Technopack Polymers SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Nov 2022 – 07 Nov 2022
- Listing date
- 16 Nov 2022
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹7.87 Cr
- Market cap at offer price
- ₹29.70 Cr
- Promoter holding
- 100.00% → 73.51% pre-issue → post-issue
- ISIN
- INE0MXP01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- M/s Gokul Industries Rafaleshvar Industrial Estate, Nr.Rafaleshvar Rlw.Track, Morbi, Jambudiya, 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 |
|---|---|---|---|
| Market maker | 71,500 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
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 (₹) | 6.45 | — |
| P/E (×) | 8.53 | — |
| Market cap | — | ₹29.70 Cr |
Key performance indicators
- Return on net worth
- 70.19%
- PAT margin
- 21.02%
- EBITDA margin
- 37.85%
- NAV per share
- ₹30.04
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Technopack Polymers SME
Technopack Polymers Limited, incorporated on August 9, 2018 and converted to a public company on July 15, 2022, is a manufacturer of plastic packaging components. The company produces PET (polyethylene terephthalate) preforms using a 48-cavity Milacron machine and ACME mould under the 'TECHNOPET' brand, as well as high-quality HDPE (high-density polyethylene) compression-molded bottle caps (CCM CAP). The company's products are supplied to customers in the packaged mineral water, soft drinks, edible oil, medicines, and detergents sectors. Based in Morbi, Gujarat, the company is promoted by Mr. Kalpeshkumar Ishwarlal Pandya and Mr. Chetankumar Ishvarlal Pandya. The company has grown its revenue from ₹319.75 lakhs in FY 2020 to ₹998.18 lakhs in FY 2022, with PAT of ₹210.83 lakhs in FY 2022.
Company Analysis
from RHPTechnopack Polymers Limited manufactures high-quality PET preforms and HDPE bottle caps for the beverage and packaging industries.
Technopack Polymers Limited, incorporated on August 9, 2018 and converted to a public company on July 15, 2022, is a manufacturer of plastic packaging components. The company produces PET (polyethylene terephthalate) preforms using a 48-cavity Milacron machine and ACME mould under the 'TECHNOPET' brand, as well as high-quality HDPE (high-density polyethylene) compression-molded bottle caps (CCM CAP). The company's products are supplied to customers in the packaged mineral water, soft drinks, edible oil, medicines, and detergents sectors. Based in Morbi, Gujarat, the company is promoted by Mr. Kalpeshkumar Ishwarlal Pandya and Mr. Chetankumar Ishvarlal Pandya. The company has grown its revenue from ₹319.75 lakhs in FY 2020 to ₹998.18 lakhs in FY 2022, with PAT of ₹210.83 lakhs in FY 2022.
Objects of the Issue
- Part funding to purchase and set up additional SACMI CCM24S-F plant for manufacturing of HDPE Beverages Closures (Compression moulding machine fully equipped with all ancillaries) ₹638.00 lakhs p.18
- Additional Working Capital Requirement ₹73.50 lakhs p.18
- General Corporate Purpose ₹25.00 lakhs p.18
- Part funding to purchase and set up additional SACMI CCM24S-F plant for manufacturing of HDPE Beverages Closures (Compression moulding machine fully equipped with all ancillaries) ₹ 638.00 lakhs p.74
- Additional Working Capital Requirement ₹ 73.50 lakhs p.74
- General Corporate Purpose ₹ 25.00 lakhs p.78
- Funding capex for new machinery, equipment, and facility expansion ₹464.06 lakhs (from Capitalization Statement) p.175
- General corporate purposes p.175
Issue Structure
- Total Issue
- ₹786.50 lakhs
- Fresh Issue
- ₹786.50 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹55 per share (fixed price)
- Lot Size
- 2,000 equity shares (minimum), in multiples of 2,000 thereafter
- Face Value
- ₹10 per equity share
Business Model
The company manufactures PET preforms and HDPE bottle caps on order-to-order basis for beverage and packaging companies. Revenue is generated from sales of these plastic packaging components to customers in the mineral water, soft drinks, edible oil, medicines, and detergents industries.
