What You Must Know About Boss Packaging Solutions IPO: Price Band ₹66 Per Share

Established in January 2012, Boss Packaging Solutions Limited specialises in manufacturing, supplying, and exporting a diverse range of packaging, capping, and filling machinery. The company also provides self-adhesive sticker labelling machines, conveyors, turntables, web sealers, and sleeve applicators.

The company's product range encompasses various labelling, packing, filling, and sealing machines, accessories, and complete packaging lines for multiple industries.

Boss Packaging Solutions Limited supplies its products to sectors including edible oils, lubricants, chemicals, cosmetics, home care, pharmaceuticals, viscous liquids, juices and dairy, agriculture and pesticides, food and ancillary products, as well as cosmetics and toiletries, and distilleries and breweries.

During Fiscal years 2024, 2023, and 2022, the company served 70, 60, and 50 customers, respectively. As of August 2024, the company has successfully sold its machinery across more than 18 Indian states, 3 Union territories, and 4 countries. As of March 31, 2024, the company's workforce comprised 64 employees, including skilled and unskilled labour, administrative staff, and management personnel.

The Objective of the Issue

Purchase of Machineries: The company intends to allocate some IPO proceeds to acquire new machinery. This investment aims to enhance production capacity, improve operational efficiency, and support the company's growth by enabling the development of higher-quality products and scaling up manufacturing operations.

Funding the Working Capital Requirements: Another objective is to use the funds to meet the working capital needs. This includes financing day-to-day operational expenses, managing cash flow, ensuring smooth business operations, maintaining a steady supply chain and meeting customer demands more effectively.

General Corporate Purpose: The remaining funds will be used for general corporate purposes, including business development, strategic initiatives, and unforeseen expenses. This objective provides the company with financial flexibility to support its growth strategy and respond to emerging opportunities or challenges.

Highlights of Boss Packaging Solutions IPO

Boss Packaging Solutions IPO is launching an initial public offering (IPO) with a fixed price amounting to ₹8.41 crores. This offering consists solely of a new issuance of 12.74 lakh shares. Here are the key details of the IPO:

• The IPO opens for subscription on 30th August 2024 and closes on 3rd September 2024.
• The allotment is expected to be finalised on 4th September 2024.
• Refunds will be initiated on 5th September 2024.
• Credit shares to Demat accounts are also expected on 5th September 2024.
• The company will tentatively list on BSE NSE on 6th September 2024.
• The price band is set at ₹66 per share.
• The lowest lot size for the IPO application is 2000 shares.
• Retail investors need to invest a minimum of ₹132,000.
• The minimum investment for sNII is 2 lots (4,000 shares), totalling ₹264,000.
• Fedex Securities Pvt Limited is the IPO's book-running lead manager.
• Kfin Technologies Limited serves as the registrar.
• B.N. Rathi Securities is the market maker.

Boss Packaging Solutions IPO - Key Dates

Boss Packaging Solutions IPO Issue Details/Capital History

Boss Packaging Solutions IPO is scheduled from 30th August to 3rd September 2024, with a fixed price of ₹66 per share and a face value of ₹10. The IPO aims to raise ₹8.41 crores by issuing 1,274,000 shares. The company's shareholding will increase from 3.17 million to 4.45 million shares post-IPO. The lot size is 2,000 shares, and the IPO will be listed on the NSE SME. B.N. Rathi Securities is the market maker, with 66,000 shares allocated for this purpose. This IPO will support the company’s growth and expansion plans.

Boss Packaging Solutions IPO Allocation & Minimum Investment Lot Size

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

Investors may submit bids starting from a minimum of 2,000 shares, with the possibility of acquiring additional shares in multiples of this base amount. The table below presents the minimum and maximum investment parameters for retail investors and high-net-worth individuals (HNIs), expressed in shares and financial amounts.

SWOT Analysis: Boss Packaging Solutions Limited

Strengths:

Established Market Presence: Boss Packaging Solutions has a solid footing in the packaging industry and a well-recognised brand.
Growth Potential: The fresh capital from the IPO will enable the company to invest in new machinery and enhance production capacity.

Weaknesses:

Limited Scale: As an SME, the company may face challenges in scaling operations compared to larger competitors.
Dependency on Key Clients: A significant portion of revenue may come from a few major clients, making the company vulnerable to client losses.

Opportunities:

Market Expansion: The IPO funds could facilitate entry into new markets or diversification of product offerings.
Technological Upgrades: Investing in advanced machinery can improve efficiency and reduce operational costs.

Threats:

Economic Uncertainty: Fluctuations in the economy can impact demand for packaging services.
Competitive Pressure: The packaging industry is highly competitive, with larger players potentially challenging the company’s market share.

Financial Highlights: Boss Packaging Solutions Limited

Below are the financial results of the FY24 and the Fiscal years FY23 and FY22:

The financial performance of Boss Packaging Solutions Limited between the fiscal years ending March 31, 2024, and March 31, 2023, shows a company that is steadily growing but with mixed results in terms of profitability. The company's revenue increased by 17.67% from ₹1,034.71 lakhs in FY23 to ₹1,217.54 lakhs in FY24. This indicates strong operational growth and an expanding market presence, suggesting that the company is successfully increasing its sales and scaling its business.

However, profitability growth is more modest. The Profit After Tax (PAT) rose by only 0.53%, from ₹100.51 lakhs in FY23 to ₹101.04 lakhs in FY24. This slight increase in profit suggests that while the company generates more revenue, it also faces challenges in controlling costs or improving margins, leading to only a marginal improvement in net profit.
The company’s assets have also grown significantly, increasing from ₹536.12 lakhs in FY23 to ₹766.10 lakhs in FY24, indicating substantial investments in resources and the company's asset base expansion. The net worth nearly doubled, rising from ₹202.04 lakhs to ₹452.93 lakhs, reflecting strong equity growth. However, it's noteworthy that reserves and surplus decreased, which may indicate that some profits were utilised for reinvestment or other strategic purposes.

There was a significant increase in borrowing, with total borrowing rising from ₹3.70 lakhs in FY23 to ₹65.62 lakhs in FY24. This increase in debt might have been used to finance the company’s expansion, but it also introduces higher financial obligations that need careful management.

Overall, the financials reflect a company on a growth trajectory, though some areas require attention, particularly in managing costs and maintaining profitability.