L.K.Mehta Polymers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Feb 2025 – 17 Feb 2025
- Listing date
- 21 Feb 2025
- Face value
- ₹1 per share
- Issue price
- ₹71 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹7.38 Cr
- Market cap at offer price
- ₹27.26 Cr
- Promoter holding
- 100.00% → 72.92% pre-issue → post-issue
- ISIN
- INE0FFF01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- 1103/2, Mhow-Neemuch Road, Madhya Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 54,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹71
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,13,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,27,200 |
| S-HNI (max) | 8 | 12,800 | ₹9,08,800 |
| B-HNI (min) | 9 | 14,400 | ₹10,22,400 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.06 | 1.45 |
| P/E (×) | 23.20 | 48.97 |
| Price to book (×) | 5.88 | — |
| Market cap | — | ₹27.26 Cr |
Key performance indicators
- Return on net worth
- 28.35%
- ROCE
- 16.00%
- Debt / equity
- 2.15
- PAT margin
- 4.71%
- NAV per share
- ₹12.07
- Price to book
- 5.88
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About L.K.Mehta Polymers
L.K. Mehta Polymers Limited was originally incorporated on January 02, 1995, to acquire and takeover the existing proprietorship business of M/s. Sajjan Plastic Industries carried by Suresh Kumar Mehta. The company is actively involved in the trading and manufacturing of a comprehensive array of plastic products addressing diverse customer needs. Its product line encompasses a wide range including monofilament ropes, danline ropes, tape ropes, baler twines, and packaging twine (sutli). The company operates from its registered office in Ratlam, Madhya Pradesh, and has established itself in the plastic rope and twine industry over the years.
Company Analysis
from RHPL.K. Mehta Polymers Limited manufactures and trades a comprehensive array of plastic products including ropes, twines, and related polymeric materials.
L.K. Mehta Polymers Limited was originally incorporated on January 02, 1995, to acquire and takeover the existing proprietorship business of M/s. Sajjan Plastic Industries carried by Suresh Kumar Mehta. The company is actively involved in the trading and manufacturing of a comprehensive array of plastic products addressing diverse customer needs. Its product line encompasses a wide range including monofilament ropes, danline ropes, tape ropes, baler twines, and packaging twine (sutli). The company operates from its registered office in Ratlam, Madhya Pradesh, and has established itself in the plastic rope and twine industry over the years.
Objects of the Issue
- To Meet the Working Capital Requirement ₹534.00 Lakhs p.15
- General Corporate Purpose ₹134.40 Lakhs p.15
- To Meet Incremental Working Capital Requirement ₹534.00 lakhs p.68
- General Corporate Purpose ₹134.40 lakhs p.68
- Not explicitly stated in this part of the document
Issue Structure
- Total Issue
- ₹738.40 Lakhs
- Fresh Issue
- 10,40,000 Equity Shares aggregating to ₹738.40 Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹71/- per Equity Share
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through the manufacturing and trading of plastic products, primarily ropes and twines. Its operations are working capital intensive, with the company maintaining inventories of raw materials and finished goods, purchasing goods from suppliers, and distributing products to customers. The business model involves sourcing raw materials from suppliers (with top 10 suppliers contributing over 90% of purchases), manufacturing/trading operations, and sales to customers (with top 10 customers contributing approximately 78% of sales).
