Silkflex Polymers (India)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 May 2024 – 10 May 2024
- Listing date
- 15 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹52 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹18.11 Cr
- Market cap at offer price
- ₹60.36 Cr
- Promoter holding
- 99.84% → 69.89% pre-issue → post-issue
- ISIN
- INE0STN01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Daga Complex, Sulati Jaladhulagori, Sankrail, West Bengal
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 | 1,78,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹52
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,04,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,08,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,36,000 |
| B-HNI (min) | 10 | 20,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.97 | 2.95 |
| P/E (×) | 53.61 | 17.63 |
| Price to book (×) | 3.94 | — |
| Market cap | — | ₹60.36 Cr |
Key performance indicators
- Return on net worth
- 23.91%
- ROCE
- 41.04%
- Debt / equity
- 1.60
- PAT margin
- 7.67%
- NAV per share
- ₹13.21
- Price to book
- 3.94
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Silkflex Polymers (India)
Silkflex Polymers (India) Limited is engaged in the trading of textile printing inks and water-based wood coating polymers, specifically products from 'Silkflex', a Malaysian brand manufactured by Silkflex Polymers SDN BHD. The company holds exclusive rights to sell Silkflex products and use the brand name in India. Currently, it imports 108 textile printing ink products and 51 wood coating polymers products and distributes them through its network in India. To capitalize on growing demand, the company is transitioning into manufacturing certain products it presently imports—specifically binder, silkbond 35, and table glue—leveraging a Technology Transfer Agreement with Silkflex Malaysia. This backward integration strategy is supported by the company's expansion into manufacturing, supported by acquisition of land and plant and machinery.
Company Analysis
from RHPSilkflex Polymers imports and distributes textile printing inks and water-based wood coating polymers from a Malaysian brand, and is expanding into manufacturing these products in India.
Silkflex Polymers (India) Limited is engaged in the trading of textile printing inks and water-based wood coating polymers, specifically products from 'Silkflex', a Malaysian brand manufactured by Silkflex Polymers SDN BHD. The company holds exclusive rights to sell Silkflex products and use the brand name in India. Currently, it imports 108 textile printing ink products and 51 wood coating polymers products and distributes them through its network in India. To capitalize on growing demand, the company is transitioning into manufacturing certain products it presently imports—specifically binder, silkbond 35, and table glue—leveraging a Technology Transfer Agreement with Silkflex Malaysia. This backward integration strategy is supported by the company's expansion into manufacturing, supported by acquisition of land and plant and machinery.
Objects of the Issue
- Acquisition of land ₹553.49 Lakhs p.84
- Funding of capital expenditure requirements of our Company towards purchase of Plant and Machineries ₹207.82 Lakhs p.84
- Funding Working Capital Requirements of our Company ₹468.00 Lakhs p.84
- General corporate purposes ₹410.73 Lakhs p.84
- Funding capex for setting up manufacturing unit for textile printing products in India p.138
- Acquisition of land for manufacturing facility ₹800.00 lakhs (for land acquisition in Gujarat) p.148
- General corporate purposes
Issue Structure
- Total Issue
- ₹1,810.64 Lakhs (34,82,000 Equity Shares)
- Fresh Issue
- 34,82,000 Equity Shares of face value of ₹10/- each fully paid for cash at a price of ₹52 per Equity Share aggregating ₹1,810.64 Lakhs
- Price Band
- ₹52 per Equity Share (Fixed Price)
- Lot Size
- Minimum 2,000 Equity Shares
- Face Value
- ₹10/- each
Business Model
The company earns revenue primarily through importing and distributing textile printing inks and wood coating polymers products under the Silkflex brand in India. It sells through its distribution network to customers. As it expands into manufacturing, revenue will also come from manufacturing and selling binder, silkbond 35, and table glue products.
