SPP Polymer Limited
SPP Polymer Limited(SPPPOLY)
Total Shares
41,50,000
Issue Size
₹24.49 Cr
Price Band
₹59 – ₹59
Lot Size
2000 shares
Min. Investment
₹1,18,000
Max. Investment
₹1,18,000
Open Date
10 Sep, 2024
Close Date
12 Sep, 2024
Allotment
13 Sep, 2024
Listing
17 Sep, 2024
Max. Investment
₹1,18,000
Announced
10 Sep, 2024
Opening Date
10 Sep, 2024
Closing Date
12 Sep, 2024
Basis of Allotment
13 Sep, 2024
Initiation of Refunds
16 Sep, 2024
Credit of Shares
16 Sep, 2024
Listing Date
17 Sep, 2024
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About SPP Polymer Limited IPO
Incorporated in 2004,SPP Polymers Limited, formerly known as SPP Food Products Private Limited, is a manufacturer of a wide range of HDPE/PP woven fabric and bags, non-woven fabrics and bags, and Multifilament Yarn. The company is located in Rudrapur City, Uttarakhand.
The product portfolio comprises the following
- HDPE/PP woven Fabric
- HDPE/PP Woven Bags
- Non-woven Fabric
- Non -woven Bags
- Multifilament PP Yarn
The compa
SPP Polymer Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 36.9% increase in shares
SPP Polymer Limited IPO Financials Health
SPP Polymer Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 2000 | ₹1,18,000 |
| Retail Maximum | 1 | 2000 | ₹1,18,000 |
| HNI Minimum | 2 | 4000 | ₹2,36,000 |
(All values in CR)
SPP Polymer Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.71 |
| EPS Post IPO | 2.37 |
| EPS Pre IPO | 0.88 |
| P/BV | 2.65 |
| P/E Post IPO | 24.86 |
| P/E Pre IPO | 66.72 |
| PAT Margin (%) | 1.08 |
| ROCE | 4.27% |
| ROE | 8.01% |
| RoNW | 3.98% |
(All values in CR)
Strength & Risk of SPP Polymer Limited IPO
1. Quality Assurance.
2. Experienced Promoter and Management Team.
3. Our Product portfolio.
4. Diversified customer base and long-standing relationship with our customers.
1. You will not be able to sell immediately on Indian Stock Exchanges any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.
2. The requirements of being a listed company may strain its resources.
3. Any changes in the regulatory framework could adversely affect its operations and growth prospects.
4. Global economic, political and social conditions may harm its ability to do business, increase the company costs and negatively affect its stock price.
5. Civil disturbances, extremities of weather, regional conflicts and other political instability may have adverse effects on its operations and financial performance.
6. The company is subject to risks arising from interest rate fluctuations, which could adversely impact its business, financial condition and operating results.
7. The price of its Equity Shares may be volatile, or an active trading market for the company Equity Shares may not develop.
8. There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
9. The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
10. Taxes and other levies imposed by the Government of India or other State Governments, as well as other financial policies and regulations, may have a material adverse impact on its business, financial condition and results of operations.
SPP Polymer Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| HNI | 18.11 | 19,70,000 | 3,56,68,000 | 210.44 |
| Market Maker | 1.00 | 2,10,000 | 2,10,000 | 1.24 |
| Retail | 59.87 | 19,70,000 | 11,79,50,000 | 695.9 |
| Total | 38.99 | 39,40,000 | 15,36,18,000 | 906.35 |
SPP Polymer Limited IPO GMP
Last updated 06 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 06 Sep, 2024 | 59 | ₹0▼ | -- | ₹59 (0.00%) | - | 06 Sep, 2024 |
| 09 Sep, 2024 | 59 | ₹25 | 38000 | ₹84 (42.37%) | - | 09 Sep, 2024 |
| 10 Sep, 2024 | 59 | ₹25▲ | 38000 | ₹84 (42.37%) | - | 10 Sep, 2024 |
| 11 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 11 Sep, 2024 |
| 12 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 12 Sep, 2024 |
| 13 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 13 Sep, 2024 |
| 14 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 14 Sep, 2024 |
| 15 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 15 Sep, 2024 |
| 16 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 16 Sep, 2024 |
| 17 Sep, 2024 | 59 | ₹15 | 22800 | ₹74 (25.42%) | - | 17 Sep, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for SPP Polymer Limited IPO
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Find SPP Polymer Limited under the IPO section. Select it and enter your bid details — choose lot size and price (cut-off price recommended).
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Your funds will be blocked in your account until the IPO allotment process is completed.
