Premium Plast Limited has been a significant player in the plastic components industry since its inception in May 1995 in Mumbai. From a humble beginning of producing just two components, the company has grown to manufacture over 600 components at two strategic locations. Premium Plast specializes in creating a diverse array of plastic parts catering to various sectors, including automotive, industrial, electrical, and specialized packaging.

The Initial Public Offering (IPO) for Premium Plast is a Book Built Issue amounting to ₹26.19 crores, consisting solely of a fresh issue of 53.46 lakh shares. The subscription period for this IPO opens on October 21, 2024, and closes on October 23, 2024. The allotment is expected to be finalized on or around October 24, 2024, with shares to be listed on the NSE SME, targeting a tentative listing date around October 28, 2024.

The share price band for the Premium Plast IPO is set between ₹46 and ₹49 per equity share, with a minimum lot size of 3,000 shares. Retail investors need to make a minimum investment of ₹1,47,000, while High-Net-Worth Individuals (HNIs) must invest in 2 lots (6,000 shares), amounting to ₹2,94,000.

The IPO is managed by KHANDWALA SECURITIES LIMITED as the book-running lead manager, and BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar for the issue. Asnani Stock Broker Private Limited will act as the Market Maker for the Premium Plast IPO.

Premium Plast Limited IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Premium Plast is currently estimated at ₹11, indicating moderate positive market sentiment regarding the IPO's performance. However, GMP is based on informal trading and should be viewed as an informational reference only.

Premium Plast Limited IPO Live Subscription Status Today

As of 5:50 PM on October 23, 2024, the Premium Plast IPO has been subscribed 36.96 times on its final day of the subscription period. Investors can check the live subscription status on the NSE website.

Premium Plast Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

The allotment date for the Premium Plast IPO is set for October 24, 2024. To check your allotment status, follow these 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 check your allotment status.

By following these steps, investors can easily verify their allotment status and take necessary actions.

Objectives of Premium Plast Limited IPO

The proceeds from the fresh issue will be allocated towards:

1. ₹1,655.44 lakhs for the expansion of the existing manufacturing facility at Pithampur, Madhya Pradesh, including the purchase of machinery.
2. ₹104.4 lakhs for funding the capital expenditure requirement towards the setup of a rooftop on-grid solar power plant at their existing manufacturing facility.
3. ₹223.12 lakhs for the prepayment or repayment of all or a portion of certain outstanding borrowings.
4. General corporate purposes and offer-related expenses.

Premium Plast IPO Review

Premium Plast has demonstrated significant growth over the years, expanding its operations significantly and adapting to industry demands. The revenues from operations for the three months period ending June 30, 2024, and the fiscal years 2024, 2023, and 2022 were ₹1,212.81 lakhs, ₹4,670.59 lakhs, ₹4,404.83 lakhs, and ₹3,104.78 lakhs, respectively. The EBITDA for the same periods were ₹194.51 lakhs, ₹645.33 lakhs, ₹220.77 lakhs, and ₹97.23 lakhs. The profit after tax figures were ₹141.16 lakhs, ₹477.55 lakhs, ₹159.32 lakhs, and ₹77.70 lakhs, respectively.

For the IPO, Premium Plast is offering shares at a pre-issue EPS of ₹10.03 and a post-issue EPS of ₹2.50. The pre-issue P/E ratio is 4.88x, while the post-issue P/E ratio stands at 19.6x, compared to an industry P/E ratio of 40.45x. The company's Return on Capital Employed (ROCE) for FY24 is 28.01%, and its Return on Equity (RoE) is 28.90%, suggesting the IPO is fairly priced.

Given the Grey Market Premium (GMP) indicating potential listing gains of 21%, we recommend risk-tolerant investors to apply for the Premium Plast Limited IPO for potential listing gains. However, long-term investors may consider avoiding the IPO based on current financial performance.

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