L.K. Mehta Polymers Ltd, a company specializing in the manufacturing and trading of plastic products, has announced its Initial Public Offering (IPO) to raise capital for working capital requirements and general corporate purposes. The IPO is scheduled to open on February 13, 2025, and close on February 17, 2025.

Company Overview

Incorporated on January 2, 1995, in Gwalior, Madhya Pradesh, L.K. Mehta Polymers Ltd operates under the brand name “Super Pack,” emphasizing quality and customer satisfaction. The company’s product portfolio includes:

• Monofilament Ropes
• Danline Ropes
• Tape Ropes
• Baler Twine
• Packaging Twine (Sutli)

These products serve various industries such as transportation, agriculture, packaging, shipping, mining, and heavy machinery transport. Additionally, the company engages in the trading and reprocessing of polypropylene and polyethylene granules, catering to diverse industrial needs.

IPO Timeline

• Issue Open Date: February 13, 2025
• Issue Close Date: February 17, 2025
• Allotment Finalization: February 18, 2025
• Refund Initiation: February 19, 2025
• Shares Credited to Demat Accounts: February 20, 2025
• Listing Date: February 21, 2025

Price Band and Lot Size

• Price Band: ₹71 per equity share
• Face Value: ₹10 per share
• Lot Size: 1,600 shares
• Minimum Investment: ₹113,600

Investors can bid for a minimum of 1,600 equity shares and in multiples thereof.

Financials

The company’s financial performance over the past three fiscal years is as follows:

This data indicates a consistent increase in revenue, with a notable improvement in net profit in the fiscal year 2023-2024.

Strengths

• Diverse Product Range: Offers a wide array of plastic products catering to multiple industries.
• Established Brand Identity: The “Super Pack” brand is recognized for quality and reliability.
• Strategic Raw Material Sourcing: Engages in trading and reprocessing of polypropylene and polyethylene granules, ensuring a steady supply of raw materials.
• Geographical Reach: Primarily serves Madhya Pradesh, with expanding markets in Uttar Pradesh, Bihar, and Rajasthan.

Risks

• Fluctuating Raw Material Prices: Dependence on polypropylene and polyethylene exposes the company to price volatility.
• Competitive Market: Operates in a highly competitive industry with numerous players.
• Profitability Variations: Notable fluctuations in net profit over recent fiscal years.

IPO Anchor Investors Details

As of now, specific details regarding anchor investors for L.K. Mehta Polymers Ltd’s IPO have not been disclosed.

IPO Promoter Holding

The promoters of the company are Mr. Kamlesh Mehta and Ms. Rina Mehta. Prior to the IPO, the promoters hold a 100% stake in the company. Post-issue, the promoter’s shareholding is expected to decrease to approximately 72.92%.

IPO Grey Market Premium (GMP)

As of February 12, 2025, the Grey Market Premium for L.K. Mehta Polymers Ltd’s IPO is reported to be ₹10, indicating a premium over the issue price of ₹71 per share. It’s important to note that GMP is subject to change and may not accurately reflect the stock’s actual listing performance.

Final Thoughts

L.K. Mehta Polymers Ltd’s IPO offers an opportunity to invest in a company with a long-standing presence in the plastic products industry. The company’s diverse product portfolio, established brand, and consistent revenue growth are positive indicators. However, potential investors should consider the risks associated with raw material price volatility and market competition. Conducting thorough due diligence is recommended before making investment decisions.