Boss Packaging Solutions Limited, a prominent player in the packaging machinery industry, is launching its Initial Public Offering (IPO), providing a valuable opportunity for investors. Established in 2012, Boss Packaging has evolved from manufacturing filling and sticker labeling machines to becoming a comprehensive provider of diversified packaging solutions. This detailed guide will cover all critical aspects of the IPO, including the subscription period, share price, allotment status, and Grey Market Premium (GMP).

IPO Structure and Subscription Details

The Boss Packaging IPO is a Fixed Price Issue amounting to ₹8.40 crores, with an issuance of 12.74 lakh shares. The IPO will be open for subscription from August 30, 2024, to September 3, 2024. The allotment is anticipated to be finalized on September 4, 2024, and the shares are expected to be listed on the NSE SME segment on or around September 6, 2024.

The share price is fixed at ₹56 per share, with a minimum lot size of 2,000 shares. Retail investors must invest a minimum of ₹112,000, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹224,000 for 2 lots (4,000 shares).

Grey Market Premium (GMP)

The Grey Market Premium for the Boss Packaging IPO is projected to be between ₹30 and ₹35. This premium reflects informal trading activity and is provided for educational and informational purposes. It does not guarantee the final listing price but helps gauge the market sentiment towards the IPO.

IPO Live Subscription Status

As of 2:55 PM on August 30, 2024, the Boss Packaging Solutions IPO has been subscribed 0.86 times on its first day. Investors can check the live subscription status on the NSE website.

IPO Allotment Status

The IPO allotment date is September 4, 2024. To check the allotment status:

Visit the IPO allotment status page on the registrar’s website.

Select Boss Packaging Solutions Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated as follows:

₹333.70 lakhs for purchasing new machinery.

₹300.00 lakhs to fund working capital requirements.

₹142.14 lakhs for general corporate purposes.

Company Overview and Financial Performance

Boss Packaging Solutions has made significant strides since its inception, expanding its product range to include capping machines, self-adhesive sticker labeling machines, conveyors, turn tables, web sealers, and sleeve applicators. The company has established a robust sales and distribution network across India.

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The company’s leadership team includes:

Kamleshbhai Hasmukhbhai Patel, with over 5 years of experience.

Jagrutiben Manishbhai Brahmbhatt, with 10 years of experience in administrative roles.

Manishbhai Natvarbhai Brahmbhatt and Ketan Suryakantbhai Thakkar, with nearly 15 and 12 years of experience, respectively.

Financially, Boss Packaging has demonstrated a strong growth trajectory:

Revenue increased from ₹548.21 lakhs in FY22 to ₹1,217.54 lakhs in FY24.

EBITDA rose from ₹69.19 lakhs in FY22 to ₹155.57 lakhs in FY24.

PAT grew from ₹41.77 lakhs in FY22 to ₹101.04 lakhs in FY24.

For the IPO, the pre-issue EPS is ₹3.38 and the post-issue EPS is ₹2.27. The pre-issue P/E ratio stands at 19.53x, while the post-issue P/E ratio is 29.07x compared to the industry P/E ratio of 43.38x. The company’s ROCE for FY24 is 28.99%, and ROE is 22.31%, indicating a fair pricing of the IPO.

Investment Recommendation

Considering the Grey Market Premium (GMP) suggesting potential listing gains of 50% - 55%, and the company's solid financial performance, the Boss Packaging Solutions Limited IPO presents an opportunity for investors. Given the potential for significant listing gains, it is recommended that investors with a higher risk appetite consider applying for the IPO for both short-term gains and long-term investment purposes.

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