The Premium Plast IPO is set to create buzz among investors as it opens for subscription on October 21, 2024. With a price band of ₹46 to ₹49 per equity share, this Book Built Issue aims to raise a total of ₹26.19 Crores through a Fresh Issue of 53.46 Lakh Shares. The IPO will close on October 23, 2024, and the allotment is expected to be finalized by October 24, 2024. Following this, shares are scheduled to be listed on the NSE SME with a tentative listing date of October 28, 2024.

Key Investment Highlights

For retail investors, the minimum investment required is ₹1,47,000, which translates to a minimum lot size of 3,000 shares. High-Net-Worth Individuals (HNIs) are required to invest in 2 lots (6,000 shares), amounting to ₹2,94,000. The Grey Market Premium (GMP) is currently anticipated to be ₹0, indicating a cautious sentiment towards the stock's potential listing gains.

KHANDWALA SECURITIES LIMITED serves as the book-running lead manager for this IPO, while BIGSHARE SERVICES PRIVATE LIMITED will handle the issue's registrar duties. Additionally, Asnani Stock Broker Private Limited has been designated as the Market Maker for the Premium Plast IPO.

Financial Performance Overview

Premium Plast has shown significant growth since its inception in May 1995 in Mumbai. From producing just two components initially, the company now boasts a diverse portfolio of over 600 components across various industries such as Automotive, Industrial, Electrical, and Specialized Packaging.

The revenues from operations have steadily increased, with figures for the three-month period ending June 30, 2024, amounting to ₹1,212.81 Lakhs. In comparison, the full fiscal years for 2024, 2023, and 2022 reported revenues of ₹4,670.59 Lakhs, ₹4,404.83 Lakhs, and ₹3,104.78 Lakhs, respectively.

For the same periods, the EBITDA reported was ₹194.51 Lakhs, ₹645.33 Lakhs, ₹220.77 Lakhs, and ₹97.23 Lakhs, while the Profit after Tax (PAT) for the three-month period stood at ₹141.16 Lakhs compared to ₹477.55 Lakhs, ₹159.32 Lakhs, and ₹77.70 Lakhs for the fiscal years.

Valuation and Recommendations

For investors considering the Premium Plast IPO, the pre-issue Earnings Per Share (EPS) is ₹10.03, with a post-issue EPS of ₹2.50. The pre-issue Price-to-Earnings (P/E) ratio stands at 4.88x, while the post-issue ratio is 19.6x, compared to an industry average of 40.45x. The company has reported a Return on Capital Employed (ROCE) of 28.01% and a Return on Equity (RoE) of 28.90% for FY24, indicating strong financial health.

However, the Grey Market Premium indicates that potential listing gains are limited. Given these factors, it is advisable for investors to avoid the Premium Plast Limited IPO for speculative listing gains or long-term investments.

How to Check Allotment Status

To check the allotment status of the Premium Plast IPO, follow these simple steps:

Navigate to the IPO allotment status page.

Select Premium Plast Limited IPO from the dropdown list of IPOs.

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

Submit the details to view your allotment status.

Objectives of the Premium Plast IPO

The funds raised through the Fresh Issue will be allocated for various purposes, including:

₹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 setting up a rooftop on-grid solar power plant at the existing facility.

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

General corporate purposes.

Expenses related to the offer.

Investors should keep an eye on the Premium Plast IPO as the subscription period approaches. For the latest information on IPOs, including upcoming issues, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

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