Admin
01 May 2024

Silkflex Polymers Limited IPO

SILKFLEX POLYMERS (INDIA) LIMITED is selling products of Silkflex Polymers Sdn. Bhd. Malaysia, who are the leading Garment Printing Ink manufacturer in Malaysia with 1000 MT per month capacity having a state-of-the-art thermal reactor. Unlike other suppliers, their inks are manufactured and formulated in-house, from the polymer/resin right up to the final ink. Since the performance of the ink is almost completely dependent on the properties of the polymers/resin, they are able to design and tailor-make polymers/inks for specific application and effect. Silkflex Polymers Sdn. Bhd. is in the list of nominated suppliers for PUMA, C&A and H&M, and is currently used by all major brands of apparel in the world including the recent expansion into European countries like Portugal, Turkey and Spain.

Silkflex Polymers IPO is a fixed price issue of Rs 18.11 crores. The issue is entirely a fresh issue of 34.82 lakh shares. Silkflex Polymers IPO price is ₹52 per share. The minimum lot size for an application is 2000 Shares. Shreni Shares Limited is the book running lead manager of the Silkflex Polymers IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Silkflex Polymers IPO is Shreni Shares.

Silkflex Polymers IPO Overview

Detail	Description
IPO Date	May 7, 2024 to May 10, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹52 per share
Lot Size	2000 Shares
Total Issue Size	3,482,000 shares (aggregating up to ₹18.11 Cr)
Fresh Issue	3,482,000 shares (aggregating up to ₹18.11 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Share holding pre issue	8,125,000
Share holding post issue	11,607,000
Market Maker portion	178,000 shares

Silkflex Polymers IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Tuesday, May 7, 2024
IPO Close Date	Friday, May 10, 2024
Basis of Allotment	Monday, May 13, 2024
Initiation of Refunds	Tuesday, May 14, 2024
Credit of Shares to Demat	Tuesday, May 14, 2024
Listing Date	Wednesday, May 15, 2024
Cut-off time for UPI mandate confirmation	5 PM on May 10, 2024

Silkflex Polymers IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹104,000
Retail (Max)	1	2000	₹104,000
HNI (Min)	2	4,000	₹208,000

Silkflex Polymers IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	-
Market Maker Shares Offered	178,000 (5.11%)
Other Shares Offered	1,652,000 (47.44%)
Retail Shares Offered	1,652,000 (47.44%)
Total Shares Offered	3,482,000 (100%)

Silkflex Polymers IPO Promoter Holding

Share Holding Pre Issue	99.84%
Share Holding Post Issue	69.89%

Company & Financials

The company was incorporated on May 13, 2016, Silkflex Polymers India Limited trades textile printing inks and water-based wood coating polymers produced by Silkflex Polymers SDN BHD, a Malaysian brand. The company offers 108 textile printing ink products and 51 wood coating polymer products. Silkflex Malaysia manufactures its products through its manufacturing unit located in Malaysia and the same products are then supplied around the globe through its authorized agents. The list of countries where Silkflex Malaysia supplies the products includes India, Thailand, Turkey, Russia, SriLanka, Bangladesh and Indonesia. As on this date of Prospectus, the Company has the right to sell the products of Silkflex and the rights to use the brand name of Silkflex in India. It offers a wide variety of products which consists of 108 textile printing ink products and 51 wood coating polymers products. SPIL has entered into an agreement with Silkflex Malaysia on October 01, 2016, for distribution and selling, the water-based textile printing inks products of Silkflex. It also entered into an agreement with Silkflex Malaysia on October 01, 2019 for distribution and selling, the wood coating polymers products of Silkflex Malaysia.

Silkflex Polymers (India) Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	3,446.35	2,374.73	1,968.81	1,314.06
Revenue	3,381.55	3,442.25	2,804.52	2,096.07
Profit After Tax	256.66	78.59	68.59	45.35
Net Worth	1,073.28	816.62	738.03	513.51
Reserves and Surplus	260.78	566.62	488.03	308.06
Total Borrowing	1,716.18	1,208.31	994.50	612.81
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	23.91%
ROCE	41.04%
Debt/Equity	1.6
RoNW	23.91%
P/BV	3.94
PAT Margin (%)	7.67

	Pre IPO	Post IPO
EPS (Rs)	0.97	2.95
P/E (x)	53.76	17.64

Objectives of Silkflex Polymers IPO

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objectives:

1. Acquisition of land.
2. Funding of capital expenditure requirements of the Company towards purchase of Plant and Machineries.
3. Funding Working Capital Requirements of the Company.
4. General corporate purposes.

Silkflex Polymers IPO Review

The company is engaged in the business of trading in Malaysian textile printing inks and water based wood coating polymer products in India. It posted average performance till FY23 and marked bumper profits for 9M of FY23. Based on this performance the issue appears fully priced. Such earning in trading business raise eyebrows and concern over its sustainability. Well-informed/cash surplus investors may park moderate funds for the medium to long term rewards.

FAQs for Silkflex Polymers IPO

What Is The Size Of The Silkflex Polymers IPO?

The offer size for Silkflex Polymers Limited’s IPO is a fresh issue of 34, 82,000 shares, valued at INR 18.11 crores. The company plans to allocate these funds towards land acquisition, plant and machinery purchases, general corporate needs, and meeting working capital requirements.
What Is The Price Band Of The Silkflex Polymers IPO?

The price of the issue is INR 52 per share.
What Is The Listing Date Of The Silkflex Polymers IPO?

The listing date of Silkflex Polymers IPO is May 15, 2024.
What Is The Allotment Date Of Silkflex Polymers?

The allotment date of the Silkflex Polymers IPO is May 13, 2024.
Who are the lead managers for the Silkflex Polymers Limited IPO?

Shreni Shares Limited is appointed as the lead manager for the IPO.
What is the financial performance of Silkflex Polymers Limited?

Silkflex Polymers posted a revenue of Rs 3,381.55 lakhs and net profit of Rs 256.66 lakhs for the period ending on 31 Dec 2023. The company’s revenue increased by 22.74% and PAT increased by 14.58% between the FY ending on March 31, 2023 and March 31, 2022.