Polysil Irrigations IPO - Review & Fundamental Analysis

Polysil Irrigations IPO

Polysil Irrigations’s IPO consists of a fresh issue of 14.44 lakh equity shares and an offer to sell 17.85 lakh shares aggregating to INR 17.44 crores.The shares are issued and offered at a price band of INR 54. The company plans to utilize it to fund working capital requirements and general corporate purposes. 

Polysil Irrigations Limited IPO – Important Details 

Polysil Irrigation IPO DateFebruary 8, 2024 to February 13, 2024
Polysil Irrigation IPO Listing DateFebruary 16, 2024
Polysil Irrigation IPO PriceINR 54 per share
Polysil Irrigation IPO Lot Size2000 Shares
Polysil Irrigation IPO Total Issue SizeApprox INR 17.43 crores
Polysil Irrigation IPO Basis of AllotmentFebruary 14, 2024
Polysil Irrigation IPO Initiation of RefundsFebruary 15, 2024
Polysil Irrigation IPO Credit of Shares to DematFebruary 15, 2024
Polysil Irrigation IPO Issue TypeFixed Price Issue
Polysil Irrigation IPO Listing AtNSE SME

Polysil Irrigations Ltd IPO – Company Profile 

Polysil manufactures drip/sprinkler irrigation systems, including pipes, fittings, filters, and valves under the brand. Products are sold through 9 distributors and 425 dealers in India, facilitating government subsidy disbursement and operating in nine states.

Polysil’s Vadodara, Gujarat facility spans 100,000 sq. ft. and is accredited with IS standards for polyethylene pipes and irrigation equipment. The in-house testing lab ensures quality control—third-party irrigation products sold under the Polysil brand.

Polysil procures HDPE, LLDPE, and LDPE granules domestically and internationally based on market availability, pricing, and quality. Material costs accounted for 46.45%, 37.29%, and 34.55% of revenue in Fiscal 2023, 2022, and 2021 respectively. 

Polysil Irrigations Limited IPO – Fundamental Analysis

Polysil Irrigations’ IPO financials depict a company experiencing revenue volatility but showing signs of recovery in profitability and asset growth. Investors should weigh its potential against the risks of increasing liabilities and market challenges.

Revenue Growth:

The revenue trend shows a decline in 2022 followed by a moderate recovery in 2023. While the revenue has not reached the 2021 level, the recent uptick suggests potential growth opportunities.

Profitability:

Despite the revenue decline, Polysil Irrigations managed to maintain positive profitability. However, the net profit margin remains low, indicating efficiency challenges.

Return on Net Worth (RoNW):

RoNW reflects the company’s ability to generate profits with shareholders’ equity. Although there’s improvement from 2022 to 2023, the RoNW is still relatively low, signifying moderate profitability.

Earnings Per Share (EPS):

Diluted EPS has shown improvement over the years, indicating potential growth in earnings per share. However, the EPS remains relatively low, reflecting modest profitability.

Financial Position:

Total assets have increased steadily, indicating the company’s growth trajectory. However, liabilities have also risen, potentially impacting the company’s financial stability.

Net Asset Value (NAV):

The introduction of NAV in 2023 provides insight into the company’s book value per share. While NAV has been introduced recently, it’s essential to monitor its trend for future analysis.

Polysil Irrigations IPO Financial Information

ParticularAs at 31 March 2021As at 31 March 2022As at 31 March 2023
Revenue(₹in lakhs)5 ,458.803 ,762.274 ,387.66
Equity(₹ in lakhs)1,338.311,372.061,535.71
Expenses (₹in lakhs)5 ,367.733 ,698.924 ,127.45
Profit and Loss After Tax (₹ in lakhs)64.8133.75113.53
RoNW (%)4.842.467.39
Diluted EPS only (₹)0.660.341.15
NAV per Equity Share (₹)15.53
Total Assets (in lakhs)4,178.474,616.805,531.46
Total Liabilities (in lakhs)2,840.163,244.743,995.75

Polysil Irrigations IPO Peer Comparison 

Polysil Irrigation Systems Limited presents a competitive RoNW of 7.39% and an EPS of ₹1.15, positioning it well among peers with its performance. Its P/E ratio and NAV per equity share indicate a balanced profile compared to industry counterparts, showcasing solid financial health.

Company  Total Income (₹)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹) RoNW (%)NAV per Equity Share (Basic) (₹)
Polysil Irrigation Systems Limited4392.491047.031.151.157.3915.53
Captain Polyplast Limited22,459.70243.931.181.187.7914.36
RM Drip and Sprinklers Systems Limited1095.41102587.500.040.040.2319.04
Texmo Pipes and Products Limited63,844.1710228.590.390.390.6064.01
Jain Irrigation Systems Limited5,74,758.0025.0013.3313.0818.3987.43

Polysil Irrigations Limited IPO Objective 

The main objective of Polysil Irrigations is to fund the company’s working capital requirements. 

