Since its inception in May 1995 in Mumbai, Premium Plast Limited has transformed from producing just two components to manufacturing over 600 components across two strategic locations. The company specializes in creating a diverse range of plastic components and parts catering to various industries, including automotive, industrial, electrical, and specialized packaging.

Premium Plast is launching a Book Built Issue amounting to ₹26.19 Crores, consisting entirely of a fresh issue of 53.46 lakh shares. The subscription period for the Premium Plast IPO opens on October 21, 2024, and closes on October 23, 2024. The allotment is expected to be finalized on or about Thursday, October 24, 2024, with shares set to list on the NSE SME on or about Monday, October 28, 2024.

Pricing and Market Capitalization

The share price band for the Premium Plast IPO is set at ₹46 to ₹49 per equity share. The minimum lot size is 3,000 shares, requiring retail investors to make a minimum investment of ₹1,47,000. For High-Net-Worth Individuals (HNIs), the minimum investment is two lots (6,000 shares), totaling ₹2,94,000.

IPO Management

KHANDWALA SECURITIES LIMITED is the book-running lead manager, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar for the issue. Additionally, Asnani Stock Broker Private Limited will act as the market maker for the Premium Plast IPO.

Grey Market Premium and Subscription Status

As of 11:20 AM on October 22, 2024, the Grey Market Premium (GMP) for the Premium Plast Limited IPO is expected to be ₹11, indicating some potential for listing gains. It is crucial to understand that real trading does not occur based on the GMP, which relies on demand and supply in the unregulated market.

The live subscription status as of the latest update shows that the Premium Plast IPO is subscribed 4.80 times on its second day, highlighting strong investor interest.

Allotment Date and How to Check Status

The allotment date for the Premium Plast IPO is set for October 24, 2024. Investors can check their allotment status online by following these steps:

Navigate to the IPO allotment status page.

Select Premium Plast Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

By following these steps, investors can quickly determine their allotment status and proceed with their investments.

Objectives of the IPO

The proceeds from the fresh issue of the Premium Plast IPO will be utilized for the following objectives:

₹1,655.44 Lakhs for the expansion of the existing manufacturing facility at Pithampur, Madhya Pradesh, and the purchase of new machinery.

₹104.4 Lakhs for the funding of capital expenditure requirements towards setting up a rooftop on-grid solar power plant at the existing manufacturing facility.

₹223.12 Lakhs for the prepayment or repayment of certain outstanding borrowings.

General corporate purposes.

Offer-related expenses.

Financial Performance and IPO Review

Premium Plast Limited reported revenues from operations of ₹1,212.81 Lakhs for the three-month period ended June 30, 2024. The fiscal revenues for the years 2024, 2023, and 2022 were ₹4,670.59 Lakhs, ₹4,404.83 Lakhs, and ₹3,104.78 Lakhs, respectively. The EBITDA for the three-month period ended June 30, 2024, was ₹194.51 Lakhs, while profits after tax for the same period reached ₹141.16 Lakhs.

For the Premium Plast IPO, the company is issuing shares at a pre-issue EPS of ₹10.03 and a post-issue EPS of ₹2.50. The pre-issue P/E ratio stands at 4.88x, while the post-issue P/E ratio is 19.6x, compared to an industry P/E ratio of 40.45x. The company’s ROCE for FY24 is 28.01%, and RoE is 28.90%, indicating that the IPO is fairly priced.

With the Grey Market Premium (GMP) indicating potential listing gains of 21%, we recommend risk-taking investors to apply for the Premium Plast Limited IPO for potential listing gains. However, long-term investors might consider avoiding the IPO based on current valuations.

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