SPP Polymer Limited IPO

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SPP Polymer Limited is an ISO 9001:2015 certified company engaged in the manufacturing of HDPE/PP woven fabric and bags, non-woven fabrics and bags, and PP Multifilament yarn. The company specializes in providing packaging solutions to Business-to-Business (B2B) manufacturers across a variety of industries, including cement, chemicals, food grains, sugar, polymers, and agriculture. The packaging solutions are designed for bulk goods, catering to the specific needs of these industries.

The company’s manufacturing facility is located at Plot No. 4, Sector-I, IIE SIDCUL, Pantnagar, Udham Singh Nagar, Uttarakhand, India, covering a total land area of 13,650 square meters. The facility is well-equipped with modern machinery and technology, enabling the company to achieve an installed capacity of 9,125 MT for HDPE/PP woven fabric and bags and 3,600 MT for non-woven fabric. This capacity expansion was achieved by incurring a capital expenditure of ₹2,111.37 Lakhs during the financial year 2022-23.

SPP Polymer Limited places a strong emphasis on quality control, employing an extensive and stringent quality management system at every stage of the manufacturing process. This ensures that the finished products meet the precise requirements of customers, consistently delivering high-quality products at competitive prices. The company’s infrastructure and team of experts are well-positioned to offer a comprehensive range of products, tailored to the specific needs and requirements of clients. Additionally, SPP Polymer Limited offers customized solutions based on client specifications, further enhancing its value proposition in the market.

Overall, SPP Polymer Limited stands out as a leader in the manufacturing of HDPE/PP woven fabrics and bags, non-woven fabrics and bags, and PP Multifilament yarn, driven by its strong focus on quality, customer satisfaction, and continuous innovation in packaging solutions.

Objects of the SPP Polymer Limited IPO:

The company propose to deploy the Net Proceeds for the aforesaid purposes in accordance with the estimated schedule of implementation for the following objects : i. Repayment of Loan ii. Working capital requirement iii. General corporate purposes1
DRHP of SPP Polymer Limited IPO
RHP of SPP Polymer Limited IPO

SPP Polymer Limited IPO Details:

Open Date: Sep 10 2024
Close Date: Sep 12 2024
Total Shares: 4,150,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 24.49 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 59 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 17 2024

Promoters And Management:

Mahavir Bahety, aged 52 years, is the Promoter and Whole-Time Director of the Company. He was initially appointed as a director on April 17, 2005. Following the approval of the members in the Extraordinary General Meeting held on October 06, 2023, he was appointed as a Whole-Time Director of the company, with a term of three years starting from October 06, 2023. His position is subject to retirement by rotation. Liladhar Mundhara aged 66 years is Promoter and Whole-Time Director of the Company. Originally, He was appointed as a director on April 17, 2005. Thereafter, pursuant to approval of members in the Extra ordinary general meeting held on October 06, 2023, he was appointed as a whole time director of the company, liable to retire by rotation for a period of Three (3) years from October 06, 2023. Dipak Goyal aged 41 years is Promoter, Managing Director and Chief Financial Officer of the Company. Originally, he was appointed as an additional director on November 01, 2012 and his designation was changed to Non-Executive Director on September 30, 2013. Further, he was appointed as a Managing Director, liable to retire by rotation for a period of three years from August 5, 2023 to August 4, 2026.

Financials of SPP Polymer Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
3M-FY25
Revenue from Operations 8,028 6,605 9,175 2,820
Other Income 50 73 206 76
Total Revenue 8,078 6,677 9,381 2,896
Cost of material Consumed 6,933 5,180 7,511 2,185
Changes in inventories -431 51 -555 -149
Employees Benefit Expenses 573 484 556 238
Other Expenses 799 622 1,047 343
EBITDA 204 340 824 279
OPM (%) 2.53% 5.10% 8.78% 9.62%
Depreciation & Amortisation 103 127 411 90
EBIT 101 213 412 189
Finance Cost 61 111 270 57
PBT 41 102 143 132
Tax 13 48 43 41
PAT 28 54 99 91
NPM (%) 0.35% 0.81% 1.06% 3.15%
No.of Shares 153.91 153.91 153.91 153.91
EPS 0.18 0.35 0.64 0.59

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
SPP Polymer Limited 92 1 0.64 91.4 59 91
Rishi Techtex Limited 112 1 1.83 34.4 62 46
EMMBI Industries Limited 377 10 5.62 22.9 129 228
* All the data is as per FY24.

Recommendation on SPP Polymer Limited IPO:

1. SPP Polymer Limited is specializing in the manufacturing of HDPE/PP woven fabric & bags, non-woven fabrics & bags, and PP multifilament yarn. 2. They cater to a broad range of industries including cement, chemicals, food grains, sugar, polymers, and agriculture, providing B2B packaging solutions for bulk quantities. 3. Competition and Market Position The packaging industry is highly fragmented and competitive, with a mix of organized and unorganized players. 4. The Revenue has Increased from Rs.80 Crores in FY22 to Rs.92 Crores in FY24. 5. The EBITDA has Increased from 2 Crores in FY22 to 8 Crores in FY24. 6. The PAT has Increased from 28 Lakhs in FY22 to 1 Crore in FY24. 7. As per FY24, CFO/EBITDA is 0.76, and EPS is 0.64, 8. Market Capitalization is 91 Crores and P/E is 91.4x based on FY24.

Lead Manager of SPP Polymer Limited IPO:

  1. Interactive Financial Services

Registrar of SPP Polymer Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

SPP Polymer Limited Bearing No DPT212, DLF Prime Tower Okhla Industrial Estate, Phase 1 New Delhi-110020 Phone: +91 91 594429775 Email: cs@spppolymer.com Website: http://www.spppolymer.com/

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