SPP Polymer Limited is coming up with an IPO consisting of a fresh issue of 41,50,000 shares worth INR 24.49 crores. The company aims to address loan repayment, meet working capital needs, and support general corporate purposes.
SPP Polymers IPO – Important Dates
| SPP Polymer Limited IPO Date | September 10, 2024 to September 12, 2024 |
| SPP Polymer Limited IPO Listing Date | September 17, 2024 |
| SPP Polymer Limited IPO Price | INR 59 per share |
| SPP Polymer Limited IPO Lot Size | 2000 Shares |
| SPP Polymer Limited IPO Total Issue Size | INR 24.49 crores |
| SPP Polymer Limited IPO Basis of Allotment | September 13, 2024 |
| SPP Polymer Limited IPO Initiation of Refunds | September 16, 2024 |
| SPP Polymer Limited IPO Credit of Shares to Demat | September 16, 2024 |
| SPP Polymer Limited IPO Issue Type | Fixed Price Issue IPO |
| SPP Polymer Limited IPO Listing At | NSE SME |
Read more SPP Polymer Limited IPO GMP
SPP Polymer Limited IPO – Company Profile
SPP Polymer Limited, ISO 9001:2015 certified, manufactures HDPE/PP woven fabrics and bags, non-woven fabrics, and PP multifilament yarn. It offers B2B packaging solutions, focusing on quality, customization, and environmental standards.
At SPP Polymer Limited, raw materials are sourced from trusted vendors and rigorously tested in their advanced in-house laboratory. This ensures compliance with global standards and maintains high-quality production through state-of-the-art equipment.
Rigorous quality tests at SPP Polymer Limited include tensile strength, elongation, dart impact, drop, water resistance, and UV exposure assessments, ensuring the products meet high durability, strength, and performance standards.
SPP Polymer Ltd IPO Fundamental Analysis
SPP Polymer Limited’s financial analysis reveals a mixed performance. Revenue decreased, followed by growth; while equity and liabilities increased, debt reliance rose. Profitability and EPS improved significantly, though liquidity weakened and inventory turnover decreased.
- Revenue Trend: The revenue decreased from ₹8,028.16 lakhs in March 2022 to ₹6,604.72 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 9,175.11 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹28.01 lakhs in March 2022 to ₹99.40 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.31 in March 2022 to ₹0.88 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 1.42% to 3.98%, 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 decreased, indicating weakening 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.
SPP Polymers IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 8,028.16 | 6,604.72 | 9,175.11 |
| Equity (₹ in lakhs) | 1,971.82 | 2,433.64 | 2,533.05 |
| Expenses (₹ in lakhs) | 8,037.04 | 6,575.16 | 9,238.48 |
| Profit and Loss After Tax (₹ in lakhs) | 28.01 | 54.42 | 99.40 |
| Diluted EPS only (₹) | 0.31 | 0.49 | 0.88 |
| Return on Net Worth (%) | 1.42 | 2.24 | 3.98 |
| NAV per Equity Share (₹) | 22.03 | 21.97 | 22.24 |
| Total Assets (in lakhs) | 3,821.87 | 5,417.98 | 7,091.89 |
| Total Liabilities (in lakhs) | 1,849.05 | 2,984.33 | 4,558.83 |
| Debt Equity Ratio | 0.64 | 0.91 | 0.75 |
| Current Ratio (in times) | 1.42 | 1.37 | 1.20 |
| Inventory Turnover Ratio | 11.99 | 6.73 | 5.27 |
SPP Polymer Limited IPO Peer Comparison
SPP Polymer Limited shows moderate revenue, profitability, and EPS, with moderate RoNW and inventory turnover. Rishi Techtex Limited exhibits higher profitability and efficiency, while EMMBI Industries Limited leads in revenue, profitability, and returns.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| SPP Polymer Limited | 9,381.29 | 10 | 66.72 | 0.88 | 3.52 | 22.24 |
| Rishi Techtex Limited | 11,196.16 | 10 | 33.90 | 1.82 | 4.23 | 43.09 |
| EMMBI Industries Limited | 37,759.60 | 10 | 21.89 | 5.62 | 5.85 | 961.69 |
SPP Polymer Ltd IPO Objective
The main objective of SPP Polymer Limited is to repay loans and meet working capital requirements.
