L K Mehta Polymers Ltd has built a legacy in the Indian plastic rope and twine industry that spans three generations. From its inception, the company has been driven by a commitment to excellence that has been passed down through the years, evolving and adapting to meet the changing needs of the market.
L.K. Mehta Polymers, an Fixed Price Issue amounting to ₹ 7.38 Crores, consisting an entirely Fresh Issue of 10.40 Lakh Shares. The subscription period for the L.K. Mehta Polymers IPO opens on February 13, 2025, and closes on February 17, 2025. The allotment is expected to be finalized on or about Tuesday, February 18, 2025, and the shares will be listed on the BSE SME with a tentative listing date set on or about Friday, February 21, 2025.
The Share price of L.K. Mehta Polymers IPO is set at ₹ 71 per equity share. The Market Capitalisation of the L.K. Mehta Polymers Limited at IPO price of ₹ 71 per equity share will be ₹ 27.26 Crores. The lot size of the IPO is 1,600 shares. Retail investors are required to invest a minimum of ₹ 1,13,600, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (3,200 shares), amounting to ₹ 2,27,200.
SWASTIKA INVESTMART LIMITED is the book running lead manager of the L.K. Mehta Polymers IPO, while Bigshare Services Private Limitedis the registrar for the issue. Swastika Investmart Limited is the Market Maker for L.K. Mehta Polymers IPO.
L.K. Mehta Polymers LimitedIPO GMP Today
The Grey Market Premium of L.K. Mehta Polymers Limited IPO is expected to be ₹ 0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.
L.K. Mehta Polymers LimitedIPO Live Subscription Status Today: Real-Time Update
As of 07:00 PM on 17 February, 2025, the L.K. Mehta Polymers Limited IPO live subscription status shows that the IPO subscribed 42.49 times on its Final day of subscription period. Check the L.K. Mehta Polymers IPO Live Subscription Status Today at BSE.
L.K. Mehta Polymers LimitedDay Wise IPO GMP Trend
Date
IPO Price
Expected Listing Price
GMP
Last Updated
8 February 2025
₹ 71
₹ 71
₹ 0 (0.00%)
03:00 PM; 8 Feb 2025
L.K. Mehta Polymers Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online L.K. Mehta Polymers IPO allotment date is 18 February, 2025, Tuesday. L.K. Mehta Polymers IPO Allotment will be out on 18 February, 2025 and will be live on Registrar Website from the allotment date. Check L.K. Mehta Polymers IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select L.K. Mehta PolymersLimited IPO from the dropdown list of IPOs
- Enter your application number, PAN, or DP Client ID
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.
Objectives of L.K. Mehta Polymers LimitedIPO
L.K. Mehta Polymers proposes to utilise the Net Proceeds towards the following objects: 1. ₹ 534.00 Lakhs is required to Meet Incremental Working Capital Requirement; 2. ₹ 134.40 Lakhs is required for General Corporate Purpose
10,40,000 Equity Shares (aggregating to ₹ 7.38 Cr)
Fresh Issue
10,40,000 Equity Shares (aggregating to ₹ 7.38 Cr)
Offer for Sale
NIL
Issue Type
Fixed Price Issue
Listing At
BSE SME
Share holding pre issue
28,00,000
Share holding post issue
38,40,000
L K Mehta Polymers IPO Lot Size
Application
Lots
Shares
Amount
Retail (Min)
1
1,600
₹1,13,600
Retail (Max)
1
1,600
₹1,13,600
S-HNI (Min)
2
3,200
₹2,27,200
S-HNI (Max)
8
12,800
₹9,08,800
B-HNI (Min)
9
14,400
₹10,22,400
L K Mehta Polymers IPO Timeline (Tentative Schedule)
IPO Open Date
Thursday, 13 th February, 2025
IPO Close Date
Monday, 17th February, 2025
Basis of Allotment
Tuesday, 18th February, 2025
Initiation of Refunds
Wednesday, 19th February, 2025
Credit of Shares to Demat
Wednesday, 19th February, 2025
Listing Date
Thursday, 20th February, 2025
Cut-off time for UPI mandate confirmation
5 PM on 17th February, 2025
L K Mehta Polymers IPO Reservation
Investor Category
Shares Offered
Reservation %
Non-Institutional Investor Portion
4,92,800
50% of the Net Issue
Retail Shares Offered
4,92,800
50% of the Net Issue
Market Maker Portion
54,400
-
L K Mehta Polymers IPO Promoter Holding
Share Holding Pre Issue
100.00%
Share Holding Post Issue
72.92%
L K Mehta Polymers IPO Subscription Status
Investor Category
Shares Offered
Shares Bid For
No oF Times Subscribed
Non Institutional Investors(NIIS)
