Purv Flexipack makes a strong market debut, shares list at 266% premium on NSE Emerge

The stock of Purv Flexipack Ltd, a leading flexible packaging solution provider, made a strong market debut, listing at a premium of over 266% to the IPO price on Tuesday, March 5. It opened at ₹260 apiece on NSE Emerge, SME platform of the stock exchange, against the issue price of ₹71 per share.

After making a strong debut on NSE Emerge, shares of Purv Flexipack Ltd rallied further to touch a high of ₹273 apiece in morning trade. However, the stock pared early gains and hit a 5% lower circuit at ₹247 apiece.

The total trading volume in the first one hour of listing stood at over 22.11 lakh shares worth ₹57 crore while the company’s market capitalisation stood at ₹518.27 crore.

The bumper listing was on the back of robust demand for shares from NIIs (non-institutional investors) and retail buyers. NIIs bid a massive 691 times their quota, while retail investors applied 449.82 times their reserved portion. QIBs (qualified institutional buyers) bought 157 times. Overall, the public issue was subscribed 421.78 times.

Purv Flexipack IPO, a book-built issue of ₹40.21 crore, offered a little over 19 lakh shares (33.56%) to retail investors, about 10 lakh shares (18.59%) to QIBs, and 8.44 lakh shares (14.92%) to NIIs.

Purv Flexipack IPO, entirely a fresh issue of 56.64 lakh shares of a face value of ₹10 each, was open for subscription for three days from February 27-29, 2024. The allotment of shares was finalised on March 1. Subscribers can check the share allotment status on the registrar's portal.

Subsequently, the company initiated the refund process for unsuccessful applicants on March 4, while successful bidders received their shares in their demat accounts the same day.

The IPO price band was set at ₹70-71 per share and the lot size for application was fixed at 1600 shares. The minimum amount of investment required by retail investors was ₹1,13,600.

A total of 15.16 lakh shares were allotted to anchor investors for ₹71 per share. The company raised ₹10.77 crore from anchor investors on February 26, 2024.

Established in 2005, Purv Flexipack is into the distribution of plastic products, including BOPP film, polyester films, CPP films, plastic granules, inks, adhesives, masterbatches, ethyl acetate and titanium dioxide.

The company's product portfolio includes - plastic granules, biaxially oriented polypropylene (BOPP) films, Matt BOPP, HS BOPP, glossy / plain / printing grade BOPP, pearlized, BOPP, tape and textile BOPP, polyester films and cast polypropylene (CPP) films.