Barflex Polyfilms, a leading player in the flexible packaging industry, is set to launch its IPO to raise ₹39.42 Crores, which consists of a fresh issue of ₹12.31 Crores (20.53 lakh shares) and an offer for sale worth ₹27.10 Crores (45.16 lakh shares). This IPO, opening on January 10, 2025, and closing on January 15, 2025, is available in the price band of ₹57 to ₹60 per equity share. The company has a strong presence in COEX films, laminates, and labels used across several industries, including FMCG, processed foods, pharmaceuticals, and construction.

The lot size for the IPO is set at 2,000 shares, and retail investors must invest a minimum of ₹1,20,000. For HNIs, a minimum of 2 lots (4,000 shares) is required, which amounts to ₹2,40,000. The IPO is expected to be listed on the NSE SME platform by January 20, 2025.

Key Highlights of Barflex Polyfilms IPO

GMP and Listing Expectations
The Grey Market Premium (GMP) of Barflex Polyfilms IPO has been fluctuating, showing a premium of ₹12 (20.00%) as of January 15, 2025. This reflects a potential listing gain of around 20%. However, the GMP is purely speculative and based on market dynamics, without any real price discovery.

Subscription & Demand
As of the final subscription day, January 15, 2025, the Barflex Polyfilms IPO was subscribed a remarkable 140.73 times, showing high demand. The high demand indicates strong investor interest in the stock, especially given the company's position in the flexible packaging market.

IPO Proceeds & Purpose
Barflex Polyfilms intends to use the net proceeds from the IPO primarily for capital expenditure, including the purchase of additional plant and machinery. A portion of the funds will also be allocated for general corporate purposes. The company's EBITDA for the period ending November 30, 2024, was ₹1,939.29 Lakh, showing steady growth.

Financial Performance & Valuation

For FY24, Barflex Polyfilms achieved revenues of ₹7,802.09 Lakh, with a Profit After Tax (PAT) of ₹1,349.28 Lakh, highlighting a consistent growth trajectory. The company has a pre-issue P/E ratio of 8.39x and post-issue P/E ratio of 9.15x, both of which are significantly below the industry average of 28x, indicating the stock is fairly priced. Furthermore, the company’s ROCE (27.21%) and ROE (25.44%) suggest robust financial performance.

Why You Should Consider Barflex Polyfilms IPO

Given Barflex Polyfilms’ track record of 19 years in the flexible packaging industry, coupled with steady financial growth, the IPO presents an interesting option for risk-tolerant investors. The strong GMP, favorable financial metrics, and industry position make this IPO a potential listing gain opportunity.

However, like all IPOs, it comes with risks, and investors should assess their own risk tolerance before applying. If you are a risk-seeking investor looking for listing gains, this IPO could be an opportunity to capitalize on the high demand.

For more Real-time Updates, visit .https://financesaathi.com

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

The Upcoming IPOs in this week and coming weeks are  EMA Partners, and Capital Numbers.