5,47,200
2,11,87,200
38.72
Retail Individual Investors (RIIs)
4,92,800
2,27,93,600
46.25
Total
10,40,000
4,39,80,800
42.29
About L K Mehta Polymers Limited
Business Overview
L.K. Mehta Polymers Limited is actively engaged in the trading and manufacturing of a comprehensive range of plastic products, catering to the diverse needs of customers. The product portfolio includes a wide variety of ropes and twines, such as monofilament ropes, danline ropes, tape ropes, baler twines, and packaging twine (sutli). Additionally, the company is involved in the trading and reprocessing of raw materials, including polypropylene granules and polyethylene granules, serving various industries.
A significant milestone was achieved in 2002 with the expansion of operations through the establishment of a new production unit, which commenced operations in 2004. This unit specialized in woven sack bags and pipes, marking a strategic move to diversify the product range and strengthen its industry presence. Despite facing challenges in securing a high-power electricity supply, the company successfully operated the unit until 2022, when it was subsequently transferred.
The company continues to emphasize innovation and excellence, navigating industry challenges while maintaining a steady growth trajectory. Products are marketed under the brand name “Super Pack”, which has become synonymous with superior quality and reliability. The establishment of this brand reinforced L.K. Mehta Polymers Limited as a distinguished player in the market, setting it apart from competitors. With extensive experience and adherence to high standards, the company meets major industry specifications and customer requirements.
The Company has total 21 employees as at January 25th, 2025, with an increase in the operation capacities or execution of any expansion projects in future, they expect increase in such number of employees and labours. The Banker to the Company is Central Bank of India.
Industry Analysis
India’s Rope Market (2024-2030) Outlook
India Rope Market registered a growth of 0.24% in value shipments in 2022 as compared to 2021 and an increase of 10.51% CAGR in 2022 over a period of 2017. In Rope Market India is becoming less competitive as HHI index in 2022 was 1566 while in 2017 it was 1122. Herfindahl Index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means less numbers of players or countries exporting in the market. India has reportedly relied more on domestic production to meet its growing demand in Rope Market.
India Rope market currently, in 2023, has witnessed an HHI of 1628, which has decreased substantially as compared to the HHI of 2919 in 2017. The market is moving towards moderately competitive. Herfindahl index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means fewer numbers of players or countries exporting in the market.
Business Strengths
1. Experienced Promoters:
The promoters of L.K. Mehta Polymers Limited possess extensive knowledge of various products and technologies within the plastic industry. Their over three decades of experience in the manufacturing and trading segments have played a pivotal role in the company’s consistent growth. Their deep understanding of the business enables the company to capitalize on market opportunities effectively.
2. Generational Management:
With a rich heritage and deep-rooted tradition of entrepreneurship, the company has successfully navigated industry challenges across three generations. This multi-generational involvement reflects a commitment to the company's core values, long-term vision, and sustainability. The experience, knowledge, and expertise passed down over time have significantly contributed to its continued success and adaptability in the market.
3. Commitment to Quality Service:
Stringent systems are in place to ensure timely product delivery with minimal errors. High product quality has contributed to customer goodwill, retention, and repeated orders. A well-structured internal process ensures that client orders are meticulously checked at each stage, from order placement to final delivery. Maintaining consistent service quality has played a crucial role in building long-term customer loyalty.
