Sati Poly Plast Ltd IPO: Review, Valuation, Opening Date & GMP

Sati Poly Plast Limited IPO-Complete Overview

Sati Poly Plast Limited IPO announced by Sati Poly Plast Limited was established in July 1999 and produces flexible packaging materials with several uses to cater to different industries' packaging requirements. The business has established two production facilities. Plant 1 can generate 540 tons per month and is situated in Gautam Budh Nagar, Noida. Plant 2 has a total capacity producing 540 tonnes every month and is located in Udhyog Kendra, Noida.

Between 2018 and 2019, the company gradually raised its installed capacity from 250 to 500 tonnes per month. States include Assam, Bihar, Chhattisgarh, Dadra, and Nagar Haveli, and Daman and Diu Delhi are among those to which the company distributes packing materials. Gujarat, Haryana, Punjab, Rajasthan, Madhya Pradesh, Maharashtra, Jharkhand, Odisha, Puducherry, Jharkhand, Himachal Pradesh, and Jammu & Kashmir.
Among the company's clientele are JVL, Adani Wilmar, and Pidilite.

The company employed 135 people in total as of March 31, 2024. Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 12, 2024. Let's take a closer look at the IPO's offerings below.

Sati Poly Plast Limited IPO Overview

Sati Poly Plast IPO is an SME book-built issue of Rs.17.36 crore with a wholly Fresh Issue of 13.35 lac Shares (amounting to Rs.17.36 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 12, 2024, and conclude on July 16, 2024. The anticipated listing date for the IPO is Monday, July 22, 2024, and will be held on the NSE and SME. The price band of each share is Rs.123 to Rs.130.

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

 

Company Financial

Sati Poly Plast Limited's revenue decreased by 6.05%, while profit after tax (PAT) increased by 6.39% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial years ending March 31, 2024, and March 31, 2023.

• The net worth of the company has climbed by 209.39%.

• The company's EBITDA has increased to 5.17%.

• The total assets of the company rose by 34.41%

• The Liabilities of the company climbed by 16.09%.
  
  

(Amount in lacs)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in lacs)

Net Cash flow in multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	735.81	310.69	348.98
Net Cash Flow Investing Activities	539.76	235.96	187.36
Net Cash Flow Financing Activities	14.56	76.63	418.87

 

Product Breakdown Of Revenue Generated From Sales Of Goods.

Geography-Wise Breakdown Of Domestic Revenue Generated From Sales Of Goods

State-Wise Breakdown Of Revenue Generated From Sales of Goods

(Amount In Lacs)

State	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assam	0.82	9.19	4.39
Bihar	796.67	651.85	676.39
Chhattisgarh	8.99	-	-
Dadra and Nagar Haveli and Daman and Diu	99.72	97.39	110.63
Delhi	3,334.60	3,808.69	2,728.31
Gujarat	2,232.77	644.48	3.03
Haryana	1,159.18	858.41	1,330.71
Himachal Pradesh	-	16.89	9.80
Jammu and Kashmir	61.76	62.45	39.56
Jharkhand	3.36	6.06	-
Karnataka	3.20	-	-
Madhya Pradesh	49.80	2.28	110.90
Maharashtra	317.54	0.86	-
Meghalaya	-	-	4.70
Odisha	4.27	6.13	15.19
Puducherry	36.67	36.22	40.19
Punjab	47.54	33.61	32.25
Rajasthan	902.85	1,049.77	1,178.71

 

The Objective Of The Issue

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

• Financing to satisfy the need for working capital.

• Corporate Goals in General.
  
  

 

Peers Of Sati Poly Plast Limited

(As of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Sabar Flex India Limited	10	2.64	7.50
Uma Converter Limited	10	2.07	11.81

Evaluation

The price of this IPO is Rs.123 to Rs.130 for each Share.