SPP Polymer Limited IPO Analysis
SPP Polymer Limited is venturing into the public market with an Initial Public Offering (IPO). This fixed-price offering seeks to raise Rs. 2,448.50 lakhs to fund business expansion and reduce the company's debt. Below is a detailed analysis of this IPO, including the pros and cons of investing.
Understanding the SPP Polymer Limited IPO
SPP Polymer Limited, a company specializing in the manufacturing of high-density polyethylene (HDPE) and polypropylene (PP) woven fabrics and bags, is offering shares to the public. The IPO will help SPP Polymer expand its operational capacity, fund working capital, and repay loans.
Company Overview
Founded in 2004, SPP Polymer Limited manufactures and supplies woven fabrics and bags, along with non-woven fabrics, catering primarily to industries like cement, chemicals, and food grains. The company prides itself on its high-quality packaging solutions and ISO-certified facilities.
- Established: 2004
- Industry: Packaging, Textiles, HDPE, and PP woven products
- Products: HDPE and PP woven fabric & bags, non-woven fabrics, and multifilament yarn
Key Details of the IPO
- IPO Size: Rs. 2,448.50 Lakhs
- Issue Price: Rs. 59 per equity share, including a Rs. 49 premium
- Shares Offered: 41,50,000 Equity Shares
- Market Maker Reservation: 2,10,000 Equity Shares
- Net Issue: 39,40,000 Equity Shares
- Listing Platform: NSE Emerge
- Use of Proceeds:
- Repayment of Loans: Rs. 775 Lakhs
- Working Capital: Rs. 986.50 Lakhs
- General Corporate Purposes: Rs. 587 Lakhs
Pros of Investing in SPP Polymer Limited IPO
- Established Market Position: SPP Polymer has been operational for over two decades and holds a solid position in the woven fabric and packaging industry.
- Growth in Packaging Demand: With the packaging sector seeing rapid growth, particularly in e-commerce and manufacturing, SPP Polymer stands to benefit.
- ISO Certifications: The company is certified ISO 9001:2015 for quality management and ISO 45001:2018 for occupational health & safety, ensuring high standards.
- Well-Equipped Manufacturing Facility: Their large production capacity (9,125 MT of woven fabric & bags and 3,600 MT of non-woven fabric) positions them well for scaling up.
- Focus on Debt Reduction: Proceeds from the IPO will be used to repay Rs. 775 Lakhs in loans, strengthening the company’s balance sheet.
Cons of Investing in SPP Polymer Limited IPO
- Market Competition: The woven fabric and packaging industry is competitive, and larger players may have more significant market influence.
- Dependency on Key Sectors: SPP Polymer relies heavily on the cement, chemical, and food grain industries. Any downturn in these sectors could affect revenue.
- Fluctuating Raw Material Costs: HDPE and PP prices fluctuate due to market conditions, which could compress profit margins.
- First Public Issue: This being the company’s first public issue, there is no prior market for its securities, introducing uncertainties regarding stock performance post-listing.
Financial Performance and Market Position
SPP Polymer Limited has demonstrated solid growth, with significant revenue increases in the last fiscal year. The company's profitability metrics and focus on debt reduction enhance its market position.
- Revenue: Rs. 9,175.11 Lakhs (FY 2024)
- Profit After Tax (PAT): Rs. 99.40 Lakhs (FY 2024)
- Net Worth: Rs. 2,500.30 Lakhs
- Total Borrowings: Rs. 1,897.82 Lakhs (FY 2024)
Should You Invest in the SPP Polymer Limited IPO?
Investing in SPP Polymer Limited’s IPO offers a chance to invest in a company with a strong market presence in the packaging sector. With the rising demand for sustainable packaging solutions and the company’s focus on expanding capacity, this IPO presents a growth opportunity. However, investors should consider risks like market competition and reliance on raw material costs.
Conclusion
SPP Polymer Limited's IPO presents a balanced opportunity for investors. While the company has a well-established market position and expansion plans, it also faces challenges like industry competition and cost volatility. Investors looking to participate in the growth of the packaging sector should weigh these factors carefully before investing.
FAQs About Spp Polymer Limited Ipo
SPP Polymer Limited IPO will open on 10 Sep, 2024 and close on 12 Sep, 2024. Investors must apply within this period to participate.
The SPP Polymer Limited IPO price band is set between ₹59.00 and ₹59.00 per share. The minimum lot size is 2000, requiring an investment of at least ₹118000.00.
The SPP Polymer Limited IPO shares are expected to be listed on 17 Sep, 2024, subject to regulatory approvals and final allotment.
You can track your SPP Polymer Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The SPP Polymer Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.