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17 January 2024

Swashthik Plascon IPO: Transforming the Future of PET Packaging

Introduction:

Swashthik Plascon Limited, a dynamic player in the PET packaging industry, recently concluded its Initial Public Offering (IPO), successfully raising Rs 40.76 crores through a fresh issue of 47.39 lakh shares. The IPO, which witnessed robust investor participation, aimed to fund key initiatives and capital expenditures, marking a significant step for the company.

Key Dates:

Bidding Period	November 24 to November 29, 2023
Allotment Date	December 4, 2023
Listing Date	December 5, 2023

Issue Details:

Price Band	₹80 to ₹86 per share
Lot Size	1600 shares
Minimum Investment	₹137,600 for retail investors

Financial Overview:

Total Issue Size	Fresh Issue
4,739,200 shares, aggregating up to ₹40.76 Cr	4,739,200 shares

Shareholding Structure:

Pre-Issue	Post-Issue
12,824,795 shares	17,563,995 shares

Market Maker Portion:

Nikunj Stock Brokers	238,400 shares

IPO Managers and Registrar:

Lead Managers	Registrar	Market Maker
Shreni Shares Limited	Bigshare Services Pvt Ltd	Nikunj Stock Brokers

Subscription Insights:

The Swashthik Plascon IPO witnessed substantial subscription, with an overall subscription of 15.43 times. Noteworthy participation was seen from Non-Institutional Investors (NII) at 35.76 times, while Retail investors subscribed 13.58 times and Qualified Institutional Buyers (QIBs) at 3.42 times.

Swashthik Plascon IPO Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Listing Date
November 24, 2023	November 29, 2023	December 4, 2023	December 5, 2023

Lot Size:

Investors could bid for a minimum of 1600 shares, and the table below outlines the minimum and maximum investment by retail investors and High Net Worth Individual (HNI) investors:

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹137,600
Retail (Max)	1	1600	₹137,600
HNI (Min)	2	3,200	₹275,200

Swashthik Plascon IPO Reservation:

The IPO featured a reservation of 4,739,200 shares, with allocations to Anchor Investors, Market Maker, QIBs, NIIs, and retail investors.

About Swashthik Plascon Limited:

Established in June 2006, Swashthik Plascon Limited specializes in manufacturing PET bottles and PET preforms. The company's product portfolio includes PET bottles for various applications, ranging from pharmaceuticals to FMCG packaging, as well as PET preforms for diverse segments such as mineral water, beverages, edible oil, and more.

Financial Performance:

The company showcased robust financials for the period ending September 2023, with impressive figures in terms of assets, revenue, and profit after tax.

Metric	Values
Assets	₹11,416.09 Lakhs
Revenue	₹6,973.65 Lakhs
Profit After Tax	₹528.48 Lakhs
Net Worth	₹2,564.07 Lakhs
Reserves and Surplus	₹1,281.59 Lakhs
Total Borrowing	₹6,231.66 Lakhs

Key Performance Indicators:

- Market Capitalization: ₹151.05 Crores
- Return on Equity (ROE): 22.78%
- Return on Capital Employed (ROCE): 17.30%
- Debt/Equity: 2.89
- Return on Net Worth (RoNW): 14.95%

Objects of the Issue:

The net proceeds from the IPO will be utilized for various purposes, including funding capital expenditure, setting up a solar power plant, purchasing plant and machinery, working capital requirements, and general corporate purposes.

Conclusion:

While Swashthik Plascon IPO received mixed reviews from experts, the company's strategic objectives and financial performance signal potential growth. Investors with a long-term perspective may consider this IPO, but it's advisable to delve into the detailed prospectus for a comprehensive understanding of the offering. Swashthik Plascon's foray into the public market opens doors to new opportunities and possibilities in the PET packaging sector.

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