Sylvan Plyboard IPO price band fixed at ₹55 per share: Check key factors ahead of June 24 launch

Wood products manufacturer Sylvan Plyboard (India) Limited is set to make its stock market debut with the launch of an initial public offer (IPO) worth ₹28.05 crore.

The Sylvan Plyboard IPO will open for subscription on Monday, June 24 and close on June 26.

Sylvan Plyboard IPO dates

Following the closure of the subscription window, the IPO shares allotment status is expected to be finalised on June 27. The company is likely to make the refunds and the credit of shares to the demat accounts on June 28.

Sylvan Plyboard's IPO listing date has been tentatively fixed as July 1. The company's shares will be listed on the NSE SME platform.

Sylvan Plyboard promoters

Finshore Management Services Limited serves as the book running lead manager for the Sylvan Plyboard IPO, while Bigshare Services Pvt Ltd acts as the registrar. Black Fox Financial has been appointed as the market maker for the IPO.

Singh Suppliers Private Limited, along with Anand Kumar Singh, Jai Prakash Singh, Shakuntala Singh, and Kalyani Singh, are the promoters of Sylvan Plyboard (India) Ltd. Currently holding 99.8% of the company’s shares, the promoters’ collective ownership will reduce to 71.23% post the public issue.

Sylvan Plyboard IPO offer size and price band

Sylvan Plyboard public offer is a fixed-price issue, consisting entirely of a fresh issue of 51 lakh shares with a face value of ₹10 each. Out of this, 2.56 lakh shares have been earmarked for the market maker, Black Fox Financial.

The net issue size available for public subscription is 48.44 lakh equity shares of ₹10 each. The company has reserved 24.22 lakh shares each for retail investors and other categories.

Sylvan Plyboard IPO price band has been set at ₹55 per share. The minimum lot size is 2,000 shares for retail investors, equating to an investment of ₹1,10,000. High Net-Worth Individuals (HNIs) are required to apply for at least 2 lots, or 4,000 shares, amounting to an investment of ₹2,20,000.

Sylvan Plyboard IPO objective

The company intends to use the funds raised towards capital expenditure, specifically for acquiring additional plant and machinery. A portion of the IPO proceeds will also be used to bolster working capital requirements. The proceeds will also cover issue-related expenses. The company will also use a part of the funds for general corporate purposes.

Sylvan Plyboard IPO risks

The company, its directors, promoters and group companies are involved in ongoing legal proceedings, the outcome of which could significantly impact business, financial results and overall financial health. Additionally, recent fiscal periods have shown negative cash flow, which, if sustained, could further adversely affect the company’s operations and financial condition. This apart, the presence of counterfeit products resembling the company’s own in domestic markets poses a risk to its brand and financial performance. Lastly, the company has issued equity shares at prices lower than the current IPO price in the last 12 months, which may impact investor sentiment and shareholder value.

Sylvan Plyboard IPO financials

Sylvan Plyboard (India) Limited reported a net profit of ₹3.52 crore for the fiscal year ended March 31, 2023, an improvement from ₹3.05 crore in the previous fiscal year ending March 31, 2022. The company's total revenue for FY23 was ₹199.15 crore, up from ₹172.92 crore in FY22. For the nine months ending December 2023, the company achieved a net profit of ₹4.47 crore and recorded revenue of ₹161.93 crore.

About Sylvan Plyboard (India) Limited

Established in 2002, Sylvan Plyboard (India) Limited is engaged in the manufacturing of a wide array of wood products, including plywood, block board, flush doors, veneer and sawn timber. The company operates with a network of 223 authorised dealers across 13 states in India. Its product range caters to various industries such as shipping, construction, real estate, interior decor, furniture, aviation, education, healthcare, transportation, banking and government projects. The company’s manufacturing facility is located in Hooghly, West Bengal.

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