What's covered under the Article:

Srigee DLM Limited, a player in the plastic manufacturing sector, is set to launch its Initial Public Offering (IPO) to raise ₹16.97 Crore. The IPO consists solely of a fresh issue of 17.14 lakh shares, with a price band set at ₹94 to ₹99 per share. The subscription period for Srigee DLM IPO will open on May 5, 2025, and close on May 7, 2025. The shares will be listed on the BSE SME platform, with a tentative listing date of May 12, 2025. Retail investors are required to make a minimum investment of ₹1,18,800 for one lot (1,200 shares). High-net-worth individuals (HNIs) must apply for at least two lots, amounting to ₹2,37,600.

Srigee DLM’s Financial Performance
Srigee DLM Limited has showcased steady growth over the last few years. The company’s revenues from operations for the financial years 2024, 2023, and 2022 were ₹5,446.88 lakh, ₹5,465.16 lakh, and ₹4,724.58 lakh respectively, with a clear upward trajectory. The company’s EBITDA for FY24 stood at ₹567.19 lakh, showing significant improvements compared to ₹496.04 lakh in FY23. Profit after tax for FY24 came in at ₹377.21 lakh, indicating robust profitability.

The company’s financial health is also reflected in its key performance metrics, including a pre-issue earnings per share (EPS) of ₹7.53 and a post-issue EPS of ₹5.18. The pre-issue Price-to-Earnings (P/E) ratio is 13.15x, which is attractive compared to the industry average of 113x, suggesting the IPO is fully priced. The company’s Return on Capital Employed (ROCE) for FY24 stands at 25.80%, with Return on Equity (ROE) at 24.49%, further demonstrating the company’s strong financial fundamentals.

Grey Market Premium and Subscription Updates
The Srigee DLM IPO has generated interest in the Grey Market, with the Grey Market Premium (GMP) for the issue currently pegged at ₹17 (17.17%) as of April 28, 2025. This suggests that the shares are expected to list at ₹116, which could lead to a listing gain. However, it is important to note that GMP is not a guaranteed indicator of the actual listing price and should be considered with caution. The company's financial performance and attractive valuation offer potential for a profitable listing.

IPO Objectives and Use of Funds
Srigee DLM plans to use the funds raised through the IPO to meet its capital expenditure requirements. This includes the setup of a new manufacturing facility in Greater Noida, Uttar Pradesh, with an estimated cost of ₹542.78 lakh. Additionally, ₹951 lakh will be allocated towards the acquisition of machinery to be installed at this facility. A portion of the funds will also be utilized for general corporate purposes and to cover issue expenses.

IPO Review and Recommendation
Srigee DLM focuses on design-driven plastic manufacturing, offering a wide range of services such as material selection, extrusion, mould making, precision injection moulding, and final assembly. The company caters to both Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM), which enhances its market presence.

Promoted by Mr. Shashi Kant Singh, with over 19 years of experience in the industry, Srigee DLM’s strong management and comprehensive production capabilities make it a promising player in the plastic manufacturing sector.

Considering the company's financial growth, attractive valuation, and growth prospects, Srigee DLM IPO offers an opportunity for risky investors to apply, particularly for those seeking potential listing gains. The pre-issue P/E ratio of 13.15x is well below the industry average, making it an attractive proposition for investors looking for value in the mid-market segment.

Srigee DLM IPO Allotment Status and Subscription Details
The allotment date for Srigee DLM IPO is set for May 8, 2025. Investors can check their allotment status by visiting the registrar's website and entering their application number or PAN details.

In summary, Srigee DLM’s IPO presents a promising opportunity, with solid financials, a competitive pricing structure, and a strategic focus on scaling up production. While the Grey Market Premium suggests an initial listing gain, investors should assess the long-term growth potential before making their investment decisions.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.