Sati Poly Plast
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Jul 2024 – 16 Jul 2024
- Listing date
- 22 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹130 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹17.36 Cr
- Market cap at offer price
- ₹64.31 Cr
- Promoter holding
- 86.29% → 63.00% pre-issue → post-issue
- ISIN
- INE0RPM01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- D.N.Singh Road, Bihar
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 | 3,79,000 | — | — |
| Market maker | 70,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹130
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,40,000 |
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 (₹) | 9.10 | 6.64 |
| P/E (×) | 14.29 | 19.58 |
| Price to book (×) | 3.58 | — |
| Market cap | — | ₹64.31 Cr |
Key performance indicators
- Return on net worth
- 26.71%
- ROCE
- 20.45%
- Debt / equity
- 1.82
- PAT margin
- 1.83%
- NAV per share
- ₹36.29
- Price to book
- 3.58
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sati Poly Plast
Sati Poly Plast Limited is an ISO Certified Company engaged in the manufacturing of flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. The company was originally incorporated as a private limited company on July 14, 1999, and converted to a public limited company on December 26, 2023. Till 2015, the company was engaged in trading of flexible packaging material. From 2017, the company commenced manufacturing of flexible packaging material. The company has set up two manufacturing units with a combined installed capacity of 1,080 tonnes per month. The company provides end-to-end solutions for flexible packaging needs and manufactures products from industry-approved materials including polyethylene terephthalate, biaxially-oriented polypropylene, polythene, cast polypropylene, foil, paper, and bio-degradable films. The company aims to manufacture products sustainably through recycling and processing of waste generated during production. The company supplies packaging material to major customers including Pidilite, Adani Wilmar, and JVL, and has also started manufacturing vacuum bags for cashews and other nuts.
Company Analysis
from RHPSati Poly Plast Limited manufactures flexible packaging materials for food and beverage, e-commerce, pharmaceutical, hygiene and personal care, household, and agricultural industries.
Sati Poly Plast Limited is an ISO Certified Company engaged in the manufacturing of flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. The company was originally incorporated as a private limited company on July 14, 1999, and converted to a public limited company on December 26, 2023. Till 2015, the company was engaged in trading of flexible packaging material. From 2017, the company commenced manufacturing of flexible packaging material. The company has set up two manufacturing units with a combined installed capacity of 1,080 tonnes per month. The company provides end-to-end solutions for flexible packaging needs and manufactures products from industry-approved materials including polyethylene terephthalate, biaxially-oriented polypropylene, polythene, cast polypropylene, foil, paper, and bio-degradable films. The company aims to manufacture products sustainably through recycling and processing of waste generated during production. The company supplies packaging material to major customers including Pidilite, Adani Wilmar, and JVL, and has also started manufacturing vacuum bags for cashews and other nuts.
Objects of the Issue
- Working Capital Requirement ₹1,100.00 Lakhs p.21
- General Corporate Purposes p.21
- Working Capital Requirements ₹1,100.00 lakhs p.81
- General Corporate Purposes p.81
- Funding working capital requirements p.123
- —
- Refunds to unsuccessful Bidders and completion of listing formalities p.294
- General corporate purposes and utilization as per Board certification p.295
Issue Structure
- Total Issue
- 1335000 Equity Shares of Face Value of ₹10 each aggregating to ₹[●] Lakhs
- Fresh Issue
- 1335000 Equity Shares of ₹10 each aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- Floor Price of ₹[●] and Cap Price of ₹[●]
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company manufactures flexible packaging material through two manufacturing plants and sells these products to manufacturers in food and beverage, e-commerce, pharmaceutical, hygiene and personal care, household, and agricultural industries. The company provides customized packaging solutions based on customer requirements and the nature of end products. Revenue is generated through sale of manufactured flexible packaging material. The company has set up two manufacturing plants with installed capacity of 540 tonnes per month each. The company also recycles waste generated during production into recycled plastic material which is sold in the market.
