Home >> Blog >> GSM Foils Ltd IPO: Review, Valuation, Date & GMP
GSM Foils Ltd IPO: Review, Valuation, Date & GMP
![GSM Foils Limited IPO: Review, Valuation, Date & GMP](../admin/media/GSM Foils IPO.jpeg)
Table of Contents
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.
Events |
Date |
IPO Opening Date |
May 24, 2024 |
IPO Closing Date |
May 28, 2024 |
IPO Allotment Date |
May 29, 2024 |
Refund initiation |
May 30, 2024 |
IPO Listing Date |
May 31, 2024 |
GSM Foils Limited IPO Details
GSM Foils Limited IPO, with a face value of Rs.10 per share, opens on May 24 and closes on May 28, 2024, offering 3,440,000 shares at Rs.32 per share, with a lot size of 4000 shares, aiming to raise Rs.11.01 Cr, and will be listed on NSE SME.
IPO opening & closing date |
May 24, 2024 to May 28, 2024 |
Face value |
Rs.10 per share |
Issue Price |
Rs.32 per share |
Lot Size |
4000 shares |
Price of 1 lot |
Rs. 128,000 |
Issue Size |
3,440,000 shares (aggregating up to ₹11.01 Cr) |
Fresh issue |
3,440,000 shares (aggregating up to ₹11.01 Cr) |
Listing at |
NSE SME |
Issue Type |
Fixed Price Issue IPO |
Registrar |
Bigshare Services Pvt Ltd |
GSM Foils Limited IPO Lot Details
For GSM Foils Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (4000 shares) at Rs.128,000 while for HNI investors, the minimum investment is 2 lots (8000 shares) at Rs.256,000.
Minimum Lot Investment (Retail) |
1 lot |
Maximum Lot Investment (Retail) |
1 lot |
Minimum Lot Investment (HNI) |
2 lot |
GSM Foils Limited IPO Reservation
Other Investors share Portion |
50% |
Retail Investors share Portion |
50% |
Promoters and Management of GSM Foils Limited
-
Mr. Sagar Girish Bhanushali
-
Mr. Mohansingh L Parmar.
Pre-issue Promoter shareholding |
|
Post-issue Promoter shareholding |
73.14% |
GSM Foils Limited IPO Lead Managers
-
Shreni Shares Limited
Dividend Policy
There are no dividends declared by the Company since incorporation.
Conclusion
The company operates in a fragmented and competitive segment and has not shown strong revenue performance in recent years. However, experienced investors might consider investing in the upcoming IPO for medium to long-term gains.
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.
Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!
Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!
Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.
Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.
Frequently Asked Questions
The IPO is scheduled to open for subscription on May 24, 2024.
The issue price for GSM Foils Limited IPO is set at rs. 32 per share.
The total issue size of the IPO is Rs.11.01 Cr, with 50% reserved for retail investors.
The IPO is set to close on May 28, 2024.
The net proceeds from the IPO will be allocated towards funding capital expenditures for the purchase of plant and machinery, meeting the company's working capital requirements, and general corporate purposes.