The Solve Plastic Products IPO is a fixed price issue totaling ₹11.85 crores. It includes a fresh issue of 13.02 lakh shares and does not have any offer-for-sale component.
Retail investors must invest at least ₹109,200, while the minimum investment for High Net Worth Individuals (HNIs) is 2 lots (2,400 shares) amounting to ₹218,400.
- Book Running Lead Manager – Finshore Management Services Limited
- Registrar of the Issue – Integrated Registry Management Services Private Limited
- Market Maker – Black Fox Financial.
Below are the details of Solve Plastic Products Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Solve Plastic Products IPO Details
| IPO Date | August 13, 2024 to August 16, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹91 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 1,302,000 shares (aggregating up to ₹11.85 Cr) |
| Fresh Issue | 1,302,000 shares (aggregating up to ₹11.85 Cr) |
| Offer for Sale | [.] shares of ₹10 (aggregating up to ₹0.00 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 3,066,250 |
| Share holding post issue | 4,368,250 |
| Market Maker portion | 66,000 shares |
Solve Plastic Products IPO Timeline
| IPO Open Date | Tuesday, August 13, 2024 |
| IPO Close Date | Friday, August 16, 2024 |
| Basis of Allotment | Monday, August 19, 2024 |
| Initiation of Refunds | Tuesday, August 20, 2024 |
| Credit of Shares to Demat | Tuesday, August 20, 2024 |
| Listing Date | Wednesday, August 21, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 16, 2024 |
Solve Plastic Products IPO Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹109,200 |
| Retail (Max) | 1 | 1200 | ₹109,200 |
| HNI (Min) | 2 | 2,400 | ₹218,400 |
Solve Plastic Products IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Retail Shares Offered | 50% of the net offer |
| Other Shares Offered | 50% of the net offer |
Solve Plastic Products IPO Promoters
Mr. Sudheer Kumar Balakrishnan Nair, Mr. Susil Balakrishnan Nair, and Mr. Balakrishnan Nair are the promoters of the company.
| Share Holding Pre Issue | 90.22% |
| Share Holding Post Issue | 49.87% |
Solve Plastic Products IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 2,211.53 | 1,874.27 | 1,822.99 |
| Revenue | 4,715.73 | 6,225.43 | 5,577.89 |
| Profit After Tax | 142.48 | 120.27 | -40.71 |
| Net Worth | 438.79 | 192.56 | 7,229,000.00 |
| Reserves and Surplus | 132.16 | -110.94 | -231.21 |
| Total Borrowing | 1,136.42 | 1,053.42 | 1,030.43 |
| Amount in ₹ Lakhs | |||
Solve Plastic Products Limited IPO Review
Established in 1994, Solve Plastic Products Limited specializes in the production of a wide range of unplasticized polyvinyl chloride (uPVC) pipes and rigid PVC electrical conduits, marketed under the brand name “BALCOPIPES.” The company operates three manufacturing units in Kerala and one in Tamil Nadu. Their products have been accredited by several authoritative bodies, including the Bureau of Indian Standards (BIS), Central Public Works Department (CPWD) in Chennai and Kochi, Military Engineer Services (MES), Integral Coach Factory, and Public Works Departments of Kerala and Tamil Nadu. The company’s primary market is Kerala.
The product portfolio of Solve Plastic Products includes:
- Solvent cement
- Water tanks
- Garden hoses
- Rigid PVC electrical cables
- PVC pipes
The company currently employs 165 people, not including managing directors.
Investment Overview
The upcoming IPO for Solve Plastic Products Limited, set for August 2024, is generating mixed sentiments among investors. While the company boasts a solid foundation with established government and institutional clients, its financial health raises some concerns. The company’s revenue has seen a significant decline of over 24% in the most recent fiscal year, although profit margins have improved by 18%. These mixed financial signals may cause some caution among potential investors.
On the positive side, the company has experienced management, a strong customer base, and a well-established brand in a niche market. However, the limited geographical reach and the decreasing revenue figures are significant red flags. Moreover, the IPO pricing suggests that the listing might not offer immediate gains, as indicated by the zero grey market premium (GMP).
Given the financial uncertainties and the company’s specific market focus, this IPO may be more suited to long-term investors who are confident in the company’s management and its ability to stabilize and grow its revenue. Conservative investors or those seeking short-term gains might want to consider other opportunities.