Premium Plast Limited is coming up with an IPO with a fresh issue of 53,46,000 shares worth INR 26.20 crores. The company aims to expand the existing manufacturing facility along with setting up a solar power plant, repayment of borrowings, and general corporate purposes.
Premium Plast IPO – Important Dates
| Premium Plast Limited IPO Date | October 21, 2024 to October 23, 2024 |
| Premium Plast Limited IPO Listing Date | October 28, 2024 |
| Premium Plast Limited IPO Price | INR 46-49per share |
| Premium Plast Limited IPO Lot Size | 3000 Shares |
| Premium Plast Limited IPO Total Issue Size | INR 26.20 crores |
| Premium Plast Limited IPO Basis of Allotment | October 24, 2024 |
| Premium Plast Limited IPO Initiation of Refunds | October 25, 2024 |
| Premium Plast Limited IPO Credit of Shares to Demat | October 25, 2024 |
| Premium Plast Limited IPO Issue Type | Book Built Issue IPO |
| Premium Plast Limited IPO Listing At | NSE SME |
Read more about Premium Plast Limited IPO GMP
Premium Plast Limited IPO – Company Profile
The company is a tier-1 (tier-1 companies are companies that directly supply to original equipment manufacturers (“OEMs”)) automotive component group. The company designs, manufactures, and supplies, exterior plastic components, interior cabin components, under the hood components to commercial vehicle OEMs directly.
Sustainable manufacturing practices enable the company to make the manufacturing units ‘zero-discharge’ units and therefore increase efficiency and reduce expenditure.
The company has obtained ISO 9001:2015 (QMS), ISO 14001:2015 (EMS), and IATF-16949 (QMS) certifications for the manufacture and supply of automotive components. The products undergo stringent quality tests to meet industry standards before they are delivered to the clients.
Premium Plast Ltd IPO Fundamental Analysis
Premium Plast’s, revenue increased by 6.05% to ₹4,670.59 lakhs, while expenses decreased by 3.79%. Profit After Tax surged 199.87% to ₹477.55 lakhs. Equity rose 40.51% to ₹1,652.53 lakhs. However, NAV per share declined to ₹16.10 in Q1 FY2025, raising concerns about asset valuation.
1. Revenue Growth:
- Revenue (₹ in lakhs):
- Increased from ₹4,404.12 in FY2023 to ₹4,670.59 in FY2024, showing a modest growth of 6.05%.
- For Q1 FY2025, revenue was ₹1,212.81, which indicates a slower pace compared to the previous fiscal year, suggesting potential challenges in maintaining growth momentum.
2. Expense Management:
- Expenses (₹ in lakhs):
- Expenses decreased from ₹4,184.06 in FY2023 to ₹4,025.25 in FY2024, a reduction of 3.79%, indicating some operational efficiency.
- In Q1 FY2025, expenses were ₹1,081.31, showing that the company is controlling costs effectively relative to revenue.
3. Profitability:
- Profit After Tax (₹ in lakhs):
- PAT increased from ₹159.32 in FY2023 to ₹477.55 in FY2024, representing a 199.87% increase, highlighting a significant improvement in profitability.
- In Q1 FY2025, PAT was ₹141.16, reflecting that the company is maintaining profitability but at a slower rate than the previous fiscal year.
- Diluted EPS:
- EPS grew from ₹3.35 in FY2023 to ₹10.03 in FY2024, indicating a strong return to shareholders.
- In Q1 FY2025, the EPS was ₹1.03 (not annualised), which suggests a potential annualized EPS lower than in FY2024.
4. Equity and NAV Analysis:
- Equity (₹ in lakhs):
- Equity increased significantly from ₹1,174.99 in FY2023 to ₹1,652.53 in FY2024, a growth of 40.51%, indicating a solid capital structure.
- As of Q1 FY2025, equity further increased to ₹2,216.67, showing an ongoing strengthening of the company’s financial foundation.
- NAV per Equity Share (₹):
- NAV per share rose from ₹24.70 in FY2023 to ₹34.70 in FY2024, indicating growing asset value.
- However, in Q1 FY2025, NAV decreased to ₹16.10, which raises concerns about the recent valuation adjustments.
5. Return on Net Worth (RONW):
- Efficiency:
- RONW increased significantly from 13.56% in FY2023 to 28.90% in FY2024, reflecting improved efficiency and return on equity.
- In Q1 FY2025, RONW was 6.37% (not annualised), suggesting a decrease that might reflect seasonality or market conditions.
6. Financial Health Indicators:
- Total Assets and Liabilities:
- Total assets rose from ₹2,905.45 in FY2023 to ₹3,609.23 in FY2024, indicating growth in the company’s asset base.
- Total liabilities increased slightly from ₹1,730.46 to ₹1,956.70 over the same period, which is manageable given the growth in assets.
Premium Plast IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 30 June 2024(3 months) |
| Revenue (₹ in lakhs) | 4,404.12 | 4,670.59 | 1,212.81 |
| Equity (₹ in lakhs) | 1,174.99 | 1,652.53 | 2,216.67 |
| Expenses (₹ in lakhs) | 4,184.06 | 4,025.25 | 1,081.31 |
| Profit and Loss After Tax (₹ in lakhs) | 159.32 | 477.55 | 141.16 |
| Diluted EPS only (₹) | 3.35 | 10.03 | 1.03 (not annualised) |
| NAV per Equity Share (₹) | 24.70 | 34.70 | 16.10 |
| Return on Net Worth (RONW) (%) | 13.56 | 28.90 | 6.37 (not annualised) |
| Total Assets (in lakhs) | 2,905.45 | 3,609.23 | 4,006.31 |
| Total Liabilities (in lakhs) | 1,730.46 | 1,956.70 | 1,789.64 |
Premium Plast Limited IPO Peer Comparison
Premium Plast Limited reported revenue of ₹4,404.83 lakhs, with a diluted EPS of ₹3.35 and RoNW of 13.56%, while NAV stood at ₹24.70. Varroc Engineering Limited achieved revenue of ₹453,496 lakhs, with an EPS of ₹23.37, RoNW of 39.22%, and NAV of ₹59.51. Uno Minda Ltd posted revenue of ₹898,330 lakhs, an EPS of ₹10.21, RoNW of 21.59%, and a NAV of ₹47.28.
