Issue Price: Rs. 90

Listing Strategy: EXIT

The issue received a satifactory response as it got subscribed 7.41 times with maximum participation by the HNI investors (30.50 times) while retail subscription was at 7.07 times.

While the business potential in the segment appears satisfactory, the company is yet to fully utilize the installed capacity for which it has also earmarked IPO funds to further undertake massive capacity expansion. Notably, the capacity utilization for FY 2009 has been low (PVC pipes - 33.7 percent & HDPE pipes - 25  per cent).

The comparative valuations favor its peers. While its competitors such as Kisan Moulding, Precision pipes, Tulsi Extrusion command below10-11 times their earnings, Texmo Pipes P/E of over 15 appears a trifle steep.

Those who had applied for the issue would do well to exit post listing.

Background Note:

Texmo Pipes and Products Limited (TPPL) is engaged in the production of PVC and HDPE pipes and has has two units in Madhya Pradesh and with total capacities of 25,094 metric tonnes per annum (mtpa) 11023 mtpa respectively.. It has 169 exclusive dealers across states like Madhya Pradesh, Maharashtra, Rajasthan, UP, Andhra Pradesh and Gujarat.