Since its inception in May 1995 in Mumbai, Premium Plast Ltd. has seen significant growth, evolving from a modest operation producing just two components to a robust manufacturer of over 600 components at two strategically located facilities. Specializing in a diverse range of plastic components and parts, the company caters to various industries, including Automotive, Industrial, Electrical, and Specialized Packaging. This evolution reflects the company’s commitment to innovation and quality in the plastic manufacturing sector.

IPO Details

The Premium Plast IPO represents 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 is set to open on October 21, 2024, and will close on October 23, 2024. Following the subscription period, the allotment is expected to be finalized on or about October 24, 2024, with shares being listed on the NSE SME. The tentative listing date is scheduled for around October 28, 2024.

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

Management and Advisors

The book-running lead manager for the IPO is KHANDWALA SECURITIES LIMITED, and the registrar is BIGSHARE SERVICES PRIVATE LIMITED. Additionally, Asnani Stock Broker Private Limited will act as the Market Maker for this IPO.

Premium Plast Limited IPO GMP Today

As of the current market insights, the Grey Market Premium (GMP) for the Premium Plast Limited IPO is expected to be around ₹11. It’s important to note that no real trading occurs based on the GMP, meaning no actual price discovery can be made prior to the shares listing on the exchange. The GMP is purely based on the demand and supply dynamics of the shares in an unregulated market, thus it is mentioned here solely for educational purposes.

Live Subscription Status

As of 11:20 AM on October 22, 2024, the Premium Plast IPO shows a live subscription status of 4.80 times on its second day of the subscription period. Interested investors can check the Live Subscription Status at the NSE.

Allotment Process

The allotment for the Premium Plast IPO is scheduled for October 24, 2024, and will be live on the Registrar’s Website from that date. Here’s a quick guide to check your allotment status:

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 easily determine their allotment status and plan their next moves accordingly.

Objectives of Premium Plast Limited IPO

The proceeds from the Fresh Issue will be utilized for the following objectives:

₹1,655.44 Lakhs will be allocated to the expansion of existing manufacturing facilities at Pithampur, Madhya Pradesh, and the purchase of machinery.

₹104.4 Lakhs will be used for funding capital expenditure requirements related to the setup of a rooftop on-grid solar power plant at their existing facility.

₹223.12 Lakhs will be dedicated to the prepayment or repayment of certain outstanding borrowings.

General corporate purposes and offer-related expenses will also be funded through these proceeds.

Financial Performance

The revenue figures from operations for the three-month 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 showed significant growth, reaching ₹194.51 lakhs, ₹645.33 lakhs, ₹220.77 lakhs, and ₹97.23 lakhs.

Profit after Tax figures also exhibited positive growth: ₹141.16 lakhs for the three months ended June 30, 2024, and ₹477.55 lakhs, ₹159.32 lakhs, and ₹77.70 lakhs for the fiscal years 2024, 2023, and 2022, respectively.

For the Premium Plast IPO, the company is issuing shares with 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, and the post-issue P/E ratio is 19.6x, compared to an industry P/E ratio of 40.45x. Furthermore, the company’s ROCE for FY24 is 28.01%, and the RoE for FY24 is 28.90%. These financial metrics indicate that the IPO is fairly priced, offering a compelling opportunity for potential investors.

Market Insights and Recommendations

The Grey Market Premium (GMP) for Premium Plast suggests potential listing gains of around 21%. Based on the company’s financial performance and IPO valuation, we recommend that risky investors apply for the Premium Plast Limited IPO for potential listing gains. However, long-term investors may want to consider avoiding this IPO for long-term investment purposes.

In summary, Premium Plast's journey from a small-scale manufacturer to a prominent player in the plastic components industry reflects its commitment to quality and innovation. With its upcoming IPO, investors are encouraged to stay informed and consider their options wisely.

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