Premium Plast IPO opens on October 21: Check price band, lot size & more

Premium Plast Limited IPO will open for subscription next week on Monday, October 21. The subscription window of Premium Plast IPO is scheduled to close on Wednesday, October 23.

Investors interested in applying for Premium Plast IPO should check the key details about the NSE SME issue:

Premium Plast IPO offer size, price band and lot size

Premium Plast IPO is a book building issue worth ₹26.2 crore. The initial public offer consists of a completely fresh issue of 53.46 lakh shares.

The company has reserved 10.04% of the net issue for the Qualified Institutional Buyers (QIBs) and 44.98% of the issue for retail investors. As much as 44.98% of the net issue has been reserved for Non-Institutional Investors NIIs.

Premium Plast IPO price band has been fixed at ₹46 to ₹49 per share. Retail investors interested in applying for the Premium Plast IPO can place bids for a minimum of 3,000 shares, aggregating to an investment of ₹1,47,000. High-net-worth individuals (HNIs) can apply for a minimum of two lots or 6,000 shares, amounting to an investment of ₹2,94,000.

Premium Plast IPO: Subscription, allotment status and listing date

Premium Plast IPO is open for bidding from October 21 to October 23. Premium Plast IPO share allotment status is likely to be finalised by Thursday, October 24.

After the share allocation, refunds will be initiated for unsuccessful bidders on Friday, October 25, and successful bidders will receive shares of Premium Plast Limited in their Demat accounts on the same day.

The tentative listing date for Premium Plast Limited shares has been fixed as Monday, October 28. Premium Plast shares will be listed on the NSE SME platform Emerge.

Premium Plast Limited: Financials and key competitors

In FY24, Premium Plast reported over 6% increase in revenue at ₹46.7 crore compared to ₹44.04 crore in FY23. The company’s PAT grew over 200% to ₹4.77 crore in FY24 against ₹1.59 crore in FY23. In FY24, the company’s net worth grew over 40% to ₹16.52 crore compared to ₹11.74 crore in FY23.

Premium Plast is a manufacturer of plastic automotive components. The company’s competitors include other domestic automotive component manufacturers such as Varroc Engineering Limited and Uno Minda Ltd, according to its Red Herring Prospectus (RHP).

Premium Plast business model

Premium Plast is a tier-1 company which supplies plastic automotive components directly to original equipment manufacturers (OEMs). The company is engaged in the design, manufacture and supply of exterior plastic components, interior cabin components and under-the-hood components.

The company manufactures both injection- and blow-molded plastic articles for a broad group of industries and applications. It specialises in the manufacture of automotive parts and has manufactured over 600 components across three strategically located facilities in India.

Premium Plast Limited Promoters

Chetan Nagendra Dave and Lopa Chetan Dave are the company's promoters. The promoters of the company held a 95.45% stake in the company before the public issue. After the public issue, the shareholding of the company’s promoters will be reduced to 68.73%.

Premium Plast IPO Registrar

Khandwala Securities Limited is the book-running lead manager for Premium Plast IPO, and Bigshare Services Pvt Ltd is the registrar for the issue. Asnani Stock Broker is the market maker for the NSE SME issue.

Premium Plast IPO objectives

Premium Plast plans to use the money raised via the public issue to expand its existing manufacturing facility in Madhya Pradesh. The funds will also be used to purchase machinery and set up a rooftop grid solar power plant there.

The proceeds will also be used for prepayment and repayment of outstanding borrowings. The company will also use the funds for general corporate purposes and offer-related expenses.

About Premium Plast

Premium Plast Limited was founded in 1995. The company designs, manufactures, and supplies plastic automotive parts to commercial vehicle manufacturers. The company's product portfolio also includes industrial plastic parts and packaging components. The company has three manufacturing facilities located in Madhya Pradesh and Maharashtra. The company employed 39 people as of June 30, 2024.