Sati Poly Plast IPO Opens July 12 with Price Band of ₹123-₹130
The Sati Poly Plast IPO is creating a lot of attention in the market, and with good cause. This initial public offering, which is scheduled to begin on Friday, July 12 and end on Tuesday, July 16, promises to be a significant event for both the firm and its potential investors. This offering has a price band of ₹123 to ₹130 per share and a minimum bid of 1000 shares, making it complex to understand. Let’s get into all the things you need to know.
Company Background
Sati Poly Plast Ltd is a well-known player in the flexible packaging materials market. Initially trading in these commodities until 2015, the company moved into production in 2017. Their products serve to a wide range of areas, giving comprehensive packaging solutions. The company’s top clients include big names like DFM Foods Limited and Adani Wilmar Ltd, contributing to more than 50% of their revenue.
IPO Details
Sati Poly Plast’s IPO price band is ₹123-₹130 per share, with a face value of ₹10. The minimum price is 12.30 times the face value, while the maximum price is 13.00 times. Investors can bid on a minimum of 1000 shares and multiples thereof.
Allocation of Shares
The allocation of shares in the Sati Poly Plast IPO is structured to cater to different types of investors. Here’s the breakdown:
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
- 50% for Qualified Institutional Buyers (QIBs)
Financial Performance
Sati Poly Plast Ltd’s profit after tax (PAT) increased by 6.39% between March 31, 2023 and March 31, 2024, despite a 6.05% decrease in revenue. This uneven performance reveals both development opportunities and areas for improvement.
Peer Comparison
When comparing Sati Poly Plast to its publicly traded rivals, we consider firms such as Sabar Flex India Ltd, which has a P/E ratio of 7.50, and Uma Converter Ltd, which has a P/E ratio of 11.81. This comparison helps to determine the company’s valuation and market positioning.
Use of IPO Proceeds.
The proceeds from the IPO will be used for general corporate operations and working capital requirements. This deliberate allocation of finances aims to enhance the company’s growth and operational efficiency.
Book Running Lead Manager and Registrar
Beeline Capital Advisors Pvt Ltd serves as the book running lead manager for the Sati Poly Plast IPO, with Link Intime India Private Ltd acting as the registrar. Spread X Securities serves as the market maker for this IPO.
Important Dates
Key dates to remember for the Sati Poly Plast IPO are:
- Basis for share allocation: Thursday, July 18
- Refund processing: Friday, July 19
- Credit of shares to demat accounts: Friday, July 19
- Listing on NSE SME: Monday, July 22
Investment Considerations
Experts and analysts have different perspectives on the Sati Poly Plast IPO. While some see it as a bright possibility, others recommend caution. Before making an investing decision, you should examine various points of view and conduct your own research.
How to Apply for the IPO
For Retail Investors:
- Log in to your trading account.
- Select the Sati Poly Plast IPO.
- Enter the number of shares you wish to bid for.
- Complete the payment process.
For Institutional Investors:
- Coordinate with your brokerage firm.
- Place your bids as per the institutional guidelines.
- Ensure all documentation is completed.
Grey Market Premium (GMP) Analysis
The Grey Market Premium (GMP) gives an early indicator of how the IPO will perform on its listing date. Monitoring current GMP trends might help investors make more educated judgments.
Subscription Status
Keep track of the subscription status in real time to measure investor interest. This information is critical for assessing market sentiment regarding the IPO.
Listing Day Strategy
Expect volatility on the first day of trading as the stock settles in. Have a clear strategy in place, whether you intend to keep or sell your shares. Follow market trends and seek professional guidance.
Conclusion
The Sati Poly Plast IPO provides investors with a one-of-a-kind opportunity because to its existing market presence and potential for future expansion. However, like with any investment, it is critical to carefully consider the dangers and undertake extensive research. Keep an eye on important dates, financial performance, and market trends to make an informed decision.
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Source: Mint