  1. Funding our Working Capital Requirements: The company proposes utilizing INR 5 crores from the Net Proceeds towards funding its working capital requirements in Fiscal 2024, requiring additional working capital to fund future growth requirements. 
  1. General Corporate Purpose: The company will deploy the balance funds towards the general corporate goals, including meeting expenses, salaries, taxes, strategic initiatives, marketing, and contingencies using short-term working capital and day-to-day funds. 

Polysil Irrigations IPO Risks And Challenges 

Polysil Irrigation’s risk includes raw material procurement and compliance with permits. Sales to farmers include government subsidies. Changes in subsidy policies or non-compliance may impact operations adversely. 

  • Failure to procure raw materials timely, competitively, or at all, and inability to identify new suppliers could adversely affect business, financial condition, and operational results, posing significant risks. 
  • While Polysil believes it has obtained the necessary permits and licenses, uncertainties exist regarding compliance with all statutory/regulatory requirements. Failure to renew or comply could lead to cancellation, affecting operations adversely. 
  • Polysil sells irrigation solutions to farmers through institutional, project, and open market sales, with a portion received as government subsidies (50-70%). Changes or delays in subsidy policies or failure to meet eligibility parameters could harm business. 

Polysil Irrigation IPO – Industry & Market Potential 

India’s economy sustained growth momentum with strong high-frequency indicators and increased capital expenditure. Despite the global slowdown, exports surged, and inflation eased due to proactive government actions and flexible monetary policy. 

The Indian Agricultural Irrigation Machinery market is driven by water scarcity concerns, awareness about micro-irrigation systems, and the need for high productivity. Micro-irrigation contributes around 18-20% of total irrigation, with significant adoption in critical states. 

Investments in agricultural infrastructure, genetically modified crops, and fisheries aim to bolster India’s agriculture sector. Government initiatives support efforts towards self-sufficiency in pulses and food processing industry investments. 

Polysil Irrigations Ltd IPO – Type of Offer 

Polysil Irrigations includes a fresh issue of 14.44 lakh shares and an offer to sell 17.85 lakh shares by the existing shareholders. 

  1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 7.80 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes. 
  2. Offer for sale: Polysil Irrigations is offering to sell 17.85 lakh existing shares. The following are the details of the existing shareholder, who is also the promoter selling the shares:
Name of the promoter selling shareholderMaximum number of offered shares for sale (in millions)
Satishkumar Maniya6,30,000
Sunilkumar Shah6,30,000
Rameshbhai Kakadiya5,24,000

Polysil Irrigations IPO Offer Size 

The offer size of Polysil Irrigations’s IPO is INR 17.43 crores. The offer includes a fresh issue of 14.44 lakh equity shares and an offer to sell existing shares for INR 9.64 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes. 

Polysil Irrigations Ltd IPO Allotment Structure 

Polysil Irrigation’s Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 1,64,000 shares for Market Makers.

Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.

Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,64,000 shares for this purpose. 

How to apply for Polysil Irrigation? 

To apply for the Polysil Irrigation through Alice Blue, you would typically follow these steps:

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

2. Check for IPO Details: Once your account is active, you can check for the Polysil Irrigation details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Polysil Irrigation’s 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 to check Polysil Irrigation Allotment Status on Alice Blue?

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 their 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 Polysil Irrigation: 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 Polysil Irrigation.

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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Polysil Irrigation:

Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Polysil Irrigation. 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 (BSE) SME (Small Medium Enterprise) Platform.

You would need your application number and PAN to check the status.

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

Polysil Irrigation Offer Registrar

The registrar for the Polysil Irrigation Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Office No. S6 – 2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali

Caves Road, Andheri – [East], Mumbai – 400093, Maharashtra, India.

Tel No: +91 22 6263 8200

E-mail Id: [email protected]

Website: www.bigshareonline.com

Polysil Irrigation FAQs

1. What is the allotment date of the Polysil Irrigation? 

The allotment date of the Polysil Irrigation is February 14, 2024.

2. What is the price band of the Polysil Irrigation? 

The Polysil Irrigation Company will issue shares at INR 54 per share.

3. What is the size of the Polysil Irrigation?

The offer size of Baweja Studio’s IPO is INR 1743.12 lakhs. The offer includes a fresh 14.40 lakh equity shares and an offer to sell existing shares for INR 9.64 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes. 

4. What is the listing date of the Polysil Irrigation?

The listing date of the Polysil Irrigation is February 16, 2024. 

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