Sati Poly Plast IPO

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12th – 16th Jul 2024
22 Jul 2024
₹123 – ₹130
1000 shares (₹130000)
17cr

Schedule

Issue open date 12 Jul 2024
Issue close date 16 Jul 2024
UPI mandate deadline 16 Jul 2024 (5 PM)
Allotment finalization 18 Jul 2024
Refund initiation 19 Jul 2024
Share credit 19 Jul 2024
Listing date 22 Jul 2024
Mandate end date 31 Jul 2024
Lock-in end date for anchor investors (50%) 18 Aug 2024
Lock-in end date for anchor investors (remaining) 18 Oct 2024

About

Incorporated in 1999, Sati Poly Plast is an ISO Certified Company engaged in the manufacturing of flexible packaging material which is multi-functional and caters to the packaging requirements of various industries and also provides end-to-end solutions for various flexible packaging needs. The company’s products cover an extensive range of industry-approved materials such as polyethylene terephthalate, biaxially oriented polypropylene, polythene, cast polypropylene, foil, paper, bio-degradable films, etc. Its range of packaging solutions spans a variety of products in the food and beverage category, including salty snacks, snack bars, dry fruits, confectionery and dry foods.

The Company has been consistently expanding its business operations by increasing its installed capacity from 250 tonnes per month to 400 tonnes per month in 2018 and to 500 tonnes per month in 2019 and supplies its packaging material to 14 states and union territories. Currently, The company supplies packaging material to Pidilite, Adani Wilmar and JVL as per their usage requirements.


Financials



Issue size

Funds raised in the IPO Amount
Overall ₹17.36 crores
Fresh issue ₹17.36 crores
Offer for sale

Utilisation of proceeds

Purpose INR crores (%)
Working capital 11 (63.4%)
General corporate purposes 6.36 (36.6%)

*All figures except EPS are in ₹ crores

Strengths

  • Cost Leadership and time-bound execution: The management has carried out various steps for the purpose which involves the identification of quality raw materials, harmonious relations with the workforce and the use of the latest and highly efficient manufacturing facilities which enhanced the ability to meet large and varied orders on a timely basis.
  • Established Manufacturing Facility: The company’s dynamic manufacturing facilities located at Noida are spread over 8100 sq Mtr area and 1035 sq Mtr of area are equipped to carry out end-to-end manufacturing activities starting from designing of products to the production of finished goods.

Risks

  • Clientele risk: Reliance on the top 10 clients for more than 70% of revenues. Loss of any of these large customers may affect revenues and profitability.
  • Geographical concentration risks: Primarily focused in Uttar Pradesh, Any adverse development affecting operations poses liabilities and investment risks.
  • Higher inventory due to business cyclicality: Business is subject to seasonal and cyclical volatility due to which there may be fluctuation in the sales of products which could lead to higher closing inventory position, which may adversely affect the business.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 19, 2024, on the registrar’s website and the NSE website.