Business Segments
SWOT Analysis
- • State-of-the-art manufacturing infrastructure with latest technology(p.18)
- • Established brand presence in specialized PET and HDPE packaging segments(p.29)
- • Recent strong financial performance and profitability growth(p.28)
- • Significant capacity expansion planned through IPO proceeds(p.27)
- • Experienced promoters with industry expertise(p.100)
- • ISO 9001:2015 Quality Management System certification(p.100)
- • World-class manufacturing facility with state-of-the-art equipment(p.97)
- • Strong SACMI CCM machine advantages including global market leadership(p.75)
- • Approved products accepted by major beverage companies(p.75)
- • Manufacturing facility with state-of-the-art machinery and brand recognition(p.179)
- • Strong profitability growth trajectory(p.183)
- • High EBITDA margins and improving operational efficiency(p.174)
- • Experienced management team with deep industry expertise(p.179)
- • High dependence on few major customers for revenue(p.27)
- • Significant working capital requirements due to high inventory and receivables(p.30)
- • Unsecured related-party loans that can be recalled at any time(p.35)
- • Ongoing litigation and product quality disputes(p.24)
- • Significant revenue and profit volatility quarter-to-quarter(p.28)
- • Heavy reliance on promoters with key management responsibilities(p.32)
- • Small workforce with limited manpower(p.100)
- • Dependence on few customers in packaging sector(p.99)
- • Significant working capital requirements for inventory expansion(p.77)
- • Short operating history with recent conversion to public company(p.109)
- • High customer concentration risk in revenue(p.187)
- • Dependence on related party for supply and facility(p.177)
- • Outstanding litigation involving dishonoured cheques(p.193)
- • Limited production capacity and single manufacturing location(p.180)
- • Capacity expansion to drive four-fold manufacturing growth(p.27)
- • Growing demand for PET and HDPE packaging in fast-growing beverage and packaged goods sectors(p.18)
- • Expansion of working capital and operational efficiency improvements(p.39)
- • Expansion through new SACMI CCM24S-F plant for HDPE beverage closures manufacturing(p.75)
- • Growing global PET bottle market with strong CAGR(p.92)
- • India emerging as fastest-growing PET preforms market in Asia-Pacific(p.92)
- • Carbonated soft drinks and water segment driving strong demand(p.93)
- • Higher productivity and energy efficiency of SACMI CCM technology(p.75)
- • Government initiatives supporting manufacturing sector growth(p.90)
- • Geographic expansion and market penetration in domestic market(p.179)
- • Production capacity expansion using IPO proceeds(p.175)
- • Diversification into related plastic packaging products(p.179)
- • Regulatory restrictions on use of plastic packaging materials(p.26)
- • Intense competition from organized and unorganized sector players(p.30)
- • Seasonal volatility in demand for packaged beverages(p.28)
- • Dependence on third-party transportation providers subject to cost inflation(p.31)
- • Reliance on third-party suppliers for raw materials(p.27)
- • Risk of machinery cost inflation due to foreign exchange fluctuations(p.27)
- • Economic slowdown and COVID-19 pandemic impact(p.41)
- • Changes in indirect tax policies and GST implementation(p.44)
- • Global economic slowdown and reduced growth projections(p.88)
- • High global inflation affecting manufacturing costs(p.88)
- • Geopolitical risks and supply chain disruptions(p.88)
- • Intense competition from established manufacturers(p.95)
- • Dependence on PET resin feedstock availability and pricing(p.95)
- • Rising regulatory and compliance requirements(p.93)
- • Exposure to raw material price volatility(p.183)
- • Customer payment defaults and liquidity risk(p.193)
- • Competition in packaging industry(p.179)
- • Debt obligations and financial leverage risk(p.175)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kalpeshkumar Ishwarlal Pandya | Promoter | 13.24% | — |
| Mr. Chetankumar Ishvarlal Pandya | Promoter | 15.44% | — |
| Mr. Ishwarlal Dayalal Pandya | Promoter Group | 12.35% | — |
| Mrs. Viralben Kalpeshbhai Pandya | Promoter Group | 17.65% | — |
| Mrs. Jalpa Chetankumar Pandya | Promoter Group | 15.44% | — |
| Mrs. Nitaben Ishvarlal Pandya | Promoter Group | 25.88% | — |
| Mr. Dineshkumar Dayalal Pandya | Promoter Group | 0.00% | — |
| Mr. Chetankumar Ishvarlal Pandya | Promoter | 15.44% | 11.35% |
| Mr. Kalpeshkumar Ishwarlal Pandya | Promoter | 13.24% | 9.73% |
| Kalpeshkumar Ishwarlal Pandya | Promoter | 13.24% | — |
| Chetankumar Ishwarlal Pandya | Promoter | 15.44% | — |
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.