Barflex Polyfilms hits 5% upper circuit after flat debut at ₹60 on NSE SME; check details

Shares of small and medium enterprise (SME) Barflex Polyfilms Ltd made a disappointing trading debut on Monday, January 20, with the stock listing flat on the NSE SME platform, Emerge.

The Barflex Polyfilms stock opened the session at ₹60 apiece on the NSE, the same as its initial public offering (IPO) price. However, within minutes of the opening of the session, the share price rose as much as 5% to hit the upper circuit limit of ₹63 apiece.

As the share listed at its IPO price only, successful bidders who were allotted shares in the primary issue made no listing gains even after the stock started trading in the secondary markets.

Soon after listing, as many as 13.24 lakh company shares were traded on the NSE. The total trading value stood at ₹8.3 crore. The company’s market share reached nearly ₹156 crore.

Barflex Polyfilms IPO details

The ₹39.42-crore Barflex Polyfilms IPO had seen huge demand while it was open for subscription during January 10 and January 15. The issue was oversubscribed 151.5 times during the four-day bidding period.

The non-institutional investors’ (NII) segment was subscribed the most at over 373 times. The retail category was overbid by 98.5 times. The qualified institutional buyers’ (QIB) quota was, meanwhile, overbought by more than 78 times.

The Barflex Polyfilms IPO was a 100% book-built issue comprising a fresh issuance of 20.53 lakh shares, worth up to ₹12.32 crore, and an offer-for-sale (OFS) of 45.16 lakh shares, aggregating to ₹27.1 crore. The company had fixed the price band at ₹57 to ₹60 per share, while the lot size was 2,000 shares.

As per the Red Herring Prospectus, Barflex Polyfilms has proposed to use the proceeds from the fresh issuance of the IPO to fund capital expenditure towards the purchase of additional plant and machinery, and for general corporate purposes.

Barflex Polyfilms is a leading manufacturer of flexible packaging materials, specialising in a wide range of high-quality packaging materials like COEX films, laminates, and labels. The company primarily caters to customers in the FMCG, processed foods, adhesives, engineering, pharmaceuticals, cosmetics and construction industries. It has three manufacturing units in Baddi, Himachal Pradesh.

In the financial year 2024-25, the company reported revenue of ₹78.02 crore for the period till November 2024. Its Profit after tax (PAT) stood at ₹13.49 crore during this period.

For the full financial year 2023-24, revenue increased marginally to ₹116.12 crore compared to ₹110.4 crore in FY 2022-23. The company’s net profit in FY24 stood at ₹16.23 crore compared to ₹10.13 crore in FY23.