Purv Flexipack IPO witnesses strong demand on day 1: Issue subscribed 52 times, check key details

Purv Flexipack IPO has seen a strong demand from the investors on day 1. The initial public offer (IPO) of the packaging solutions company subscribed more than 52 times on the first day.

The public issue received bids for a total of 21.7 crore equity shares compared to 41,47,200 shares on offer on day 1, according to the NSE data.

The Purv Flexipack IPO subscription is open from February 27 to February 29.

Ahead of the public issue going live, Purv Flexipack conducted an anchor investment round, which was fully subscribed with bids for 15,16,800 shares. The company raised ₹10.76 crore from anchor investors.

The qualified institutional buyers’ (QIBs) segment received a lukewarm response as bids for only 2.49 lakh shares were received as against 10,52,800 equity shares reserved for the category. The non-institutional investors’ (NIIs) category saw the highest demand with biddings of nearly 46 times. In the NIIs segment, bids for over 3.87 crore shares were received as against 8.44 lakh shares on offer.

The retail segment also saw a strong demand as applications for nearly 17.9 crore shares were received compared to 19 lakh shares set aside for the category. The retail portion was subscribed 93 times.

Purv Flexipack IPO issue size comprises 56.64 lakh equity shares. This includes 3,48,800 equity shares of Market Maker’s portion and another 15.16 lakh shares for anchor investors.

The company has reserved not more than 50% of the shares for qualified institutional buyers (QIB). Another 15% of equity shares are reserved for non-institutional institutional investors (NIIs) and 35% is kept aside for retail individual investors (RIIs).

Purv Flexipack IPO price band, lot size and other details

Purv Flexipack Ltd IPO consists of an entirely fresh issue of 56.64 lakh equity shares and there is no offer for sale (OFS) component. The Purv Flexipack IPO price band has been set at ₹70 to ₹71 per equity share of a face value of ₹10 each.

The company intends to raise ₹40.21 crore through the IPO. Net proceeds from the public issue will be used by the company for repayment of debts and meeting its working capital requirement. A portion of the proceeds will be used by Purv Flexipack for general corporate purposes.

The company has appointed Holani Consultants Private Limited as the sole booking running and lead manager for the public issue. Holani Consultants Private Limited is also the market maker for the IPO whereas Link Intime India Private Ltd is the official registrar.

The Purv Flexipack IPO lot size for retail investors consists of 1,600 shares aggregating to minimum investment of ₹1,13,600 and in multiples thereof. The ceiling for investment by retail investors is capped at ₹2 lakh.

The Purv Flexipack IPO share allotment is expected to be finalised on Friday, March 1. The credit of shares into the demat account of successful bidders and refunds for those who could not secure shares in the public issue is tentatively scheduled for Monday, March 4.

The Purv Flexipack IPO is scheduled to be listed on NSE SME platform, Emerge, on Tuesday, March 5.

Purv Flexipack promoters, Rajeev Goenka, Poonam Goenka and Purv Logistics Private Limited, presently hold 92.17% stake in the company.

About Purv Flexipack Ltd

Incorporated in 2005, Purv Flexipack is engaged in the manufacturing and supply of packaging products. The company supplies polyester films, cast polypropylene (CPP) films, biaxially oriented polypropylene (BOPP) film, plastic granules, inks, adhesives, masterbatches, ethyl acetate and titanium dioxide. The company is a dealer-operated polymer warehouse (DOPW) and a Del Credere Associate (DCA) for Indian Oil Corporation Limited's polymer sector.

Purv Flexipack has shown a stable growth in its financial performance over the last three years. The firm's revenue from operations grew from ₹133.03 crore in FY21 to ₹229.43 crore in FY22 and ₹341.07 crore in FY23.

During the period, its net profit increased from ₹5.67 crore in FY21 to ₹6.26 crore in FY22 and ₹8.26 crore in FY23.