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Swashthik Plascon Ltd. IPO - Review, Valuation, Date & GMP

  


Swashthik Plascon Limited IPO  - Complete Overview

Established in the year 2007, Swashthik Plascon is situated in Pondicherry, strategically located approximately 160 km from Chennai and just 20 km from Pondicherry city. Nestled within an industrial estate developed by the Pondicherry Industries Department, the company specializes in the production of PET(polyethylene terephthalate) preforms and PET bottles for Soft Drinks bottles and Packaged Drinking Water bottles.

Under the guidance of a seasoned engineer with extensive expertise in plastics processing, Swashthik Plascon benefits from a proficient team committed to upholding the quality standards of PET preforms. The company's dedication to quality is evident in the use of premium food-safe resin and the incorporation of cutting-edge machinery, complemented by the skills of the professional team. Swashthik Plascon is steadfast in its objective to deliver products of superior quality while prioritizing user safety.

Their main products are

  1. PET Bottles.
  2. PET Preforms.
  3. Pilfer Proof Caps.

 

What does the company do?

Situated within an industrial park established by the Pondicherry Industries Department, the company stands as a prominent manufacturer of PET preforms and PET bottles. Its operations commenced with five ASB 50MB and ASB 70DPH machines, enabling the production of preforms in various neck types, sizes, and weights to meet diverse market demands.

Over the past three years, the company has witnessed a shift in its sales composition. PET bottles continue to dominate sales, experiencing a slight increase in 2023. PET preform sales have also gained traction, while pilfer-proof cap sales have declined significantly. The company has also streamlined its trading products, with PET bottles remaining the cornerstone of its offerings.

 

 

Swashthik Plascon Limited IPO Overview

Swashthik Plascon Limited IPO date is slated to be open for subscription from November 24, 2023, to November 29, 2023. This BSE SME IPO follows a Book-Built Issue IPO.

The Swashthik Plascon Limited IPO  price is fixed at Rs. 80 to Rs. 86 per share. The upcoming  BSE SME IPO will be listed on December 7, 2023.

The total issue size of this IPO amounts to Rs. 40.76 Cr. Within this total issue, 35% is issued to retail investors.

 

Swashthik Plascon Limited IPO Timetable (Tentative)

Events

Date

IPO Opening Date

24 November 2023

IPO Closing Date

29 November 2023

IPO Allotment Date 

4 December 2023

Refund initiation 

5 December 2023

IPO Listing Date

7 December 2023

 

Swashthik Plascon Limited IPO Details

IPO Opening & Closing Date

24 November to 29 November 2023

Face value 

Rs. 10 per Share

Issue Price

Rs. 80 to Rs. 86 per Share

Lot Size

1600 Shares

Price of 1 Lot

Rs. 137,600

Total Issue Size

4,740,000 Shares (aggregating up to Rs. 40.76 Cr)

Fresh Issue

4,740,000 Shares (aggregating up to Rs. 40.76 Cr)

Listing at

BSE SME
Issue Type 

Book Built Issue IPO

Registrar 

Bigshare Services Pvt Ltd .

 

Swashthik Plascon Limited IPO Lot Details

Application

Lots

Shares

Amount

Minimum Lot Investment (Retail)

1 lot

1600

Rs. 137,600

Maximum Lot Investment (Retail)

1 lot

1600

Rs. 137,600

Minimum Lot Investment (HNI)

2 lot

3,200

Rs. 275,200

 

 

Swashthik Plascon Limited IPO Reservation

QIB Shares Offered

Not more than 50%

Retails Shares Offered

Not more than 35%

HNI Shares Offered

Not more than 15%

 

Company Financial

The company's financial performance has shown a mixed trend over the past three fiscal years. While total revenue increased from FY 21 to FY 22, it experienced a decline in FY 23. However, the Profit After Tax (PAT) saw a significant boost in both FY 22 and FY 23, indicating improved operational efficiency or increased sales. 

(Amount in Lakhs)

Period

FY 23

FY 22

FY 21

Total Assets

     

Total Revenue

4,589.10

4,986.51

3,533.97

PAT

302.19

13.01

6.91

Net worth

2,021.55

631.53

618.52

Reserve & Surplus

739.07

31.53

18.52

Total Borrowings

1,589.59

1,495.61

1,515.58

 

Revenue Distribution Product-Wise

Most of their sales come from PET Bottles, but the percentage went down a bit in 2022 and then increased a little in 2023. They started selling a lot more PET Preforms Kgs, which are the raw materials for the bottles. Sales of Pilfer Proof Caps went down a lot. They also sell Trading Products, which are a small part of what they offer, and these sales decreased over the years. 

