Solve Plastic Products Limited IPO

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Solve Plastic Products Limited, originally incorporated as a Private Limited Company under the name “Solve Plastic Products Private Limited,” was established on October 4, 1994, under the provisions of the Companies Act, 1956. The company was registered in Kerala, with the Registrar of Companies granting it Registration No. 09-08231. Over the years, the company evolved and, in line with its growth and expansion strategies, transitioned into a Public Limited Company.

This change was formalized on March 5, 2024, under the Companies Act, 2013, and the company’s name was officially changed to “Solve Plastic Products Limited.” The transformation was accompanied by a fresh Certificate of Incorporation, issued with Corporate Identification Number U25209KL1994PLC008231 by the Registrar of Companies – Central Processing Centre.

The company specializes in the manufacturing of a comprehensive range of Unplasticized Polyvinyl Chloride (uPVC) pipes and Rigid PVC Electrical Conduits. With a commitment to innovation, Solve Plastic Products Limited continuously strives to meet the growing demands for advanced drinking water piping solutions and electrical conduit fittings technologies.

The company’s manufacturing capabilities are robust, with three state-of-the-art facilities located in Kerala and an additional facility in Tamil Nadu. These facilities are equipped with the latest technology and equipment, enabling the production of high-quality uPVC pipes and electrical conduits in various sizes. The manufacturing process is fully automated, ensuring precision and efficiency. Furthermore, Solve Plastic Products Limited prides itself on having a highly skilled team of engineers, technicians, and operators who are integral to the production process and the maintenance of stringent quality control standards.

In summary, Solve Plastic Products Limited has established itself as a key player in the uPVC pipes and electrical conduit industry. With a strong foundation, cutting-edge technology, and a dedicated workforce, the company is well-positioned to continue its growth and innovation in the years to come.

Objects of the Solve Plastic Products Limited IPO:

The company intends to utilize the funding for the following objectives: i. Funding Capital Expenditure towards the purchase of additional plant and machinery ii. To meet the Working Capital Requirements iii. To meet the Issue Expenses iv. General Corporate Purposes
DRHP of Solve Plastic Products Limited IPO
RHP of Solve Plastic Products Limited IPO

Solve Plastic Products Limited IPO Details:

Open Date: Aug 13 2024
Close Date: Aug 16 2024
Total Shares: 1,302,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 11.85 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 21 2024

Promoters And Management:

Sudheer Kumar Balakrishnan Nair, aged about 59 years, is the promotor and Managing Director of the Company since 1994. He has a degree of Bachelor of Technology in Civil Engineering from University of Kerela. He has also done a Small and Medium Enterprises Programme from IIM Ahmedabad. He has over all experience of over 33 years in the management as Promoter and Managing Director with active involvement in policies, strategies as well as day to day operations of corporate, technical, commercial, marketing and people functions. He has been the Managing Director of the Company since the Incorporation of the Company and is also a member of the Audit Committee of the Company. Susil Balakrishnan Nair, aged about 57 years, is a promotor and Director since 1994 and has been redesignated as a Whole time Director of the company since 2016. He has a degree of Bachelor of Engineering in Electronics from Bangalore University. He turned to entrepreneurship with manufacturing of fittings and accessories for electrical and water pipes which he is successfully pursuing for over a decade now. He has in-depth understanding of the various business processes associated with manufacturing industries covering production, commercial functions, sales and marketing, inventory and logistics management etc. His expertise and industry knowledge will help the company in effectively formulating its business goals and strategies. Aravind Sudheer Kumar, aged about 32 years, holds a Post Graduate Diploma in Management from Asian School of Business, Trivandrum. He started working as an Assistant Manager under the Administration Department in this company since 2015. Aravind is currently functioning as the Operations Manager of the company and has been appointed as an Executive Director of the company since January 2024.