4. High Level of Customer Satisfaction:
Customers express high satisfaction with the company's services, including order placement, product quality, timely deliveries, and an effective complaint redressal mechanism. The ease of placing orders and a strong customer service approach have been instrumental in expanding the customer base and enhancing overall market reputation.
5. Strong Client Relationships:
Existing long-term client relationships drive repeat business and customer retention. A strong customer network provides a competitive edge in acquiring new clients while strengthening relationships with existing ones. The ability to secure multiple repeat orders highlights the company’s commitment to customer trust and service excellence.
Business Strategies
1. Emphasis on Quality Standard Products:
Product quality remains a top priority from both a customer satisfaction and business growth perspective. The company focuses on offering products that comply with requisite quality standards and regulatory norms. Delivering high-quality products enhances the company's market reputation and strengthens long-term customer relationships.
2. Strong Relationships with Suppliers, Customers, and Employees:
Maintaining cordial relationships with suppliers, customers, and employees is a key factor in sustaining business growth. A dedicated and focused approach, coupled with efficient and timely product delivery, has helped build strong, long-term relationships over the years. Repeated orders from both customers and suppliers reflect the trust and reliability established in business operations. Since most clients and suppliers are local, personal attention and direct communication further strengthen mutually beneficial relationships and enhance overall performance and collaboration.
3. Diversification and Expansion of Geographical Reach:
Currently operating in the domestic market, the company aims to expand its business globally to drive revenue growth. The business strategy focuses on ethical integrity and prudent operational decisions, positioning the company advantageously within the industry. Expanding into new geographical markets will create additional opportunities and strengthen its competitive position
Business Risk Factors and Concerns
1. Geographical Concentration Risk:
The company’s domestic sales are heavily dependent on five key states: Madhya Pradesh, Uttar Pradesh, Bihar, Assam, and Rajasthan. A significant portion of revenue—92.89% (as of December 31, 2024, and March 31, 2024), 95.55% (FY 2023), and 96.79% (FY 2022)—is generated from these regions. Any disruption in sales within these states could substantially impact overall revenue and business operations.
2. Revenue Dependency on Gold and Related Products:
A portion of the company’s operational revenue is derived from the sale of gold and related products. This segment contributed 17.70% (as of December 31, 2024), 21.24% (FY 2024), 35.61% (FY 2023), and 29.59% (FY 2022) of total revenue. Fluctuations in demand, market volatility, or regulatory changes in this sector could impact overall financial performance.
3. Dependence on Debt and Financial Liquidity Constraints:
The manufacturing operations require substantial working capital, which is met through internal accruals, creditors, and borrowed funds. Expansion in operations and production may necessitate additional borrowing, leading to a higher financial burden. Increased debt obligations may result in cash flow constraints, limiting the availability of funds for capital expenditures and corporate initiatives. Additionally, a high debt level places the company at a competitive disadvantage compared to financially stronger competitors. The ability to generate sufficient cash flow or secure refinancing options remains a critical risk factor.
L.K. Mehta Polymers Limited faces key business risks, including geographical concentration, with over 92% of revenue dependent on five states. Additionally, a significant portion of revenue comes from the sale of gold and related products, making the company susceptible to market fluctuations. The reliance on debt for working capital poses financial risks, potentially impacting profitability and operational flexibility. These factors highlight the importance of diversification and financial management to sustain long-term growth.
L K Mehta Polymers Limited Financial Information (Restated Consolidated)
Amount in (₹ in Lakh)
Period Ended
Dec 31, 2024
Mar 31, 2024
Mar 31, 2023
Mar 31, 2022
Reserve of Surplus
93.56
239.29
153.73
154.49
Total Assets
1,186.70
1,049.31
720.06
823.30
Total Borrowings
668.86
648.03
389.71
439.40
Fixed Assets
94.21
103.18
93.44
105.45
Cash
3.60
10.71
1.06
1.05
Net Borrowing
665.26
637.32
388.65
438.35
Revenue
1,198.15
1,887.40
1,713.80
1,193.67
EBITDA
115.34
172.55
52.12
72.11
PAT
41.77
85.56
-0.76
4.08
EPS
1.49
3.42
-0.03
0.16
Note 1:- RoE, ROCE & RoNW calculation in KPI is based on 31st Mar, 2024 Data, given in RHP. Note 2:- Pre EPS and Post EPS calculation in KPI is based (Profit/Loss for the Year) on 31st Mar, 2024 Data, given in RHP. Note 3:- RoNW calculation in KPI is based on 31st Mar, 2024 Data, given in RHP. Note 4:- Price to Book Value calculation in KPI is based on Cap Price Post Offer, given inRHP.
