Srigee DLM Limited, known for its end-to-end plastic manufacturing capabilities, offers a range of services that include material selection, extrusion, mould making, precision injection moulding, and final assembly. The company specializes in design-driven production that enhances both functionality and manufacturability, providing solutions to OEM and ODM clients. The upcoming Srigee DLM IPO offers an opportunity to invest in a company with a strong growth trajectory and a promising future in the plastic manufacturing sector.

The Srigee DLM IPO opens for subscription on May 5, 2025, and closes on May 7, 2025. This initial public offering (IPO) is a Book Built Issue with a total issue size of ₹ 16.97 Crores, consisting entirely of a Fresh Issue of 17.14 lakh shares. The IPO will have a price band ranging from ₹ 94 to ₹ 99 per equity share. At the upper price band of ₹ 99 per share, the market capitalization of Srigee DLM Limited will be ₹ 59.13 Crores.

Investors should take note that the lot size for the IPO is 1,200 shares, requiring a minimum investment of ₹ 1,18,800 for retail investors. High Net-Worth Individuals (HNIs) will need to apply for a minimum of 2 lots, or ₹ 2,37,600. The subscription period for the IPO is just three days, so investors must act quickly to ensure their participation.

The Grey Market Premium (GMP) for Srigee DLM IPO has been recorded at ₹ 17 as of April 28, 2025, indicating a potential listing gain of around 17.17%. While the GMP provides a general idea of investor sentiment, it is important to note that actual trading in the grey market is unregulated, and the figures can change depending on demand and supply. Hence, it should not be used as the sole basis for investment decisions.

The allotment of shares for the Srigee DLM IPO will be finalized on May 8, 2025, and the listing date on the BSE SME is set for May 12, 2025. Investors can check the allotment status of their shares on the registrar's website by entering their application number or PAN number. The Anchor Investors in the IPO have already committed ₹ 4.79 Crores, subscribing to 4,84,800 shares at ₹ 99 per share.

The company plans to use the net proceeds from the Srigee DLM IPO for several key objectives. The largest allocation will be used for capital expenditure, including the setting up of a new manufacturing facility in Greater Noida, Uttar Pradesh, with a total investment of ₹ 542.78 lakh. The IPO funds will also be directed towards the acquisition of new machinery for the facility, amounting to ₹ 951 lakh. In addition, the company plans to allocate funds for general corporate purposes and cover issue expenses.

In terms of financials, Srigee DLM Limited has shown a steady growth in revenue and profitability over the past few years. For the fiscal year ending December 31, 2024, the company reported revenues from operations of ₹ 5,446.88 lakh, marking an increase from ₹ 5,465.16 lakh in FY23. The company’s EBITDA has also shown significant growth, reaching ₹ 567.19 lakh for FY24, up from ₹ 496.04 lakh in FY23.

The company's Profit after Tax (PAT) for the same period was ₹ 377.21 lakh, reflecting a positive growth trajectory from the previous years. The earnings per share (EPS) for FY24 stands at ₹ 7.53 pre-issue and is expected to be ₹ 5.18 post-issue. The price-to-earnings (P/E) ratio is 13.15x pre-issue, indicating that the IPO is relatively attractively priced when compared to the industry P/E ratio of 113x.

Based on these financial metrics, Srigee DLM IPO appears to be fully priced, with a solid return on equity (ROE) of 24.49% and return on capital employed (ROCE) of 25.80% for FY24. The company also has a strong Return on Net Worth (RoNW) of 21.08%, further reinforcing its strong financial health.

Investors looking for listing gains might find the Srigee DLM IPO appealing, especially considering the Grey Market Premium (GMP). However, it is important to remember that investing in IPOs involves risk, and retail investors are advised to assess their risk tolerance before proceeding.

In conclusion, Srigee DLM Limited presents a compelling investment opportunity with its solid growth, strong financials, and future expansion plans. Despite its fully priced IPO, the Srigee DLM IPO offers potential gains for risk-tolerant investors, especially if the company continues its upward trajectory after listing.

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

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

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