Sati Poly Plast Limited is launching an IPO with a fresh issue of 13,35,000 shares worth INR 17.36 crores. The company aims to meet working capital requirements and general corporate purposes.
Sati Poly Plast IPO – Important Dates
| Sati Poly Plast Limited IPO Date | July 12, 2024 to July 16, 2024 |
| Sati Poly Plast Limited IPO Listing Date | July 22, 2024 |
| Sati Poly Plast Limited IPO Price | INR 123-130 per share |
| Sati Poly Plast Limited IPO Lot Size | 1000 shares |
| Sati Poly Plast Limited IPO Total Issue Size | INR 17.36 crores |
| Sati Poly Plast Limited IPO Basis of Allotment | July 18, 2024 |
| Sati Poly Plast Limited IPO Initiation of Refunds | July 19, 2024 |
| Sati Poly Plast Limited IPO Credit of Shares to Demat | July 19, 2024 |
| Sati Poly Plast Limited IPO Issue Type | Book Built Issue IPO |
| Sati Poly Plast Limited IPO Listing At | NSE SME |
Sati Poly Plast Limited IPO – Company Profile
Sati Poly Plast Limited, an ISO Certified Company, manufactures multifunctional flexible packaging material for various industries, providing end-to-end solutions. Initially trading until 2015, they began manufacturing in 2017.
Operating two Noida plants with 540-ton monthly capacities, production increased from 250 to 500 tons per month by 2019. They offer packaging solutions for food and beverages, ensuring quality and process efficiency with advanced equipment.
Their products use industry-approved materials like PET and biodegradable films. They focus on sustainability by recycling production waste, selling it for various applications, reducing landfill waste, and contributing to the circular economy.
Sati Poly Plast Ltd IPO Fundamental Analysis
Sati Poly Plast Limited Technologies’ financial analysis reveals a mixed performance. Revenue increased over the periods, with consistent equity and liabilities growth, improved profitability, lower EPS, higher RoNW, increased assets, more robust liquidity, and decreased inventory turnover ratio.
- Revenue Trend: The revenue increased from ₹17,516.08 lakhs in March 2022 to ₹19,091.77 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 17,935.48 lakhs.
- Equity and Liabilities: Both equity and liability has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹28.23 lakhs in March 2022 to ₹328.64 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has reduced from ₹26.53 in March 2022 to ₹9.70 by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 31.81% to 26.71%, indicating an increase 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.
Sati Poly Plast IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 17,516.08 | 19,091.77 | 17,935.48 |
| Equity (₹ in lakhs) | 88.75 | 397.64 | 1 ,230.28 |
| Expenses (₹ in lakhs) | 17,507.28 | 18,702.57 | 17,522.77 |
| Profit and Loss After Tax (₹ in lakhs) | 28.23 | 308.89 | 328.64 |
| Diluted EPS only (₹) | 26.53 | 290.31 | 9.70 |
| Return on Net Worth (%) | 31.81 | 77.68 | 26.71 |
| NAV per Equity Share (₹) | 2.78 | 12.46 | 36.29 |
| Total Assets (in lakhs) | 3 ,578.70 | 4 ,194.08 | 5 ,637.57 |
| Total Liabilities (in lakhs) | 3,489.95 | 3,796.44 | 4,407.29 |
| Debt Equity Ratio | 26.58 | 6.62 | 1.82 |
| Current Ratio (in times) | 1.14 | 1.35 | 1 .53 |
| Inventory Turnover Ratio | 11.54 | 9.53 | 6.77 |
Sati Poly Plast Limited IPO Peer Comparison
Sati Poly Plast Limited shows strong profitability and return on net worth compared to Sabar Flex India Limited and Uma Converter Limited. However, Uma Converter leads in earnings per share and asset management efficiency, while Sabar Flex has lower return metrics.
| Company | Type of Financial | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) | Revenue from operations (₹ in lakhs) |
| Sati Poly Plast Limited | Standalone | 10 | – | 9.70 | 26.71 | 36.29 | 17,935.48 |
| Sabar Flex India Limited | Standalone | 10 | 7.50 | 2.64 | 13.36 | 18.99 | 12,616.80 |
| Uma Converter Limited | Standalone | 10 | 11.81 | 2.07 | 5.78 | 35.74 | 18,102.22 |
Sati Poly Plast Ltd IPO Objective
The main objective of Sati Poly Plast Limited is to meet working capital requirements.
