Ideal Technoplast Industries Limited has established itself as a leading manufacturer and supplier of rigid plastic packaging, serving a diverse range of industries since 2012. The company specializes in industrial containers for products like adhesives, lubricants, and oils, offering packaging solutions from 1KG to 20Ltr. With the upcoming Initial Public Offering (IPO), investors have a unique opportunity to explore this niche market player. The subscription period for the IPO is set between August 21, 2024, and August 23, 2024.

IPO Details

The Ideal Technoplast IPO is a Fixed Price Issue worth ₹16.03 crores, consisting entirely of a Fresh Issue of 13.25 lakh shares. Priced at ₹121 per share, the IPO requires retail investors to make a minimum investment of ₹121,000 for a lot size of 1,000 shares. High-Net-Worth Individuals (HNIs) must invest ₹242,000 for 2,000 shares. The allotment is expected to be finalized on August 26, 2024, with the shares slated to list on the NSE SME platform by August 28, 2024.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Ideal Technoplast Industries Limited IPO is projected to range between ₹10 and ₹15. While GMP offers a speculative view of potential listing gains, it should be interpreted cautiously, as actual market performance may vary. Investors should consider GMP as an informational metric rather than a definitive indicator of success.

Live Subscription Status

As of 4:23 PM on August 23, 2024, the Ideal Technoplast IPO has been subscribed 104.54 times, reflecting strong demand. The high subscription rate underscores significant investor interest, which can be monitored live on the NSE website.

Also Read: Rapid Multimodal Logistics Limited IPO Subscribed 6.78, GMP Soars; Check Allotment & Listing Dates

Allotment Status

The allotment status for the IPO will be available on August 26, 2024. Investors can check their status by following these steps:

Visit the IPO allotment status page.

Select Ideal Technoplast Industries Limited IPO from the dropdown list.

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

Submit the details to view the allotment status.

Company Overview

Founded in 2012, Ideal Technoplast Industries Limited has emerged as a key player in the plastic packaging industry, led by three experienced promoters: Mr. Vipulbhai Dulabhai Mendapara, Mr. Gauravbhai Chhaganbhai Gopani, and Mr. Prafulkumar Karsanbhai Vaghasiya. These directors, based in Surat, bring a combined experience of 12 years in the plastic industry, driving the company's growth and innovation.

Financial Performance

The financial trajectory of Ideal Technoplast has been marked by steady revenue growth and profitability. Revenue increased from ₹569.47 Lakhs in FY21 to ₹1,199.79 Lakhs in FY23, with current earnings at ₹910.91 Lakhs in 11MFY24. EBITDA grew from ₹31.41 Lakhs in FY21 to ₹398.04 Lakhs in 11MFY24. Similarly, PAT improved from ₹9.82 Lakhs in FY21 to ₹135.40 Lakhs in 11MFY24, signaling robust financial health.

The IPO's pre-issue EPS is ₹9.65, with a post-issue EPS of ₹2.70. The pre-issue P/E ratio is 12.53x, while the post-issue P/E ratio is 44.81x, exceeding the industry average P/E of 34x. The company's ROCE for 11MFY24 is 32.95%, and ROE is 43.95%, suggesting the IPO is fully priced.

Investment Recommendation

While the Ideal Technoplast Industries Limited IPO is expected to offer modest listing gains of 10% - 15%, it is considered fully priced relative to its financials and industry peers. Given these factors, investors are advised to avoid this IPO for both short-term gains and long-term investment. The high P/E ratio and relatively limited growth potential in comparison to the industry average indicate that there may be better opportunities elsewhere in the market.

Conclusion

The Ideal Technoplast Industries Limited IPO offers a glimpse into a specialized segment of the packaging industry with a history of stable financial performance. However, given the IPO's pricing and the potential for only modest listing gains, it may not be the most attractive option for investors seeking significant returns. As always, investors should carefully assess their investment strategies and risk tolerance before making decisions.

Also Read: Resourceful Automobile IPO: Allotment Finalised, Listing Tomorrow; GMP Hints Bumper Listing

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 & Upstox.