GSM Foils IPO (SME) Overview

GSM Foils Limited manufactures Blister Foils and Aluminium Pharma Foils, also known as “Strip Foils,” used for packaging pharmaceutical medicines such as capsules and tablet. GSM Foils IPO aims to raise Rs 11.01 crores. The issue is entirely a fresh issue of 34.4 lakh shares.

IPO opensMay 24, 2024
IPO ClosesMay 28, 2024
IPO Size (Rs.)₹11.01 Cr
IPO Size (shares)3,440,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹32 per share
Minimum Lot4000 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerShreni Shares Limited 
Registrar  Bigshare
Market makerShreni Shares

About GSM Foils IPO:

  • Started in the year 2019 GSM Foils is engaged in manufacturing broad array of Blister Foils and Aluminum Pharma Foils
  • This is a primary packaging material which comes in direct contact with the medicine, hence, utmost care is taken with regards to its quality. Over the past few years, they have acquired definite know how in different types of foils used in pharmaceuticals companies.
  • They offer Aluminium foils in different sizes, shapes and thickness to meet diverse needs of clients. The range of products includes plain and printed aluminium foils and strip foils along with alu base foils and it ranges from 0.020/ 0.025/ 0.030/ 0.040 micron for coated /ploy laminated/ blister/ strip printed foils.
  • Manufacturing facility, which spans 7,973 square feet which includes three storeys and a ground level, is situated in Vasai, Mumbai.

Financials: GSM Foils IPO

Particulars/ Rs Lacs9m Dec 202326-Jun-232022-232021-222020-21
Total Revenue2717.871091.666588.697185.043646.23
Profit after Tax124.7949.93142.9763.6533.93
Share Capital2.2929.75835.73659.06657.82
Net worth126.99929.75835.73659.06657.82
Earnings per share24.669.8728.2512.586.71
Net Asset Value25.1183.74165.16130.25130
Total borrowings1412.95210.45242.43219.2
Post issue Share Capital1281    
FV10.0    
IPO price32.0    
EPS Fy231.1    
PE Fy2328.7    
EPS Fy24 (annualized)1.8    
PE Fy24  (annualized)17.6    
Market cap in Lacs4,099    
Market cap / Sales0.62    

GSM Foils IPO: Salient Points

  • Blister Foils are commonly used as unit-dose packaging for pharmaceutical tablets
  • Use of Net Proceeds:
Sr NoParticularsAmount Rs. Lacs
1Purchase of Plant and Machinery for Existing Manufacturing facility111.14
2Funding Working Capital Requirements of our Company705.66
3General corporate purposes222.45
 Total1,039.25
  • Company has major presence in the states of Dadra & Nagar Haveli, Gujarat and Maharashtra
  • GSM Foils Limited has steadily increased its production capacity and diversified its product portfolio. The addition of blister foils and aluminium strip pharma foils, including various specialised variants, allows the company to effectively cater to diverse customer requirements.
  • They have added range of blister foils and Aluminum Strip Pharma Foil in their portfolio such as Printed Vinyl Monomer Coating and Heat Sealable Coated (VMCH) Aluminum Blister Foil, Blister Foil reels, Printed aluminum pharma foil, Aluminum Strip pharma foils slitted reels etc.
  • Peers:
CompanyCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoE(%)
GSM Foils Limited23566.001.432.2%29(17.6)0.6219.13%
MMP Industries Limited285538.0021.003.9%22.91.258.22%
Synthiko Industries Ltd7125.650.170.7%70.482.85%
  • The revenue has shown a downtrend from ₹7,185 lakhs in March 2022 to ₹6,588 lakhs in March 2023. The revenue for 9-month period ending December 2023 is further down.
  • The profit after tax has significantly increased from ₹63 lakhs in March 2022 to ₹124 lakhs by December 2023. 
  • Fluctuations in the prices of key raw materials, such as aluminium, has a impact the company’s profitability.
  • GSM Foils IPO is coming at a PE ratio of 28x (FY23 Earnings) and 17.6x (fy24 annualized earnings)
  • I may to apply in GSM Foils IPO subject to availability of funds purely from a listing gain perspective if it so happens.
  • GMP as reported on social media has been Rs. 8 (25%)
  • Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include Quest Laboratories Limited, Silkflex Polymers (India) Limited, Refractory Shapes Limited,Yash Optics & Lens, Gabriel Pet Straps Limited, DelaPlex Limited, Net Avenue Technologies Limited, Swashthik Plascon Limited, KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes Limited, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising
  • SME IPO are much more risky and volatile than mainboard IPOs and may not be suitable at least for new retail investors.
  • 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.

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