Premium Plast
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Oct 2024 – 23 Oct 2024
- Listing date
- 28 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹49 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹26.20 Cr
- Market cap at offer price
- ₹93.58 Cr
- Promoter holding
- 95.45% → 68.73% pre-issue → post-issue
- ISIN
- INE0M1F01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Khandwala Securities Ltd.
- Registered office
- Gala No 3, Shiv Shankar Indl Est No 1, Virar City (M Corp), Valiv, Thane-Vasai, Dist.Palghar, 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 | 2,70,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹49
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,47,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,94,000 |
| S-HNI (max) | 6 | 18,000 | ₹8,82,000 |
| B-HNI (min) | 7 | 21,000 | ₹10,29,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.47 | 2.96 |
| P/E (×) | 14.12 | 16.55 |
| Price to book (×) | 1.98 | — |
| Market cap | — | ₹93.58 Cr |
Key performance indicators
- Return on net worth
- 6.37%
- ROCE
- 7.88%
- PAT margin
- 11.64%
- NAV per share
- ₹16.10
- Price to book
- 1.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Premium Plast
Premium Plast Limited, incorporated in 1995 and converted to a public company in 2019, is an IATF-16949, ISO 9001:2015, and ISO 14001:2004 certified tier-1 automotive component group that designs, manufactures and supplies exterior plastic components, interior cabin components, and under-the-hood components directly to commercial vehicle OEMs. The company manufactures automobile components for commercial vehicles of the Volvo Group. It operates through three business segments: Automotive Molding Products (injection and blow molding), Industrial Plastic Parts, and Molded Industrial Packaging. The company generates revenue primarily from its automotive molding division, which contributed 83% of revenue in the three months ended June 30, 2024, with its largest customer VE Commercial Vehicles Limited accounting for 82.52% of revenue in the same period.
Company Analysis
from RHPPremium Plast Limited is a tier-1 automotive component manufacturer specializing in injection and blow molded plastic parts for commercial vehicles, operating across automotive molding products, industrial plastic parts, and molded industrial packaging.
Premium Plast Limited, incorporated in 1995 and converted to a public company in 2019, is an IATF-16949, ISO 9001:2015, and ISO 14001:2004 certified tier-1 automotive component group that designs, manufactures and supplies exterior plastic components, interior cabin components, and under-the-hood components directly to commercial vehicle OEMs. The company manufactures automobile components for commercial vehicles of the Volvo Group. It operates through three business segments: Automotive Molding Products (injection and blow molding), Industrial Plastic Parts, and Molded Industrial Packaging. The company generates revenue primarily from its automotive molding division, which contributed 83% of revenue in the three months ended June 30, 2024, with its largest customer VE Commercial Vehicles Limited accounting for 82.52% of revenue in the same period.
Objects of the Issue
- Expansion of Existing Manufacturing facility at Pithampur, Madhya Pradesh and Purchase of Machineries ₹1,655.44 lakhs p.19
- Funding of capital expenditure requirement of our Company towards Set up of Rooftop on Grid Solar Power Plant at our existing Manufacturing facility ₹104.4 lakhs p.19
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹223.12 lakhs p.19
- Expansion of Existing Manufacturing facility at Pithampur, Madhya Pradesh and Purchase of Machineries ₹1,655.44 lakhs p.83
- Funding of capital expenditure requirement towards Set up of Rooftop on Grid Solar Power Plant at existing Manufacturing facility ₹104.40 lakhs p.83
- Prepayment or repayment of all or a portion of certain outstanding borrowings ₹223.12 lakhs p.83
- General Corporate Purpose ₹326.68 lakhs p.83
- Offer Related Expenses ₹309.90 lakhs p.83
Issue Structure
- Total Issue
- ₹2,619.54 lakhs (Upto 53,46,000 Equity Shares)
- Fresh Issue
- ₹2,619.54 lakhs (Upto 53,46,000 Equity Shares of face value of ₹10 each)
- Offer for Sale
- Not applicable - this is a fresh issue only
- Price Band
- Floor Price: ₹46; Cap Price: ₹49
- Lot Size
- Bid Lot of 3,000 Equity Shares and in multiples of 3,000 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
Premium Plast generates revenue through direct supply of injection and blow molded plastic automotive components to OEM customers, primarily commercial vehicle manufacturers. The company operates a tier-1 supply model where it designs and manufactures customized plastic components based on customer specifications for assembly into commercial vehicles. Revenue is earned on a per-unit basis with purchase orders from customers specifying price per unit and delivery schedules, though quantities are determined closer to delivery dates. The company also generates revenue from industrial plastic parts and molded industrial packaging.
