Barflex Polyfilms is a leading manufacturer of COEX films, laminates, and labels that cater to a wide array of industries, including FMCG, pharmaceuticals, construction, and more. With a focus on flexible packaging materials, the company produces 3-layer poly films, 5-layer poly films, vacuum pouches, bulk liners, and PVC shrink labels. Their products serve multiple sectors like processed foods, adhesives, engineering, cosmetics, and pharmaceuticals, ensuring their relevance in the growing demand for high-quality packaging solutions.

Barflex Polyfilms IPO Key Details

The Barflex Polyfilms IPO is a book-built issue totaling ₹39.42 Crores. This consists of a fresh issue of ₹12.31 Crores (20.53 lakh shares) and an offer for sale (OFS) of ₹27.10 Crores (45.16 lakh shares). The price band for the IPO is set between ₹57 and ₹60 per share, with a market capitalization of ₹148.5 Crores at the upper price band of ₹60 per share.

IPO Details:

• Issue Size: ₹39.42 Crores
• Fresh Issue: ₹12.31 Crores
• Offer for Sale: ₹27.10 Crores
• Price Band: ₹57 - ₹60 per share
• Market Capitalization at ₹60: ₹148.5 Crores
• Lot Size: 2,000 shares (retail investors need to invest a minimum of ₹1,20,000)
• HNIs Minimum Investment: ₹2,40,000 (2 lots)

Key IPO Dates:

• Subscription Opens: January 10, 2025
• Subscription Closes: January 15, 2025
• Allotment Date: January 16, 2025
• Listing Date: January 20, 2025

The Grey Market Premium (GMP) for the Barflex Polyfilms IPO is ₹12, indicating a potential listing gain of 20.26%. This shows a strong market interest, and investors might benefit from an immediate uptick in stock price post-listing.

Company Overview & Financial Performance

Barflex Polyfilms has been operating in the flexible packaging industry for over 19 years. The company’s promoter, Mr. Jaiwant Bery, brings more than 37 years of experience in this sector. Under his leadership, the company has demonstrated consistent growth, evidenced by its increasing revenues and profitability.

The revenues from operations for FY2024, ending November 30, 2024, were ₹7,802.09 Lakh, reflecting a steady upward trajectory over the last few years. In FY2023 and FY2022, the company recorded ₹11,612.11 Lakh and ₹11,040.76 Lakh in revenues, respectively.

Profitability and Key Metrics

• EBITDA (FY2024): ₹1,939.29 Lakh, showcasing consistent profitability.
• Profit After Tax (PAT) (FY2024): ₹1,349.28 Lakh, further emphasizing the company’s strong financial standing.
• EPS: The pre-issue EPS stands at ₹7.15, with a post-issue EPS of ₹6.56, indicating that the IPO is priced attractively in relation to earnings.

Valuation and Investment Perspective

The P/E ratio for the pre-issue is 8.39x, while the post-issue P/E ratio is 9.15x. Comparatively, the industry P/E stands at 28x, suggesting that Barflex Polyfilms is fairly priced and offers an attractive valuation relative to industry peers.

Key financial metrics such as Return on Capital Employed (ROCE) of 27.21%, Return on Equity (ROE) of 25.44%, and Return on Net Worth (RoNW) of 25.44% signal strong operational efficiency and robust returns for investors.

Objectives of the IPO

The funds raised from the Barflex Polyfilms IPO will be allocated as follows:

1. ₹23.07 Crores for capital expenditure, including the purchase of additional plant and machinery.
2. General corporate purposes to further strengthen operational capabilities.

IPO Subscription and Live Status

As of January 10, 2025, the Barflex Polyfilms IPO has been subscribed 0.38 times on the first day of the subscription period, indicating moderate investor interest. Investors can track the live subscription status on the NSE platform to get real-time updates on the demand for the shares.

IPO Allotment Process

For investors wishing to check their allotment status post-subscription, the process is straightforward. After the allotment date on January 16, 2025, investors can visit the registrar’s website to verify their allotment status by entering their application number, PAN, or DP Client ID.

Conclusion

Barflex Polyfilms, with its solid track record in the flexible packaging industry, presents a compelling investment opportunity at an attractive valuation. With a strong promoter background, consistent financial performance, and solid market potential, the IPO is fairly priced and could offer a decent return, especially considering the expected listing gains. For risk-tolerant investors, the Barflex Polyfilms IPO offers a chance for listing gains, but due diligence is essential before making any investment decisions.

Recommendation: Risky Investors looking for listing gains should consider applying for the Barflex Polyfilms IPO, especially with the expected GMP indicating potential returns.

For more information, visit https://financesaathi.com.

The Upcoming IPOs in this week and coming weeks are  Kabra Jewels and Laxmi Dental.

The Current active IPO are Sat Kartar Shopping and Barflex Polyfilms.