Business Segments
SWOT Analysis
- • ZDHC certified(p.96)
- • Wide range of products (108 textile printing inks and 51 wood coating polymers)(p.93)
- • Exclusive distribution rights for Silkflex brand products in India(p.86)
- • Technology transfer agreement permitting manufacturing of key products(p.86)
- • Established distribution network and customer relationships(p.96)
- • ZDHC certified with Eco-Passport and GOTS certifications(p.136)
- • Wide product portfolio across multiple categories(p.137)
- • Geographic distribution with cost-effective warehousing(p.137)
- • Established customer relationships with repeat orders(p.137)
- • Experienced promoter management team(p.137)
- • Strong marketing and technical support practices(p.137)
- • Unique eco-friendly product positioning(p.130)
- • Experienced promoter leadership with 18+ years in industry(p.220)
- • Diversified product portfolio with 108 textile inks and 51 wood coating products(p.220)
- • Exclusive distribution rights and brand usage in India(p.220)
- • Technology transfer agreement enabling local manufacturing(p.220)
- • Strong recent profitability improvement with 23.91% ROE(p.221)
- • Positive operating profitability track record over 3+ years(p.244)
- • Positive net-worth excluding revaluation reserves(p.244)
- • No history of regulatory disciplinary action(p.244)
- • Clean insolvency and restructuring history(p.244)
- • No winding up petitions admitted(p.244)
- • High dependence on single supplier (Silkflex Malaysia)(p.31)
- • Significant litigation and criminal charges against promoter and directors(p.30)
- • Customer concentration with top 10 customers generating 71.88% of revenue(p.33)
- • Large inventory and receivables forming major part of current assets(p.34)
- • Outstanding unsecured loans from promoters repayable on demand(p.47)
- • Agreements not properly registered or stamped(p.37)
- • Trademark and IP infringement risks(p.45)
- • Company logo and trademark not registered; dependence on promoter's personal marks(p.45)
- • High debt levels with restrictive covenants(p.46)
- • ROC compliance issues and late filings(p.42)
- • High leverage with debt-to-equity ratio of 1.60(p.99)
- • High inventory holding period of 177 days as of December 31, 2023(p.92)
- • Declining current ratio from 2.31 to 1.07, indicating liquidity stress(p.99)
- • Dependence on imported products from single Malaysian supplier(p.86)
- • Working capital intensive business with increasing receivables and inventory(p.90)
- • Heavy reliance on single supplier (Silkflex Malaysia)(p.130)
- • Concentrated revenue from textile ink products (94.97%)(p.135)
- • High debt-to-equity ratio of 1.60(p.131)
- • Declining current ratio from 2.31 to 1.07(p.131)
- • No in-house manufacturing capability currently(p.139)
- • No export operations or diversification(p.146)
- • High debt-to-equity ratio of 1.60 indicating financial leverage risk(p.221)
- • Deteriorating current ratio from 2.31 to 1.07 over 3 years(p.221)
- • Heavy dependence on top 10 customers representing 71.88% of revenue(p.229)
- • Promoter litigation regarding alleged misappropriation of goods valued at Rs. 2.5 crore(p.232)
- • Promoter facing trademark infringement opposition from Berger Paints India(p.233)
- • Limited organizational depth with only 2 KMPs(p.175)
- • Dependence on designated Market Maker for minimum 3 years post-listing(p.260)
- • Listing restricted to small SME platform only(p.248)
- • Small issue size and paid-up capital limits(p.261)
- • Expansion into manufacturing to achieve backward integration(p.86)
- • Large unexecuted order book indicating growing demand(p.93)
- • Growing demand from existing and new customers(p.89)
- • Strong revenue growth trajectory from ₹2,075 Lakhs (FY21) to ₹3,348 Lakhs (9M FY24)(p.99)
- • India's position as fastest-growing major economy with rising consumer sentiment(p.112)
- • Planned expansion into manufacturing with Technology Transfer Agreement(p.130)
