Srigee DLM Limited, a leading manufacturer specializing in end-to-end plastic production, has announced its initial public offering (IPO). With an extensive range of plastic manufacturing services including material selection, extrusion, mould making, precision injection moulding, and final assembly, Srigee DLM caters to OEM and ODM clients across industries. The company’s strategic focus on design-driven production enhances both the functionality and manufacturability of the products it delivers.

The Srigee DLM IPO, a Book Built Issue, will open on May 5, 2025, and close on May 7, 2025. The IPO offers a price band of ₹94 to ₹99 per equity share, aiming to raise a total of ₹16.97 crores, comprising entirely a fresh issue of 17.14 lakh shares. The allotment date is scheduled for May 8, 2025, and the shares will be listed on the BSE SME with an expected listing date of May 12, 2025.

Srigee DLM IPO Financials and Market Capitalization:
At the upper price band of ₹99 per share, Srigee DLM Limited's market capitalization at the time of the IPO will be ₹59.13 crores. The company has shown consistent financial growth over the last few years, with revenues increasing from ₹3,303.91 lakh in 2022 to ₹5,465.16 lakh in 2023, and ₹5,446.88 lakh in 2024. Its Profit After Tax (PAT) has also grown steadily, reflecting the company's solid performance and business expansion.

Lot Size and Minimum Investment:
The Srigee DLM IPO offers a lot size of 1,200 shares. Retail investors are required to invest a minimum of ₹1,18,800 for one lot, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of two lots (2,400 shares), which amounts to ₹2,37,600.

Subscription and Allotment:
As of 10:30 AM on May 5, 2025, the Srigee DLM IPO had already been subscribed 1.06 times on its first day of subscription. Investors can track the real-time subscription status on the BSE website.

The company has also raised ₹4.79 crores from anchor investors at the upper price band of ₹99 per share, with 4,84,800 equity shares being allocated to these investors.

Grey Market Premium (GMP):
The Grey Market Premium (GMP) for the Srigee DLM IPO is ₹17, indicating a potential listing gain of approximately 17.17%. While the GMP provides a rough estimate of expected listing gains, it is based on unregulated market conditions and should be taken with caution.

IPO Objectives:
The proceeds from the IPO will be utilized for:

1. Capital Expenditure: ₹542.78 lakh will be allocated to set up a new manufacturing facility in Greater Noida.

2. Machinery Acquisition: ₹951.00 lakh will be used for the acquisition of machinery to be installed at the new facility.

3. General Corporate Purposes: The remaining funds will be used for general corporate purposes, including operational and business growth.

Srigee DLM IPO Review and Valuation:
Srigee DLM's financial performance is strong, with a pre-issue earnings per share (EPS) of ₹7.53 and a post-issue EPS of ₹5.18 for FY24. The pre-issue P/E ratio stands at 13.15x, and the post-issue P/E ratio is 19.11x. In comparison, the industry P/E ratio is considerably higher at 113x. This positions the Srigee DLM IPO as a potentially undervalued option when compared to industry peers.

The company’s return on capital employed (ROCE) for FY24 is 25.80%, while its return on equity (ROE) stands at 24.49%, and its return on net worth (RoNW) is 21.08%. These performance metrics suggest that Srigee DLM is a strong contender for investment, particularly for those seeking listing gains.

Given the robust financials, the promising business model, and the expected listing gains, we recommend the Srigee DLM IPO for investors looking for potential gains, though it is best suited for those willing to take on some level of risk.

How to Check Srigee DLM IPO Allotment Status:
The allotment date for the Srigee DLM IPO is May 8, 2025. To check your allotment status, visit the registrar's website (Bigshare Services Private Limited) and follow the instructions to check your status by entering your application number, PAN, or DP Client ID.

Conclusion:
With a focus on end-to-end plastic manufacturing and a strong financial foundation, Srigee DLM Limited presents a promising investment opportunity in the market. While the company’s growth trajectory looks solid, prospective investors should consider the risk associated with the IPO and its market volatility. For those seeking a listing gain, the Srigee DLM IPO appears to be a favorable option.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

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