- Repayment of loan: The company intends to utilize INR 7.75 crores from the net proceeds for repayment or prepayment, aiming to reduce debt, improve the debt-equity ratio, and support future business growth and expansion.
- Working capital requirement: The company plans to utilize INR 18.01 crores for working capital requirements in FY 2023-24, financed through bank borrowings, capital, and internal accruals, to support increased production capacity and manage cash flow effectively.
- General corporate purposes: The company will deploy a balance of INR 5.87 crores to general corporate goals, including financing working capital requirements, capital expenditure, acquiring business premises, meeting difficulties, and other purposes.
SPP Polymers IPO Risks And Challenges
SPP Polymer Limited’s risks include ongoing litigation, potential penalties, operational disruptions from equipment failures or natural disasters, and intense competition affecting pricing and margins. Despite the growth, their market share remains small and difficult to gauge.
- Their company, group companies, promoters, and directors face ongoing criminal, civil, and tax litigations. Adverse decisions could result in penalties or compensation, potentially negatively impacting their business and operational results.
- Their manufacturing facilities face risks such as equipment failures, power issues, raw material shortages, labour disputes, and natural disasters. Despite precautions, these factors could significantly disrupt production, revenue, and operational results, affecting their financial condition.
- They face intense competition in the packaging industry based on product quality, price, and customer satisfaction. Larger, more established competitors impact their pricing and margins. Despite the growth, their market share is tiny and hard to quantify.
SPP Polymer Ltd IPO – Industry & Market Potential
Packaging enhances product visibility and appeals to consumers, playing a crucial marketing role. It provides information, protection, convenience, and security. Paper is increasingly used due to its recyclability and environmental benefits over plastic.
The Indian paper and packaging sector is rapidly expanding, expected to grow from $50.5 billion in 2019 to $204.81 billion by 2025. This growth is driven by e-commerce, FMCG, and government initiatives, with a notable increase in flexible packaging.
Driven by the Make in India policy, the packaging sector is expanding swiftly. Government tax incentives and initiatives are designed to enhance domestic firms’ competitiveness and foster technological advancements, supporting India’s rise as a global manufacturing hub.
SPP Polymer Limited IPO – Type of Offer
SPP Polymer Limited is coming up with an IPO consisting of a fresh issue of 41,50,000 shares worth INR 24.49 crores. The company aims to address loan repayment, meet working capital needs, and support general corporate purposes.
SPP Polymers IPO Offer Size
The offer size of SPP Polymer Limited is INR 24.49 crores, consisting of a fresh issue of 41,50,000 shares. The company seeks loan repayment funds, meets working capital needs, and supports general corporate purposes.
SPP Polymer Limited IPO Allotment Structure
SPP Polymer 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 210,000 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 210,000 shares for this purpose.
Read more SPP Polymer Limited IPO Allotment Status
How to apply for SPP Polymer IPO?
To apply for the SPP Polymer 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 SPP Polymer 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 SPP Polymer 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 SPP Polymer Limited IPO Day 1 Subscription
How do you check SPP Polymer 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 SPP Polymer 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 SPP Polymer 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 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 SPP Polymer Limited IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the SPP Polymer 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.
Read more SPP Polymer Limited IPO Day 2 Subscription
SPP Polymer Ltd IPO Offer Registrar
The registrar for the SPP Polymer Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN TECHNOLOGIES LIMITED
Selenium Tower-B, Plot 31 & 32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel No.: +91 40 6716 2222
E-Mail: [email protected]
Website: www.kfintech.com
Read more SPP Polymer Limited IPO Day 3 Subscription
SPP Polymer IPO – FAQs
1. What is the allotment date of the SPP Polymer IPO?
The allotment date of the SPP Polymer Limited IPO is September 13, 2024.
2. What is the price band of the SPP Polymer IPO?
The price band of the issue is INR 59 per share.
3. What is the size of the SPP Polymer IPO?
The offer size of SPP Polymer Limited is INR 24.49 crores, consisting of a fresh issue of 41,50,000 shares. The company seeks funds for loan repayment, to meet working capital needs, and to support general corporate purposes.
4. What is the listing date of the SPP Polymer IPO?
The listing date of SPP Polymer Limited’s IPO is September 17, 2024.