Business Segments
SWOT Analysis
- • Tier-1 automotive supplier with direct OEM relationships(p.19)
- • Established certifications and quality standards(p.19)
- • Established supplier to Volvo Group commercial vehicles(p.19)
- • Long-standing relationships with established customers(p.94)
- • Diverse range of specialised plastic products across varied customer segments(p.94)
- • Robust design optimisation capabilities(p.94)
- • High return on net worth compared to peers(p.96)
- • Strong profitability metrics with PAT margin of 10.22%(p.96)
- • Tier-1 supplier with long-standing customer relationships(p.121)
- • Diverse product portfolio reducing market risk(p.121)
- • Robust design optimization and customization capabilities(p.137)
- • Strategic location of manufacturing units(p.137)
- • Quality certifications and rigorous testing protocols(p.137)
- • Sustainable manufacturing with zero-discharge operations(p.137)
- • Experienced promoters and management team(p.137)
- • Established tier-1 automotive supplier with long customer relationships(p.218)
- • Multiple quality certifications and industry awards(p.220)
- • Manufactured over 600 components with strategic multi-location manufacturing(p.218)
- • In-house R&D and mold development capability(p.220)
- • Sustainable manufacturing practices reducing waste and costs(p.220)
- • Strong PAT growth and improving profitability margins(p.224)
- • Incorporated in 1995 with long operational history(p.239)
- • Positive net worth and operational profitability in recent years(p.239)
- • 100% underwritten Issue providing funding certainty(p.240)
- • Extreme customer concentration (VE Commercial Vehicles 82-86% of revenue)(p.25)
- • Heavy dependence on automotive molding products division (80-84% of revenue)(p.26)
- • No long-term firm commitment agreements with customers(p.25)
- • History of delays in statutory dues payments (EPF/ESIC)(p.29)
- • Delays in ROC filings with incorrect information filed(p.33)
- • Significant secured debt outstanding (₹511 lakhs as of October 10, 2024)(p.39)
- • Leased manufacturing facilities with no ownership(p.43)
- • Logo not yet registered as trademark(p.38)
- • Significant dependence on few customers, particularly VE Commercial Vehicles Limited(p.85)
- • High financial leverage with net debt to EBITDA ratio of 0.98(p.96)
- • Company has not historically declared dividends(p.47)
- • Significant reliance on single manufacturing location at Pithampur(p.84)
- • Limited experience as a listed company with compliance burden(p.48)
- • Heavy dependence on single major customer(p.135)
- • Limited export revenue and international presence(p.126)
- • Concentration risk in automotive OEM supplies(p.135)
- • Heavy dependence on a few key customers(p.221)
- • Significant debt burden and leverage(p.227)
- • Promoters have co-borrowed and extended unsecured loans to company(p.176)
- • Geographic concentration of manufacturing at Pithampur(p.220)
- • Pending criminal litigation involving promoter(p.229)
- • Declining operating profitability trend(p.239)
- • No prior public market experience(p.243)
- • No subsidiaries or group companies to diversify risk(p.243)
- • Pending litigation against promoters(p.239)
- • Global auto parts market projected to grow at 5.7% CAGR to 2031(p.19)
- • Capacity expansion planned at Pithampur facility(p.28)
- • Diversification into solar energy with rooftop grid solar power plant(p.28)
- • Diversification beyond automotive molding products(p.27)
- • Expansion of manufacturing capacity to meet growing customer demand(p.85)
- • New customer partnerships and market segments(p.86)
