Barflex Polyfilms Limited is coming up with an IPO consisting of a fresh issue of 20.53 lakh shares worth INR 12.32 crores and an offer to sell 45.17 existing shares worth INR 27.10 crores. The company aims to fund new plant purchases and support general corporate purposes. 

Barflex Polyfilms IPO – Important Dates 

Barflex Polyfilms Limited IPO – Company Profile 

Barflex Polyfilms Limited, incorporated on January 24, 2005, manufactures flexible packaging materials at its Unit-I in Baddi, Himachal Pradesh, with a 2,400 MT annual capacity for COEX films, laminates, and PVC labels. 

In 2008, the company expanded operations with Unit-II (950 MT PVC shrink sleeves) and Unit-III (865 MT films/pouches). By 2012, Unit-II’s capacity grew to 3,000 MT annually for diverse packaging materials. 

The company manufactures flexible packaging materials serving diverse industries, including COEX films, laminates, and labels. Post-expansion plans to produce 7-layer films, enhancing its position as a preferred packaging vendor. 

Barflex Polyfilms Ltd IPO Fundamental Analysis 

Barflex Polyfilms Limited’s financial analysis reveals a mixed performance. Revenue has shown consistent growth, profitability, and EPS improved, as well as increased assets, but lower RoNW and inventory turnover indicate potential efficiency and return generation challenges. 

• Revenue Trend: The revenue increased from ₹9,349.72 lakhs in March 2022 to ₹10,917.07 lakhs in March 2023. The revenue for the current year’s 8-month period ending November 2024 is INR 6,567.99 lakh. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹794.09 lakh in March 2022 to ₹1,349.28 lakh by November 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹3.50 in March 2022 to ₹5.94 by November 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has decreased from 21.20% to 17.45%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Barflex Polyfilms IPO Financial Analysis 

Barflex Polyfilms Limited IPO Peer Comparison 

Barflex Polyfilms Limited demonstrates strong operational performance compared to peers Uma Converter Limited and Purv Flexipack Limited, showcasing competitive profitability and efficiency. However, Purv Flexipack leads in revenue and operational scale among the three companies. 

Barflex Polyfilms Ltd IPO Objective 

The main objective of Barflex Polyfilms Limited is to fund capital expenditure for purchasing additional plant and machinery, supporting expansion and enhancing production capabilities to meet growing market demands efficiently. 

1. Funding capital expenditure towards the purchase of additional plant & machinery: The company intends to utilise INR 23.07 crores for the purchase of plant and machinery, including 7-layer film plants, printing machines, pouch-making machines, and laminators, ensuring the timely expansion of operations and product diversification. 

2. General Corporate Purposes: The company will deploy funds for general corporate purposes, including strategic initiatives, acquisitions, business development, acquiring fixed assets, covering operational expenses like salaries, rent, taxes, insurance, maintenance, and addressing unforeseen contingencies. 

Barflex Polyfilms IPO Risks And Challenges 

Barflex Polyfilms Limited’s risk includes delayed payments impacting credit facilities, disputes with investors affecting reputation, and potential delays in obtaining new leased premises, regulatory approvals, and lease renewals, which could disrupt operations and financial stability. 

• Failure to make timely payments could result in termination of credit facilities, imposition of penal interest, and accelerated repayments. This may adversely affect the company’s financial stability, operations, and ability to secure future financing. 

• A dispute with AA Development Capital India Fund 1, LLC over performance led to arbitration and an out-of-court settlement in 2018, where the investor exited. Future performance failures could result in disputes, penalties, and reputational harm. 

• The company faces potential delays in obtaining possession of new leased premises for expansion. Regulatory approval delays, lease irregularities, and challenges in renewing agreements may disrupt operations, affect growth, and impact financial conditions. 

Barflex Polyfilms Ltd IPO – Industry & Market Potential 

The global flexible packaging market, valued at USD 270.96 billion in 2023, is expected to grow at a 4.7% CAGR through 2030. Key drivers include increased demand for packaged food, technological advancements, and rising consumer spending. 

The Asia Pacific region leads the flexible packaging market with over 52.2% volume share in 2023, driven by low costs in China and India. The market is projected to grow at a 2.9% CAGR from 2023 to 2030. 

India’s paper and packaging sector, valued at $50.5 billion in 2019, is expected to reach $204.81 billion by 2025, driven by e-commerce, food processing, and government initiatives like ‘Make in India,’ growing at a 26.7% CAGR. 

Barflex Polyfilms Limited IPO – Type of Offer 

Barflex Polyfilms Limited plans a fresh issue of 20.53 lakh shares, seeking INR 12.32 crores to fund new plant purchases and support general corporate purposes. Additionally, the company proposes an offer to sell 45.17 lakh existing shares worth INR 27.10 crores. 

1. Fresh Issue: The company will issue 20.53 lakh new shares to raise capital, aiming to collect INR 12.32 crores. The company intends to utilise the proceeds from the fresh issue to fund new plant purchases and support general corporate purposes.
2. Offer for sale: Barflex Polyfilms Limited is offering to sell 45.17 lakh existing shares worth INR 27.10 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Barflex Polyfilms IPO Offer Size 

The offer size of Barflex Polyfilms Limited is INR 39.42 crores, consisting of a fresh issue of 20.53 lakh shares, worth INR 12.32 crores and an offer to sell existing 45.17 lakh shares worth INR 27.10 crores. The company aims to fund new plant purchases and support general corporate purposes. 

Barflex Polyfilms Limited IPO Allotment Structure 

Barflex Polyfilms Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 3,35,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 3,35,000 shares, are reserved for market makers. 

How to apply for the Barflex Polyfilms IPO?

To apply for the Barflex Polyfilms Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Barflex Polyfilms Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Barflex Polyfilms Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Barflex Polyfilms IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Barflex Polyfilms Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Barflex Polyfilms Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Barflex Polyfilms Limited IPO:

● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the Barflex Polyfilms Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Barflex Polyfilms Ltd IPO Offer Registrar

The registrar for the Barflex Polyfilms Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

MAASHITLA SECURITIES PRIVATE LIMITED

451, Krishna Apra Business Square, Netaji Subhash

Place, Pitampura, Delhi – 110034

Tel: +91-11-45121795-96

E-mail: [email protected] ;

Website: www.maashitla.com 

Barflex Polyfilms IPO – FAQs