On Day 3, the Purv Flexipack Limited IPO witnessed an astounding level of subscription, with the issue oversubscribed by a staggering 386.95 times. This overwhelming response reflects a remarkable surge in investor interest and confidence in the company’s prospects. The subscription frenzy was evident across all investor categories, showing widespread enthusiasm for the offering. This remarkable subscription rate underscores the strong market demand and positive sentiment surrounding Purv Flexipack Limited’s IPO.
Purv Flexipack Limited IPO – Fundamental Analysis
Purv Flexipack Ltd showcases significant revenue and profit growth, with revenues jumping from ₹13,303.75 lakhs in 2021 to ₹33,317.44 lakhs in 2023, and PAT rising to ₹826.13 lakhs in 2023. There’s a steady increase in expenses, reflective of business scaling. RoNW and EPS have modestly improved, suggesting enhanced profitability and shareholder value. The company’s total assets and liabilities have expanded, necessitating a careful examination of its debt management and leverage ratios, highlighting its potential as an investment opportunity.
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Purv Flexipack Limited IPO – Risks And Challenges
Purv Flexipack faces risks including supplier inconsistencies that may lead to customer attrition, and unpredictable supply chain and cost fluctuations. The company’s heavy reliance on working capital necessitates accurate inventory control; miscalculations could affect revenues and cash flow. Additionally, ongoing and potential future government regulations targeting plastic usage, like the Plastic Waste Management Rules and Extended Producer Responsibility, pose significant risks to their business model, as stricter anti-plastic laws could substantially disrupt operations.