- Working Capital Requirements: The company intends to utilize INR 11.00 crores from the Net Proceeds of the Issue to meet its projected FY 2024-25 net working capital requirement of INR 36.36 crores, with the balance from borrowings and internal accruals.
- General Corporate Purposes: The company will deploy the balance of funds towards general corporate purposes, including acquiring land/property, hiring resources, strategic alliances, funding growth, servicing debt, capital expenditure, working capital, and other business needs or contingencies.
Sati Poly Plast IPO Risks And Challenges
Sati Poly Plast Limited’s risks include revenue concentration in Uttar Pradesh, which exposes it to regional economic and competitive risks; ongoing litigation, which may increase expenses; and potential loss of key customers, which could affect financial stability and growth prospects.
- Their revenue is heavily concentrated in Uttar Pradesh, exposing to risks like regional economic slowdowns, policy changes, limited diversification, and competition from established local players. This concentration may impact their business prospects and competitiveness nationally.
- Outstanding litigation includes civil, criminal, tax, and regulatory matters, with the potential for increased expenses or liabilities if legal developments arise. They may face further legal actions from various sources, impacting their financial and operational stability.
- Loss of key customers or reduced business could negatively impact the operations, financial condition, and cash flows. Maintaining historical business levels, negotiating viable contracts, and reducing customer concentration pose challenges without guaranteeing long-term customer retention or new business.
Sati Poly Plast Ltd IPO – Industry & Market Potential
Manufacturing is a key driver of India’s economic growth, contributing 16-17% of GDP. Digital transformation and automation enhance efficiency and productivity. The ”Make in India’ program aims to establish India as a global manufacturing hub.
India’s manufacturing sector is thriving with record exports, increased investment, and robust policy support like the PLI scheme for electronics. Enhanced production capacity and government initiatives drive growth and competitiveness, fostering long-term economic expansion.
With manufacturing vital to India’sIndia’s exports, recent years have seen a 15% CAGR. FY23 achieved a record $447.46 billion in exports, surpassing the previous year’s $422 billion and demonstrating significant growth.
Sati Poly Plast Limited IPO – Type of Offer
Sati Poly Plast Limited is launching an IPO with a fresh issue of 13,35,000 shares worth INR 17.36 crores. The company aims to meet working capital requirements and general corporate purposes.
Sati Poly Plast IPO Offer Size
The offer size of Sati Poly Plast Limited is INR 17.36 crores, consisting of a fresh issue of 13,35,000 shares. The company seeks funds to meet working capital requirements and general corporate purposes.
Sati Poly Plast Limited IPO Allotment Structure
Sati Poly Plast 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. 70,000 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. 70,000 shares, are reserved for marker makers.
How to apply for a Sati Poly Plast Limited IPO?
To apply for the Sati Poly Plast Limited IPO through Alice Blue, you would typically 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 Sati Poly 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 Sati Poly 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.
How do you check Sati Poly Plast Limited’s 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 their 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 Sati Poly 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 Sati Poly 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, 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 Sati Poly Plast Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Sati Poly 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 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.
Sati Poly Plast Limited Ltd IPO Offer Registrar
The registrar for the Sati Poly Plast Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
Address: C-101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West),
Mumbai, Maharashtra, India – 400 083.
Tel. Number: +91 810 811 4949;
Email Id: [email protected]
Website: www.linkintime.co.in
Sati Poly Plast Limited Limited IPO – FAQs
The allotment date of the Sati Poly Plast Limited IPO is July 18, 2024.
The price band of the issue is INR 123-130 per share.
The offer size of Sati Poly Plast Limited is INR 17.36 crores, consisting of a fresh issue of 13,35,000 shares. The company seeks funds to meet working capital requirements and general corporate purposes.
The listing date of Sati Poly Plast Limited’s IPO is July 22, 2024.
