Polysil Irrigation Systems
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Feb 2024 – 13 Feb 2024
- Listing date
- 16 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹17.43 Cr
- Market cap at offer price
- ₹61.24 Cr
- Promoter holding
- 35.72% → 31.17% pre-issue → post-issue
- ISIN
- INE517M01028
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Survey No-340/1, Beside Hystuff Steel, At Post Raniya, Taluka Savli, Gujarat
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 | 1,64,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,80,000 |
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 (₹) | 1.15 | 2.33 |
| P/E (×) | 46.96 | 23.18 |
| Price to book (×) | 3.48 | — |
| Market cap | — | ₹61.24 Cr |
Key performance indicators
- Return on net worth
- 7.39%
- ROCE
- 12.81%
- Debt / equity
- 1.01
- PAT margin
- 2.59%
- NAV per share
- ₹15.53
- Price to book
- 3.48
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Polysil Irrigation Systems
Incorporated in 1985, Polysil Irrigation Systems Limited is a fully integrated player in the drip irrigation and sprinkler irrigation sectors with presence in the micro irrigation industry. The company manufactures and sells HDPE pipes, fittings and micro irrigation systems, such as drip irrigation system and sprinkler irrigation system, its components, accessories and allied products. The company sells through institutional and project market channels as well as open market sales via a network of dealers and distributors. Customers include farmers who are primarily end-users of irrigation solutions, with a significant portion of sales realized through government subsidies which are typically received over 4-8 months. The company operates a single manufacturing facility in Vadodara, Gujarat.
Company Analysis
from RHPPolysil Irrigation Systems Limited manufactures and sells HDPE pipes, fittings, and micro irrigation systems including drip and sprinkler irrigation equipment.
Incorporated in 1985, Polysil Irrigation Systems Limited is a fully integrated player in the drip irrigation and sprinkler irrigation sectors with presence in the micro irrigation industry. The company manufactures and sells HDPE pipes, fittings and micro irrigation systems, such as drip irrigation system and sprinkler irrigation system, its components, accessories and allied products. The company sells through institutional and project market channels as well as open market sales via a network of dealers and distributors. Customers include farmers who are primarily end-users of irrigation solutions, with a significant portion of sales realized through government subsidies which are typically received over 4-8 months. The company operates a single manufacturing facility in Vadodara, Gujarat.
Objects of the Issue
- Funding working capital requirements ₹500.00 Lakhs p.17
- General corporate purposes ₹105.45 Lakhs p.17
- Funding our Working Capital Requirements ₹500.00 Lakhs p.76
- General corporate purposes ₹105.45 Lakhs p.76
Issue Structure
- Total Issue
- Up to 32,28,000 Equity Shares aggregating up to ₹1743.12 Lakhs
- Fresh Issue
- Up to 14,44,000 Equity Shares aggregating up to ₹779.76 Lakhs
- Offer for Sale
- Up to 17,84,000 Equity Shares aggregating up to ₹963.36 Lakhs
- Price Band
- ₹54 per Equity Share
- Lot Size
- 2,000 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells HDPE pipes, fittings, and micro irrigation systems through multiple channels: institutional and project market sales (including government tenders and subsidized schemes) and open market sales through a network of dealers and distributors. A portion of sale consideration is received as subsidy transfer (50-70%) from central or state governments. The company also relies on third-party manufacturers for production of certain components like filters, fittings, nozzles, and accessories.
Business Segments
SWOT Analysis
- • Established integrated micro-irrigation player with quality products(p.16)
- • Diversified product portfolio in HDPE pipes and micro-irrigation systems(p.16)
- • Established distribution network across India(p.25)
- • Long-standing customer relationships in institutional and project markets(p.28)
- • Diverse customer base with long-standing relationships(p.83)
- • Experienced promoter directors with domain expertise(p.83)
- • Strong marketing and distribution network(p.83)
- • Robust and scalable business model(p.83)
- • Diversified product portfolio(p.83)
- • Strong marketing and distribution network with significant dealer reach(p.105)
- • Diversified customer base with low dependence on single customers(p.106)
- • Experienced promoter directors with 20+ years collective micro irrigation industry knowledge(p.106)
- • Diversified product portfolio spanning drip and sprinkler irrigation systems(p.106)
- • Robust and scalable business model operating across open market and institutional channels(p.105)
- • Quality certifications and adherence to BIS standards(p.103)
- • Established corporate governance framework with compliant board committees(p.143)
- • Qualified and experienced management team with permanent employment(p.146)
- • No promoter-related litigation or financial irregularities(p.149)
- • Professional compliance and audit infrastructure in place(p.145)
- • High dependence on raw material costs with low supplier diversification(p.23)
- • Significant accumulated litigation and statutory compliance issues(p.24)
- • Negative cash flows and working capital pressures(p.25)
- • High customer concentration risk(p.27)
- • Significant debt burden and loan recall risk(p.33)
