Jyoti Global Plast IPO Sees Strong Demand, But Should You Subscribe?

Introduction to Jyoti Global Plast
Jyoti Global Plast began its journey by offering plastic packaging solutions to core industries like FMCG, pharmaceuticals, and food & beverages. The company became known for its quality, durability, and innovative molding techniques. With a rising demand, the company diversified beyond traditional packaging and expanded its capabilities in advanced plastic molding.

It is now gearing up for listing on the NSE SME platform, backed by a ₹35.44 crore IPO combining a fresh issue of ₹28.51 crore and an offer for sale (OFS) of ₹6.93 crore.

IPO Details at a Glance

• IPO Price Band: ₹62 to ₹66

• Market Capitalisation at upper band: ₹130.81 crore

• Lot Size: 2,000 shares

• Minimum Investment: ₹2,64,000 (2 lots)

• IPO Opening Date: August 4, 2025

• IPO Closing Date: August 6, 2025

• Allotment Date: August 7, 2025

• Listing Date (Tentative): August 11, 2025

Unistone Capital is the Book Running Lead Manager, MUFG Intime India is the Registrar, and L.F.C. Securities is the Market Maker.

Anchor Investment Update
Jyoti Global Plast successfully raised ₹10.06 crore from Anchor Investors, allotting 15.24 lakh equity shares at the upper end of the price band (₹66). Anchor investors’ entry shows some institutional confidence, but the Grey Market Premium (GMP) tells a different story.

GMP and Market Sentiment
As of August 6, 2025, the Grey Market Premium (GMP) is ₹0, which translates to a 0% listing gain expectation. A zero GMP is usually a signal of low speculative interest and reflects either fair pricing or lack of retail/institutional enthusiasm.

While GMP is an unofficial and unregulated indicator, it often mirrors investor expectations ahead of listing.

IPO Subscription Status
The IPO was subscribed 7.93 times on the final day of bidding. The breakup is as follows:

• Qualified Institutional Buyers (QIBs): Subscribed via anchor portion

• Non-Institutional Investors (NIIs): Substantial demand

• Retail Individual Investors (RIIs): Active participation seen

Despite this, the flat GMP suggests that investors may be subscribing based on long-term potential rather than short-term gains.

Company Background and Promoters
The company is promoted by:

• Bhawanji Shah – Started Jyoti Industries in 1990 and founded Jyoti Polycontainers Pvt. Ltd. in 2004

• Deven Shah (CEO) – Leads business development

• Hiren Shah (MD) – Handles finance and compliance

• Karan Deven Shah (CFO) – Head of Finance & Accounts

• Sainyum Hiren Shah – Leads Sales and Marketing

The promoters bring decades of industry experience, which enhances the credibility and leadership strength of the company.

Financial Performance Overview
The company has shown steady financial growth in recent years:

• Revenue from Operations:

  • FY23: ₹8,935.45 Lakh

  • FY24: ₹8,796.41 Lakh

  • FY25: ₹9,379.79 Lakh

• EBITDA:

  • FY23: ₹626.52 Lakh

  • FY24: ₹862.30 Lakh

  • FY25: ₹1,212.35 Lakh

• Profit After Tax (PAT):

  • FY23: ₹232.36 Lakh

  • FY24: ₹361.53 Lakh

  • FY25: ₹608.06 Lakh

This indicates a compound growth in profits, which is a positive sign for long-term investors.

Valuation and Ratios

• Pre-issue EPS (FY24): ₹3.92

• Post-issue EPS (FY24): ₹3.07

• Pre-issue P/E: 16.83x

• Post-issue P/E: 21.51x

• Industry P/E: 24x

• Return on Capital Employed (ROCE): 22.35%

• Return on Equity (ROE): 33.22%

• Return on Net Worth (RoNW): 28.49%

These metrics show that Jyoti Global Plast’s valuation is fair, but not overly attractive compared to industry peers. The post-issue P/E is higher, indicating reduced attractiveness for short-term gains.

Utilisation of IPO Proceeds
The company plans to use the funds for the following purposes:

1. ₹1,116.88 Lakh to partially fund a new manufacturing facility in MIDC, Mahad, Maharashtra

2. ₹899.53 Lakh for setting up a solar power plant to reduce energy costs

3. ₹120 Lakh to repay or prepay borrowings

4. Remaining for general corporate purposes

This reflects a focused capital deployment strategy for future expansion and sustainability.

Strengths of Jyoti Global Plast IPO

• Strong industry experience of promoters

• Steady revenue and profit growth over three years

• Planned expansion into renewable energy for cost-efficiency

• High ROE and ROCE values

• Demand across key sectors like FMCG and Pharma, ensuring sustained demand for packaging

Risks and Concerns

• No GMP listing premium, showing weak market enthusiasm

• Relatively high investment requirement of ₹2.64 lakh for retail investors

• Listing on SME platform, which typically has lower liquidity

• Dependence on a few sectors for revenue

• Any delay in execution of expansion plans could impact financials

Expert Recommendation
Given the flat GMP, moderate valuations, and high ticket size, this IPO may not be ideal for short-term investors looking for listing gains. However, long-term investors with confidence in the company’s fundamentals and expansion strategy may consider applying with caution.

Thus, most experts suggest to avoid Jyoti Global Plast IPO for listing gains, but it could be reviewed post-listing based on actual market reaction.

How to Check Allotment Status Online
Once the IPO allotment is finalized on August 7, 2025, follow these steps to check your status:

1. Visit the official registrar website (MUFG Intime India)

2. Select “Jyoti Global Plast IPO” from the dropdown

3. Enter your PAN/Application number/DP ID

4. Click on Submit

5. Your allotment status will appear

Conclusion
While Jyoti Global Plast has displayed consistent growth and industry relevance, the lack of premium in GMP and stretched valuations make this IPO unattractive for short-term gains. Investors should monitor the listing performance and then take a decision for entry based on real-time stock movement and post-listing management commentary.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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