The Premium Plast IPO is one of the most anticipated IPOs of the year, offering investors the opportunity to engage with a growing company in the plastic manufacturing sector. The IPO is set to open for subscription on October 21, 2024, and will close on October 23, 2024. In this blog, we’ll cover everything you need to know about the Premium Plast IPO, from key details, subscription, Grey Market Premium (GMP), business overview, financials, and allotment status, to frequently asked questions.
Premium Plast IPO Details
The Premium Plast Limited IPO offers shares priced in a band of ₹46 to ₹49 per equity share. Investors can apply for a minimum of 3,000 shares, with a total of 5,346,000 shares available for subscription. Here’s a quick look at the essential details:
| Details | Information |
|---|---|
| IPO Price Band | ₹46 to ₹49 per share |
| Minimum Lot Size | 3,000 shares |
| Investment Range | ₹138,000 to ₹147,000 |
| Total Shares Offered | 5,346,000 shares |
| Total Issue Size | ₹26.20 crore |
| IPO Open Date | October 21, 2024 |
| IPO Close Date | October 23, 2024 |
| Listing Venue | NSE SME Platform |
| Tentative Listing Date | October 28, 2024 |
| Face Value | ₹10 per share |
The funds raised from the Premium Plast Ltd IPO will be used for expanding their existing facilities, purchasing new machinery, setting up a rooftop solar plant, and repaying loans.
Premium Plast IPO Subscription
The Premium Plast Limited IPO is available to different investor categories, with shares reserved as follows:
- Retail Investors: 45% of the issue
- Non-Institutional Investors (NIIs): 45% of the issue
- Qualified Institutional Buyers (QIBs): 10% of the issue
Retail and non-institutional investors have equal allocation in the IPO, making it accessible to individual investors who want to engage in the Premium Plast IPO.
Premium Plast IPO GMP Today
The Premium Plast IPO GMP today is estimated to be between ₹14 per share. This indicates a potential listing gain of around 30%, which can provide a solid return for investors. However, it’s important to remember that GMP values can fluctuate, so investors should consider other factors before making decisions.
Premium Plast Business Overview
Premium Plast Limited was established in 1995 and is based in Thane, Maharashtra. The company specializes in designing and manufacturing plastic components primarily for the automotive sector, including commercial vehicles. Premium Plast operates three manufacturing facilities, two in Pithampur, Madhya Pradesh, and one in Vasai, Maharashtra.
Their products include a wide range of injection and blow-molded plastic parts, which are used in:
- Automotive components
- Industrial plastic products
- Packaging materials
Premium Plast is well-known for its high-quality standards and has a robust clientele, catering to various industries beyond just automotive. This diversity strengthens the company’s market position and enhances its growth potential.
Premium Plast Limited Financials
Financially, Premium Plast Limited has shown solid growth over the years. Here’s a look at their performance:
| Metrics | FY22 | FY23 | FY24 (Q1) |
|---|---|---|---|
| Revenue (₹ Lakhs) | 3,104.78 | 4,404.83 | 1,212.81 |
| Profit (₹ Lakhs) | 77.70 | 159.32 | 141.16 |
| Net Worth (₹ Lakhs) | 1,015.64 | 1,174.96 | 2,216.67 |
For the fiscal year ending March 31, 2024, Premium Plast recorded a revenue of ₹46.71 crore and a net profit of ₹4.78 crore. The company’s robust performance in the first quarter of FY24, with a revenue of ₹12.13 crore, reflects ongoing operational improvements.
Return on Equity (ROE) stands at approximately 6.37%, and the company has a Price-to-Earnings (P/E) ratio of around 14.11 pre-IPO. This shows that Premium Plast IPO is competitively valued and offers potential for long-term investors.
Premium Plast Limited IPO Review
The Premium Plast Ltd IPO presents a promising opportunity for investors, especially those looking to invest in the plastics manufacturing sector. The company has a well-established business model, a strong product portfolio, and long-standing relationships with major customers. Moreover, the use of IPO funds for expansion, new machinery, and a solar power plant aligns with its future growth strategy.
However, investors should also consider factors like market conditions and the company’s reliance on the automotive sector, which can be subject to industry cycles.
With its competitive valuation and positive grey market sentiment, the Premium Plast IPO could offer listing gains as well as long-term growth prospects.
Premium Plast IPO Allotment Status
After the Premium Plast IPO closes on October 23, 2024, the allotment of shares will be finalized on October 24, 2024. Investors can check their allotment status through the NSE website or the registrar’s portal.
Here’s the timeline for allotment:
- Allotment Date: October 24, 2024
- Refunds Initiated: October 25, 2024
- Shares Credited to Demat Accounts: October 25, 2024
- Listing Date: October 28, 2024
Investors can expect refunds or shares credited to their accounts by October 25, with the listing set for October 28, 2024.
FAQs About Premium Plast IPO
1. What is the Premium Plast IPO?
The Premium Plast Limited IPO is a small and medium enterprise (SME) IPO aiming to raise ₹26.20 crore by issuing 5,346,000 shares at a price band of ₹46 to ₹49 per share. The IPO is set to open on October 21, 2024, and will close on October 23, 2024.
2. How can I apply for Premium Plast IPO?
Investors can apply for the Premium Plast Ltd IPO through ASBA (Application Supported by Blocked Amount) via net banking or UPI applications through brokers who support UPI for IPOs.
3. What is the minimum lot size for Premium Plast IPO?
The minimum lot size for the Premium IPO is 3,000 shares, and the total investment required at the upper price band (₹49 per share) will be ₹147,000.
4. What is the allotment date for Premium Plast IPO?
The allotment date for the Premium Plast IPO is October 24, 2024.
5. When will the Premium Plast IPO be listed on the NSE?
The shares of Premium Plast are expected to be listed on the NSE SME Platform on October 28, 2024.
6. What is the GMP of Premium Plast IPO today?
The Grey Market Premium (GMP) of Premium Plast IPO today is reported to be in the range of ₹14, indicating a potential listing gain of 30%.
7. What is the company background of Premium Plast Limited?
Premium Plast Limited specializes in designing and manufacturing plastic parts for commercial vehicles. The company was established in 1995 and operates three manufacturing facilities in Pithampur and Vasai.
8. What is the total issue size of Premium Plast IPO?
The total issue size of the Premium Plast IPO is approximately ₹26.20 crore.
9. Who are the promoters of Premium Plast Limited?
The promoters of Premium Plast Limited are Chetan Nagendra Dave and Dr. Lopa Chetan Dave.
10. How will the company use the IPO funds?
The funds raised from the Premium Plast IPO will be used for:
- Expanding the Pithampur facility
- Purchasing new machinery
- Setting up a rooftop solar power plant
- Repaying loans and general corporate purposes
The Premium Plast IPO offers an exciting opportunity for investors to participate in the growth of a promising company in the plastics manufacturing industry. Keep an eye on the subscription dates and prepare your investment strategies accordingly!