Key Performance Indicator
KPI
Values
EPS Pre IPO (Rs.)
₹3.42
EPS Post IPO (Rs.)
₹2.23
P/E Pre IPO
20.76
P/E Post IPO
31.87
ROE
28.35%
ROCE
16.00%
P/BV
2.70
Debt/Equity
2.15
RoNW
28.35%
L K Mehta Polymers Limited IPO Peer Comparison
Company Name
EPS
ROCE
ROE
P/E (x)
P/Bv
Debt/Equity
RoNW (%)
L.K. Mehta Polymers Limited
₹ 2.23
16.00 %
28.35 %
31.87
2.70
2.15
28.35 %
The Company does not have exact comparable listed peer, therefore information related to peer group
₹
%
%
-
-
-
%
L K Mehta Polymers Limited Contact Details
L.K.MEHTA POLYMERS LIMITED
1103/2, Mhow-Neemuch Road, Ratlam, Madhya Pradesh, India, 457001 Contact Person : Ms. Pooja Wadhwani Telephone : +91-9669903095 Email ID : cs@lkmehtapolymersltd.com Website :https://lkmehtapolymersltd.com/
L K Mehta Polymers IPO Registrar and Lead Manager(s)
Registrar : Bigshare Services Private Limited Telephone : +91-22-62638200 / +91-22- 62638299 Contact Person : Mr. Babu Rapheal C Email ID : ipo@bigshareonline.com Website :https://www.bigshareonline.com/
Lead Manager : SWASTIKA INVESTMART LIMITED Telephone : +91-22-26254568-69 / 0731- 6644244 Contact Person : Mr. Mohit R. Goyal Email ID : merchantbanking@swastika.co.in Website :https://www.swastika.co.in/
L K Mehta Polymers IPO Review
L K Mehta Polymers Ltd has built a legacy in the Indian plastic rope and twine industry that spans three generations. From its inception, the company has been driven by a commitment to excellence that has been passed down through the years, evolving and adapting to meet the changing needs of the market.
The Company is led by Promoters, MR. KAMLESH MEHTA, having over 29 years of deep-rooted experience in the polymer industry, Mr. Mehta stands as a pivotal figure and a key promoter of L.K.Mehta Polymers Limited and RINA MEHTA, having 2 years of experience in the polymer industry is an exceptional individual whose talents and contributions span across various domains.
The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,198.15 Lakh, ₹ 1,887.40 Lakh, ₹ 1,713.80 Lakh and ₹ 1,193.67 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 115.34 Lakh, ₹ 172.55 Lakh, ₹ 52.12 Lakh, and ₹ 72.11 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 41.77 Lakh, ₹ 85.56 Lakh, ₹ -0.76 Lakh, and ₹ 4.08 Lakh respectively. This indicates a steady growth in financial performance.
The Company Key Performance Indicates the pre-issue EPS of ₹ 3.42 and post-issue EPS of ₹ 2.23 for FY24. The pre-issue P/E ratio is 20.76x, while the post-issue P/E ratio is 31.87x. The company's ROCE for FY24 is 16.00%, ROE for FY24 is 28.35% and RoNW 28.35%. The Annualised EPS based on the latest financial data is ₹ 1.98 and PE ratio is 35.73x. These metrics suggest that the IPO is fully priced.
The Grey Market Premium (GMP) of L.K. Mehta Polymers showing listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the L.K. Mehta Polymers Limited IPO for Listing gain.
Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information.
About the Author CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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