Business Segments
SWOT Analysis
- • ISO certified manufacturing with dual production facilities(p.20)
- • Established customer relationships with major FMCG companies(p.20)
- • Consistent capacity expansion track record(p.20)
- • Advanced manufacturing technology including automated gauging systems(p.20)
- • Integrated end-to-end packaging solutions model(p.20)
- • ISO Certified manufacturing with multi-functional flexible packaging capabilities(p.81)
- • Significant revenue base with strong operational presence(p.50)
- • Positive EBITDA trajectory with margin improvement(p.92)
- • Strong Return on Equity performance(p.92)
- • Improved profitability trajectory year-over-year(p.92)
- • Established manufacturing facilities with integrated end-to-end operations(p.123)
- • Cost leadership through efficient manufacturing and timely execution(p.123)
- • Harmonious labor relations with no strikes or labor protests(p.123)
- • Long-term B2B customer relationships providing continuous service mandates(p.124)
- • Rigorous quality assurance processes with modern equipment and certifications(p.124)
- • High capacity utilization at both manufacturing plants(p.126)
- • ISO certification and advanced manufacturing capabilities(p.220)
- • Established customer relationships with major food industry brands(p.220)
- • Consistent capacity expansion and manufacturing growth(p.220)
- • Improved profitability and EBITDA margin expansion(p.221)
- • Strong cash generation from operations(p.231)
- • Significant geographical concentration with 40.44% revenue from Uttar Pradesh(p.27)
- • High customer concentration with top 10 customers at 70.97% of revenue(p.28)
- • High supplier concentration with top 10 suppliers at 84.73% of purchases(p.29)
- • Significant outstanding litigation with ₹1,342.99 lakhs in GST liabilities(p.28)
- • Lack of trademark registration for company logo(p.32)
- • Missing educational documentation for Executive Director(p.31)
- • Historical records and regulatory filings not traceable(p.32)
- • Non-compliance with Companies Act 2013 MOA main object clause(p.33)
- • High debt burden with ₹2,240.15 lakhs total borrowings as of March 31, 2024(p.36)
- • Unsecured loans repayable on demand totaling ₹1,267 lakhs(p.35)
- • Decline in revenue from operations in FY24(p.92)
- • Modest profit margin despite revenue scale(p.92)
- • High finance costs relative to operating performance(p.50)
- • Increased working capital requirements relative to current operations(p.82)
- • Recent conversion from private to public limited company status(p.52)
- • High promoter concentration with reduced post-IPO ownership(p.68)
- • High concentration of revenue from top 10 customers representing over 50% of sales(p.116)
- • High concentration of raw material purchases from top 10 suppliers representing over 50% of purchases(p.116)
- • Significant unsecured and on-demand loans from promoters and related entities(p.135)
- • Limited geographic diversification with concentration in Uttar Pradesh(p.115)
- • Revenue declined 6.06% in FY 2023-24 compared to prior year(p.115)
- • High dependence on limited customer base(p.234)
- • Significant reliance on few suppliers(p.235)
- • High leverage with debt-to-equity ratio of 1.82x(p.216)
- • Significant outstanding indirect tax liabilities(p.190)
- • Material litigation with lender over loan terms(p.238)
- • Foreign investment restrictions limit capital access(p.295)
- • FPI participation capped at sectoral limits(p.295)
- • Restricted investor approval requirement adds complexity(p.295)
- • Expansion into diverse industry verticals beyond food and beverage(p.31)
- • Growth in flexible packaging material market driven by manufacturing sector expansion(p.20)
- • Capacity expansion potential with additional manufacturing capability(p.20)
- • Sustainability and circular economy initiatives through recycling(p.20)
- • Geographic expansion opportunities within India and international markets(p.31)
- • India Packaging Market expansion projected at 26.7% CAGR through 2025(p.112)
- • Strong growth in flexible packaging and laminates segments(p.112)
- • Rising urban consumer demand driving packaged goods growth(p.113)
