Sati Poly Plast Limited, a manufacturer of flexible packaging materials, is set to enter the public market through an IPO on the NSE SME platform. This blog dives into the details of the offering, explores the company's profile, and analyses the potential benefits and risks to assist you in making an informed investment decision.
Sati Poly Plast IPO fundamentals
- Issue Type: Book Built Issue (entirely fresh issue)
- Issue Size: Rs 17.36 crores
- Face Value: Rs 10 per share
- Price Band: ₹123 to ₹130 per share
- Open Date: July 12, 2024
- Close Date: July 16, 2024
- Listing Date (Tentative): July 22, 2024 on NSE SME
Minimum investment for Sati Poly Plast IPO
- Retail Investors: ₹130,000 (minimum lot of 1000 shares)
- HNI (High Net Worth Individuals): ₹260,000 (minimum lot of 2,000 shares)
About Sati Poly Plast
- Established in 1999, Sati Poly Plast manufactures flexible packaging materials catering to various industries.
- The company operates two manufacturing units in Noida with a combined capacity of 1080 tons per month.
- Sati Poly Plast boasts a wide client base across numerous states in India, supplying packaging solutions to well-known brands like Pidilite, Adani Wilmar, and JVL.
Sati Poly Plast: financials
- It's important to note that Sati Poly Plast's revenue experienced a decrease of 6.05% in FY 2024 compared to FY 2023. However, the company's profit after tax (PAT) witnessed a growth of 6.39% during the same period.
- The growth in PAT despite a revenue decline warrants further investigation into the company's cost-management strategies and profit margins.
Sati Poly Plast IPO: investment highlights
- Established Player: With over two decades of experience, Sati Poly Plast has a proven track record in the flexible packaging industry.
- Diversified Clientele: The company caters to a broad client base across various industries, offering some protection against economic downturns in specific sectors.
- Increased Capacity: Sati Poly Plast has steadily expanded its production capacity, indicating potential for future growth.
Investment considerations for Sati Poly Plast IPO
- SME Listing: This is an SME IPO investment, which generally carries higher risks compared to listings on the main NSE board. Lower liquidity and higher volatility are common features of SME stocks.
- Revenue Decline: The recent decrease in revenue requires careful analysis to understand the underlying reasons and future growth prospects.
- Competition: The flexible packaging industry is competitive. Sati Poly Plast will need to maintain its product quality and cost-effectiveness to compete effectively.
Final Thoughts
The Sati Poly Plast IPO offers an opportunity to invest in a company with a long history in the flexible packaging sector. However, the recent revenue decline, SME listing characteristics, and competitive landscape present certain risks. Carefully weigh the pros and cons and ensure this aligns with your investment strategy before making a decision.
Disclaimer
This blog is for informational purposes only and should not be considered financial advice. Before investing in any IPO, conduct thorough research, consult a qualified financial advisor, and carefully consider your risk tolerance and investment goals.