Financials of Solve Plastic Products Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 5,507 6,077 4,619
Other Income 71 148 97
Total Revenue 5,578 6,225 4,716
Cost of Material Consumed 4,326 4,489 3,063
Change in Work-In-Progress 55 -38 -24
Employees Benefit Expenses 375 465 493
Other Expenses 642 965 817
EBITDA 180 345 366
OPM (%) 3.23% 5.53% 7.76%
Depreciation & Amortisation 90 83 77
EBIT 90 262 289
Finance Cost 143 138 144
PBT -53 124 145
Tax -12 3 2
PAT -41 120 142
NPM (%) -0.73% 1.93% 3.02%
No.of Shares 43.68 43.68 43.68
EPS -0.93 2.75 3.26

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Solve Plastic Products Limited 46 1 3.26 27.9 91 40
Captain Pipes Limited 76 4 0.27 55.3 17 252
Rungta Irrigation Limited 149 6 2.84 33.1 94 187
Dutron Polymers Limited 119 2 4.08 41.0 173 104
AIK Pipes and Polymers Limited 37 3 5.36 30.2 162 103
* All the data is as per FY24.

Recommendation on Solve Plastic Products Limited IPO:

1. Solve Plastic Products Limited specializes in manufacturing a comprehensive range of Unplasticized Polyvinyl Chloride (uPVC) pipes and Rigid PVC electrical conduits. Solve Plastic Products Limited is dedicated to continuous innovation in drinking water piping solutions and electrical conduit fittings technologies, striving to meet the growing market demands. 2. Market Presence and Distribution Network The company markets its products under the brand name "BALCOPIPES," distributing them through a network of 260 authorized dealers and distributors across Kerala, Karnataka, and Tamil Nadu. The company's products are recognized and approved by various agencies, including the Bureau of Indian Standards (BIS), Central Public Works Department (CPWD) of Chennai & Kochi, Military Engineer Services (MES), Integral Coach Factory, and Public Works Department (PWD) of Kerala and Tamil Nadu. Additionally, Solve Plastic Products Limited is a registered vendor with government organizations such as Chennai Port Authority and Southern Railway. 3. SWOT Analysis Strengths: i. Quality Products and Assurance                           ii. Established Manufacturing Facilities iii. Strong Market Demand                                        iv. Experienced Management Team v. Existing Clientele Base Weaknesses: i. Working Capital Intensive Business                     ii. Limited Market Reach iii. Low Bargaining Power with Suppliers               iv. Supplier Dependence Opportunities: i. Market Expansion                                                   ii. Growing Consumer Acceptance iii. Production Expansion                                          iv. Government Initiatives Threats: i. Raw Material Price Fluctuations                          ii. Competitive Pressure iii. Rising Labor Costs                                               iv. Regulatory Changes v. New Market Entrants 4. Competition The plastic industry is vast and competitive, with many domestic players offering similar products. This comprehensive overview reflects the company’s strengths, challenges, and strategies, positioning Solve Plastic Products Limited as a key player in the Indian uPVC pipes and electrical conduits market, with aspirations for PAN India expansion. 5. The Revenue has Decreased from Rs.55 Crores in FY22 to Rs.46 Crores in FY24. 6. The EBITDA has Increased from 1.8 Crores in FY22 to 3.6 Crores in FY24. 7. The PAT has Increased from (-41) Lakhs in FY22 to 1.4 Crores in FY24. 8. As per FY24, CFO/EBITDA is 1.01, and EPS is 3.26, 9. Market Capitalization is 40 Crores and P/E is 27.9x based on FY24.

Lead Manager of Solve Plastic Products Limited IPO:

  1. Finshore Management Services Limited

Registrar of Solve Plastic Products Limited IPO:

  1. Integrated Registry Management Services Private Limited

Company Address:

Solve Plastic Products Limited Door No XIII/690/ABC, Tholicode, Punalur, Kollam - 691333 Phone: +91 99956 31001 Email: cs@balcopipes.com Website: www.balcopipes.com

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