Premium Plast IPO Launch: Key Dates & Price Band Details

Premium Plast Limited, founded in 1995, designs, manufactures, and supplies exterior, interior, and hood plastic parts directly to commercial vehicle manufacturers. The company manufactures various injection and blow moulded plastic parts for a wide range of industries and applications, including automotive parts, industrial plastic parts, and packaging components. Premium Plast specializes in the manufacture of automotive parts and produces over 600 components in three state-of-the-art, strategically located facilities in India with a total installed capacity of 1,975 MTPA.

The Objectives of the Premium Plast Issue

The Company proposes to utilize the Net Proceeds from the offer towards funding the following objects:

• Expansion of Existing Manufacturing facility at Pithampur, Madhya Pradesh, and Purchase of Machineries
• Funding of capital expenditure requirement towards Set up of Rooftop on Grid Solar Power Plant at the existing Manufacturing facility
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company
• General Corporate Purpose
• Offer Related Expenses

Highlights of Premium Plast IPO

Premium Plast IPO is set to launch with a book-built issue of ₹26.20 crores. The issue is entirely a fresh issue. Here are the key details of the IPO:

• The IPO opens for subscription on 21st October 2024 and closes on 23rd October 2024.
• The allotment is expected to be finalised on 24th October 2024.
• Refunds will be initiated on 25th October 2024.
• Credit of shares to Demat accounts is also expected on 25th October 2024.
• The company will tentatively list on NSE SME on 28th October 2024.
• The price band is set at ₹46 to ₹49 per share.
• The fresh issue comprises 53.46 lakh shares, aggregating to ₹26.20 crores.
• The minimum lot size for the application is 3000 shares.
• Retail investors need to invest a minimum of ₹147,000.
• The minimum investment for HNI is 2 lots (6,000 shares), amounting to ₹294,000.
• Khandwala Securities Limited is the book running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.

Premium Plast IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 23rd October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Premium Plast IPO Issue Details/Capital History

Premium Plast IPO is scheduled from 21st October to 23rd October 2024, with a price band of ₹46 to ₹49 per share and a face value of ₹10. The total issue size is 53,46,000 shares, raising up to ₹26.20 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,37,51,100 shares, and the post-issue shareholding will be 1,90,97,100 shares.

Premium Plast IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 3000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Premium Plast Ltd

Strengths:

• Long-standing relationships with established customers
• Wide range of specialized plastic products for various customer segments
• Robust design optimization capabilities
• Strategic location of production units
• Certifications according to quality standards and quality inspections
• Experienced promoters and management team

Weaknesses:

• Dependence on automotive industry performance
• Limited geographical presence

Opportunities:

• Expansion of customer base
• Growing demand for plastic components in various industries
• Potential for technological advancements in manufacturing processes

Threats:

• Fluctuations in raw material prices
• Increasing competition in the plastic manufacturing sector
• Regulatory changes affecting the automotive and plastic industries

Financial Highlights: Premium Plast Ltd

Below are the consolidated financial results for recent periods:

Premium Plast Limited has shown growth in recent years. Revenue has seen growth, rising from ₹2,797.95 lakh in FY21 to ₹4,404.83 lakh in FY23, marking an increase of 57.4% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹75.66 lakh in FY21 to ₹159.32 lakh in FY23, representing a growth of 110.6% over two years. Moreover, in the first ten months of FY24 (up to 31st January 2024), PAT has further increased to ₹417.24 lakh, showing substantial improvement.

Net Worth has shown steady growth, increasing from ₹937.94 lakh in FY21 to ₹1,591.74 lakh as of 31st January 2024, which represents an increase of about 69.7% over this period.

Total Borrowings have fluctuated, decreasing from ₹553.27 lakh in FY21 to ₹505.35 lakh in FY23, but then increasing to ₹821.11 lakh as of 31st January 2024. This recent increase in borrowings may be related to expansion activities.
The company's financial performance shows a trend of revenue growth and improving profitability. The substantial increase in PAT and Net Worth indicate a strengthening financial position. However, investors should note the recent increase in borrowings. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.