Silkflex Polymers Limited’s IPO consists of a fresh issue of 34,82,000 shares worth INR 18.11 crores. The company aims to invest in land acquisition, purchase plant and machinery, general corporate purpose, and to meet the working capital requirement.
Silkflex Polymers Limited IPO – Important Dates
| Silkflex Polymers IPO Date | May 7, 2024 to May 10, 2024 |
| Silkflex Polymers IPO Listing Date | May 15, 2024 |
| Silkflex Polymers IPO Price | INR 52 per share |
| Silkflex Polymers IPO Lot Size | 2000 Shares |
| Silkflex Polymers IPO Total Issue Size | INR 18.11 crores |
| Silkflex Polymers IPO Basis of Allotment | May 13, 2024 |
| Silkflex Polymers IPO Initiation of Refunds | May 14, 2024 |
| Silkflex Polymers IPO Credit of Shares to Demat | May 14, 2024 |
| Silkflex Polymers IPO Issue Type | Fixed Price Issue IPO |
| Silkflex Polymers IPO Listing At | NSE SME |
Silkflex IPO – Company Profile
The company is engaged in the trading of textile printing inks and water-based wood coating polymer products of a Malaysian-based brand- “Silkflex” produced by Silkflex Polymers SDN BHD (“Silkflex Malaysia”). Silkflex Malaysia is one of the garment printing ink manufacturers in Malaysia. Silkflex Malaysia manufactures its products through its manufacturing unit located in Malaysia, and the same products are then supplied around the globe through its authorized agents.
Silkflex in India offers a wide variety of products, including 108 textile printing ink products and 51 wood coating polymer products. The company entered into an agreement with Silkflex Malaysia on October 01, 2016, for the distribution and selling of the water-based textile printing ink products of Silkflex. Silflex in India also entered into an agreement with Silkflex Malaysia on October 01, 2019, for the distribution and selling of the wood coating polymer products of Silkflex Malaysia. These agreements also give the company the right to use the Silkflex brand in India.
Further, by the Technology Transfer Agreement (“TTA”) dated July 25, 2023, Silkflex Malaysia has permitted Silfflex India to be the manufacturer of its products in India and agreed to provide full rights, technology relating to products like Silkbond 35 and binder for table glue products. However, as of the date of this Prospectus, the company is in the process of setting up the manufacturing unit and has not started its production activities.
Silkflex Polymers India Limited IPO Review
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 2804.52 | 3442.25 | 3381.55 |
| Equity (₹ in lakhs) | 738.03 | 816.62 | 1,073.28 |
| Expenses (₹ in lakhs) | 2712.33 | 3334.20 | 3036.07 |
| Profit and Loss After Tax (₹ in lakhs) | 68.59 | 78.59 | 256.66 |
| Diluted EPS only (₹) | 0.85 | 0.97 | 0.97 |
| Return on Net Worth (%) | 9.29 | 9.62 | 23.91 |
| NAV per Equity Share (₹) | 9.14 | 10.05 | 13.21 |
| Total Assets (in lakhs) | 1968.81 | 2374.73 | 3446.35 |
| Total Liabilities (in lakhs) | 1,230.78 | 1,558.11 | 2,373.07 |
| Debt-Equity Ratio (in times) | 1.35 | 1.48 | 1.60 |
| Current Ratio (in times) | 1.46 | 1.36 | 1.07 |
Silkflex Polymers IPO Fundamental Analysis
The financial analysis of the company going for an IPO reveals a dynamic picture of growth and stability, intertwined with some areas of concern. From March 2022 to December 2023, the company witnessed a progressive increase in revenue, profitability, equity, and return on net worth (RoNW). However, there was a decline in the current ratio, indicating potential liquidity challenges.
1. Revenue: The revenue has increased from INR 2804.52 lakhs in March 2022 to INR 3442.25 in March 2023. The overall growth is a positive sign.
2. Equity: Equity has shown a consistent increase from INR 738.03 lakhs in March 2022 to INR 1073.28 lakhs by December 2023. This indicates that the company is expanding its capital base.
3. Expenses: Expenses have also increased over time but seem to be managed relative to revenue, as reflected in the growth of profitability.
4. Profit and Loss After Tax (PAT): PAT has shown a significant increase from INR 68.59 in March 2022 to INR 2,56.66 by December 2023. This sharp rise indicates improved profitability.
5. Diluted EPS (Earnings Per Share): Diluted EPS has remained relatively stable at around ₹0.97, showing a consistent earnings trend per share.
6. Return on Net Worth (RoNW): RoNW has improved significantly from 9.29% in March 2022 to 23.91% by December 2023, indicating the company’s ability to generate higher returns on shareholders’ equity.
7. NAV per Equity Share: NAV per Equity Share has also increased consistently, reflecting growth in the company’s net assets per share.
8. Total Assets and Total Liabilities: Both total assets and liabilities have increased, which is typical for a growing company. The debt-equity ratio has also increased slightly, indicating increased reliance on debt for financing.