Business Segments
SWOT Analysis
- • Established market presence with 30-year operating history(p.2)
- • Diversified product portfolio in plastic ropes and twines(p.14)
- • Strong promoter ownership and continuity post-IPO(p.20)
- • Over 29 years of industry expertise and market presence(p.99)
- • Strong brand identity established under 'SuperPack'(p.99)
- • Multi-generational business with deep-rooted entrepreneurial heritage(p.98)
- • Quality products and customer satisfaction driving retention(p.99)
- • Experienced promoter with deep industry knowledge(p.98)
- • 29+ years of deep industry experience from Managing Director(p.120)
- • Established brand identity and market presence since 1995(p.158)
- • ISO 9001:2015 certification for quality management(p.158)
- • Diversified product portfolio across plastic products(p.158)
- • Strong promoter shareholding of 89.76% providing stability(p.130)
- • Revenue growth of 47% in FY 2022-23(p.158)
- • High customer concentration risk(p.19)
- • Dependence on few suppliers(p.20)
- • Geographic concentration of domestic sales(p.20)
- • Negative cash flows from operations in recent periods(p.22)
- • High debt burden with personal guarantees(p.21)
- • Related party transaction dependence(p.22)
- • Pending trademark registration(p.23)
- • Promoters' lower cost of acquisition creates dilution risk(p.27)
- • Limited geographic reach in southern India and North-Eastern states(p.99)
- • Dependence on few key suppliers for raw materials(p.99)
- • Heavy reliance on manual labor processes lacking automation(p.99)
- • Low plant capacity utilization at 34.40% in FY 2024(p.100)
- • High leverage ratio of 1.79:1 as of December 31, 2024(p.175)
- • Significant dependence on limited number of customers for revenue(p.159)
- • Reliance on related party transactions for significant portion of business(p.153)
- • Pending income tax demand of Rs. 11,84,420 for Director Nitesh Barbeta(p.167)
- • Low and volatile profitability with PAT margin of 3.52% in 9M FY2024-25(p.159)
- • Negative operating cash flow of Rs. 14.99 Lakhs in 9M FY2024-25(p.162)
- • Expanding Indian rope market with increased competitiveness(p.14)
- • Working capital funding from IPO proceeds(p.14)
- • Global expansion into international markets like Dubai, Yemen, Netherlands(p.99)
- • Diversification of product offerings to capture emerging market trends(p.99)
- • Growing plastic rope market with CAGR of 6.13% projected through 2030(p.87)
- • Strong demand from marine and fishing industry for plastic ropes(p.87)
- • High export potential to USA market valued at ~$9.5 million by 2028(p.91)
- • Expansion into new geographic markets and customer segments(p.120)
- • Growing demand for plastic products in Indian market(p.162)
- • Potential to increase manufacturing capabilities and reduce dependence on trading goods(p.158)
- • Leverage of brand identity to command premium pricing and market share(p.158)
- • Dependence on single manufacturing facility(p.20)
- • No long-term raw material supply agreements(p.20)
- • Vulnerability to input price fluctuations and FX risk(p.24)
- • Exposure to regulatory changes and compliance risks(p.26)
- • Dependence on third-party transportation providers(p.23)
- • Technology obsolescence risk(p.26)
- • Market price volatility for equity shares post-listing(p.30)
- • Macroeconomic and external economic risks(p.30)
- • Intense competition with little product differentiation leading to price pressures(p.99)
- • Economic downturns and political instability affecting international expansion(p.99)
- • Wide competitive market with numerous nationwide and regional players(p.99)
- • High maintenance costs and requirement for advanced raw materials(p.88)
- • Global economic slowdown and monetary tightening affecting demand(p.85)
- • Increased competition in plastic products industry(p.159)
- • Sensitivity to raw material price volatility and input costs(p.159)
- • Economic cyclicality and changes in market demand(p.159)
- • Technological disruption and inability to keep pace with rapid changes(p.159)
- • Regulatory and policy changes affecting operations(p.160)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kamlesh Mehta | Promoter | 81.10% | 59.14% |
| Mrs. Rina Mehta | Promoter | 8.66% | 6.31% |
| Mr. Kamlesh Mehta | Promoter | 81.10% | 59.14% |
| Mrs. Rina Mehta | Promoter | 8.66% | 6.31% |
| Kamlesh Mehta HUF | Promoter Group | 9.74% | 7.10% |
| Kamlesh Mehta | Promoter, Managing Director | 81.10% | — |
| Rina Mehta | Promoter, Whole Time Director | 8.66% | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.