GM Polyplast SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2020 – 06 Oct 2020
- Listing date
- 14 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹159 per share
- Lot size
- 800 shares
- Total issue size
- ₹8.09 Cr
- Promoter holding
- 100.00% → 73.65% pre-issue → post-issue
- ISIN
- INE0E2801015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- A-66, New Empire Industrial Estate, Kondivita Road,, Andheri East, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 25,600 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹159
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,27,200 |
| S-HNI (min) | 2 | 1,600 | ₹2,54,400 |
| S-HNI (max) | 7 | 5,600 | ₹8,90,400 |
| B-HNI (min) | 8 | 6,400 | ₹10,17,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About GM Polyplast SME
G M Polyplast Limited was originally incorporated as G. M. Polyplast Private Limited on November 27, 2003 at Mumbai, Maharashtra, and was converted to a Public Limited Company on July 30, 2020. The Company is engaged in the business of manufacturing H.I.P.S, A.B.S & P.E.T sheets along with granules, the raw material used to manufacture these sheets. The Company manufactures and supplies high-grade sheets and granules in India and believes in the phrase 'Innovation as key to future', keeping pace with modernization in development, manufacturing, and marketing with emphasis on product quality and client satisfaction. The Company has three levels of quality checks in place to ensure requisite product quality at every stage of manufacture from raw materials to boxed stock.
Company Analysis
from DRHPG M Polyplast Limited manufactures and supplies high-grade plastic sheets and granules, including HIPS, ABS, PET, A-PET, R-PET, HDPE, PP sheets and ESD materials, spanning the plastics manufacturing and processing industry.
G M Polyplast Limited was originally incorporated as G. M. Polyplast Private Limited on November 27, 2003 at Mumbai, Maharashtra, and was converted to a Public Limited Company on July 30, 2020. The Company is engaged in the business of manufacturing H.I.P.S, A.B.S & P.E.T sheets along with granules, the raw material used to manufacture these sheets. The Company manufactures and supplies high-grade sheets and granules in India and believes in the phrase 'Innovation as key to future', keeping pace with modernization in development, manufacturing, and marketing with emphasis on product quality and client satisfaction. The Company has three levels of quality checks in place to ensure requisite product quality at every stage of manufacture from raw materials to boxed stock.
Objects of the Issue
- To Meet working capital requirement ₹370.00 Lakh p.18
- General Corporate Purposes ₹116.70 Lakh p.18
- To Meet working capital requirement ₹370.00 Lakh p.73
- General Corporate Purposes ₹116.70 Lakh p.75
- General corporate purposes p.72
Issue Structure
- Total Issue
- ₹809.60 Lakh
- Fresh Issue
- ₹512.00 Lakh (3,20,000 Equity Shares)
- Offer for Sale
- ₹297.60 Lakh (1,86,000 Equity Shares)
- Price Band
- ₹160.00 per Equity Share (Fixed Price)
- Lot Size
- 1,000 Equity Shares and in multiples of 1,000 thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The Company manufactures and sells plastic sheets and granules on an order-to-order basis to customers. The Company does not have long-term contracts with customers and derives revenue from sales of its products. It also earns income from other sources.
Business Segments
SWOT Analysis
- • Established manufacturing presence with multiple product lines(p.17)
- • Diversified product portfolio across polymer sheets and materials(p.17)
- • Strong emphasis on quality control and customer satisfaction(p.17)
- • Growing profitability trend over three years(p.50)
- • Rich management experience in plastic industry(p.97)
- • Strong product quality and customer satisfaction track record(p.97)
- • Semi-automated manufacturing facilities with advanced machinery(p.97)
- • Diversified product portfolio across multiple plastic segments(p.96)
- • Established distribution network across multiple states and international markets(p.97)
- • Strong revenue and profitability growth trajectory(p.95)
- • Experienced promoter with 17+ years in plastics industry(p.124)
- • Revenue growth from Rs. 5,551.24 Lakhs (FY2018) to Rs. 6,342.98 Lakhs (FY2020)(p.191)
- • Strong profit growth with PAT increasing 151.42% over two years(p.191)
- • EBITDA growth of 96.60% from FY2018 to FY2020(p.191)
- • Diversified product portfolio across multiple plastic types(p.190)
- • Quality management with three-level quality checks(p.190)
- • Established distribution network across multiple states and international markets(p.191)
- • Outstanding litigation and tax demands against the Company(p.20)
- • Contingent liabilities from bank guarantees(p.20)
- • Dependency on leased premises with unregistered lease agreement(p.29)
- • Negative cash flows from operating activities in past years(p.32)
- • High dependence on top 10 customers for revenue(p.34)
- • Trademark registered in promoter's name rather than company(p.29)
