Mega Flex Plastics Limited IPO

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i. Mega Flex Plastics Limited is primarily engaged in manufacturing of Leno Bags which is used for packaging of agricultural produces like potatoes, onions, garlic, coconuts, fruits and vegetables. In addition to Leno Bags, the company is also manufacturing Woven Fabric and Sutli (Fibrillated Twisted Thread). The product which they majorly manufacture i.e., Leno Bags is made from Plastic Granules and is used multiple times for storage of fruits and vegetables. The said product is widely used in Cold Storages and warehouses for storage of various products.

ii. Company’s state-of-the-art plant for manufacturing PP Leno Bags is situated at Sudha Ras Food & Poly Park (Industrial Park), Howrah in the state of West Bengal, India. The plant is strategically located on NH-6, about 120 km from international all-weather port of Haldia and around 30 kms from Kolkata port, which gives it excellent connectivity and transport facilities.

iii. When they started the production, usage of Leno Bags was in its nascent stage and farmers were hardly aware of this highly convenient and economic form of packaging. Vegetables were mainly packed in jute bags. Jute bags was not an efficient mode of packaging due to its high cost, voluminous in size, wastage of packed produce because of high water absorption resulting in huge loss during storage and transportation. With technical and marketing support of some big polymer manufacturers, they reached out to farmers at grass root level in villages of West Bengal and popularized use of Leno Bags. This revolutionized the way vegetables were packed and proved to be a boon for the farmers.

iv. Mega Flex Plastics became an integrated fruits and vegetable packaging solutions provider offering Leno Bags, which are used for packing of fruits & vegetables, Technical Textile Fabric and Sutli (Fibrillated Twisted Thread). They are part of a group whose other business interests include manufacturing of rigid plastic packaging products i.e. Plastic Container for Paints, Lubricants, Greases etc.; paper packaging products i.e. Corrugated Boxes & Mono Boxes; and logistics & warehousing etc.

v. Competitive Strengths:

  • Organizational stability along with management expertise.
  • Smooth flow of operations.
  • Well-defined organizational structure.
  • Existing Supplier Relationship.
  • Wide range of Products.

Objects of the Mega Flex Plastics Limited IPO:

The Objects of the Issue are: i. To meet the working capital requirements ii. To meet the Issue Expenses iii. General Corporate Purposes

Mega Flex Plastics Limited IPO Details:

Open Date: Sep 06 2022
Close Date: Sep 09 2022
Total Shares: 2,850,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 11.40 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

i. Mr. Mohan Lal Parakh, aged about 77 years, is the Promoter, Chairman and Wholetime Director of the company. His career spans about 6 decades. He has been involved in widely diverse industries, namely, plastic processing, oil milling, hosiery, food processing, foundry etc. In the process he has acquired deep knowledge of engineering and technology. His long experience and sound knowledge have been pivotal for growth and progress of the company. He plays pivotal role in strategic decision making, identifying and implementing technology, maintaining full efficiency of plant & machineries, continuous improvement of product quality etc. ii. Mr. Hukum Chand Bothra, aged about 56 years, is Promoter cum Managing Director of the Company. He is associated with the Company for a very long time and is among one of the faces who lead the company to its current glory. He is a qualified Chartered Account and holds a Bachelor’s Degree in Commerce from University of Burdwan. He has three decades of experience in plastic and paper packaging industries. He manages day to day operations of our company. iii. Mr. Rakesh Sethia, aged about 50 years, is the Promoter cum Executive Director of the Company. He is the son of Late Anup Chand Sethia who was founder of the Company. He is a member of the Institute of Chartered Accountants of India and holds a Bachelor’s Degree in Commerce from University of Calcutta. He comes from a business family and his career, spanning almost three decades is jewelled with continuous expansion and diversification of his family business to the areas of Plastic Goods, manufacturing of Leno Bags, Rigid Plastic Containers and Card Board Box, Warehousing etc. In this process, he has acquired sound experience in manufacturing, financial and marketing strategy etc. He has special penchant for identifying newer growth areas and for updating himself of newer products and technologies.

Financials of Mega Flex Plastics Limited IPO:

Particulars (in Lakhs) March 21 March 20 March 19
Revenue from operations 4,646.83 2,949.23 3,149.64
Cost of Material Consumed 3,185.99 2,143.97 2,352.06
383.21 -125.75 -102.87
Employee Benifit Expense 135.06 126.99 123
Other Expense 614 684 606
Operating Profit 328.35 119.85 171.69
OPM% 7.07% 4.06% 5.45%
Finance Cost 2 4 13
Depreciation 47 55 70
Other Income 92 159 194
Profit (Loss) before tax 421 279 365
Profit (Loss) for the period 266 129 220

Comparison With Peers:

There are no listed company related to such business.

Lead Manager of Mega Flex Plastics Limited IPO:

  1. Finshore Management Services Limited

Registrar of Mega Flex Plastics Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Mega Flex Plastics Limited 4, Ho Chi Minh Sarani, Suite-2A, 2nd Floor, Kolkata - 700071 Phone: +91 98742 45045 Email: compliance@megaflex.in Website: http://www.megaflex.co.in/

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