SPP Polymers Limited is launching an IPO with a fixed price issue of ₹24.49 crores, offering 41.5 lakh fresh equity shares. The subscription period for the SPP Polymers IPO is scheduled from September 10, 2024, to September 12, 2024.
The price per share is set at ₹59, with a minimum application lot size of 2,000 shares. Retail investors need to make a minimum investment of ₹118,000, while HNIs can invest in a minimum of 2 lots, amounting to ₹236,000.
The allotment of shares is expected to be finalised on September 13, 2024, and the IPO will list on the NSE SME platform with a tentative listing date of September 17, 2024. Interactive Financial Services Ltd is the book-running lead manager for this IPO, and Kfin Technologies Limited serves as the registrar. B.N. Rathi Securities is the designated market maker for SPP Polymers IPO.
Industry Outlook:
- India's paper and packaging industry is set to expand significantly, projected to grow from $50.5 billion in 2019 to $204.81 billion by 2025 at a CAGR of 26.7%.
- India’s packaging material exports surged, reaching $1,119 lakh in 2021-22 from $844 lakh in 2018-19, with the US as the top export destination.
SPP Polymers IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Repayment of Loan
- Working capital requirement
- General Corporate Purpose
About SPP Polymers Limited
SPP Polymers Limited, incorporated in 2004 and formerly known as SPP Food Products Private Limited, specializes in manufacturing a diverse range of HDPE/PP woven fabric and bags, non-woven fabrics and bags, and Multifilament Yarn.
Situated in Rudrapur City, Uttarakhand, the company offers tailored solutions to meet specific client needs. SPP Polymers' production capacity includes 12,000 MT per annum for HDPE/PP woven fabric and bags, 4,000 MT for non-woven fabric, and 300 MT for Multifilament Yarn. The company is accredited with ISO 9001:2015, 45001:2018, 14001:2015, and SA 8000:2014 certifications, reflecting its commitment to quality management, occupational health and safety, and environmental management.
SPP Polymers primarily caters to customers in sectors such as agro-pesticides, cement, chemicals, fertilizers, food products, textiles, ceramics, and steel. As of December 31, 2024, the company employs four people, driving its mission to deliver high-quality products across various industries.
Peer Details
The companies considered by SPP Polymers as its peers include:
- Rishi Techtex Limited
- EMMBI Industries Limited
How to Check the Allotment Status of the SPP Polymers IPO?
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Contact Details of SPP Polymers IPO
- Registered office: Bearing No DPT212, DLF Prime Tower, Okhla Industrial Estate, Phase 1, New Delhi-110020 India
- Phone: +91 91 5944297751
- E-mail: cs@spppolymer.com
IPO Financials
| Particulars | As At 30th June, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from Operations (in ₹ lakh) | 2,819.50 | 9,175.11 | 6,604.72 |
| Profit After Tax (PAT) (in ₹ lakh) | 91.33 | 99.40 | 54.42 |
| Current Ratio (x) | 1.20 | 1.20 | 1.37 |
| Net Worth (in ₹ lakh) | 2,591.64 | 2,500.30 | 2,433.64 |
| Total Borrowings (in ₹ lakh) | 1,871.94 | 1,897.82 | 2,215.18 |
| Return on Equity (%) | 7.08 | 8.01 | 4.94 |
| Return on Capital Employed (RoCE) (%) | 4.27 | 9.13 | 5.45 |
| Earnings Per Share (in ₹) | 0.81 | 0.88 | 1.96 |
Know before investing
Strengths
6ISO-certified, stringent quality control ensures superior product standards.
Promoters bring 19 years of polymer industry experience.
Diverse product portfolio meets varied customer requirements efficiently.
Strong relationships with long-standing customers across multiple industries.
Expanding domestic and international footprint drives business growth.
In-house testing lab ensures raw materials meet global standards.
Risks
6Pending litigations may negatively impact financials and operations significantly.
Low net profit margins could hinder growth and profitability.
Delayed or inaccurate ROC filings risk penalties and regulatory actions.
Manufacturing facility disruptions may severely affect production and revenues.
Intense competition in fragmented industry may pressure profit margins.
Dependence on limited suppliers and customers increases business vulnerability.