- • Cost reduction through renewable energy via rooftop solar installation(p.88)
- • Debt reduction to improve financial flexibility(p.89)
- • India's strong economic growth and increased automotive sector demand(p.105)
- • Growth in electric vehicle market and EV components(p.116)
- • Expansion capacity and growing domestic demand(p.138)
- • Product portfolio diversification into new segments(p.138)
- • Government policy support and PLI schemes(p.116)
- • Rising demand in aftermarket auto components(p.114)
- • India emerging as global auto component sourcing hub(p.116)
- • Expansion to high-value automotive components(p.224)
- • Solar power installation to reduce operational costs(p.220)
- • Capacity expansion at Pithampur manufacturing facility(p.237)
- • Recovery and growth in commercial vehicle market post-pandemic(p.224)
- • Diversification into industrial plastic parts and packaging(p.219)
- • Migration path to NSE Main Board after 3 years(p.252)
- • Compulsory market making support for 3 years post-listing(p.240)
- • Listing on NSE Emerge Platform providing market access(p.242)
- • Heavy dependence on passenger vehicle market performance in India(p.27)
- • Systematic pricing pressure from OEMs year-over-year(p.27)
- • Risk of customer loss through vendor rationalization(p.25)
- • Raw material supply vulnerability and price volatility(p.30)
- • Intense competition from organized and unorganized competitors(p.40)
- • Foreign currency exchange rate fluctuation exposure(p.45)
- • Regulatory and environmental compliance requirements(p.28)
- • Market price volatility and potential illiquidity post-listing(p.47)
- • Customer concentration risk with large customers like VECVL(p.85)
- • Global economic volatility and recessionary risks(p.104)
- • Changes in government regulations and tax laws(p.49)
- • Dependence on Indian economy and regional stability(p.49)
- • Supply chain and raw material availability risks(p.46)
- • Natural calamities impacting operations(p.50)
- • Supply chain disruptions affecting production and sales(p.112)
- • Market saturation and intense competition(p.111)
- • Evolving environmental and emissions regulations(p.111)
- • Economic conditions influencing consumer spending(p.111)
- • Raw material price volatility and availability(p.138)
- • Heavy reliance on automotive industry which is cyclical(p.221)
- • Intense pricing pressure from customers(p.221)
- • Highly competitive automotive components industry(p.221)
- • Raw material supply dependency and price volatility(p.221)
- • Regulatory and environmental compliance risks for manufacturing expansion(p.237)
- • Risk of changes in industry trends and new product development requirements(p.221)
- • Minimum allottee threshold requirement for issue viability(p.249)
- • Risk of listing permission denial by stock exchange(p.242)
- • Dependence on BRLM and intermediaries for issue execution(p.250)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Chetan Nagendra Dave | Promoter | 79.06% | 56.93% |
| Dr. Lopa Chetan Dave | Promoter | 15.95% | 11.49% |
| Chetan Nagendra Dave | Promoter | 79.06% | 56.93% |
| Dr. Lopa Chetan Dave | Promoter | 15.95% | 11.49% |
| Alpa Bhagirath Desai | Promoter Group | 0.07% | 0.05% |
| Bindu N Dave | Promoter Group | 0.07% | 0.05% |
| Dolly Kiran Shah | Promoter Group | 0.07% | 0.05% |
| Kinnari Yatin Oza | Promoter Group | 0.07% | 0.05% |
| Krina Vipin Mahajan | Promoter Group | 0.07% | 0.05% |
| Purvi Mehul Surkatha | Promoter Group | 0.07% | 0.05% |
| Chetan Nagendra Dave | Promoter | 79.06% | — |
| Dr. Lopa Chetan Dave | Promoter | 15.95% | — |
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.