Silkflex Polymers (India) Limited IPO

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The company operates as a key trading partner for Silkflex Polymers SDN BHD, a Malaysian manufacturer known for its high-quality textile printing inks and water-based wood coating polymers. Silkflex Polymers manufactures these products in Malaysia and distributes them globally through authorized agents in several countries, including India, Thailand, Turkey, Russia, Sri Lanka, Bangladesh, and Indonesia.

Founded in 2016 by Lalit Kumar Hargovinddas Sanghavi and his son Tushar Lalit Kumar Sanghavi, the company began with the aim of importing and distributing Silkflex products in India. Following the unfortunate passing of Lalit Kumar Hargovinddas Sanghavi in 2020 due to the COVID-19 pandemic, the company’s leadership transitioned to Tushar Lalit Kumar Sanghavi and his daughter, Ms. Urmi Raj Mehta. Together, they bring over 21 years of combined experience in the industry, significantly contributing to the company’s strategic direction and operational success.

Their product range is extensive, featuring 108 textile printing ink products and 51 wood coating polymer products. Key agreements with Silkflex Malaysia, established in 2016 and 2019, authorize their company to distribute and sell these products in India, along with the rights to use the Silkflex brand name. A recent Technology Transfer Agreement in 2023 further allows their company to begin manufacturing these products domestically in India, marking a significant expansion in their operational capabilities.

Silkflex products are distinguished by their environmental and safety certifications, including ZDHC Confidence Level 3, which ensures the elimination of hazardous chemicals in manufacturing processes, and certifications from Eco-Passport by Oeko-Tex® and GOTS-version 7, reflecting high standards in organic textile production.

As of the latest update in the prospectus, their company is headquartered in West Bengal, India, with additional branch offices in Gujarat, Maharashtra, Tamil Nadu, Rajasthan, and Punjab. These facilities are well-equipped to support the company’s distribution and sales operations effectively.

Objects of the Silkflex Polymers (India) Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Acquisition of land; ii. Funding of capital expenditure requirements of the Company towards purchase of Plant and Machineries; iii. Funding Working Capital Requirements of the Company; and iv. General corporate purposes.

Silkflex Polymers (India) Limited IPO Details:

Open Date: May 07 2024
Close Date: May 10 2024
Total Shares: 3,482,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 18.11 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 52 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 15 2024

Promoters And Management:

Mr. Tushar Lalit Kumar Sanghavi, aged 58 years is one of the Promoters, Chairman and Managing Director of the Company. He has completed his Bachelor of Science (B.Sc.) degree from M. G. Science Institute, Ahmedabad in the year 1986. He is in the business of trading of textile printing ink through his proprietorship concern, M/s Judex Techno since 2005. He has been associated with the Company since incorporation and was redesignated as Chairman and Managing Director w.e.f. December 23, 2023 for a period of 5 years. He has a work experience of more than 18 years in the field of textile printing ink industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. Ms. Urmi Raj Mehta, aged 27 years, is one of the Promoters, Whole Time Director and Chief Financial Officer of the Company. She has completed her Bachelor of Commerce (B.Com.) degree from St. Xavier’s collage, University of Calcutta in the year 2017. She has been associated with the Company w.e.f. December 22. 2020 and has working experience of more than 3 years in the Company. She is responsible for looking overall accounts, finance and administration of the Company. Mr. Atanu Bhuniya, aged 46 years is the Non-Executive Non-Independent Director of the Company. He has completed his Bachelor of Science (B.Sc.) degree from University of Calcutta in the year 1999. He has a work experience of over 17 years in the textile printing ink industry. In his previous stint, he was associated with M/s Judex Techno as marketing head for around 10 years handling marketing division for textile printing ink. He has been associated with the Company since June 2016 as commission agent and was appointed as the Director on the Board of the Company w.e.f. May 03,2023 and is responsible for handling the marketing activities of the Company and its effective implementation of the same.

Financials of Silkflex Polymers (India) Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 2,075 2,782 3,421 3,348
Other Income 21 22 21 33
Total Revenue 2,096 2,805 3,442 3,382
Purchase of Stock in Trade 1,642 2,491 2,818 2,438
Change in Inventories -116 -597 -344 -104
Employees Benefit Expenses 114 131 165 159
Other Expenses 310 594 544 375
EBITDA 146 186 260 513
Depreciation & Amortisation 5 21 40 73
Finance Cost 80 73 112 95
EBIT 141 165 220 441
OPM (%) 6.99% 6.64% 7.54% 15.17%
PBT 61 92 108 345
Tax 15 24 29 89
PAT 45 69 79 257
NPM (%) 2.16% 2.45% 2.28% 7.59%
No.of Shares 116.07 116.07 116.07 116.07
EPS 0.39 0.59 0.67 2.21

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Silkflex Polymers (India) Limited 34 0.8 0.67 76.8 52 60
BASF India Limited 13,645 403 93.08 36.7 4,012 17,374
Heubach Colorants India Limited 766 19 8.31 20.6 396 915
Berger Paints India Limited 10,568 860 7.37 53.6 521 60,696
* All the data is as per FY23.

Recommendation on Silkflex Polymers (India) Limited IPO:

Review and Recommendation of Silkflex Polymers (India) by team IZ is 5/10. 1. The company specializes in trading textile printing inks and water-based wood coating polymers. They represent the Malaysian brand "Silkflex," a product line created by Silkflex Polymers SDN BHD, a renowned manufacturer of garment printing inks. Silkflex operates from Malaysia and distributes its products globally through authorized agents, reaching countries such as India, Thailand, Turkey, Russia, Sri Lanka, Bangladesh, and Indonesia. They currently hold the rights to sell Silkflex products and use the brand name in India. 2. Product Portfolio They offer a diverse product portfolio consisting of 108 textile printing ink products and 51 wood coating polymers products. Their distribution agreement with Silkflex Malaysia allows them to sell their water-based textile printing inks and wood coating polymers in India. Additionally, a Technology Transfer Agreement (TTA) permits us to manufacture Silkflex products locally, focusing initially on Silkbond 35 and binder for table glue products. 3. Environmental Standards Silkflex products adhere to rigorous environmental standards, holding certifications like ZDHC Confidence Level 3, which focuses on removing harmful chemicals from production. The products also have Eco-Passport and GOTS-version 7 certifications, reflecting their commitment to safety and sustainability. 4. Competition They face competition from various domestic and international players, especially from the unorganized sector. Despite this, they are poised to capture more market share through competitive pricing, established supplier and customer relationships, and strong brand recognition. 5. The Revenue has Increased from Rs.20 Crores in FY21 to Rs.34 Crores in FY23. 6. The EBITDA has Increased from 1 Crores in FY21 to 2 Crores in FY23. 7. The PAT has Increased from 45 Lakhs in FY21 to 79 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 0.93, As per FY24, EPS is 2.94, 9. Market Capitalization is 60 Crore & P/E is 17.63x based on FY24.

Lead Manager of Silkflex Polymers (India) Limited IPO:


Registrar of Silkflex Polymers (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Silkflex Polymers (India) Limited Daga Complex Sulati Jaladhulagori Sankrail, Howrah-711302 Phone: +91 9674912615 Email: Website:

Discussion on Silkflex Polymers (India) Limited IPO:

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