SPP Polymer
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Sep 2024 – 12 Sep 2024
- Listing date
- 17 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹59 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹24.49 Cr
- Market cap at offer price
- ₹90.81 Cr
- Promoter holding
- 94.99% → 69.37% pre-issue → post-issue
- ISIN
- INE0QR801013
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- Bearing No DPT212, DLF Prime Tower, Okhla Industrial Estate, Phase 1, New Delhi
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 | 2,10,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹59
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,18,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,36,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,44,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,62,000 |
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 (₹) | 0.88 | 2.37 |
| P/E (×) | 67.05 | 24.89 |
| Price to book (×) | 2.65 | — |
| Market cap | — | ₹90.81 Cr |
Key performance indicators
- Return on net worth
- 3.98%
- ROCE
- 4.27%
- Debt / equity
- 0.71
- PAT margin
- 1.08%
- NAV per share
- ₹22.24
- Price to book
- 2.65
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About SPP Polymer
SPP Polymer Limited, incorporated on August 27, 2004, is an ISO 9001:2015 certified manufacturer of packaging solutions serving the B2B sector. Originally incorporated as S.P.P. Food Products Private Limited, the company changed its name to SPP Polymer Private Limited and subsequently converted to a public limited company in 2023. The company operates a manufacturing facility in Pantnagar, Uttarakhand, with an installed capacity of 9,125 MT for HDPE/PP woven fabric and bags and 3,600 MT for non-woven fabric. The company generates revenue through the sale of packaging materials to companies across industries including cement, chemicals, food grains, sugars, polymers, agriculture, and others. It employs stringent quality control mechanisms including tensile strength testing, elongation testing, dart impact, drop tests, water resistance tests, and UV exposure testing. The company also holds ISO 45001:2018 and SA 8000:2014 certifications for occupational health & safety and environment management systems.
Company Analysis
from RHPSPP Polymer Limited manufactures HDPE/PP woven fabrics and bags, non-woven fabrics and bags, and PP multifilament yarn for B2B packaging solutions across cement, chemical, food grain, sugar, polymer, and agricultural industries.
SPP Polymer Limited, incorporated on August 27, 2004, is an ISO 9001:2015 certified manufacturer of packaging solutions serving the B2B sector. Originally incorporated as S.P.P. Food Products Private Limited, the company changed its name to SPP Polymer Private Limited and subsequently converted to a public limited company in 2023. The company operates a manufacturing facility in Pantnagar, Uttarakhand, with an installed capacity of 9,125 MT for HDPE/PP woven fabric and bags and 3,600 MT for non-woven fabric. The company generates revenue through the sale of packaging materials to companies across industries including cement, chemicals, food grains, sugars, polymers, agriculture, and others. It employs stringent quality control mechanisms including tensile strength testing, elongation testing, dart impact, drop tests, water resistance tests, and UV exposure testing. The company also holds ISO 45001:2018 and SA 8000:2014 certifications for occupational health & safety and environment management systems.
Objects of the Issue
- Repayment of Loan ₹775.00 lakhs p.18
- Working capital requirement ₹986.50 lakhs p.18
- General corporate purposes ₹587.00 lakhs p.18
- Repayment of Loan ₹775.00 lakhs p.71
- Working capital requirement ₹986.50 lakhs p.72
- General corporate purposes ₹587.00 lakhs p.76
- Not specified in this document part
- Not explicitly stated in this section - refer to Capital Structure chapter p.206
Issue Structure
- Total Issue
- ₹2,448.50 lakhs (41,50,000 equity shares at ₹59 per share)
- Fresh Issue
- ₹2,448.50 lakhs (41,50,000 equity shares of face value ₹10 each at ₹59 per share)
- Price Band
- ₹59 per equity share (fixed price issue)
- Lot Size
- 2,000 equity shares and in multiples thereof
- Face Value
- ₹10 per equity share
Business Model
The company operates as a B2B manufacturer and supplier of packaging materials. It procures raw materials (primarily HDPE/PP granules and calcium carbonate/filler) from suppliers, manufactures packaging products at its Uttarakhand facility, and sells these products to customers on an order basis. The company does not maintain long-term contracts with customers but instead relies on purchase orders. Revenue generation is based on order fulfillment at negotiated prices.
