GSM Foils Ltd IPO: Review, Valuation, Date & GMP

GSM Foils Limited IPO  - Complete Overview

Established in 2019, GSM Foils Limited specializes in manufacturing Blister Foils and Aluminium Pharma Foils. 

These foils are used for packaging pharmaceutical medicines, including capsules and tablets. As primary packaging materials that come into direct contact with the medicine, they require the highest quality standards.

The company's manufacturing facility is located in Sapphire Building, Diamond Industrial Estate, Vasai East IE, Thane, Vasai, Maharashtra. It spans 7,973 square feet across four floors (ground plus three), facilitating smooth business operations. 

The facility is well-equipped with the necessary tools, machinery, equipment, and amenities to support seamless manufacturing processes, hassle-free production, quality testing, research, storage, and packaging.

GSM Foils Limited has a PAN-India presence with a clientele base in 13 states and 1 Union Territory. 

The company is certified with ISO 9001:2015. As of December 31, 2023, the company has generated a revenue of Rs. 2,717.87 lakhs.

GSM Foils Limited IPO Overview

GSM Foils Limited IPO date is slated to be open for subscription from May 24, 2024, to May 28, 2024. This NSE SME IPO follows a fixed price Issue IPO.

GSM Foils Limited IPO price is fixed in the range at Rs.32 per share. 

The total issue size of this IPO amounts to Rs.11.01 Cr. The company has allocated 50% shares to retail investors and 50% to other investors.

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, GSM Foils Limited has seen growth in total assets and net worth but decreased in total revenue. The profit after tax and total borrowing has increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,208.18	1,438.18	1,050.65
Total Revenue	2,717.87	6,588.69	7,185.04
PAT	124.79	142.97	63.65
Net worth	126.99	835.73	659.06
Reserve & Surplus	124.79
Total Borrowings	1,412.95	242.43	219.20

Product-wise Revenue Break Up

(Amount in Lakhs)

Product Wise Sales	June 26, 2024	FY 2022-23	FY 2021-22
Blister foils	701.75	4,139.68	3,746.18
Pharma foils	389.91	2,448.67	3,438.85
Total	1,091.66	6,588.35	7185.03

 

 

 

The Objective of the Issue

The Company proposes to utilize the Net Proceeds from the Issue to fund the following objectives:

1. Funding of capital expenditure for the purchase of Plant and Machineries.

2. Funding Working Capital Requirements of our Company.

3. General corporate purposes.

Peers of GSM Foils Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
GSM Foils Limited	10	28.25	1.13
Synthiko Foils Limited	5	0.95	70.47
MMP Industries Limited	10	7.28	36.00

 

Evaluation

The IPO is priced at Rs. 32 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 28.25 from the last year, the resulting P/E ratio is 1.13x.

• Taking into account the weighted EPS of Rs 19.44 for the last three years, the P/E ratio amounts to 1.64x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 53.24x.

As a result, the IPO price range, with a P/E ratio ranging from 1.13x to 1.64x, seems fully priced to the industry average of 53.24x.

IPO's Strengths 

• Cost-effective production and timely fulfillment of orders.

• Skilled promoters and management team.

• Diversified product portfolio.

• Well-equipped manufacturing facility.

• Strong quality assurance and standards.

IPO weaknesses 

• The company's existing manufacturing facility is concentrated in Mumbai, Maharashtra. Any inability to operate and grow its business in this region could adversely affect the company. 

• The majority of its sales are generated from operations in specific geographical regions, particularly Gujarat, Dadra & Nagar Haveli, and Maharashtra. Any adverse impacts in these areas could negatively affect the company's business.

• The company has experienced negative cash flows in recent years.

• The company operates under numerous laws and extensive government regulations. Failure to obtain, maintain, or renew necessary statutory and regulatory licenses, permits, and approvals, including those related to environmental, health, and safety regulations, could negatively impact its financial condition.

• The company faces significant competitive pressures due to the fragmented nature of the industry segments in which it operates. 

• The company dependent on third-party transportation providers for the delivery of raw materials and products.

 

IPO GMP Today 

The latest GMP of GSM Foils Limited is Rs.6.

GSM Foils Limited IPO timetable (Tentative)

GSM Foils Limited IPO is scheduled from May 24 to May 28, 2024, with allotment on May 29, refund initiation on May 30, and listing on May 31, 2024.

GSM Foils Limited IPO Reservation

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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