(in % age)

Particulars

FY 23

FY 22

FY 21

PET Bottles

79.30%

77.12%

86.56%

PET Preforms Kgs

20.55%

0.05%

12.02%

Pilfer Proof Caps

0.04%

22.47%


0.08%

Trading Products

0.11%

0.37%

1.34%

Total

100%

100%

100%

 

Revenue Distribution State-Wise

In simple terms, the company makes most of its money from Tamil Nadu, but the percentages from other states have changed over the years. Puducherry used to contribute more but now contributes less. Karnataka and Kerala also saw significant drops in their contributions, while Odisha and Andhra Pradesh have small but noticeable shares in the most recent fiscal year.

(in % age)

Particulars

FY 23

FY 22

FY 21

Tamil Nadu

54.81%

41.04%

47.58%

Puducherry

41.11%

50.76%

45.62%

Delhi

0.01%

-

-

Odisha

0.06%

-

-

Karnataka

1.43%

1.60%

45.62%

Kerala

2.41%

4.87%

5.72%

Andhra Pradesh

0.18%

1.73%

0.76%

Total

100%

100%

100%

 

Revenue By Operations

Overall, the total income went down a bit in FY 23 compared to FY 22 but is still higher than FY 21. So, the company's total earnings had some changes over the past three years.

(Amount in Lakhs)

Particulars

FY 23

FY 22

FY 21

Revenue from operations

4561.81

4947.29

3389.66

Other Income

27.30

39.22

144.30

Total Income

4589.10

4986.51

3533.97

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

  • Funding capital expenditure for developing new manufacturing facilities and installation of Plant and Machinery
  • Purchase of Plant and Machinery at the Existing Manufacturing Facility
  • Funding of capital expenditure requirements of the Company towards Set up of Solar Power Plant
  • Funding Working Capital Requirements of the Company
  • General corporate purposes

 

Promoters and Management of Swashthik Plascon Limited IPO

The promoters of the Company are Mr. Parasmal Mahendra Kumar, Mr. Parasmal Ravindra Kumar, Mr. Parasmal Dharmendra Kumar, Mr. Misrilal Parasmal, Mrs. P Umrao, Mrs. Mahendrakumar Nirmala, Mrs. R Asha Jain and Mrs. D Anit.

Pre-issue Promoter Shareholding

60.00%

Post-issue Promoter Shareholding

 

 

Swashthik Plascon Limited IPO Lead Managers

  • Shreni Shares Private Limited

 

Peers of Swashthik Plascon Limited

No companies, both in India and internationally, are currently listed and involved in the development of a product line similar in both type and scale to that of our company. Hence, it is not feasible to offer a comparison of accounting ratios between the industry and our company.

 

IPO's Valuations

To evaluate the valuation of the  IPO, we can utilize the information presented in the company's DRHP. Swashthik Plascon Limited is fixed at Rs. 80 to Rs. 86 per share, with an EPS of Rs. 4.99. Based on the issue price the company's P/E ratio is calculated at 17.23.

 

Dividend Policy

The company does not have a formal dividend policy. Its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

  • Experienced Management.
  • Success of other Group companies.
  • Extensive industry knowledge – commercial & technical.
  • Positive interaction.
  • Increased efficiency & decreased cost.

 

IPO's Weaknesses

  • No Peer Comparison
  • Incomplete Financial Analysis
  • Lack of IPO GMP Information
  • Uncertain Dividend Policy

 

 

IPO GMP Today

The Latest GMP of Swashthik Plascon Limited IPO is Rs. 7.

 

Conclusion

In short, Swashthik Plascon Limited's IPO, scheduled from November 24 to November 29, 2023, offers shares at ?80 to ?86 per share. The company, known for PET preforms and bottles, emphasizes quality and has seen a rise in Profit After Tax. While there are strengths like experienced management, the absence of peer comparison and an uncertain dividend policy are potential concerns. Stay tuned for updates on IPO GMP.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

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Hope you loved the IPO analysis.
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Frequently Asked Questions

+

The IPO subscription is scheduled from November 24 to November 29, 2023. The price range for shares offered is between Rs. 80 to Rs. 86 per share.

+

The total issue size of the IPO stands at Rs. 40.76 Cr, with 35% of this allotted to retail investors.

+

Swashthik Plascon specializes in producing PET bottles, PET preforms, and pilfer-proof caps. They operate within an industrial park in Pondicherry, manufacturing preforms for diverse market needs.

+

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

+

Strengths include experienced management, industry knowledge, and increased efficiency. Weaknesses encompass the absence of peer comparison and an uncertain dividend policy.

+


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