Premium Plast IPO Subscription Starts October 21 with ₹46-49 Price Band: Check Latest GMP Trends Now!

The Premium Plast IPO will be available for subscription from Monday, October 21, to Wednesday, October 23. The price range for each share is set between ₹46 and ₹49, with a face value of ₹10. Investors can place bids in lots of 3,000 shares, with a minimum of one lot.

About Premium Plast and Its Business

Premium Plast supplies automotive parts to original equipment manufacturers (OEMs) as a tier-1 supplier. The company designs, manufactures, and delivers various plastic components used in commercial vehicles, including exterior, interior, and under-the-hood parts.

In addition to automotive parts, Premium Plast produces a range of plastic products for different industries, such as industrial components and packaging materials. The company uses injection and blow-moulding technology to make these products.

Financial Peers and Performance

The company’s red herring prospectus lists Varroc Engineering Ltd as a comparable competitor, with a price-to-earnings (P/E) ratio of 17.00, and Uno Minda Ltd with a P/E of 64.80.

For the fiscal year ending March 31, 2024, Premium Plast recorded a 6% rise in revenue and a remarkable 200% growth in profit compared to the previous year.

Details of the Premium Plast IPO

The IPO will consist of a fresh issue of 5,346,000 shares, raising ₹26.20 crore in total. There is no offer for sale (OFS) portion in this IPO.

The funds from the IPO will be used to expand the company’s existing manufacturing facility in Pithampur, Madhya Pradesh, purchase new machinery, install a rooftop solar power plant, repay some outstanding loans, cover general corporate expenses, and fund the costs of the IPO.

The lead manager for the issue is Khandwala Securities Limited, and Bigshare Services Pvt Ltd will handle the registration. Asnani Stock Broker will act as the market maker.

Grey Market Premium (GMP) Today

The grey market premium for Premium Plast is currently +₹5, meaning the shares are trading at ₹5 more than the IPO price. Based on the upper price band and current grey market trends, the expected listing price of the shares could be around ₹54, which is 10.2% higher than the upper IPO price of ₹49.

Experts suggest that the grey market premium has remained steady over the last few days and is likely to stay the same until the shares are listed.

In general, grey market premium reflects the extra amount investors are willing to pay over the official IPO price.