Anya Polytech & Fertilizers IPO: Detailed Analysis of Upcoming Offering

Anya Polytech & Fertilizers Limited (APFL), a leader in the fertilizer and bag manufacturing industries, has launched its Book Built Issue IPO, targeting a total amount of ₹44.80 crores. This issue consists of 320.00 lakh shares, with a price band of ₹13 to ₹14 per equity share. The IPO will open on December 26, 2024, and close on December 30, 2024, with the allotment expected by December 31, 2024, and listing set for January 2, 2025 on the NSE SME platform.

IPO Details and Subscription Status

The Anya Polytech IPO has garnered significant attention, and as of December 27, 2024, it has been subscribed 26.22 times on its second day of the subscription period. The lot size for the IPO is 10,000 shares, and retail investors are required to invest a minimum of ₹1,40,000. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,80,000 (2 lots).

The Market Capitalization at the IPO price of ₹14 per share stands at ₹168.00 crores, with a Grey Market Premium (GMP) of ₹5, signaling a 35.71% expected listing gain. The expected listing price for the shares is ₹19, which reflects a positive market sentiment for the company.

Anya Polytech & Fertilizers: Business and Leadership

Anya Polytech & Fertilizers has positioned itself as one of India’s premier companies in the fertilizer and bag manufacturing industry. With a remarkable annual production capacity of 750 lakh bags (75 million bags), Anya is a leading player in the fertilizer sector while also providing innovative environmental solutions.

Under the leadership of Mr. Yashpal Singh Yadav, the Promoter, Chairman, and Managing Director, Anya has leveraged over 15 years of expertise in the plastic packaging and fertilizer industries. His experience has been instrumental in the company’s strategic growth and market penetration.

Financial Performance and Valuation Insights

Analyzing Anya Polytech’s financial performance, the company has shown a consistent upward trajectory in its revenues. For the fiscal year ending June 30, 2024, Anya posted revenues of ₹4,073.32 lakhs, with an EBITDA of ₹249.23 lakhs and a Profit After Tax (PAT) of ₹453.69 lakhs. The company’s strong financial performance is reflected in its ability to maintain profitability year over year.

In terms of profitability, Anya Polytech has a Return on Capital Employed (ROCE) of 16.47%, and a Return on Equity (ROE) of 28.25% for FY24. These figures suggest a strong potential for long-term growth. The P/E ratio for the pre-issue is 12.84x, while the post-issue P/E ratio is 16.84x, which is below the industry P/E ratio of 32x, indicating the IPO is reasonably priced.

Investment Recommendation

Given the financial metrics and valuation, along with the 35.71% expected listing gain, the Anya Polytech IPO is an attractive option for risky investors looking to capitalize on potential listing gains. The Grey Market Premium (GMP) signals optimism about the company’s performance post-listing, making it a promising investment for those with a higher risk appetite.

While the P/E ratio and ROE suggest that the company is priced fairly compared to industry peers, investors should consider their risk tolerance before proceeding. This IPO could deliver substantial returns for those looking for short-term gains, but it is essential to assess market conditions before making a decision.

The Upcoming IPOs in this week and coming weeks are Indo Farm, Technichem Organics, Leo Dry Fruits, Solar91 Cleantech, Rosmerta Digital and Avanse Financial.

 and .The Current active IPO is Citichem IndiaAnya Polytech

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