9. Current Ratio: The current ratio has decreased over time, which may indicate a decrease in short-term liquidity.
Silkflex Polymers (India) Ltd IPO Peer Comparison
Silkflex Polymers has a low EPS and RoNW despite a moderate P/E, while BASF India shows high EPS and RoNW has a high P/E. Heubach Colorants has lower EPS and RoNW. Berger Paints exhibits strong EPS and RoNW with a low face value.
| Company | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | RoNW (%) | NAV per share (₹) |
| Silkflex Polymers (India) Limited | 10 | 53.76 | 0.97 | 9.62 | 10.05 |
| BASF India Limited | 10 | 40.12 | 93.10 | 14.92 | 623.97 |
| Heubach Colorants India Limited | 10 | 48.88 | 8.31 | 4.44 | 187.34 |
| Berger Paints India Limited | 1 | 57.44 | 8.86 | 20.67 | 42.86 |
Silkflex Polymers (India) Limited IPO Objective
The main objective is to acquire land in Vadodra for a new manufacturing facility (INR 5.53 crores), purchase plant and machinery for sales volume increase (INR 2.07 crores), and meet increased working capital needs (INR 4.68 crores).
- To acquire land: The company intends to set up a manufacturing facility at Vadodra to manufacture the products in India. For the said purpose the company plans to acquire land and use INR 5.53 crores for acquiring land.
- To purchase plant and machinery: The company intends to increase its sales volume by installing new plant and machinery at the proposed manufacturing facility. For the said purpose the company plans to utilize INR 2.07 crores from the funds raised.
- To meet the working capital requirement: The business of the company is working capital intensive and to meet the increased demand the company plans to utilize INR 4.68 crores to meet the increased working capital requirement.
Silkflex Polymers IPO Risks And Challenges
The company’s risks include heavy reliance on Silkflex Polymers Malaysia for supplies, vulnerability to revenue loss from top customers, and potential negative impact from ongoing litigation against the Promoter.
- The business operations significantly rely on the supply of products from Silkflex Polymers Malaysia. Any discontinuation of the same will adversely impact the overall performance and profitability.
- Almost 72% of the revenue comes from the top 10 customers. If one or more of such customers choose not to source their requirements from the company, the business, financial condition and results of operations may be adversely affected.
- There are certain outstanding litigation against the Promoter, an adverse outcome of which may adversely affect the business, reputation, and results of operations.
Silkflex Polymers (India) Limited IPO – Industry & Market Potential
The Indian chemical industry has numerous opportunities, considering the supply chain disruption in China and the trade conflict between the US, Europe, and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.
Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units, will enhance the production and development of the industry. The dedicated integrated manufacturing hubs under the Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIR) policy will attract an investment of Rs. 20 lakh crore (US$ 276.46 billion) by 2035.
To bring about structural changes in the workings of the domestic chemical industry, future investments should focus not only on the transportation of fuels such as petrol and diesel but also on crude-to-chemicals complexes or refineries set up to cater to the production of chemicals.
Silkflex Polymers (India) Ltd IPO – Type of Offer
Silkflex Polymers Limited is offering 34,82,000 fresh shares valued at INR 18.11 crores through its IPO. The company intends to allocate these funds towards land acquisition, purchasing plant and machinery, addressing general corporate needs, and meeting working capital requirements.
Silkflex Polymers IPO Offer Size
The offer size for Silkflex Polymers Limited’s IPO is a fresh issue of 34,82,000 shares, valued at INR 18.11 crores. The company plans to allocate these funds towards land acquisition, plant and machinery purchases, general corporate needs, and meeting working capital requirements.
Silkflex Polymers India Limited IPO Allotment Structure
Silkflex Polymers India 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 70,400 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,78,400 shares for this purpose.
How to apply for Silkflex Polymers India IPO?
To apply for the Silkflex Polymers 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 Silkflex Polymers 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 Silkflex Polymers 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 Silkflex Polymers’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 Silkflex Polymers 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 Silkflex Polymers 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 Silkflex Polymers IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Silkflex Polymers 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 Enterprise (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.
Silkflex Polymers Ltd IPO Offer Registrar
The registrar for the Silkflex Polymers 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
Office No. S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali CavesRoad, Andheri East,
Mumbai – 400 093, Maharashtra, India
Tel: 022 – 6263 8200
E-mail: [email protected]
Website: www.bigshareonline.com
Silkflex Polymers IPO – FAQs
The allotment date of the Silkflex Polymers IPO is May 13, 2024.
The price of the issue is INR 52 per share.
The offer size for Silkflex Polymers Limited’s IPO is a fresh issue of 34,82,000 shares, valued at INR 18.11 crores. The company plans to allocate these funds towards land acquisition, plant and machinery purchases, general corporate needs, and meeting working capital requirements.
The listing date of Silkflex Polymers IPO is May 15, 2024.
