L.K. Mehta Polymers IPO is a fixed price issue valued at ₹7.38 crore. It is a 100% fresh issue of 10.40 lakh shares. It opened for subscription on February 13, 2025, and is closing soon on February 17, 2025. The allotment is expected to be finalised on February 18, 2025, with a tentative listing date of February 21, 2025, on the BSE SME platform.
The IPO price is set at a price of ₹71 per share. Retail investors need a minimum investment of ₹1,13,600 for one lot of 1600 Shares, while HNI investors must invest in at least 2 lots, amounting to ₹2,27,200.
Swastika Investmart Limited is the book-running lead manager and the market maker for this issue, while Bigshare Services Private Limited serves as the registrar.
For detailed financial and operational information, investors can refer to the L.K. Mehta Polymers IPO RHP. This IPO presents an opportunity to invest in a growing enterprise listed on the SME platform.
Industry Outlook
- The Indian steel and rope industry is witnessing steady growth, driven by rising demand from the construction, agriculture, shipping, and industrial sectors. Government initiatives such as Make in India and infrastructure development programs are further fueling expansion.
- The global rope market, valued at USD 1.65 billion in 2021, is projected to reach USD 3.22 billion by 2030, supported by innovations in material technology, synthetic alternatives, and increased industrial applications. Companies investing in advanced manufacturing processes and product diversification are well-positioned to capitalise on this trend.
L.K. Mehta Polymers IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Funds will be allocated to expand and upgrade manufacturing facilities, improving efficiency and increasing production capacity.
- A portion of the proceeds will be utilised to repay outstanding debt, reduce financial liabilities, and strengthen the company’s balance sheet.
- Investment will be made in research and development to enhance product innovation and maintain a competitive edge in the market.
- Funds will be used to meet working capital requirements, ensuring smooth day-to-day operations and better cash flow management.
- The company plans to invest in automation and advanced technology to improve productivity and reduce operational costs.
About L.K. Mehta Polymers Limited
L.K. Mehta Polymers Limited was originally incorporated on January 2, 1995, under the Companies Act, 1956, with the objective of acquiring and taking over the existing proprietorship business of M/s Sajjan Plastic Industries.
The company is headquartered at 1103/2, Mhow-Neemuch Road, Ratlam, Madhya Pradesh, India, 457001, and is engaged in the manufacturing and trading of plastic products.
L.K. Mehta Polymers specialises in ropes, twines, and granules, including monofilament ropes, danline ropes, tape ropes, baler twines, and packaging twine (sutli). It also trades and reprocesses polypropylene granules and polyethylene granules.
With a focus on quality and brand recognition, the company sells its products under the brand name SuperPack, which distinguishes it from competitors.
The company operates a state-of-the-art manufacturing facility, ensuring high standards of production, efficiency, and sustainability.
Operating on a B2B model, the company supplies its products to domestic and international clients, ensuring consistent quality, competitive pricing, and timely delivery.
L.K. Mehta Polymers has obtained ISO 9001:2015 certification, reinforcing its commitment to quality standards and compliance.
Through its IPO, L.K. Mehta Polymers aims to expand production capacity, invest in advanced technology, and strengthen its financial position for long-term business growth.
How To Check the Allotment Status of the L.K. Mehta Polymers IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for L.K. Mehta Polymers IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the L.K. Mehta Polymers IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of L.K. Mehta Polymers IPO
Registered office: 1103/2, Mhow-Neemuch Road, Ratlam, Madhya Pradesh, India, 457001
Phone: +91-9669103095
E-mail: info@lkmehtapolymersltd.com
L.K. Mehta Polymers IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1600 |
₹1,13,600 |
|
Retail (Max) |
1 |
1600 |
₹1,13,600 |
|
HNI (Min) |
2 |
3200 |
₹2,27,200 |
L.K. Mehta Polymers IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares |
- |
|
Market Maker Shares |
54,400 (5.23%) |
|
Other Shares |
4,92,800 (47.38%) |
|
Retail Shares |
4,92,800 (47.38%) |
|
Total Shares |
10,40,001 (100%) |
L.K. Mehta Polymers IPO Promoter Holding
Mr. Kamlesh Mehta and Rina Mehta are the promoters of the company.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
72.92% |
Key Performance Indicators for L.K. Mehta Polymers IPO
As of March 31, 2024, the market capitalisation of L.K. Mehta Polymers's IPO is ₹27.26 crore. Here are the KPIs of L.K. Mehta Polymers:
|
KPI |
Value |
|
RoE (%) |
28.35 |
|
RoCE (%) |
16.00 |
|
EBITDA Margin (%) |
5.58 |
|
PAT Margin (%) |
4.71 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
3.06 |
1.45 |
|
P/E (x) |
41.04 |
48.95 |
Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.
The post-issue EPS is calculated based on the post-issue shareholding and annualised FY earnings of December 31, 2024, that are available in RHP.
L.K. Mehta Polymers IPO Prospectus
L.K. Mehta Polymers IPO Registrar and Lead Managers
L.K. Mehta Polymers IPO Lead Managers
- Swastika Investmart Limited
Registrar for L.K. Mehta Polymers IPO
Bigshare Services Private Limited
- Contact Number: +91-22-6263 8200
- Email Address:ipo@bigshareonline.com
L.K. Mehta Polymers IPO Registrar
Financial Performance of L.K. Mehta Polymers Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from operations (in ₹ lakhs) | 1,816.26 | 1,675.21 |
| EBITDA (in ₹ lakhs) | 101.41 | 13.53 |
| PAT (in ₹ lakhs) | 85.56 | (0.76) |
| Net Debt (in ₹ lakhs) | 637.33 | 388.64 |
| Total Equity (in ₹ lakhs) | 301.79 | 216.23 |
| ROE (%) | 28.35 | (0.35) |
| ROCE (%) | 16.00 | 7.00 |
