L.K. Mehta Polymers Limited is coming up with an IPO with a fresh issue of 10,40,000 shares worth INR 7.38 crores. The company aims to meet incremental working capital requirements and general corporate purposes. 

L.K. Mehta Polymers IPO – Important Dates 

Read more about L.K. Mehta Polymers Limited IPO GMP

L.K. Mehta Polymers Limited IPO – Company Profile 

L.K. Mehta Polymers Limited specialises in manufacturing and trading plastic products, including ropes, twines, and granules. Established a production unit 2004 for woven sacks and pipes, operating resiliently until its transfer in 2022. 

Specialising in ropes, twines, and granules, L.K. Mehta Polymers Limited serves industries like agriculture, shipping, mining, and packaging, providing durable and high-quality solutions for industrial and household applications. 

Branded as “Super Pack,” L.K. Mehta Polymers Limited delivers superior plastic products, meeting industry standards and customer needs. Its strong revenue growth record stands out through excellence, reliability, and long-term customer relationships. 

L.K.Mehta Polymers Ltd IPO Fundamental Analysis 

L.K. Mehta Polymers Limited’s financial analysis reveals a mixed performance. Revenue has shown consistent growth, equity increased, debt reliance decreased, profitability improved, EPS and RoNW rose, total assets expanded, liquidity weakened, and inventory turnover declined, indicating potential sales or management challenges. 

• Revenue Trend: The revenue increased from ₹1,675.21 lakhs in March 2022 to ₹1,816.26 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2024 is INR 1,185.71 lakhs.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) increased from ₹(0.76) lakh in March 2023 to ₹85.56 lakh in March 2024, boosting investor confidence. The profit for the period ending December 2024 is ₹41.77 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹(0.03) in March 2023 to ₹3.42 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ended December 2024 is ₹1.49. 
• Return on Net Worth (RoNW): The RoNW has risen from (0.35)% to 11.18%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Question 1/3

Write question A here

Submit the form, and get to know how you scored!!!

Phone *

Email *

Open Now

L.K. Mehta Polymers IPO Financial Analysis 

L.K. Mehta Polymers Limited IPO Peer Comparison 

L.K. Mehta Polymers Limited does not have a directly comparable listed peer. Hence, it is not possible to provide a peer comparison. 

L.K.Mehta Polymers Ltd IPO Objective 

The main objective of L.K. Mehta Polymers Limited is to meet incremental working capital requirements. 

1. To Meet Incremental Working Capital Requirement: The company intends to utilize INR 5.34 crores from the Net Proceeds of the Issue to meet increasing Net Working Capital requirements, with the remaining funds sourced from borrowings and internal accruals as needed. 

2. General Corporate Purpose: The company will deploy INR 1.34 crore towards general corporate purposes, including growth opportunities, debt servicing, business expenses, strategic initiatives, and contingencies, ensuring financial flexibility and sustained business expansion. 

L.K. Mehta Polymers IPO Risks And Challenges 

L.K. Mehta Polymers Limited’s risk includes high customer concentration (78% sales from top 10 clients), regional dependency (92% revenue from five states), and supply chain vulnerabilities (90% purchases from key suppliers), impacting revenue, operations, and stability. 

• With 78% of sales dependent on the top 10 customers, losing key clients could severely impact revenue, operations, and cash flow. Increased competition, changing demand, or quality concerns may further affect business stability. 

• The company’s domestic sales rely heavily on Madhya Pradesh, Uttar Pradesh, Bihar, Assam, and Rajasthan, contributing over 92% of revenue. Any disruption in these states could severely impact sales, financial stability, and business operations. 

• Dependence on a limited number of suppliers, contributing over 90% of purchases, exposes the company to supply chain risks. Any availability, quality, or pricing disruption could significantly impact procurement, revenue, and operations. 

L.K.Mehta Polymers Ltd IPO – Industry & Market Potential 

The global rope market, valued at USD 1.65 billion in 2021, is expected to reach USD 3.22 billion by 2030, driven by industrial demand, high-rise construction, and the growing adoption of synthetic ropes in various sectors. 

The plastic rope market, valued at USD 1.67 billion in 2021, is projected to reach USD 2.85 billion by 2030 at a 6.13% CAGR. Growth is driven by increasing demand from the marine and fishing industry for durable, water-resistant ropes. 

India’s rope market grew at a 10.51% CAGR in 2022, with increasing reliance on domestic production. However, declining competitiveness is reflected in the Herfindahl Index, rising from 1122 in 2017 to 1566 in 2022. 

L.K. Mehta Polymers Limited IPO – Type of Offer 

L.K. Mehta Polymers Limited is coming up with an IPO with a fresh issue of 10,40,000 shares worth INR 7.38 crores. The company aims to meet incremental working capital requirements and general corporate purposes. 

L.K. Mehta Polymers IPO Offer Size 

The offer size of L.K. Mehta Polymers Limited is INR 7.38 crores, consisting of a fresh issue of 10,40,000 shares. The company aims to meet incremental working capital requirements and general corporate purposes. 

L.K. Mehta Polymers Limited IPO Allotment Structure 

L.K. Mehta Polymers Limited’s allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 54,400 shares for Market Makers. 

• Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs 

• Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs. 

• Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 54,400 shares for this purpose. 

How to apply for L.K. Mehta Polymers IPO?

To apply for the L.K. Mehta Polymers Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the L.K. Mehta Polymers Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the L.K. Mehta Polymers Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check L.K. Mehta Polymers IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the L.K. Mehta Polymers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the L.K. Mehta Polymers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the L.K. Mehta Polymers Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the L.K. Mehta Polymers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

L.K. Mehta Polymers Ltd IPO Offer Registrar

The registrar for the L.K. Mehta Polymers Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED

Office No. S6 – 2, 6th Floor, Pinnacle Business Park,

Next to Ahura Centre, Mahakali Caves Road, 

Andheri – East, Mumbai – 400093, 

Maharashtra, India;

Tel. Number: +91 22 6263 8200;

Email Id: [email protected];

Website: www.bigshareonline.com 

L. K. Mehta Poly BSE SME IPO – FAQs