SPP Polymers stock debuts with 7% premium on NSE SME platform

Ahead of the listing, the company’s shares traded with a GMP of 25% to the issue price.

The IPO, which was entirely a fresh equity sale of 24.5 lakh shares, received a healthy investor response with an overall subscription of over 40 times at close.

The net proceeds from the public offer will be used for repayment of loans, working capital requirements and general corporate purposes.

The company is engaged in the business of manufacturing of HDPE/PP woven fabric and bags, non-woven fabrics and bags and PP multifilament yarn. It offers packaging solutions to B2B manufacturers catering to different industries such as cements, chemicals, food grains, sugars, polymers, agriculture, and others for the packaging of goods in big quantities.

The company has a manufacturing facility in Uttarakhand, which is spread over a total land area of 13650 Sq mts. It has achieved installed capacity of HDPE/PP Woven Fabric and bags 9125 MT and Non-Woven Fabric 3600 MT by incurring capital expenditure of Rs 21.11 crore during FY23.Also Read: Bajaj Housing’s stellar debut leaves Kross and Tolins Tyres in the dark. Are they worth long-term bets?

The manufacturing facility employs an extensive and stringent quality control mechanism at each stage of the process to ensure that the finished product conforms to the exact requirement of the customers.

The paper and packaging sector in India is growing rapidly and has significant potential for future expansion. The industry was valued at $50.5 billion in 2019 and is anticipated to reach $204.81 billion by 2025, registering a CAGR of 26.7% from 2020 to 2025.

For the year ended March 2024, the company clocked total revenues of Rs 91.75 crore and net profit of Rs 99 lakh.

Interactive Financial Services acted as the lead manager to the issue and Kfin Technologies was the registrar.