Premium Plast's upcoming SME IPO is generating buzz among investors looking for new opportunities in the IPO investment space. The book-built issue, valued at ₹26.20 crores, consists entirely of fresh shares—53.46 lakh in total. Opening for subscription on October 21, 2024, and closing on October 23, 2024, the allotment date is set for October 24, 2024, with a tentative listing on the NSE SME on October 28, 2024.
The IPO price band ranges from ₹46 to ₹49 per share, with a minimum lot size of 3,000 shares for retail investors, requiring an investment of ₹147,000. Khandwala Securities Limited leads this SME IPO, while Bigshare Services handles the registrar duties, and Asnani Stock Broker serves as the market maker.
Premium Plast Limited IPO offers a fresh issue of 53.46 lakh shares, with a total issue size of ₹26.20 crores. The price band is set between ₹46 and ₹49 per share. Investors can subscribe between October 21 and October 23, 2024, with a minimum lot size of 3,000 shares.
| Premium Plast Limited IPO date | October 21, 2024 to October 23, 2024 |
| Price band | ₹46 to ₹49 per share |
| Face value | ₹10 per share |
| Total issue size | 5,346,000 shares(aggregating up to ₹26.20 Cr) |
| Fresh issue | 5,346,000 shares(aggregating up to ₹26.20 Cr) |
| Lot size | 3000 Shares |
| Market maker portion | 270,000 shares |
| Issue type | Book Built Issue IPO |
| Share holding pre issue | 13,751,100 |
| Share holding post issue | 19,097,100 |
| Listing at | NSE SME |
The Premium Plast SME IPO follows a well-defined timeline. Opening for subscription on October 21, 2024, it will close on October 23, 2024. The allotment finalisation is scheduled for October 24, 2024, and the shares are expected to be listed on the NSE SME on October 28, 2024.
| IPO open date | October 21, 2024, Monday |
| IPO close date | October 23, 2024, Wednesday |
| Basis of allotment | October 24, 2024, Thursday |
| Initiation of refunds | October 25, 2024, Friday |
| Credit of shares to demat | October 25, 2024, Friday |
| Listing date | October 28, 2024, Monday |
| Cut-off time for UPI mandate confirmation | October 23, 2024 on 5 PM |
Founded in 1995, Premium Plast Limited is a leading manufacturer and supplier of plastic parts for commercial vehicles and various industries. The company specialises in producing over 600 automotive components, industrial plastic parts, and packaging materials. With three strategically located facilities—two in Pithampur, Madhya Pradesh, and one in Vasai, Maharashtra—the company has a production capacity of 1,975 MTPA.
Premium Plast's competitive strengths include long-term relationships with established customers, design optimisation expertise, and a wide range of specialised plastic products. Additionally, the company benefits from strategically placed production units, robust customer and supplier networks, quality certifications, and an experienced management team. As of June 2024, Premium Plast employed a total of 39 staff members.
Premium Plast Limited's IPO offers a market capitalisation of ₹93.58 crores, reflecting strong financial performance as of June 30, 2024. Key financial metrics include a Return on Equity (ROE) of 6.37%, a Return on Capital Employed (ROCE) of 7.88%, and a Profit After Tax (PAT) margin of 11.64%. The company's pre-IPO Earnings Per Share (EPS) stands at ₹3.47, while post-IPO EPS is ₹2.96, with the Price-to-Earnings (P/E) ratio moving from 14.11x pre-IPO to 16.57x post-IPO. The Price-to-Book Value (P/BV) ratio is 1.98. These indicators highlight Premium Plast's potential for sustained growth and solid financial standing.
| Period Ended | June 30, 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Revenue | 1,212.81 | 4,670.59 | 4,404.83 | 3,104.78 |
| Assets | 4,006.31 | 3,809.23 | 2,905.45 | 2,516.95 |
| Net worth | 2,216.67 | 1,652.51 | 1,174.96 | 1,015.64 |
| Profit after tax | 141.16 | 477.55 | 159.32 | 77.7 |
| Total borrowing | 506.84 | 830.98 | 505.35 | 512.28 |
| Reserves and surplus | 841.56 | 1,176.45 | 698.91 | 539.59 |
| Amount in ₹ lakhs | ||||
Premium Plast Limited's strengths include long-term relationships with established clients, a diverse range of specialised plastic products, strong design optimisation capabilities, and sustainable business development. Additionally, the company benefits from strategic manufacturing locations and robust supplier networks.
However, its reliance on the automotive industry and limited geographic presence poses risks. Price volatility of raw materials and increasing competition in the plastics manufacturing sector, alongside evolving regulations, present potential challenges for the company's growth trajectory.
The Premium Plast Limited IPO SME presents an exciting opportunity for investors looking to explore upcoming IPOs. With a last GMP of ₹8, as of October 18, 2024, the estimated listing price stands at ₹57, indicating a potential gain of 16.33% based on the upper price band of ₹49.
The company's solid financial metrics, coupled with its established market position and growth potential, make this IPO an attractive option in the current landscape of SME IPOs. As investors consider their IPO investment strategies, the Premium Plast Limited IPO GMP and its competitive strengths further underscore the potential for strong returns, making it a special addition to any investment portfolio.
The Premium Plast IPO is an SME IPO offering 5,346,000 equity shares with a face value of ₹10, amounting to a total of ₹26.20 crores. The share price is set between ₹46 and ₹49, with a minimum order quantity of 3,000 shares. This IPO will be open for subscription from October 21 to October 23, 2024. Bigshare Services Pvt Ltd is the registrar for this issue, and the shares are expected to be listed on the NSE SME.
The Premium Plast IPO will open for subscription on October 21, 2024, and will close on October 23, 2024.
The basis of allotment for the Premium Plast IPO will be finalised on Thursday, October 24, 2024. The allotted shares are anticipated to be credited to your demat account by Friday, October 25, 2024. For updates, you can check the Premium Plast IPO allotment status.
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