Jyoti Global Plast Limited, a manufacturer of plastic packaging solutions, is all set to launch its Initial Public Offering (IPO) on August 4, 2025. The IPO will remain open for subscription until August 6, 2025, and consists of a Book Built Issue amounting to ₹35.44 Crores. This includes a Fresh Issue of 43.20 lakh shares worth ₹28.51 Crores and an Offer for Sale (OFS) of 10.50 lakh shares totaling ₹6.93 Crores.

The IPO price band is fixed between ₹62 to ₹66 per share, with a lot size of 2,000 shares. Retail investors are required to apply for a minimum of 2 lots (4,000 shares) amounting to ₹2,64,000. The tentative listing date is set for August 11, 2025, on the NSE SME platform.

The company has appointed Unistone Capital Pvt Ltd as the Book Running Lead Manager, MUFG Intime India Pvt Ltd as the Registrar, and LFC Securities Pvt Ltd as the Market Maker for the issue.

Grey Market Premium (GMP) Trends and Listing Outlook:

The Grey Market Premium (GMP) of Jyoti Global Plast IPO is expected to be ₹6, signaling an approximate listing gain of 9.09%. However, investors are advised that GMP is an unofficial indicator and does not guarantee actual listing performance. It should be viewed for educational and informational purposes only.

Anchor Investors and Institutional Support:

The company has successfully raised ₹10.06 Crores from Anchor Investors at the upper price band of ₹66 per share. A total of 15,24,000 equity shares were allotted to anchor investors, showcasing confidence from institutional participants. Notably, these anchor shares are deducted from the Qualified Institutional Buyers (QIBs) quota.

Objective of the IPO:

Jyoti Global Plast will utilize the net proceeds from the fresh issue for the following objectives:

1. ₹1,116.88 Lakh to partially finance a new manufacturing facility in Raigad, Maharashtra.

2. ₹899.53 Lakh to fund solar power plant capital expenditures.

3. ₹120.00 Lakh to repay or prepay certain borrowings.

4. Remaining proceeds will go towards general corporate purposes.

Company Background and Business Overview:

Established as a reliable player in plastic packaging, Jyoti Global Plast caters to FMCG, pharmaceutical, and F&B sectors. The company has evolved from offering conventional packaging to adopting advanced molding techniques.

The promoters include Bhawanji Shah, a veteran in plastic molding since 1990, along with Deven Shah and Hiren Shah, both of whom have played key roles in business development and financial strategy.

Key management team also includes Karan Deven Shah (CFO since 2020) and Sainyum Hiren Shah who heads Sales and Marketing.

Financial Performance:

The company has posted consistent growth in revenue and profitability over the past three fiscal years:

• FY 2022-23: Revenue ₹8,935.45 Lakh, EBITDA ₹626.52 Lakh, PAT ₹232.36 Lakh

• FY 2023-24: Revenue ₹8,796.41 Lakh, EBITDA ₹862.30 Lakh, PAT ₹361.53 Lakh

• FY 2024-25: Revenue ₹9,379.79 Lakh, EBITDA ₹1,212.35 Lakh, PAT ₹608.06 Lakh

The company's EBITDA margin has improved year-on-year, reflecting strong operational efficiency. The net profit nearly tripled over three years, showcasing scalable operations.

Valuation Metrics:

• Pre-Issue EPS (FY24): ₹3.92

• Post-Issue EPS (FY24): ₹3.07

• Pre-Issue P/E Ratio: 16.83x

• Post-Issue P/E Ratio: 21.51x

• Industry Average P/E: 24x

• ROCE (FY24): 22.35%

• ROE (FY24): 33.22%

• RoNW (FY24): 28.49%

The valuation appears reasonable compared to peers in the plastic manufacturing and packaging segment. The robust return ratios add to the company’s credibility.

Subscription Status (Live):

Subscription for Jyoti Global Plast IPO opens on August 4, 2025, and will close on August 6, 2025. Live subscription data, categorized by QIB, NII, and retail, will be updated on the registrar’s website and NSE SME IPO dashboard.

IPO Allotment Details:

The allotment status is expected to be available on August 7, 2025. Investors can check their allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID.

Risk Factors to Consider:

While the company has posted impressive growth, certain risks exist:

• Dependence on a few industry sectors for revenues.

• Volatility in raw material (plastic resin) prices.

• Exposure to regulatory changes in plastic usage.

Conclusion and Review:

Given Jyoti Global Plast’s:

• Proven track record in the plastic packaging industry,

• Healthy financial growth,

• Competitive valuations compared to peers, and

• Reasonable Grey Market Premium,

The IPO is suitable for risk-tolerant investors seeking listing gains. However, long-term investors should evaluate the sectoral outlook and environmental regulatory risks.

Disclaimer:
The above content is for educational and informational purposes only. It does not constitute investment advice. Readers are advised to consult with a registered financial advisor before making any investment decisions. Investments in securities are subject to market risks. Read all related offer documents carefully before investing.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

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