Premium Plast IPO: Review, Valuation, Date & GMP

Premium Plast IPO-Complete Overview

Premium Plast IPO under the SME IPO category is a book-built issue of Rs.26.20 crore by Premium Plast Limited. The company was founded in 1995 and provides exterior, interior, and hood plastic parts to commercial vehicle manufacturers directly.

For a broad range of markets and uses, Premium Plast produces a variety of injection and blow-molded plastic parts. The company's product line consists of industrial plastic parts, automotive parts, and packaging components that are utilized in numerous industries. Premium Plast is an automotive parts manufacturer with three modern, strategically positioned plants in India that create over 600 components.

The company has three strategically positioned production sites, two of which are located in Pithampur, Madhya Pradesh, and the third in Vasai, Maharashtra. These production facilities have a combined installed capacity of 1,975 MTPA.

This Premium Plast IPO will start on 21 October 2024, and its ‘initial public offering’ will end on 23 October 2024.

Premium Plast IPO Overview

The Rs.26.20 crore new SME IPO comprises a wholly fresh issue of 53.46 lac Shares. 

This upcoming IPO date is from October 21 to October 23, 2024. The Premium Plast IPO price is Rs.46 to Rs.49 for each Share. 

The expected IPO listing date is Monday, 28 October 2024, and listing at NSE and SME.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

How to get an IPO refund?

If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click here to learn the steps.

 

Company Financial

The company’s revenue grew by 6% and PAT increased by 200% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Product-wise Revenue Breakdown  

(Amount in lac)

 

Sales-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Purchase of machinery and expansion of the current manufacturing facility in Pithampur, Madhya Pradesh.

• Financing the company's capital expenditure needs for the installation of a rooftop solar power plant at its current manufacturing location.

• Provide associated costs.

• Full or partial prepayment of some outstanding loans that the company has taken out.

• General corporate purpose.

 

Peers of Premium Plast Ltd.

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The IPO price is Rs.46 to Rs.49 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.10.03 from the last year, the resulting P/E ratio is 4.89x.

Considering the weighted EPS of Rs.6.40 for the last three years, the P/E ratio is 7.65x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 40.45x.

 

In simple words, the P/E ratio of this IPO (4.89x), compared with the industry’s average P/E of 40.45x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

 

IPO's Strengths 

• Enduring connections with current clients, with the possibility of growing its clientele.

• A wide variety of specialized plastic items for different market niches.

• Sturdy design optimization skills.

• Development of sustainable businesses.

• Current connections with suppliers and clients.

• Manufacturing facilities are positioned strategically.

 

IPO’s Weaknesses

• Reliance on the performance of the automotive industry.

• Restricted geographic reach.

• Price fluctuations for basic materials.

• Growing rivalry in the plastics manufacturing industry.

• Regulations affecting the plastics and automotive industries.

 

Premium Plast Limited IPO GMP

The IPO GMP today is Rs.5 as of 18 October 2024. With a price of Rs.49 per Share, the estimated IPO listing price is Rs.54 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from October 21 to October 23, 2024, with allotment on October 24, refund initiation on October 25, and listing on October 28, 2024.

 

Premium Plast IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 5,346,000 Shares (Rs.26.20 Cr).

Premium Plast IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,47,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,94,000.

 

Premium Plast IPO Reservation (% of Net Issue)

 

Promoters And Management of Premium Plast Ltd.

• Chetan Nagendra Dave

• Dr. Lopa Chetan Dave

 

IPO Lead Managers

• Khandwala Securities Limited.

• Dividend Policy

The company has not paid dividends in the last three FYs.

 

Conclusion

The Premium Plast IPO offers investors an investment in a company that is a growing automobile plastic parts manufacturer with strategic locations for its production and considerable financial growth. This is done to utilize the IPO amount towards expansion and debt reduction. The company also promises well but its challenges such as its dependence on the auto industry and material cost fluctuations are also very significant.

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.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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