Barflex Polyfilms Limited manufactures flexible packaging materials, including barrier COEX films, laminates, and PVC labels. Barflex Polyfilms IPO is set to rasie Rs 39.42 crores. The issue is a combination of fresh issue aggregating to Rs 12.32 crores and offer for sale aggregating to Rs 27.10 crores.

About: Barflex Polyfilms

• Barflex Polyfilms Limited is a company that manufactures flexible packaging materials, including barrier COEX films, laminates, and PVC labels.
• The company produces 3-layer and 5-layer poly films, laminates, vacuum pouches, 5-layer bulk liners, and PVC shrink labels.
• They plan to expand to produce 7-layer films.
• The company serves diverse industries like FMCG, processed foods, adhesives, engineering, pharmaceuticals, cosmetics, and construction.
• Originally incorporated as “Hitkari Polyfilms Private Limited” on January 24, 2005, the name changed to “Barflex Polyfilms Private Limited” on June 30, 2005.It became a public limited company on February 22, 2024, and named Barflex Polyfilms Limited.
• The registered office is in New Delhi.
•  Barflex operates three manufacturing units in Himachal Pradesh.
  • Unit I (Himachal Pradesh):
    – Installed Capacity: 2400 MT/year
  • Unit II:
    – Installed Capacity: 3000 MT/year
  • Unit III:
    – Installed Capacity: 360 MT/year
• The promoters are Jaiwant Bery and Nomita Bery.

Financials: Barflex Polyfilms IPO

Anchors: Barflex Polyfilms IPO

Barflex Polyfilms IPO: Salient Points

• Promoters, Mr. Jaiwant Bery and Mrs. Nomita Bery, hold 69.73% and 22.93% of the pre-issue paid up share capital of the company, respectively,
• At present, they manufacture 3-layer poly films, 5-layer poly films, laminates, vacuum pouches, 5-layer bulk liners and PVC shrink labels. they are planning to start manufacturing 7-layer films as well, post expansion.
• Revenue Bifurcation By Product:
  – 5-layer barrier films: 26.55%
  – 3-ply laminates: 29.15%
  – Poly pouches: 7.67%
  – Laminate pouches: 18.54%
• Use of Net proceeds: he company intends to use the net proceeds from the fresh issue for the following purposes:
  • Funding capital expenditure towards the purchase of additional plant and machinery, This includes investment in 7-layer barrier film technology and extrusion lamination, along with bag-making machines for the e-commerce sector.
  • General corporate purposes.
• Barflex Polyfilms is set to begin in-house production of 7-layer COEX films by April 2025, targeting high-demand markets like FMCG, processed foods, and pharmaceuticals. For this a machine ordered from Mamata Machinery Limited is expected to be delivered by March 2025. 
• It Operates in more than 15 Indian states, Major markets in Himachal Pradesh (22.5% revenue in FY24), Rajasthan, Punjab, and Uttar Pradesh.
• Industry wise Bifurcation:
  • Processed Foods: 38.92%
  • FMCG: 34.21%
  • Adhesives, Engineering, Pharma: Smaller shares.
  • Exports: 2.01% ( to ivory coast)
• Unit I (Himachal Pradesh):
  – FY24 Utilization: 92.38%
  2. Unit II:
  -FY24 Utilization: 80.03%
  3. Unit III
  – FY24 Utilization: 69.44%
• All products are certified by AYUSH MINISTRY
• Peers:

• Raw material volatility could impact the company.
• Debt has been declining,
• Barflex Polyfilms’ strong market presence is supported by its relationships with well-known domestic brands. 
• PE FY25 (annualized) 7.1x ; PE Fy24: 9.3x
• I may apply in Barflex Polyfilms IPO. Though a large potion of IO is OFS, most of the money from the fresh issue will go towards ramping up manufacturing capacity. It is going for expansion into advanced 7-layer COEX films and e-commerce packaging. One needs to keep an eye on how the market evolves in next few days.
• GMP as reported on social media is almost NIL at this juncture.
• Lead Manager has no past record in recent times.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.