Business Segments
SWOT Analysis
- • ISO certified manufacturing facility with quality control(p.16)
- • Comprehensive product range and customized solutions capability(p.16)
- • Significant installed production capacity(p.16)
- • Growing industry tailwinds in Indian packaging sector(p.17)
- • India's emerging position as key exporter of packaging materials(p.17)
- • ISO certification and quality management systems(p.106)
- • Experienced promoter team with 19 years industry experience(p.106)
- • Diversified product portfolio addressing multiple industries(p.106)
- • Long-standing customer relationships across B2B segments(p.106)
- • Significant installed capacity expansion completed(p.92)
- • In-house quality testing laboratory with stringent controls(p.92)
- • ISO 9001:2015 certification and quality management systems(p.178)
- • Improved material consumption efficiency reducing COGS ratio(p.177)
- • EBITDA margin expansion and profitability improvement(p.177)
- • Revenue growth and scale expansion(p.177)
- • Diversified product portfolio in woven and non-woven segments(p.178)
- • Low net profit margins compared to industry standards(p.24)
- • High dependence on limited number of suppliers(p.27)
- • High customer concentration risk(p.27)
- • No long-term customer agreements(p.27)
- • Rented registered office with near-term renewal risk(p.26)
- • History of compliance delays and ROC filing inaccuracies(p.25)
- • Contingent liabilities for tax and service tax claims(p.29)
- • Negative operating cash flows in prior years(p.32)
- • High debt-to-equity ratio requiring deleveraging(p.71)
- • Low capacity utilization rates in recent period(p.108)
- • Concentration of revenue in a few states and customers(p.102)
- • Reliance on spot market raw material procurement(p.109)
- • Single manufacturing facility location concentration(p.108)
- • Significant dependence on few major customers(p.180)
- • High concentration in top 10 customers (89.66% of revenue)(p.180)
- • Significant customer concentration loss from prior large contracts(p.178)
- • High supplier concentration (93.29% of purchases from top 10)(p.180)
- • Elevated finance costs from recent borrowings(p.177)
- • Low PAT margin at 1.06% despite revenue growth(p.177)
- • Pending income tax proceedings with material demands outstanding(p.189)
- • Outstanding dues to MSMEs and material creditors(p.192)
- • Expansion into markets beyond North India(p.29)
- • Growing demand for packaging in e-commerce and FMCG sectors(p.17)
- • Government support for domestic manufacturing through Make in India(p.17)
- • Cost advantage positioning for India's packaging industry(p.17)
- • Capital deployment for loan repayment and working capital(p.18)
- • Expansion into new geographic markets and export markets(p.106)
- • Growing packaging industry with high CAGR(p.89)
- • Increasing demand from pharmaceutical and food sectors(p.89)
- • Government support for Make in India and domestic manufacturing(p.92)
- • Cost efficiency improvements and economies of scale(p.106)
- • Non-woven fabric segment growth trajectory(p.178)
- • Cost reduction initiatives and margin expansion potential(p.177)
- • Capacity expansion from recent capital investment(p.177)
- • Recovery and diversification from large government contracts(p.178)
- • Intense competition from large and small industry players(p.25)
- • Government regulations restricting use of plastic products(p.29)
- • Risk of plastic product bans expanding globally(p.30)
- • Volatility in raw material prices (polymers and calcium carbonate)(p.33)
- • Dependence on third-party transportation and logistics(p.30)
- • Geographic concentration risk in North India operations(p.29)
- • Interest rate fluctuation risks on debt(p.36)
- • Market volatility and liquidity risks for listed equity shares(p.36)
- • Highly fragmented and competitive packaging industry(p.109)
- • Exposure to raw material price volatility(p.109)
- • Regulatory and environmental compliance requirements(p.109)
- • Dependence on customer order cycles and business concentration(p.106)
- • Plastic waste management regulatory pressures(p.117)
- • Commodity input price volatility in polymers and raw materials(p.178)
- • Demand cyclicality from food grain packaging sector(p.178)
- • Regulatory compliance and certification renewal risks(p.195)
- • Government policy and tender-based revenue volatility(p.178)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dipak Goyal | Promoter | 15.02% | 10.97% |
| Mahavir Bahety | Promoter | 17.70% | 12.93% |
| Liladhar Mundhara | Promoter | 20.80% | 15.19% |
| Asha Ram Bahety | Promoter | 19.36% | 14.14% |
| Asha Ram Bahety | Promoter | 19.36% | 14.14% |
| Mahavir Bahety | Promoter | 17.70% | 12.93% |
| Dipak Goyal | Promoter | 15.02% | 10.97% |
| Liladhar Mundhara | Promoter | 20.80% | 15.19% |
| Mahavir Bahety | Promoter and Whole-Time Director | 17.70% | — |
| Liladhar Mundhara | Promoter and Whole-Time Director | 20.80% | — |
| Dipak Goyal | Promoter, Managing Director and Chief Financial Officer | 15.02% | — |
| Asha Ram Bahety | Promoter | 19.36% | — |
| Umesh Goyal | Promoter | — | — |
| Dipak Goyal | Promoter/Director | — | — |
| Mahavir Bahety | Promoter | — | — |
| Liladhar Mundhara | 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.