- • Delayed/defaulted statutory dues including professional tax arrears(p.28)
- • Inability to trace certain corporate records and share transfer discrepancies(p.38)
- • Non-exclusive brand rights with recall risk(p.39)
- • High inventory levels relative to revenue(p.30)
- • Significant revenue decline in fiscal 2022(p.43)
- • High short-term borrowings relative to assets(p.51)
- • Working capital dependent on debt financing(p.77)
- • No monitoring agency appointed for fund deployment(p.43)
- • Dependence on government subsidy for business viability and cash flow(p.104)
- • Significant working capital requirement due to subsidy payment delays of 2-8 months(p.104)
- • Very low capacity utilization of manufacturing facilities(p.109)
- • Promoter with history of loan payment delays including defaults during COVID-19(p.137)
- • High material cost as percentage of revenue reducing profitability(p.103)
- • Volatile revenue with significant decline of 31% in FY2022(p.107)
- • Outstanding professional tax dues from November 2019(p.174)
- • Disputed statutory dues including income tax and TDS liabilities(p.189)
- • High dependence on short-term borrowings for working capital(p.173)
- • Concentration of shareholding with two promoters holding 33.79% equity(p.148)
- • High financial dependence on bank borrowings with significant debt obligations(p.203)
- • Outstanding tax demands and compliance issues across multiple assessment years(p.204)
- • Pending criminal litigation for bounced cheques affecting financial reputation(p.203)
- • Labour law compliance violations and pending regulatory investigations(p.203)
- • Promoter has history of loan payment delays affecting creditworthiness(p.213)
- • Growth in micro-irrigation adoption across key agricultural states(p.16)
- • Government subsidy schemes driving market expansion(p.25)
- • Potential geographic expansion into African and international markets(p.27)
- • Dealer and distributor network expansion potential(p.26)
- • Funding growth through working capital expansion(p.77)
- • Benefits from listing on NSE Emerge platform(p.76)
- • Expansion of operations into new areas(p.43)
- • Potential migration to NSE main board(p.59)
- • Expansion into new geographical markets within India and Africa(p.106)
- • Government initiatives supporting agricultural irrigation with massive budgetary allocations(p.100)
- • Growing demand for micro-irrigation due to water scarcity and food security needs(p.98)
- • Projected strong growth in agricultural irrigation machinery sector at 5.3% CAGR(p.97)
- • Introduction of new flat drip line irrigation product category with technical advantages(p.106)
- • Market penetration opportunity in states with less than 30% micro-irrigation coverage(p.98)
- • Planned capacity expansion and capital asset acquisitions(p.182)
- • Growth in micro irrigation and drip irrigation systems manufacturing(p.195)
- • Expansion of dealership network and market penetration(p.197)
- • High dependence on government subsidy policies(p.25)
- • Seasonal demand volatility and dependency on farm cycles(p.30)
- • Raw material price volatility driven by crude oil fluctuations(p.23)
- • Intense competition in micro-irrigation industry(p.16)
- • Technological obsolescence and industry disruption(p.26)
- • Transportation and logistics disruption risks(p.25)
- • Single geographic location concentration risk(p.35)
- • Labor unrest and unionization risk(p.29)
- • Regulatory changes and compliance risks(p.39)
- • Monsoon and weather dependency(p.30)
- • High dependency on repeat customer orders(p.43)
- • Exposure to raw material price volatility(p.45)
- • Vulnerability to Indian economic slowdown(p.44)
- • Global ink market competition(p.46)
- • Pandemic-related operational disruptions(p.41)
- • Risk of labour law changes affecting profitability(p.43)
- • Indian inflation impacting costs and margins(p.45)
- • Regulatory and policy environment changes(p.45)
- • Intense competition from organized and unorganized sector players with no entry barriers(p.114)
- • Price competition is the deciding factor in most customer decisions(p.114)
- • Dependence on raw material imports with exposure to foreign exchange and commodity price volatility(p.103)
- • Agricultural sector constraints including low income limiting processed food demand(p.101)
- • Fragmented landholdings requiring controlled quality water distribution for effectiveness(p.98)
- • Regulatory and policy risks affecting government subsidy schemes and implementation(p.104)
- • Volatility in raw material pricing and supply chain disruptions(p.194)
- • Intense competition in irrigation and pipe manufacturing sectors(p.194)
- • Economic and regulatory uncertainties affecting business operations(p.194)
- • Customer payment defaults and receivables collection risks(p.194)
- • Foreign exchange exposure from raw material imports(p.179)
- • Regulation and policy changes affecting micro irrigation business operations(p.201)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharatkumar Patel | Promoter | 28.96% | 25.28% |
| Prafulbhai Radadia | Promoter | 4.83% | 4.21% |
| Bharatkumar Patel | Promoter | 28.96% | 25.28% |
| Prafulbhai Radadia | Promoter | 4.83% | 4.21% |
| Ashaben Katrodiya | Promoter Group | 1.93% | 1.69% |
| Bharatkumar Patel | Promoter | — | — |
| Prafulbhai Radadia | Promoter | — | — |
| Bharatkumar Tulsibhai Patel | Promoter | 28.96% | — |
| Prafulbhai Damjibhai Radadia | Promoter | 4.83% | — |
| Bharatkumar Patel | Promoter | — | — |
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.