarat for their new manufacturing facility.
They have their in-house laboratory to test their raw materials and finish products to match their quality standards and specified by the customers.
The Company is promoted by Mukesh Patel, Dinesh Patel, Karshan Patel, Prakash Patel, Mani Patel, Karsanbhai Devjibhai Patel Huf & Prakash Karsanbhai Patel Huf and is the guiding force behind the growth and strategic decisions of the Company.
Competitive Strengths of Surani Steel Tubes Limited:
- Experienced Management and Operational Team
- Wide array of Quality Products and Services
- Focus on quality and innovation
- Established sales and distribution network in Gujarat
- Locational advantage
- Diversified Product range
Business strategies of Surani Steel Tubes Limited:
- Setting up of new manufacturing facility that will increase their product range.
- Augment their working capital base in order to better utilise their installed capacities.
- Focus on continuously increasing their quality standards
- Optimum capacity utilisation
- Continuing innovation, upgrading technology
- Enhance customer base by entering new geographies.
Surani Steel Tubes Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Lakhs) | |||||
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 3528.36 | 2836.35 | 2298.30 | 1594.83 | 1541.34 |
| Total Revenue | 10079.72 | 7678.08 | 6845.89 | 5814.16 | 3599.92 |
| Total Expense | 9800.73 | 7493.58 | 6686.38 | 5789.75 | 3604.27 |
| Profit After Tax | 172.44 | 99.90 | 109.60 | 16.25 | (2.99) |
Earnings per Equity Share (in Lakhs)
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Basic & Diluted | 3.44 | 2.00 | 2.19 |
From the above statements, one could find that the Surani Steel Tubes Limited may perform well.
Surani Steel Tubes IPO – Promoters
The Promoters of this company are:
- Mukesh Patel
- Dinesh Patel
- Karshan Patel
- Prakash Patel
- Mani Patel
- Karsanbhai Devjibhai Patel Huf
- Prakash Karsanbhai Patel Huf
List of Related Parties (Key Managerial Personnel)
- Gaurav Patel
- Maulik Dixit
- Mukesh Patel
- Dinesh Patel
- Karshan Patel
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Surani Steel Tubes IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Upto 2484000 Equity Shares of face value of Rs.10/- each fully paid of the Company for cash at price of Rs 52. |
| Of which: | |
| Reserved for Market Makers | Upto [●] Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 52. |
| Net Issue to the Public | Upto [●] Equity Shares of face value of Rs.10/- each fully paid of the Company for cash at price of Rs. [●]/- per Equity Share aggregating Rs. [●] lakhs. |
| Of which: | |
| Retail Investors Portion | [●] Equity Shares of face value of Rs. 10/- each fully paid of the Company at a cash price of Rs. [●]/- per Equity share aggregating Rs. [●] Lakhs will be available for allocation to Investors up to Rs. 2.00 Lakhs |
| Non-Retail Investors Portion | [●] Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of [●]/- per Equity Share aggregating Rs. [●] lakhs will be available for allocation to investors above Rs. 2.00 Lakhs |
| Equity Shares outstanding prior to the Issue | 58,00,000 Equity Shares of face value of Rs.10 each |
| Equity Shares outstanding after the Issue | [●] Equity Shares of face value of Rs.10 each |
Surani Steel Tubes IPO Issue Object
These are the IPO Issue Objects of the company
- Funding the Working Capital requirements of the Company:
- Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
- General Corporate Purposes
Surani Steel Tubes IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Experienced Management and Operational Team
- Wide array of Quality Products and Services
- Focus on quality and innovation
- Established sales and distribution network in Gujarat
- Locational advantage
- Diversified Product range
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | 2.19 | 29.70 | – |
| 31-Mar-17 | 2.00 | 21.31 | – |
| 31-Mar-18 | 3.44 | 16.56 | 17.95 |
- Industry P/E Ratio:
| Particulars | P/E ratio |
| Highest | 32.48 |
| Lowest | 19.09 |
| Average | 24.72 |
- Competitive Peers:
| Sr. No. | Particulars | Face Value (in Rs.) | EPS (In Rs.) Basic | EPS (In Rs.) Diluted | P/E Ratio | RONW (%) | NAV (In Rs.) |
| 1 | Surani Steel Tubes Limited | 10 | 3.44 | 3.44 | [●] | 16.56 | 17.95 |
| 2 | Rama Steel Tubes Limited | 5 | 6.34 | 6.34 | 19.09 | 14.25 | 44.26 |
| 3 | Hi-tech Pipes Limited | 10 | 14.13 | 12.88 | 22.6 | 13.82 | 100.34 |
| 4 | APL Apollo Tubes Limited | 5 | 47.63 | 46.76 | 32.48 | 12.44 | 381.62 |
Surani Steel Tubes IPO Lead Managers
| Lead Managers |
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra East, Mumbai – 400 051, Maharashtra, India Tel: +91 22 6194 6700 Fax: +91 22 2659 8690 Website:www.pantomathgroup.com Email: ipo@pantomathgroup.com Investor Grievance Id: ipo@pantomathgroup.com Contact Person: Hardik Bhuta SEBI Registration No:INM000012110 |
Surani Steel Tubes IPO Registrar to offer
| Registrar to the Offer |
| LINK INTIME INDIA PRIVATE LIMITED C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai- 400 083, Maharashtra, India Tel: +91 22 49186200 Fax: +91 22 49186195 Email: suranisteel.ipo@linkintime.co.in Website: www.linkintime.co.in Investor Grievance Id: suranisteel.ipo@linkintime.co.in Contact Person: Shanti Gopalkrishan SEBI Registration No.: INR000004058 |
Other Details:
- Statutory Auditor – M/s. Jethaliya & Associates Chartered Accountants
- Peer Review Auditor – M/s. S.N Shah & Associates
- Bankers to the Company – State Bank Of India
Surani Steel Tubes IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Surani Steel Tubes IPO Grey Market Premium
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