The initial public offering (IPO) of Premium Plast will open for subscription on Monday, October 21, 2024. The company will be selling its shares in the range of Rs 46-49 apiece with a lot size of Rs 3,000 equity shares. The bidding for the issue shall conclude on Wednesday, October 23.
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Premium Plast is likely to offer 53,46,000 equity shares with a face value of Rs 10 each. At the upper end of the price band, it is looking to raise Rs 26.20 crore via its primary offering. The company is currently commanding a grey market premium of Rs 5-7 per share, suggesting a listing pop of 10-15 per cent for the investors.
The net proceeds from the IPO will be utilized for expansion of existing Pithampur manufacturing facility; purchase of machineries; funding of capital expenditure requirement for company towards set up of Rooftop on Grid Solar Power Plant, repayment of loan, general corporate purpose and issue expenses.
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The company has reserved 10 per cent of the issue for qualified institutional bidders, while retail investors and non-institutional investors will get 45 per cent of reservation each. Retail investors can apply for a single lot or 3,000 shares only, amounting to Rs 1.47 lakh at the upper end of the price band. Other investors need to apply for at least two lots or 6,000 equity shares.
Incorporated in 1995, Thane-based Premium Plast designs, manufactures, and supplies exterior, interior, and hood plastic parts directly to commercial vehicle manufacturers. Premium Plast manufactures various injections and blow moulded plastic parts for a wide range of industries and applications.
The company’s product portfolio includes automotive parts, industrial plastic parts, and packaging components used in a variety of industries. Premium Plast specializes in the manufacture of automotive parts and produces over 600 components in three located facilities in Pithampur, Madhya Pradesh and Vasai, Maharashtra.
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For the quarter ended on June 30, 2024, the company reported a net profit of Rs 1.41 crore with a revenue of Rs 12.13 crore. The company’s net profit came in at Rs 4.78 crore with a revenue of Rs 46.71 crore for the financial year ended on March 31, 2024.
Khandwala Securities is the sole lead manager for the issue, while and Bigshare Services is the registrar to the issue. Asnani Stock Broker is the market maker for this IPO, which it has reserved 2,70,000 equity shares. Shares of the company shall be listed on emerge platform of NSE with Monday, October 28 as the tentative date of listing.
