Introduction
Ideal Technoplast Industries Limited got registered in the year 2014 and has decided to float its SME IPO amounting to ₹16.03 crore. It is available at the price of ₹121 per share and the date for subscription is issued from August 21 to August 23, 2024.
This issue has been the talk of the town and the investment field seeing that all stakeholders are of the perception that there exists a gradual growth potential in the plastics manufacturing industry. Below we have compiled all that you need to know in the details along with the financial insights of this IPO, and here is how this can turn out to be one of the really promising investment reasons. (Ideal Technoplast Industries IPO)
Ideal Technoplast Industries IPO Key Details and Pricing
The IPO price is fixed at ₹ 121 each for a Face Value of ₹ 10 each. The investors will have to apply in lots of 1,000 shares, which will take the minimum investment to ₹1,21,000. HNIs can apply to a minimum of two lots with a value of ₹2,42,000. Listing on NSE SME Platform: Likely on August 28, 2024. In a fixed offer, the offer price does not change with the subscription and hence is not confusing to investors.
Ideal Technoplast Industries IPO Details
- IPO Price: ₹121 per share
- Face Value: ₹10 per share
- Issue Size: ₹16.03 crore
- Market Lot: 1,000 shares
- Listing Date: August 28, 2024
Ideal Technoplast Industries IPO Important Dates
- IPO Opening Date: August 21, 2009
- IPO Closing Date: August 23, 2024
- Basis of Allotment Date: August 26, 2024
- Refunds Initiation: August 27, 2024
- Credit of Shares to Demat: August 27, 2024
- IPO Listing Date: August 28, 2024 (Tentative)
These dates shall be of essence for people who want to make applications for this IPO. Do take note of the dates so as not to miss anything on these important timelines with respect to the application, allotment, and listing processes.
Ideal Technoplast Industries Limited was incorporated in the year 2012 and today stands amongst the larger rigid plastic packaging companies. The group manufactures a varied range of products, segregating on the lines of packaging requirements of industries such as chemicals, food, cosmetics, and lubricants. The flagship products will be square packaging containers.
Ultra-modern manufacturing facility at Surat spread over 20,000 square meters equipped with state-of-the-art technologies like fully automatic production lines and robotic arms. Using In-Mould Labeling technology is a more prodigious appearance in producing high-quality products, thanks to such technological advancements that have greatly helped IDEAL TECHNOPLAST have strong market positioning.
Ideal Technoplast Industries IPO GMP (Grey Market Premium)
The Grey Market Premium is one large indicator that signals how the performance of an IPO would go. As of August 21, 2024, probably the GMP for Ideal Technoplast Industries is around ₹.15, meaning the shares could list at around ₹.136, thus giving a gain of 12.4% over the issue price of ₹.121. A positive GMP underlines the investors’ very strong interest, and based on this data, the IPO may appear likely to bring listing gains.
This GMP, however, is not a rock-like factor but simply a guess and hence a very volatile number that changes with market sentiments. On the bright side, even holding a positive GMP instills positivity, but the same does not stand as a sure shot predictor for the post listing performance of the company. So, this shall have to be factored by an investor in combination with other factors before deciding.
Ideal Technoplast Industries IPO Financial Performance
Ideal Technoplast has strong financial growth, making it most viable for investment. On February 29, 2024, the total assets were substantially increased to ₹1,508.51 lakh from ₹ 978 lakh as of March 2023. Revenues have more than doubled from ₹1,199.79 lakh in 2023 to a level of ₹2,424.11 lakh in 2024, which make testament to accumulation demand toward their products.
Besides, the company’s PAT increased steeply, from ₹50.62 lakh in 2023 to ₹326.61 lakh in 2024, indicating improvement in profitability. The company is sound on the financial front, even though it has high debt, which fell from ₹586.04 lakh in March 2023 to ₹456.89 lakh in February 2024. The proceeds from the IPO will be used for reduction of debt. The new growth path for the company will open the way toward healthier growth on the financial front.
Why Invest in Ideal Technoplast Industries IPO?
Strong Market Position: Ideal Technoplast has built a strong reputation for itself in the rigid plastic packaging market and has won multitudes of sectors. This gives it a great position in the market. Advanced Manufacturing Capabilities: The use of advanced technologies such as robotic automation and in-mould labeling bestow a competitive edge in the ability to produce quality products efficiently.
Strong Financial Performance: This can be substantiated with the massive top and bottom line growth over the years, reflecting a sound business model and efficiency of management.
Debt Reduction Plans: The money that would be raised through this IPO would be plowed back for debt reduction in the company, which will ensure better financial health and higher profitability in the long term.
Probable Listing Gains: With the positive Grey Market Premium, the shares can see a rise in the price after listing, maybe indicating short-term gains to the investor.
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Risks to Consider
Even though the Ideal Technoplast Industries IPO has been touted with several positives, risks can not be ruled out:
Market Volatility: Like all IPOs, the listing price of the stock is liable to be reduced after the final pricing because of market factors. There may, therefore, be adverse economic or industry shifts, as well as an overall downturn in the stock market that could affect the performance.
Level of Indebtedness: Though the firm is intimating use its proceeds raised through an IPO to retire debt, its debt at this point in time is substantial and may pose risks in the case of a slowdown in revenue growth.
Operational Risks: It may become hard to maintain the quality and control the cost of products as the operations are established. Any disturbance in production will have an impact on the company’s bottom line.
How to Apply for the Ideal Technoplast Industries IPO
In such a context, with the help of ASBA, investors can apply to an IPO by Ideal Technoplast Industries. This facility is available at most banks. You could also apply online using UPI payment. Now since 1,000 shares make the minimum lot size to apply in any category, you have to ensure there is enough money in your bank account before applying.
The ASBA process can issue an IPO application without any blocking on the account of its payment in advance. Funds get debited only in the case of an allotment of shares. All this makes the process all the more safe and efficient for the investors and the company issuing the shares.
Objective of the Ideal Technoplast Industries IPO
The major objectives of the Ideal Technoplast Industries IPO are financing the capital expenditure, reduction of debt, and general corporate purposes. This indicates that equity raised can be used in reducing the company’s debt amount and enhance its manufacturing capability to such a level that it can serve increasing demand without losing its competitive edge.
This further means that debt reduction will bring improvement in the balance sheet of the company, making it all the more attractive toward investors, and hence, it also forms base toward stability in finance.
Conclusion
The Ideal Technoplast Industries IPO offers a wonderful investment opportunity, particularly for investors eyeing the accelerating plastic manufacturing sector. With strength in the financial and solid technology base, Ideal Technoplast seems primed for further growth, and with a clear road map on the proceeds of the IPO. Besides, investment should always consider market volatility and risks related to company debt.
The grey market premium is positive, so one can expect the IPO to deliver listing gains. So, this issue would be quite attractive for short-term investors and long-term investors. Be it for making use of the possible listing gains or investing in a company with good growth potential, the Ideal Technoplast Industries IPO is a consideration.
FAQs
1. What is the price of the Ideal Technoplast Industries IPO?
₹121 per share.
2. What is the minimum investment required for the Ideal Technoplast IPO?
The minimum investment is ₹1,21,000 for one lot of 1,000 shares.
3. How can I apply for the Ideal Technoplast Industries IPO?
Through ASBA, stockbrokers, or UPI.
4. What is the IPO size?
₹16.03 crore.
5. When will the shares be listed?
August 28, 2024.