 

Evaluation Of P/E Ratio

 

Considering the Financial Year that concluded on 31 March 2024, with EPS of Rs.9.70 from the last year, the resulting P/E ratio is 13.40x.

Considering the weighted EPS of Rs.4.93 for the last three years, the P/E ratio is 26.36x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 9.66x.

Particulars	P/E Ratio
Highest	11.81
Lowest	7.50
Average	9.66

In simple words, the P/E ratio of the Sati Poly Plast Limited-IPO (13.40x and 26.36x) is higher than the industry’s average P/E ratio i.e. 9.66x. Hence the company currently has a high valuation as compared with its industry average so the price band seems justified for these shares. Investors might not have to pay an overpriced amount considering its P/E ratio to buy Shares in its IPO.

IPO's Strengths

• Time-bound execution of the projects.

• Cost leadership in an established manufacturing facility.

• Friendly relations between labor and management.

• The relationship that is currently in place with the client.

• Assurance of Quality. 

 

IPO’s Weaknesses

• The state of Uttar Pradesh provides the majority of its revenue. Any unfavorable event that affects its operations in this area could have a negative effect on the company's operations, finances, and overall performance.

• It is currently facing several legal actions that could harm its operations, reputation, and business.

• For sales, the company depends on a small number of clients. If they lose any of these significant clients, it could have an impact on their earnings.

• Their business depends on its production facilities and will continue to do so. As a result, there are risks associated with their manufacturing process, including the possibility of equipment failure or breakdown, industrial accidents, extreme weather, and natural disasters.

• The company purchases products from a small number of suppliers. Their company operations might be impacted if one of these major suppliers were to disappear.

• A sizeable amount of their company's revenue comes from the food and drink industry's demand. The business and operational outcomes of the company could be negatively impacted by a slump in the beverage and food industry or by its inability to grow or efficiently manage its sales.

• The company's cash flows, financial situation, and operational outcomes could all suffer from fluctuations in the price and availability of its raw materials, limitations on its import, or supplier defaults.

 

 

IPO GMP Today

The Latest GMP of Sati Poly Plast Limited IPO is Rs.130.

Sati Poly Plast Limited IPO timetable (Tentative)

The IPO is scheduled from July 12 to July 16, 2024, with allotment on July 18, refund initiation on July 19, and listing on July 22, 2024.

Events	Date
IPO Opening Date	July 12, 2024
IPO Closing Date	July 16, 2024
IPO Allotment Date	July 18, 2024
Refund initiation	July 19, 2024
IPO Listing Date	July 22, 2024

 

Sati Poly Plast Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 12, close on 16 July, and offer a total issue size of 1,335,000 Shares (aggregating up to Rs.17.36 Cr) comprising a wholly fresh issue size of 1,335,000 Shares of Rs.17.36 Cr.

 

IPO Opening & Closing date	July 12, 2024 to July 16, 2024
Face Value	Rs.10 per Share
Issue Size	1,335,000 Shares of Rs.17.36 Cr.
Offer for Sale	-
Fresh Issue	1,335,000 Shares of Rs.17.36 Cr.
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

Sati Poly Plast Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (1000 Shares) amounting to Rs.130000 and in multiples thereof, while for HNI investors, the minimum lot is 2 (2000 Shares) amounting to Rs.260000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Sati Poly Plast Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters And Management Of Sati Poly Plast Limited IPO.

• Balmukund Jhunjhunwala

• Anita Jhunjhunwala

• Aditya Jhunjhunwala

• Keshav Jhunjhunwala

• Balmukund Jhunjhunwala HUF.
  
  

Pre-issue Promoter shareholding	86.30%
Post-issue Promoter shareholding	63.00%

 

Sati Poly Plast Limited IPO Lead Managers:

• Beeline Capital Advisors Pvt Ltd
  
  

Dividend Policy

The company has not paid any dividends in the last three years.

Conclusion

The company’s net worth, total assets, and liabilities have increased and EBITDA also rose in the last few financial years. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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