| Company | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS- Diluted (₹) | RoNW (%) | NAV per share (₹) |
| Premium Plast Limited | 4404.83 | 10 | NA | 3.35 | 13.56 | 24.70 |
| Varroc Engineering Limited | 4,53,496 | 1 | 17.00 | 23.37 | 39.22 | 59.51 |
| Uno Minda Ltd | 8,98,330 | 2 | 64.80 | 10.21 | 21.59 | 47.28 |
Premium Plast Ltd IPO Objective
The main objective of Premium Plast is to invest INR 16.55 crores in expanding its Pithampur facility, set up a solar power plant for INR 1.04 crores, repay INR 2.23 crores in loans, and allocate remaining funds for general corporate purposes.
- Expansion of existing manufacturing facility: The company intends to expand its existing manufacturing facility at Pithampur, Madhya Pradesh, which will increase the present capacity and subsequently boost sales and profitability. As part of such investment, the company will incur expenditure towards expansion and purchase of types of machinery amounting to INR 16.55 crores from the Net Proceed of the Issue.
- To set up a solar power plant at the existing manufacturing facility: An adequate and cost-effective supply of electrical power is critical to the operations and the company plans to set up of rooftop Grid Solar Power Plant at its existing Manufacturing facility. The company plans to utilse INR 1.04 crores for the said purpose.
- To repay loans: The company plans to utilise INR 2.23 crores from the net proceeds for repaying the existing loans/borrowings of the company.
- General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Premium Plast IPO Risks And Challenges
Premium Plast relies on one customer for 82% of its revenue, risking significant impacts on operations and finances if lost. Heavy dependence on the Indian passenger vehicle market also poses risks, as does the failure to adapt to evolving industry trends and customer preferences.
- Almost 82% of the revenue is generated from one single customer. The loss of such customers could adversely affect the business, results of operations, and financial condition.
- The company is heavily dependent on the performance of the passenger vehicle market in India. Any adverse changes in the conditions affecting the passenger vehicle market can adversely impact the business, results of operations, and financial condition.
- Any failure to identify and understand evolving industry trends and preferences and to develop new products to meet the customers’ demands may materially adversely affect the business.
Premium Plast Ltd IPO – Industry & Market Potential
The global auto parts and accessories market size was valued at USD 697.84 billion in 2023 and is projected to reach USD 1,087.32 billion by 2031, with a CAGR of 5.7% during the forecast period of 2024 to 2031.
The Indian automobile component industry turnover stood at US$ 36.1 billion (Rs. 2.9 lakh crore) during H1 2023-24, registering a revenue growth of 12.6% as compared to H1 2022-23.
Growing working population and expanding middle class are expected to remain the key demand drivers. India is the third-largest automobile market globally. By 2025, 4 million EVs could be sold each year, and 10 million by 2030 The EV market is expected to reach US$ 206
Billion.
Premium Plast Limited IPO – Type of Offer
Premium Plast Limited is launching an IPO with a fresh issue of 53,46,000 shares valued at INR 26.20 crores. The funds will be used to expand the manufacturing facility, establish a solar power plant, repay borrowings, and cover general corporate expenses.
Premium Plast IPO Offer Size
The offer size is a fresh issue of 53,46,000 shares worth INR 26.20 crores from Premium Plast Limited’s IPO. The company plans to use the proceeds for expanding its manufacturing facility, setting up a solar power plant, repaying borrowings, and general corporate purposes.
Premium Plast Limited IPO Allotment Structure
Premium Plast Limited’s allocation will be as follows: 10.04% for Qualified Institutional Buyers (QIB), 44.98% for Non-Institutional Investors (NII), and 44.98% for Retail Individual Investors (RII) according to SEBI regulations. 2,70,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 10.04% 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): 44.98% 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 44.98% 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. 2,70,000 shares, are reserved for market makers.
How to apply for the Premium Plast IPO?
To apply for the Premium Plast 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.
- Check for IPO Details: Once your account is active, you can check for the Premium Plast Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Premium Plast 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.
Read more about Premium Plast IPO Day 1 Subscription
How do you check Premium Plast IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- 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.
- 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.
- Select the Premium Plast 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 Premium Plast Limited IPO.
- 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 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 Premium Plast Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Premium Plast 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 website 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.
Read more about Premium Plast IPO Day 2 Subscription
Premium Plast Ltd IPO Offer Registrar
The registrar for the Premium Plast 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:
Bigshare Services Private Limited
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai- 400 093,
E-mail: [email protected]
Website: www.bigshareonline.com
Premium Plast IPO – FAQs
1. What is the allotment date of the Premium Plast IPO?
The allotment date of the Premium Plast Limited IPO is October 24, 2024.
2. What is the price band of the Premium Plast IPO?
The price band of the issue is INR 46-49 per share.
3. What is the size of the Premium Plast IPO?
The offer size is a fresh issue of 53,46,000 shares worth INR 26.20 crores from Premium Plast Limited’s IPO. The company plans to use the proceeds for expanding its manufacturing facility, setting up a solar power plant, repaying borrowings, and general corporate purposes.
4. What is the listing date of the Premium Plast IPO?
The listing date of Premium Plast Limited’s IPO is October 28, 2024.
