Shares of Solve Plastic Products made a solid debut on the stock market today, August 21, listing at ₹102 per share on the NSE SME. This is 12% higher than the IPO price of ₹91 per share.
The company recently held an IPO from August 13-16, 2024, raising ₹11.85 crore by issuing 13.02 lakh new shares. Investors showed strong interest, with the IPO being oversubscribed 34.23 times. Retail investors were particularly keen, subscribing 46.76 times the shares available to them.
The funds raised will be used for buying new machinery, meeting working capital needs, and covering other business expenses. Finshore Management Services Limited was the lead manager for the IPO.
Solve Plastic Products, established in 1994, manufactures uPVC pipes and rigid PVC electrical conduits under the brand name “BALCOPIPES.” The company operates in Kerala and Tamil Nadu, with approvals from various government bodies.
Financially, the company saw a 24% drop in revenue between 2023 and 2024, but its profit after tax increased by 18% during the same time.
Despite the strong demand for the IPO, some experts advised caution. Market expert Dilip Davda suggested that investors might want to avoid this IPO due to the company’s inconsistent revenue and the high competition in its industry. He also noted that the IPO price seemed high compared to the company’s earnings, making it a potentially risky investment.
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