Purv Flexipack Limited IPO - Valuation, Date, Review, & GMP

Purv Flexipack Limited IPO  - Complete Overview

Established in 2005, Purv Flexipack Limited has been a key distributor of plastic products for nearly two decades. Their extensive range includes BOPP film, Polyester Films, CPP films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Acetate, and Titanium Dioxide, catering to diverse sectors.

The company's product line encompasses Plastic Granules, BOPP Films (HS, Matt, Glossy/Plain/Printing Grade, Tape, Textile, Pearlized), Polyester Films, and Cast Polypropylene (CPP) Films, meeting various packaging needs.

Purv Flexipack Limited operates modern warehouses equipped with cutting-edge facilities to ensure safe storage. Stringent inventory management systems are in place to uphold product integrity and accuracy in tracking.

With a dedicated team of 28 professionals across different departments, including Accounts & Finance, Compliance, Maintenance, Marketing & Logistics, Production & Operations, Quality, Top-level Management, and Permanent Labor, Purv Flexipack Limited maintains its reliability in the market.

The company also serves as a Del Credere Associate (DCA) Dealer Operated Polymer Warehouse (DOPW) for Indian Oil Corporation's polymer division and holds dealership agreements with companies like SRF, Poddar Pigments, and Brilliant Polymers, extending its reach across West Bengal, Assam, Odisha, and Bihar.

 

Purv Flexipack Limited IPO Overview

Purv Flexipack Limited IPO date is slated to be open for subscription from February 27, 2024, to February 29, 2024. This NSE SME IPO follows a [Fixed Book Built Issue IPO.

Purv Flexipack Limited IPO price is fixed at Rs. 70 - Rs. 71 per share. 

The total issue size of this IPO amounts to Rs. 40.21 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Purv Flexipack Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 February 2024
IPO Closing Date	29 February 2024
IPO Allotment Date	1 March 2024
Refund initiation	4 March 2024
IPO Listing Date	5 March 2024

 

Purv Flexipack Limited IPO Details

IPO Opening & Closing Date	27 February to 29 February 2024
Face Value	Rs.10 per share
Issue Price	Rs.70 - Rs. 71  per share
Lot Size	1600  Shares
Price of 1 lot	Rs. 113,600
Total Issue Size	5,664,000 shares (aggregating up to Rs. 40.21 Cr)
Fresh issue	5,664,000 shares (aggregating up to Rs. 40.21 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Purv Flexipack Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1600	Rs. 1,13,600
Maximum Lot Investment (Retail)	1 lot	1600	Rs. 1,13,600
Minimum Lot Investment (HNI)	2 lot	3200	Rs.2,27,200

 

Purv Flexipack Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Miinimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

In FY 23, Purv Flexipack Limited witnessed a significant increase in financials compared to FY 22

(Amount in Lakhs)

Net worth

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	28,315.64	25,852.83	18,146.73
Total Revenue	13,935.79	34,107.83	22,943.81
PAT	430.13	826.13	626.73
Net Worth	8,152.42	7,619.22	6,793.09
Reserve & Surplus	6,740.54	6,207.34	5,381.21
Total Borrowings	15,013.96	12,350.98	8,340.10

 

Revenue by Operations

In FY 23, Purv Flexipack Limited saw a significant rise in revenue from operations compared to FY 22.

(Amount in Lakhs)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	13439.09	33317.44	22237.34
Other Income	496.70	790.39	706.47
Total Revenue	13935.79	34107.83	22943.81

 

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Settling outstanding loans procured by the company from scheduled commercial banks.

• Meeting operational cash flow needs.

• Covering miscellaneous corporate expenses.

 

Promoters and Management of Purv Flexipack Limited IPO

1. Mr. Rajeev Goenka.

2. Mrs. Poonam Goenka

3. M/s Purv Logistics Private Limited.

Pre-issue Promoter Shareholding	92.17%
Post-issue Promoter Shareholding

 

Purv Flexipack Limited IPO Lead Managers

•  Holani Consultants Private Limited

 

Peers of Purv Flexipack Limited IPO

Purv Flexipack Limited has a lower P/E ratio and higher EPS compared its peer.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Purv Flexipack Limited	10	12.13	5.85
Sah Polymers Limited	10	54.95	2.10

 

Evaluation

The IPO is priced within the range of Rs. 70 to Rs. 71 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 5.85 from the last year, the resulting P/E ratio is 12.13x.

- Taking into account the weighted EPS of Rs 5.08 for the last three years, the P/E ratio amounts to 13.98x.

Comparative Analysis with industry's average:

- The industry's average P/E is 54.95x.

As a result, the IPO price range, with a P/E ratio ranging from 12.13x to 13.98x, seems undervalued in comparison to the industry average of 54.95x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

•  Experienced management and skilled workforce.

• Focus on excellent service.

• Strong relationships with customers and suppliers, with efficient supply chain management.

• Reliable infrastructure.

• Consistently strong financial performance.

 

IPO's Weaknesses

• Negative cash flow in operating, investing, and financing activities over three years.

• Growth and business could suffer due to ongoing cash flow issues.

• Risk in expanding customer base and creating new products for sales.

• Reliance on certain customers for revenue; loss or financial troubles could hurt business.

• Vulnerability to interest rate hikes, posing risks to operations.

• Unaddressed contingent liabilities could harm financial health.

• Pressure from customers on pricing may impact profit margins.

 

IPO GMP Today

The latest GMP of Purv Flexipack Limited IPO is Rs.125.

 

 

 

Conclusion

Purv Flexipack Limited IPO presents an opportunity for investors to participate in a well-established company operating in the plastic products distribution sector. With a strong track record, diverse product portfolio, and strategic partnerships, the company has demonstrated resilience and growth potential.

However, investors should carefully consider the IPO's pricing, financial metrics, and industry comparisons before making investment decisions. While the IPO seems undervalued compared to industry averages, factors such as negative cash flow and reliance on certain customers pose potential risks.

Overall, Purv Flexipack Limited IPO offers an entry into a promising market segment with experienced management and a commitment to quality service, but investors should conduct thorough due diligence to assess the potential risks and rewards.

 

 

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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