- • Increasing investments in end-user industries (food processing, pharma, personal care)(p.113)
- • India positioned as global manufacturing hub with export competitiveness(p.112)
- • Government support through Make in India and manufacturing incentive schemes(p.111)
- • Expansion of product portfolio into new segments like vacuum bags for cashews and rice(p.123)
- • Leveraging growing demand for flexible packaging with sustainable credentials(p.127)
- • Growth in advanced biodegradable and compostable films technology(p.127)
- • Rising e-commerce demand for robust packaging solutions(p.127)
- • Continuous improvement in manufacturing efficiency and technology(p.123)
- • Geographic revenue expansion beyond concentrated Uttar Pradesh market(p.227)
- • Export market growth(p.226)
- • Sustainability-focused business positioning and waste recycling(p.220)
- • Range expansion in specialty products for emerging niches(p.221)
- • Growth in flexible packaging industry demand(p.221)
- • Volatility in raw material supply and pricing, particularly for polymers(p.30)
- • Raw materials represent 82.97% of revenue and are sourced without long-term contracts(p.30)
- • Dependence on food and beverage industry demand which is cyclical(p.31)
- • Competition from both domestic and international packaging manufacturers(p.42)
- • Environmental regulations and compliance risks for plastic-based manufacturing(p.37)
- • COVID-19 pandemic or future public health emergencies could disrupt operations(p.43)
- • Regulatory changes in goods and services tax could impact pricing and margins(p.45)
- • Lender covenant restrictions and lack of NOC from lenders for the IPO(p.31)
- • Raw material cost volatility and commodity price fluctuations(p.109)
- • Global supply chain disruption risks(p.109)
- • Intense competition from fragmented and organized packaging players(p.112)
- • Global economic slowdown and trade headwinds(p.101)
- • Regulatory pressure on plastic usage and environmental compliance(p.109)
- • Highly competitive market with numerous organized and unorganized competitors(p.128)
- • Regulatory restrictions on packaging materials particularly for food safety(p.127)
- • Dependence on imported raw materials with exposure to foreign exchange fluctuations(p.128)
- • Vulnerability to plastic-related environmental regulations and bans(p.114)
- • Industry cyclicality and economic sensitivity affecting demand(p.115)
- • Raw material price volatility impact on margins(p.227)
- • Revenue decline from raw material cost pressure(p.226)
- • Competition from existing players in flexible packaging(p.222)
- • Exposure to global economic and trade cycles(p.222)
- • Foreign exchange risk from import purchases(p.233)
- • Government policy changes could restrict foreign investment further(p.294)
- • Regulatory changes in FDI policy create uncertainty(p.295)
- • Substantial fraud penalties create reputational and financial risk(p.294)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Balmukund Jhunjhunwala | Promoter | 35.13% | 25.65% |
| Anita Jhunjhunwala | Promoter | 30.18% | 22.03% |
| Aditya Jhunjhunwala | Promoter | 10.38% | 7.58% |
| Keshav Jhunjhunwala | Promoter | 8.31% | 6.06% |
| Balmukund Jhunjhunwala HUF | Promoter | 0.91% | 0.67% |
| Balmukund Jhunjhunwala | Promoter | 35.13% | 25.65% |
| Anita Jhunjhunwala | Promoter | 30.18% | 22.03% |
| Aditya Jhunjhunwala | Promoter | 10.38% | 7.58% |
| Keshav Jhunjhunwala | Promoter | 8.31% | 6.06% |
| Balmukund Jhunjhunwala HUF | Promoter | 0.91% | 0.67% |
| Swati Agarwal | Promoter Group | 1.38% | 1.01% |
| Mr. Balmukund Jhunjhunwala | Promoter | — | — |
| Mrs. Anita Jhunjhunwala | Promoter | — | — |
| Mr. Aditya Jhunjhunwala | Promoter | — | — |
| Mr. Keshav Jhunjhunwala | Promoter | — | — |
| Balmukund Jhunjhunwala HUF | Promoter Group | — | — |
| Balmukund Jhunjhunwala | Promoter/Chairman and Managing Director | 35.13% | — |
| Anita Jhunjhunwala | Promoter | 30.18% | — |
| Aditya Jhunjhunwala | Promoter/Executive Director and CEO | 10.38% | — |
| Keshav Jhunjhunwala | Promoter | 8.31% | — |
| Balmukund Jhunjhunwala (HUF) | Promoter Group | 0.91% | — |
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.