Solve Plastic Products Ltd IPO: Review, Valuation, Date & GMP

Solve Plastic Products IPO - Complete Overview

Solve Plastic Products IPO an SME IPO is a fixed price issue of Rs.11.85 crore by Solve Plastic Products Ltd. which was founded in 1994. Solve Plastic Products Limited produces a wide variety of rigid PVC electrical conduits and uPVC pipes (unplasticized polyvinyl chloride) and sells them under the "BALCOPIPES" brand.

The company's range of products consists of:

• Water Tanks

• Solvent Cement

• Hoses for gardens

• Rigid PVC power cords Vinyl polymer pipes.

The company operates one well-equipped production facility in Tamil Nadu and three manufacturing facilities in Kerala. Several agencies, including the Bureau of Indian Standards (BIS), Military Engineer Services (MES), Central Public Works Departments (CPWD) in Chennai and Kochi, Public Works Departments (PWD), Integral Coach Factory, in Kerala and Tamil Nadu, and the Tamil Nadu Housing Board, have approved the manufactured goods. The company mostly distributes its goods across Kerala.

The company plans to launch its SME IPO on August 13, 2024.

Solve Plastic Products IPO Overview

The Rs.11.85 crore Solve Plastic Products Ltd. IPO consists of a fully fresh issue of 13.02 lac Shares, of which 50% are allotted to retail investors, and 50% to other investors.

This SME IPO is available for purchase from August 13-August 16, 2024. The expected listing date is Wednesday, August 21, 2024, on NSE and SME. Solve Plastic Products IPO price band is Rs.91 for each Share.

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

 

Company Financial

The company’s revenue fell by 24.25% and PAT increased by 18.47% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total revenue of the company is Rs.4,715.73 lac.

• The net worth of the company is Rs.438.79 lac.

• The total assets of the company are Rs.2,211.53 lac.

• The company’s EBITDA is Rs.258.45 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,211.53	1,874.27	1,822.99
Total Revenue	4,715.73	6,225.43	5,577.89
PAT	142.48	120.27	-40.71
Net Worth	438.79	192.56	72.29
Total Reserves & Surplus	132.16	-110.94	-231.21
Borrowings	1,136.42	1,053.42	1,030.43

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	206.59	213.70	529.53
Net Cash Flow Investing Activities	-184.59	-68.04	-73.01
Net Cash Flow Financing Activities	-21.89	-146.46	-456.50

 

Product-wise Revenue Breakdown

(Amount in lac)

Particular	31 Mar 2024	31 Mar 2023	31 Mar 2022
Rigid PVC Electric Conduits	3,246.01	4,232.22	3,620.42
uPVC Pipes	1,050.78	1,487.76	1,512.11
Fittings & Accessories (Bend)	102.70	82.04	49.37
Others (Scrap)	33.91	88.46	182.97
Manufacturing (Outsourcing)
Fittings & Accessories (other)	154.26	144.64	132.03
Solvent Cement	13.08	26.43	8.49
Water Tanks	13.02	-	-
Garden Hoses	5.36	15.61	1.12
Total	4,619.13	6,077.17	5,506.52

 

The Objective of The Issue

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

• Financing capital expenditure for the acquisition of fresh equipment and machinery

• To cover the Issue's costs

• To fulfill working capital needs

• General corporate purposes.

Peers of Solve Plastic Products Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Captain Pipes Ltd	1	0.27	67.81
Rungta Irrigation Ltd	10	4.47	22.34
Dutron Polymers Ltd.	10	4.08	42.97
Aik Pipes And Polymers Ltd	10	6.69	24.12

 

Evaluation

The price of this IPO is Rs.91 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.66 from the last year, the resulting P/E ratio is 19.52x.

Considering the weighted EPS of Rs.3.43 for the last three years, the P/E ratio is 26.53x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 39.31x.

Particulars	P/E Ratio (x)
Highest	67.81
Lowest	22.34
Average	39.31

In simple words, the P/E ratio of Solve Plastic Products IPO (19.52x), compared with the industry’s average P/E of 39.31x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

IPO's Strengths 

• Customer contentment and income via enduring connections with customers.

• Skilled Manager and Experienced Promoter.

• Modular Business Plan.

• Production that is both economical and prompt in fulfilling orders.

• current connection to suppliers.

• Standards and Quality Assurance

 

IPO’s Weaknesses

• The presence of counterfeit goods, or lookalikes, made by other companies and sold as their products, mostly in their home State, may harm its reputation and operational outcomes.

• PVC Pipe & Electrical Conduit is the only business segment that generates revenue. Its operational revenue and growth prospects may be negatively impacted by its incapacity to foresee or adjust to evolving product upgrades, maintain product quality, or deal with a decline in the market for these products.

• Any rise in the price of its raw materials, other purchases, or a shortage in its raw material supply could harm its business, operations results, and financial situation in addition to negatively affecting the pricing and supply of its products.

• The amount of both residential and non-residential construction activity occurring in India directly affects the demand for its products. Any decline in activity in one or both of these markets would materially harm the company's operations, financial situation, and business.

 

Solve Plastic Products IPO GMP Today

Solve Plastic Products IPO GMP today is Rs.7.

IPO Timetable (Tentative)

The IPO is scheduled from August 13 to August 16, 2024, with allotment on August 19, refund initiation on August 20, and listing on August 21, 2024.

Events	Date
IPO Opening Date	August 13, 2024
IPO Closing Date	August 16, 2024
IPO Allotment Date	August 19, 2024
Refund Initiation	August 20, 2024
IPO Listing Date	August 21, 2024

 

Solve Plastic Products IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 13, 2024, close on August 16, 2024, and offer a total issue size of 1,302,000 Shares (aggregating up to Rs.11.85 Cr) comprising a whole fresh issue size of 1,302,000 Shares (totaling up to Rs.11.85 Cr).

IPO Opening & Closing Date	August 13, 2024 to August 16, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.91
Lot Size	1200 Shares
Issue Size	1,302,000 Shares (totaling up to Rs.11.85 Cr).
Offer for Sale	NA.
Fresh Issue	1,302,000 Shares (totaling up to Rs.11.85 Cr).
Listing at	NSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Integrated Registry Management Services Private Limited

 

 

Solve Plastic Products IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,09200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,18400.

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

 

Solve Plastic Products IPO Reservation

Retail’s Portion	50%
Others’ Portion	50%

 

 

Promoters And Management of Solve Plastic Products Ltd.

• Mr. Sudheer Kumar Balakrishnan Nair

• Mr. Susil Balakrishnan Nair

• Mr. Balakrishnan Nair

Pre-Issue Promoter Shareholding	90.22%
Post-Issue Promoter Shareholding	49.87%

IPO Lead Managers

• Finshore Management Services Limited
  
  

Dividend Policy

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

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an 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 data 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.

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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