Premium Plast Limited, a Mumbai-based manufacturer established in 1995, made a promising market debut on October 28, 2024, by listing its shares at ₹51.45 each on NSE SME—reflecting a 5% premium over its IPO price of ₹49. The IPO, which raised ₹26.19 crore through a fresh issue of 53.46 lakh shares, attracted a strong response, with a final-day subscription rate of 36.96 times. This listing follows a book-built issue and a price band set between ₹46 and ₹49, with Khandwala Securities Limited as the lead manager and Bigshare Services Private Limited acting as the registrar.

Premium Plast’s core offerings span over 600 plastic components across industries such as Automotive, Industrial, Electrical, and Specialized Packaging. The company has strategically expanded over the years, establishing manufacturing facilities in key locations and recently experiencing positive financial performance. Revenues for Q1 FY24 stood at ₹1,212.81 lakhs, while EBITDA and PAT were ₹194.51 lakhs and ₹141.16 lakhs, respectively.

IPO Objectives and Allocation of Funds

The proceeds from this IPO will primarily fund manufacturing expansion and the purchase of new machinery at the company’s Pithampur facility, amounting to ₹1,655.44 lakh. Additionally, ₹104.4 lakh is designated for installing a rooftop solar power plant, while ₹223.12 lakh will be allocated to repay part of Premium Plast’s existing borrowings.

Grey Market Premium (GMP) activity hinted at a listing gain of approximately 21%, fueled by strong investor interest and the company’s competitive pre-issue P/E ratio of 4.88x compared to the industry average of 40.45x. Despite its relatively high post-issue P/E ratio of 19.6x, Premium Plast’s solid Return on Equity (RoE) of 28.9% and Return on Capital Employed (RoCE) of 28.01% for FY24 present it as an attractive prospect for listing gains.

Investors interested in the allotment status can check it by entering their application details on the registrar's website. Allotment status updates are available online, enabling swift follow-up actions for IPO participants.

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