Srigee DLM Limited is a well-established player in the plastic manufacturing sector, offering end-to-end services including design-driven production, material selection, extrusion, mould making, and precision injection moulding. Catering to both OEM (Original Equipment Manufacturers) and ODM (Original Design Manufacturers) clients, the company is focused on enhancing functionality and manufacturability in the plastic production space. Their capabilities are extensive, from material selection to final assembly, making them a comprehensive solutions provider in the industry.

Srigee DLM IPO Overview
The Srigee DLM IPO is a Book Built Issue, with a total issue size of ₹ 16.97 Crores. This will comprise entirely of a fresh issue, offering 17.14 Lakh shares for subscription. The IPO’s share price band is set between ₹ 94 and ₹ 99 per equity share, with a market capitalization of ₹ 59.13 Crores at the upper price band of ₹ 99 per share.

The IPO is open for subscription from May 05, 2025, to May 07, 2025, with the allotment date expected on May 08, 2025, and listing on the BSE SME likely on May 12, 2025. Retail investors can apply for a minimum of 1,200 shares, which will cost them a minimum of ₹ 1,18,800, while High Net-Worth Individuals (HNIs) are required to invest for 2 lots (2,400 shares), amounting to ₹ 2,37,600.

The book running lead manager for the IPO is GYR Capital Advisors Private Limited, and the registrar for the issue is Bigshare Services Private Limited. Globalworth Securities Limited will act as the market maker for the IPO.

Srigee DLM IPO GMP (Grey Market Premium)
The Grey Market Premium (GMP) for Srigee DLM’s IPO is currently at ₹ 17, reflecting a 17.17% potential premium over the upper price band of ₹ 99. The GMP indicates a positive sentiment among investors for the IPO, suggesting potential listing gains. However, it is important to note that GMP is speculative and may not reflect actual market performance upon listing, as it depends on demand and supply in the grey market, which is unregulated.

Srigee DLM IPO Subscription Status
As of May 07, 2025, the Srigee DLM IPO was oversubscribed 456.80 times, indicating strong investor interest. The high level of subscription is a positive sign, as it suggests high demand for the shares. Investors should monitor the live subscription status for real-time updates as the IPO subscription period concludes.

Srigee DLM IPO Objectives and Fund Utilization
The company has outlined several key uses for the net proceeds from the IPO:

1. Capital Expenditure: ₹ 542.78 Lakh will be used for setting up a new manufacturing facility in Greater Noida, Uttar Pradesh.

2. Machinery Acquisition: ₹ 951.00 Lakh will be allocated to acquiring machinery for the new facility.

3. General Corporate Purposes: The remaining funds will be used for general corporate activities.

4. Issue Expenses: Part of the proceeds will also cover expenses related to the IPO itself.

Srigee DLM Financial Performance
Srigee DLM has demonstrated consistent growth in its revenue and profitability over the past few years. The company reported revenues of ₹ 5,446.88 Lakh for FY24, up from ₹ 5,465.16 Lakh in FY23, and ₹ 4,724.58 Lakh in FY22. The company’s EBITDA for FY24 stood at ₹ 567.19 Lakh, and the Profit After Tax (PAT) was ₹ 377.21 Lakh, reflecting a stable upward trajectory.

For FY24, the company has reported a Pre-issue EPS of ₹ 7.53, with a Post-issue EPS of ₹ 5.18. The P/E ratio for the IPO stands at 13.15x (pre-issue) and 19.11x (post-issue), which is well below the industry P/E ratio of 113x, suggesting that the IPO is priced at a reasonable value relative to industry standards. The Return on Capital Employed (ROCE) for FY24 is 25.80%, and the Return on Equity (ROE) stands at 24.49%, both of which highlight the company's efficient use of capital and strong profitability.

IPO Valuation and Investment Recommendation
Based on Srigee DLM's solid financial performance, its reasonable valuation, and the GMP trend, we recommend that risky investors apply for the Srigee DLM Limited IPO. The positive GMP indicates potential for listing gains, but investors should exercise caution, as market conditions can fluctuate.

Conclusion
The Srigee DLM IPO offers an interesting opportunity for investors seeking exposure to the growing plastic manufacturing sector. With a strong financial track record, a clear roadmap for utilizing the proceeds, and a solid management team, Srigee DLM appears poised for growth. However, as with any investment, it is crucial to assess personal risk tolerance and market conditions before proceeding.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Integrity Infrabuild Developers, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Virtual Galaxy Infotech.

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