Sati Poly Plast IPO Launch: Get Ready to Invest with Price Band Set at ₹123 to ₹130 Per Share

The initial public offering (IPO) of Sati Poly Plast Ltd will open for subscription on Friday, July 12, and will close on Tuesday, July 16. The price range for the IPO is set between ₹123 and ₹130 per share, with each share having a face value of ₹10. Investors can bid for a minimum of 1000 shares and multiples thereof.

Allocation of Shares

The allocation for the IPO is as follows: 15% of the net offer is reserved for non-institutional investors, 35% for retail investors, and 50% for qualified institutional buyers (QIBs).

Company Overview

Sati Poly Plast manufactures flexible packaging materials used in various sectors. The company started producing these materials in 2017 after being involved in the trade of flexible packaging materials until 2015.

Some of Sati Poly Plast’s top customers include DFM Foods Limited, Osho Trade Services LLP, Charu Overseas Private Limited, First Point Polymers LLP, Pari Food Products LLP, Fena (P) Limited, Ambey Food Products, Mahesh Edible Oil Industries Ltd, Adani Wilmar Ltd, and Vimal Hi-Tech Pvt Ltd. These customers contribute to more than 50% of the company’s total revenue.

Industry Peers

According to the red herring prospectus (RHP), Sati Poly Plast’s listed peers are Sabar Flex India Ltd (with a P/E of 7.50) and Uma Converter Ltd (with a P/E of 11.81).

From March 31, 2023, to March 31, 2024, Sati Poly Plast’s profit after tax (PAT) increased by 6.39%, while its revenue decreased by 6.05%.

IPO Details

The IPO is worth ₹17.36 crore, consisting of a fresh issuance of 1,335,000 equity shares at a face value of ₹10. There is no offer-for-sale component. The funds raised will be used for general corporate purposes and working capital requirements.

Beeline Capital Advisors Pvt Ltd is the lead manager for the IPO, and Link Intime India Private Ltd is the registrar. Spread X Securities is the market maker.

Timeline

The share allocation is expected to be finalized on Thursday, July 18. Refunds will be processed on Friday, July 19, and shares will be credited to the allottees’ demat accounts on the same day. Sati Poly Plast shares are expected to be listed on Monday, July 22, on the NSE SME.