Surani Steel Tubes IPO Review

Surani Steel Tubes IPO Review

Surani Steel Tubes IPO ReviewSurani Steel Tubes Limited is engaged in the business of manufacturing and supplying best ERW (Electric Resistance Welding) pipes and Steel Tubes. This is mainly Gujarat based company. Let’s have a look at the issue details of the company, after that we will move to Surani Steel Tubes IPO Review.

Surani Steel Tubes IPO Review Issue Details :

  • IPO Opens on – January 25, 2019.
  • IPO Closes on – January 29, 2019.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. – Rs. Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – Nil.
  • Minimum Order Quantity – Nil.
  • Retail Allocation – 50%
  • Issue Size – 2,358,000 Equity Shares of Rs. 10 aggregating up to Rs. [.] Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue of the Company :

  • The main object of the issue is funding the working capital requirements for this company.
  • Surani Steel Tubes’s General Corporate Purposes.

About The Company –

  • Surani Steel Tubes Limited was incorporated in 2012.
  • This company has a manufacturing plant at Dahegam, Gandhinagar, Gujarat spread across 8300 square meters of land having installed capacity of 25,000 MT Per Annum.
  • Surani Steel Tubes Limited is an ISO 9001:2015 certified Company for manufacturing and Supply of ERW Pipes.
  • This company’s products have applications in varied industries like Architectural, Infrastructural, Industrial and Engineering Industry.
  • Surani Steel Tubes Limited also trades in Hot Rolled Coil and HR slit coils.
  • This company has entered into agreements with over 300 dealers across Gujarat.
  • Surani Steel Tubes Limited also generates revenues from the sale of scraps.

Surani Steel Tubes Limited

Products of This company –

  • Square and Rectangle Hollow Section –

Counted among the foremost organizations, this company are engaged in manufacturing and supplying excellent quality Electric Resistance Welded Pipe. The product of Surani Steel Tubes Limited is highly demanded in the market. This company’s welded pipe is thoroughly tested by their team of quality inspectors on various parameters. Electric Resistance Welded Pipe is widely being used in plumbing, water supply systems and oil and gas transmission system.

  • ERW Round Pipes and Tubes –

Surani Steel Tubes Limited hold immense pleasure in introducing themselves as one of the trusted manufacturers and suppliers of a wide range of MS Pipes. These pipes are precisely engineered in their manufacturing units employing latest machines and advanced technology. This company’s range is highly applauded for its high tensile strength, dimensional accuracy, and corrosion resistance. MS Pipes are widely being used in irrigation, oil, water and gas transmission system, sewage system and boilers. Surani Steel Tubes Limited with the help of adroit professionals bring forth for their customers an excellent gamut of Steel Tubes. Procured from authentic vendors, these tubes of this company are manufactured using premium quality steel. As these tubes of this company have high strength and corrosion resistance, these are widely being used in underground transportation of water and gas. Surani Steel Tubes Limited’s product is highly acknowledged for its study design, leak-proof nature, and durability. This company offers these Steel Tubes in various sizes and diameters.
  • MS Slit Coils and Strips –

Surani Steel Tubes Limited have acquired the acumen and expertise in manufacturing and supplying a wide range of Mild Steel Coils. To ensure their high tensile strength and corrosion resistance, also this company offered coils are manufactured using high-grade steel. These coils of Surani Steel Tubes Limited are extensively being used in agriculture, constructional, medical and various other engineering industries. To meet the varied industrial demands, this company offer these Mild Steel Coils in various standard and customized sizes and specifications.

Location :

Registered Office and UNIT-I –

Surani Steel Tubes Limited –
Sr.No 110,115 Opp Vinayak TMT,
Bayad Road, Village Sampa
Ta.: Dahegam, Dist.: Gandhinagar – 382315 (Gujarat), India.

Join Our Team For Rocket Calls

Phone : +91 9099 759 497/+91 9825 515 372.

UNIT-II

Surani Steel Tubes Limited
Sr.No 107,104,105 Sampa Lavad Road,
At-Sujan Muvada
Ta.: Dahegam, Dist.: Gandhinagar – 382315 (Gujarat) India.

The promoter of Surani Steel Tubes Limited :

  • Mukesh Patel, aged 40 years, is the Promoter and Joint Managing Director of this Company.
  • Dinesh Patel, aged 30 years, is the Promoter and Joint Managing Director of this Company.
  • Karshan Patel, aged 63 years, is the Promoter and Non-Executive Director of this Company.
  • Prakash Patel, aged 36 years, is the Promoter of this Company.
  • Mani Patel, aged 61 years, is the Promoter of this Company.
  • Karsanbhai Devjibhai Patel Huf is one of the Promoters of this Company.
  • Prakash Karsanbhai Patel Huf is another Promoter of this Company.

The Board of Directors of this company :

  • Mukesh Patel, aged 40 years, is the Promoter and Joint Managing Director of this Company.
  • Dinesh Patel, aged 30 years, is the Promoter and Joint Managing Director of this Company.
  • Karshan Patel, aged 63 years, is the Promoter and Non-Executive Director of this Company.
  • Hetika Kinger, aged 24 years, is the Additional-Independent Director of this Company.
  • Dinesh Dhanji Patel, aged 48 years, is an Additional-Independent Director of this Company.

Competitive Strengths of Surani Steel Tubes Limited :

  • The main strength of Surani Steel Tubes Limited is their Experienced Management and Operational Team.
  • A wide array of Quality Products and Services are another strength of this company.
  • Surani Steel Tubes Limited’s main focus on quality and innovation.
  • One of the strengths of this company is Established sales and distribution network in Gujarat.
  • The locational advantage is also the strength of Surani Steel Tubes Limited.
  • The diversified Product range of this company.

Business Strategies for this company :

  • The main business strategy of Surani Steel Tubes Limited is Setting up a new manufacturing facility that will increase their product range.
  • Augment their working capital base in order to better utilize their installed capacities is another strategy of this company.
  • Surani Steel Tubes Limited main focus on continuously increasing their quality standards.
  • Optimum capacity utilization of this company.
  • Surani Steel Tubes Limited’s one of the strategy is continuing innovation, upgrading technology.
  • Enhance customer base by entering new geographies of this company.

Company Financials :

The Company Financial is the most important part of the content Surani Steel Tubes IPO Review.

Surani Steel Tubes IPO

Surani Steel Tubes IPO Review :

Now, come to the most important part of the article, Surani Steel Tubes IPO Review. The above statement is derived from the annual profit-loss sheets of the company. The chart contains the past 5 years performance which reflects the company is gradually developing. Last FY 2018 profit was 172.44 lakhs which is much higher than the previous years. Now, have a look at the DRHP (draft red herring prospectus), from there, you can analyze the fundamental data of the company. Basic and Diluted EPS (earnings per share) was at the level of 3.44 as of March 18. The prospectus does not reveal the P/E ratio of the company. Return on Net Worth (RnOW) of the company is 16.56 and NAV/Share is 17.95 as per the latest FY18 data. Therefore, based on our analysis, Surani Steel Tubes IPO Review carries a NEUTRAL view. Investors may try for it but at a long term view and at their own risk.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.