- • Growing Indian textile and apparel market with 10% CAGR(p.119)
- • Strong government support for technical textiles development(p.121)
- • Production-linked incentive scheme benefits for textiles(p.120)
- • Expansion opportunity in wood coating products market(p.123)
- • Geographic expansion potential across multiple states(p.138)
- • Rising demand for eco-friendly and water-based coatings(p.123)
- • Planned local manufacturing capability through Technology Transfer Agreement(p.220)
- • Expansion into adjacent geographical markets within India(p.225)
- • Growth in emerging markets - product supplied to Thailand, Turkey, Russia, Sri Lanka, Bangladesh, Indonesia(p.220)
- • Margin improvement opportunity through mix of high-margin new products(p.225)
- • Potential for migration to main board after meeting criteria(p.259)
- • Access to capital markets for future growth funding(p.244)
- • Risk of termination of distribution agreement with Silkflex Malaysia(p.32)
- • Supply disruption risks from single supplier(p.32)
- • Agricultural land conversion delays by government authorities(p.34)
- • Pricing pressures from customers affecting margins(p.47)
- • Competitive pressures in textile printing inks and wood coatings industry(p.42)
- • Product quality and defect risks affecting sales and reputation(p.34)
- • Transportation and logistics cost fluctuations(p.38)
- • Working capital requirement risks and credit defaults(p.34)
- • Price volatility in traded goods(p.37)
- • Regulatory compliance and licensing risks(p.45)
- • Fluctuations in currency exchange rates affecting import costs(p.90)
- • Volatility in commodity prices and input costs(p.54)
- • Regulatory and political uncertainty in India(p.75)
- • Dependence on monsoon and weather patterns affecting demand(p.92)
- • Risk of supply chain disruptions from global conflicts(p.55)
- • Competition and market saturation in textile inks and coatings sector(p.52)
- • Risk of delays or cost overruns in manufacturing facility setup(p.85)
- • High competition from organized and unorganized domestic players(p.146)
- • Regional concentration in Tamil Nadu (52.47% of revenue)(p.135)
- • Dependency on distributors and agents in key markets(p.140)
- • Volatility in input costs and exchange rates affecting import-based model(p.137)
- • Availability of cheaper alternatives like plastic wood and composites(p.123)
- • Asian textile manufacturing competition from China and Vietnam(p.117)
- • Dependence on single supplier Silkflex Malaysia for majority of imported products(p.220)
- • Regulatory risk from increased GST registrations across multiple states(p.236)
- • Foreign exchange fluctuation exposure as importer of Malaysian products(p.220)
- • Pending trademark infringement litigation creating brand uncertainty(p.233)
- • Competitive pressure in textile ink and coatings market(p.229)
- • Risk from finance cost sensitivity due to high debt-dependent working capital model(p.226)
- • Foreign exchange restrictions for OCBs(p.259)
- • Dependence on regulatory approvals for listing and commencement of trading(p.256)
- • Mandatory underwriting cap on lead manager exposure(p.270)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Tushar Lalit Kumar Sanghavi | Promoter | 82.04% | 57.43% |
| Tushar Lalitkumar Sanghavi HUF | Promoter | 11.20% | 7.84% |
| Lalitbhai H. Sanghvi HUF | Promoter | 6.00% | 4.20% |
| Urmi Raj Mehta | Promoter | 0.60% | 0.42% |
| Mr. Tushar Lalit Kumar Sanghavi | Promoter / Chairman & Managing Director | 82.04% | 57.43% |
| Ms. Urmi Raj Mehta | Promoter / Whole Time Director | 0.60% | 0.42% |
| Tushar Lalitkumar Sanghavi HUF | Promoter Group | — | — |
| Lalitbhai H. Sanghvi HUF | Promoter Group | — | — |
| Tushar Lalit Kumar Sanghavi | Promoter | 82.04% | 57.43% |
| Urmi Raj Mehta | Promoter | 0.60% | 0.42% |
| Tushar Lalitkumar Sanghavi HUF | Promoter Group | 11.20% | — |
| Lalitbhai H Sanghvi HUF | Promoter Group | 6.00% | — |
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.