As the packaging industry continues to evolve, Barflex Polyfilms Limited is stepping into the spotlight with an ambitious ₹39.42 crore IPO. The offering combines a fresh issue worth ₹12.32 crores with an offer for sale totaling ₹27.10 crores, opening a new chapter in the company's journey from January 10 to January 15, 2025. This strategic move to list on the NSE SME platform marks a significant milestone for the packaging solutions specialist, as it prepares to transform from a private enterprise to a publicly traded company on January 20, 2025.
In a market where packaging innovation drives consumer industries forward, Barflex presents an intriguing proposition with equity shares priced between ₹57 and ₹60. With a thoughtfully structured lot size of 2,000 shares, the company has designed entry points for both retail investors (minimum ₹120,000) and HNIs (minimum ₹240,000), making this growth story accessible at different investment levels. As the January 16 allotment date approaches, savvy investors looking to participate in India's expanding packaging sector might want to take a closer look at this emerging player before its NSE SME debut.
Barflex Polyfilms Limited IPO is a fundraise worth ₹39.42 crores consisting of a fresh issue and an offer for sale with 335,000 shares reserved for the market maker Almondz Global Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 10, 2025, to January 15, 2025, providing an opportunity for investors looking to gain a stake in the packaging segment.
| Barflex Polyfilms IPO date | January 10, 2025 - January 15, 2025 |
| Price band / Fixed price | ₹57 to ₹60 per share |
| Face value | ₹10 per share |
| Lot size | 2,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 20,53,000 shares amounting to ₹12.32 crores |
| Offer for Sale (OFS) | 45,16,875 shares amounting to ₹27.10 crores |
| Total issue size | 65,69,875 shares amounting to ₹39.42 crores |
| Listing at | NSE SME |
| Market maker portion | 335,000 - Almondz Global Securities Ltd |
| Shareholding post-issue | 2,47,50,000 |
| Shareholding pre-issue | 2,26,97,000 |
The Barflex Polyfilms Limited IPO opens for subscription on January 10, 2025, and closes on January 15, 2025, with allotment scheduled for January 16, 2025.
| IPO open date | January 10, 2025 (Friday) |
| IPO close date | January 15, 2025 (Wednesday) |
| Basis of allotment | January 16, 2025 (Thursday) |
| Initiation of refunds | January 17, 2025 (Friday) |
| Credit of shares to Demat account | January 17, 2025 (Friday) |
| Listing date on BSE / NSE SME | January 20, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 15, 2025 (Wednesday) |
Barflex Polyfilms Limited, established in January 2005, specializes in manufacturing a diverse range of packaging solutions including COEX films, laminates, and labels from its three manufacturing facilities in Baddi, Himachal Pradesh. The company caters to multiple industries including FMCG, processed foods, pharmaceuticals, cosmetics, engineering applications, and construction, serving prominent domestic brands through its product portfolio of 3-layer and 5-layer poly films, laminates, vacuum pouches, bulk liners, and PVC shrink labels.
With a workforce of 182 people as of May 2024, comprising 102 full-time employees and 80 contract workers, the company is positioning itself for growth through planned expansion into 7-layer film production. This strategic expansion aims to strengthen Barflex's position as a preferred packaging vendor for its customers, building upon its existing manufacturing capabilities and market presence in the flexible packaging sector.
The company intends to use the proceeds from the initial public offering to fund capital expenditures, including the acquisition of additional plant and machinery, as well as to cover general corporate purposes.
The Barflex Polyfilms Limited IPO’s key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 25.44%, Return on Capital Employed (ROCE) at 27.21% and Return on Net-Worth (RoNW) at 25.44%. The PAT Margin was 14.73% and the Price to Book Value was 2.13. The company’s market capitalisation is ₹148.50 crores.
| Period Ended | November 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 7,802.09 | 11,612.11 | 11,040.76 | 9,410.27 |
| Assets | 8,823.88 | 7,241.01 | 5,665.06 | 4,528.96 |
| Net Worth | 7,732.15 | 6,382.87 | 4,759.32 | 3,746.26 |
| Profit After Tax | 1,349.28 | 1,623.55 | 1,013.07 | 794.09 |
| Reserves & Surplus | 5,426.45 | 4,113.17 | 2,489.62 | 1,476.56 |
| Total Borrowing | 11.51 | 13.59 | 16.50 | 25.87 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹7.15 while the post-IPO EPS will be ₹8.18. Similarly, the pre-IPO Price to Earnings ratio is 8.39 and will become 7.34 post-IPO.
Barflex Polyfilms stands out in the packaging industry with its diversified product portfolio that caters to multiple sectors including FMCG, pharmaceuticals, cosmetics, and construction. The company's three manufacturing units ensure consistent production capabilities, while their established presence across various industry verticals demonstrates their market adaptability and reach. This diverse operational base is further strengthened by the company's robust relationships with prominent domestic brands.
The company benefits from experienced promoters who bring organizational stability and strategic direction to the business. Their commitment to quality assurance and ability to maintain strong client relationships across different sectors has helped build a reliable market presence. The combination of manufacturing capabilities, product diversity, and established market relationships positions Barflex Polyfilms as a significant player in the domestic packaging industry.
Barflex Polyfilms faces significant concentration risks due to its heavy reliance on a limited number of key customers, making the company vulnerable to order cancellations or delivery delays that could substantially impact their revenue and cash flow. The company's expansion plans face uncertainty as they haven't yet secured possession of land for their proposed expansion unit, nor placed orders for all required plant machinery, which could lead to time and cost overruns.
The company's financial history raises some concerns, including past one-time settlement (OTS) agreements with lenders and previous investor disputes due to unmet performance expectations. Additionally, the association of their promoters, Mr. Jaiwant Bery and Mrs. Nomita Bery, with companies that were compulsorily delisted by the BSE Dissemination Board adds a layer of governance concern. The company's growth management capabilities remain untested, and their vulnerability to raw material price fluctuations, combined with limited geographical presence outside India, presents ongoing operational challenges.
Investing early in Barflex Polyfilms Limited could offer a unique opportunity to be part of the company’s promising journey in the growing packaging material manufacturing industry. However, potential investors should evaluate a range of key factors, including the company’s operational history, financial stability, sector trends, and growth plans, all while aligning with their personal investment goals and risk tolerance. It is advisable to thoroughly review the offer document and, if necessary, consult a professional to make a well-informed decision before participating in this IPO.
What is the Barflex Polyfilms Limited IPO?
The Barflex Polyfilms Limited IPO is an NSE SME offering consisting of a fresh issue of 20.53 lakh shares and an offer for sale of 45.17 lakh shares with a face value of ₹10, aiming to raise ₹39.42 crore. The price band has been set between ₹57 to ₹60 per share, with a minimum order quantity of 2,000 shares. This IPO will be open for subscription from January 10, 2025, to January 15, 2025. Almondz Financial Services Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Almondz Global Securities Limited is the market maker.
When will the Barflex Polyfilms IPO open?
The Barflex Polyfilms Limited IPO will open for subscription on January 10, 2025, and will close on January 15, 2025.
When is the Barflex Polyfilms IPO listing date?
The tentative listing date for the Barflex Polyfilms Limited IPO is Monday, January 20, 2025.
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