L.K. Mehta Polymers IPO: Review, Price, Date & GMP

L.K. Mehta Polymers IPO-Complete Overview

L.K. Mehta Polymers IPO under the SME IPO category is a fixed price issue of Rs.7.38 Cr (10.40 lac Shares) by L.K. Mehta Polymers Limited, which was incorporated in 1995 and is a trading company that specializes mostly in the manufacture of plastic products.

The company is also a trader and reprocessor of basic raw materials such as polypropylene and polyethylene granules to many more customers.

Under the Brand name "Super Pack," the company sells products that promise to have superior quality and establish relationships with customers to last long.

The company has strict systems to ensure timely delivery and minimal errors along with the procedure to check orders at every single stage to offer consistent service toward customer loyalty.

Product Portfolio: 

• Ropes: Monofilament Ropes, Danline Ropes, and Tape Ropes, these products are used for non-ISI applications such as transportation, agriculture, and packaging across high-risk sectors like shipping, mining, and heavy machinery transport.
• Twines: Usually, these are used in Agriculture, Harvesting, Stationary, and Handicraft Industries. Retail packaging of consumer goods, household use.
• Granules: Polyethylene and polypropylene For reprocessing and manufacturing of plastic products.

L.K. Mehta Polymers Limited IPO Overview

The L.K. Mehta Polymers Limited IPO date is 13 Feb 2025 and will close on 17 Feb 2025.    This new SME IPO comprises a wholly fresh issue of 10.40 lac Shares.

This upcoming IPO date is on 13 Feb 2025. The L.K. Mehta Polymers IPO Price is Rs.71 for each Share. The listing date is 21 Feb 2025 at BSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

The Objective of The Issue

• To fulfill the need for working capital.

• General corporate purposes.

 

Peers of L.K. Mehta Polymers Ltd. 

There are no listed companies in India engaged in the same business of comparable size.

 

Evaluation

The IPO price is Rs.71 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Dec 2024 with an EPS of Rs.1.49 from the last year, the resulting P/E ratio is 47.65x.

Considering the weighted EPS of Rs.1.73 for the last three years, the P/E ratio is 41.04x.

Comparative Analysis With Listed Peers

No listed peers, hence, no comparison is possible.

 

IPO's Strengths

• Well-experienced promoters.

• Generational management.

• Quality service.

• Top-level customer satisfaction.

 

IPO’s Weaknesses

• The company operates under several policies which means that its legal environmental compliance policies or any other new policies for that matter could adversely affect the company.

• Roughly 78% of the company's sales are attributable to its top ten clients who are mostly responsible for sales.

• Sales contribution from the top five states in terms of sales figures stands over 92%. These states include MP, UP, Assam, Bihar, and Rajasthan. Thus, any critical downturn or regulatory change within these states would bring adverse material consequences to the revenue.

 

L.K. Mehta Polymers IPO GMP 

L.K. Mehta Polymers IPO GMP is Rs.10 as of 11 Feb 2025.

 

IPO Timetable (Tentative)

The IPO date is February 13, with tentative allotment on February 18, refund initiation on February 19, and listing on February 21, 2025.

 

L.K. Mehta Polymers IPO Details 

The IPO, with a Face Value of Rs.10 per share, offers a total issue size of 10,40,000 Shares (Rs.7.38 Cr).

 

L.K. Mehta Polymers IPO Lot Details 

The L.K. Mehta Polymers Energy Limited IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,13,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,27,200.

 

IPO Reservation (% of Net Issue)

Promoters And Management of L.K. Mehta Polymers Ltd.

• Mr. Kamlesh Mehta.

• Rina Mehta.

 

IPO Lead Managers

• Swastika Investmart Ltd.

 

Dividend Policy

The company has not declared a dividend since its inception.

 

Conclusion

The L.K. Mehta Polymers IPO  is to open on 13 Feb 2025. The company is engaged in plastic products and raw materials and has strong promoter experience but is dependent upon a limited number of customers. While the financials indicate growth, risk factors against the company comprise heavy dependence on key customers and suppliers. Therefore, investors are advised to analyze the risks and growth potential before applying.

 

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DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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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