Purv Flexipack is primarily a distribution and marketing company in the field of plastics and packaging with focus on east part of the country. Purv Flexipack IPO aims to raise Rs 40.21 crores. The issue is entirely a fresh issue of 56.64 lakh shares.
IPO opens
Feb 27, 2024
IPO Closes
Feb 29 2024
IPO Size (Rs.)
₹40.21 Cr
IPO Size (s hares)
5,664,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹70 to ₹71 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB
50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Holani Consultants Private Limited
Registrar
Linkintime
Market maker
Holani Consultants.
About Purv Flexipack Limited:
Company primarily engages in the distribution of various plastic-based products such as Biaxially Oriented Polypropylene (BOPP) film, Polyester Films, Cast Polypropylene (CPP) films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Acedate, and Titanium Dioxide.
They offer customized bulk packaging solutions to business-to-business (B2B) manufacturers in a variety of industries.
In addition, company is a Del Credere Associate (DCA) and Dealer operated polymer warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.
The promoters, Mr. Rajeev Goenka and Mr. Vanshay Goenka, are part of Sindharam Sanwarmal (dry fruit store chain) in Kolkata.
Rajeev Goenka, Director, has set up Purv group on his own. He has more than 2 decades of experience in this field
Financials: Purv Flexipack Limited
Particulars / Rs. Lacs
2023 (06)
2023 (12)
2022 (12)
2021 (12)
Revenue From Operations
13,439.09
33,317.44
22,237.34
13,303.75
Profit / (Loss) After Tax
430.13
826.13
626.73
567.5
Equity Share Capital
1,411.88
1,411.88
1,411.88
1,411.88
Net Worth
8,152.42
7,619.22
6,793.09
5,898.36
Earnings per share
3.05
5.85
4.44
4.02
Net Asset Value
57.74
53.97
48.11
41.78
Total Borrowings
15,013.96
12,350.98
8,340.10
7,077.77
Post issue Share Capital
2098
FV
10.0
IPO price
71.0
EPS Fy23
3.9
PE Fy23
18.0
EPS Fy24 (annualized)
4.1
PE Fy24 (annualized)
17.3
Market cap in Lacs
14,895.8
Market cap / Sales
0.45
Purv Flexipack Limited: Anchors
Purv Flexipack IPO: Salient Points
Indian plastic industry market is one of the leading sectors in the country’s economy.
Company made a Pre-IPO placement and the size of the Fresh Issue was reduced by 12,00,000 Equity Shares pursuant to the Pre-IPO Placement.
Use of Net proceeds:
Particulars
Amount
Repayment of existing borrowings availed by company from scheduled commercial banks.
1,987.23
Funding the working capital requirement of our Company
2,000.00
They are mostly active in East part of India.
Clients
Product wise sale
Particulars
2023 (06)
2023 (12)
2022 (12)
2021 (12)
Total Quantity Sold (In MT)
BOPP
1,070.24
4799.42
4846.8
2736.36
POLYESTER
1,205.50
2630.76
2951.93
2853.43
INK
152.3
341.52
351.08
314.05
CPP
184.67
482.31
524.2
139.26
Revenue Generated through product offerings (In lakhs)
BOPP
1,597.48
8134.38
9014.24
4098.96
POLYESTER
1,404.98
3750.36
4249.59
3527.52
INK
338.55
792.56
712.92
571.61
CPP
250.09
751.57
902.18
191.64
Number of Customers served during the year
453
683
879
694
Their debt equity ratio is 1.35 as of HY24. This will come down after the IPO. They have both unsecured and secured loans from Bank of Baroda, HDFC Bank Ltd, Yes Bank Ltd, ICICI Bank.
Peers
Company
FV
Revenue 23 (Lacs)
PE
RONW
Mcap / sales
Purv Flexipack Limited*
10
33,317.44
18(17.3)
10.84%
0.45
Sah Polymers Limited
10
9,539.92
240
4.29%
2.96
They are primarily a distribution and marketing company.
Besides IOCL, company is set to import polymer of non-IOCL grades from countries like Middle east, China, Singapore and USA.
Further company also plan to expand its product range further and explore new avenues of growth i.e.
Aluminum Foil of SRF which uses in the application in household foil, flexible packaging and pharma sector
Different chemical of Solvay which uses in the application in Binder, Adhesive, Paints, Solvent, Floor Cleaning etc. They have started test marketing of same.
They also intend to go into PET bottle recycling.
Cool Caps Industries Limited is their subsidiary company and is listed on NSE emerge.
Purv Flexipack IPO is coming at a PE ratio of 18x(fy23 annualized earnings), 17.3x (fy24 annualized earnings),
I intend to apply in Purv Flexipack IPO subject to availability of funds. The issue appears quite good backed by a progressive group whose subsidiary company Cool Caps Industries Limited has done quite well on the bouses. Cool caps trades at ₹462.70 against the IPO price of Rs. 38.
GMP as reported on social media has been Rs. 125 .
Holani Consultants is the lead book running manager as well as the market maker. The last few IPOs lead managed by them have given decent return to the investors. These include names like Motisons Jewellers Limited, Goyal Salt Limited, Infollion Research Services, Shera Energy Limited, Cool Caps Industries Limited, Insolation Energy Limited etc.
SME IPO are much more risky and volatile than mainboard IPOs.
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.