- • Dependence on few suppliers for raw materials(p.29)
- • Corporate compliance discrepancies and missing historical records(p.29)
- • Dependence on limited number of major customers(p.105)
- • Concentration of raw material sourcing among few suppliers(p.105)
- • Single manufacturing location concentration(p.95)
- • Moderate capacity utilization levels(p.104)
- • Heavy dependence on external financing with working capital borrowings(p.166)
- • Promoter personal guarantee on company loans(p.119)
- • High dependence on key promoter(p.191)
- • Limited management depth with small executive team(p.120)
- • High trade receivables concentration risk(p.174)
- • No formal dividend policy despite retained earnings(p.148)
- • Significant customer concentration risk with top 5 customers representing over one-third of revenue(p.204)
- • High supplier concentration with top 5 suppliers accounting for nearly half of procurement expenses(p.204)
- • TDS compliance failures across multiple financial years with cumulative outstanding of ₹27.57 lakh(p.210)
- • Multiple pending litigations filed by the company against customers for dishonored cheques(p.208)
- • Contingent tax liabilities pending with income tax authorities(p.207)
- • Growing Indian plastics industry with strong export potential(p.17)
- • Availability of domestic raw materials reducing import dependency(p.17)
- • Opportunity to enhance corporate image and brand through listing(p.18)
- • IPO proceeds allocated for working capital expansion(p.18)
- • Global plastic market growth trajectory(p.88)
- • Strong demand in Indian plastics industry with government support(p.91)
- • Expansion opportunity in untapped export markets(p.98)
- • Potential market share gain from Chinese goods ban(p.98)
- • Growing Indian manufacturing sector with government initiatives(p.93)
- • Expansion into emerging markets with current international presence(p.191)
- • Growth in export market with current FOB export value of Rs. 311.59 Lakhs(p.160)
- • Capacity expansion potential with semi-automated manufacturing facility(p.191)
- • Product diversification and innovation strategy(p.190)
- • Addition of new products to portfolio(p.190)
- • Revenue growth trajectory with 23% increase from FY2018 to FY2019(p.199)
- • Profitability expansion with PAT growth of 50% from FY2018 to FY2019(p.200)
- • Strong improvement in EBITDA margin from 3.69% to 6.36% demonstrating operational leverage(p.197)
- • Improved debt servicing capacity with declining finance costs from ₹36.47 Lakh to ₹23.19 Lakh(p.198)
- • Declining debt-to-equity ratio from 1.03 to 0.33 indicating deleveraging and improved financial position(p.200)
- • Uncertainty and impact from COVID-19 pandemic on operations(p.25)
- • Intense competition from local and international players(p.35)
- • Volatility in raw material prices affecting profitability(p.29)
- • Foreign exchange rate fluctuations impacting operations(p.29)
- • Changes in government regulations and policies(p.41)
- • Dependency on electricity supply for manufacturing operations(p.30)
- • No long-term contracts with customers limiting revenue predictability(p.33)
- • Risk of disruption due to unavailability of labour(p.32)
- • Intense competition from unorganized sector players(p.98)
- • Regulatory changes in domestic and export markets(p.98)
- • Vulnerability to raw material price fluctuations(p.98)
- • Global plastic industry capacity utilization pressures(p.98)
- • COVID-19 impact on global plastic demand(p.89)
- • Global economic slowdown reducing consumer spending(p.90)
- • Raw material price volatility and import dependence(p.174)
- • Exposure to foreign exchange fluctuations with export operations(p.193)
- • Competition in plastics sheets manufacturing industry(p.190)
- • Cyclicality in plastic products demand(p.192)
- • Regulatory compliance burden including environmental and safety norms(p.190)
- • Revenue contraction of 7.3% in FY2020 indicating market headwinds or demand softness(p.197)
- • Economic volatility and commodity price exposure affecting profitability(p.203)
- • Rising employee cost inflation with 22.37% increase in employee benefits expenses(p.198)
- • Increasing competitive pressures from both organized and unorganized sector participants(p.204)
- • Risk of inability to fully pass through input cost increases to customers(p.203)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Dinesh Balbirsingh Sharma | Promoter | 50.00% | 37.79% |
| Ms. Sarita Dinesh Sharma | Promoter | 50.00% | 35.88% |
| Mr. Dinesh Balbirsingh Sharma | Promoter | 50.00% | 37.76% |
| Ms. Sarita Dinesh Sharma | Promoter | 50.00% | 35.89% |
| Mr. Dinesh Balbirsingh Sharma | Promoter | 8,00,000 Equity Shares (50.00%) | — |
| Ms. Sarita Dinesh Sharma | Promoter | 7,99,995 Equity Shares (50.00%) | — |
| Dinesh Balbir Sharma | Promoter | — | — |
| Sarita Dinesh Sharma | Promoter | — | — |
| Dinesh Balbirsingh Sharma | Selling Shareholder | — | — |
| Sarita Dinesh Sharma | Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.