Solve Plastic Products Limited is coming up with an IPO consisting of a fresh issue of 13,02,000 shares worth INR 11.85 crores. The company aims to fund plant machinery, meet working capital needs, and support general corporate purposes.
Solve Plastic Products IPO – Important Dates
| Solve Plastic Products Limited IPO Date | August 13, 2024 to August 16, 2024 |
| Solve Plastic Products Limited IPO Listing Date | August 21, 2024 |
| Solve Plastic Products Limited IPO Price | INR 91 per share |
| Solve Plastic Products Limited IPO Lot Size | 1200 Shares |
| Solve Plastic Products Limited IPO Total Issue Size | INR 11.85 crores |
| Solve Plastic Products Limited IPO Basis of Allotment | August 19, 2024 |
| Solve Plastic Products Limited IPO Initiation of Refunds | August 20, 2024 |
| Solve Plastic Products Limited IPO Credit of Shares to Demat | August 20, 2024 |
| Solve Plastic Products Limited IPO Issue Type | Fixed Price Issue IPO |
| Solve Plastic Products Limited IPO Listing At | NSE SME |
Solve Plastic Products Limited IPO – Company Profile
Solve Plastic Products Limited, initially incorporated in 1994 and converted to a public company in 2024, is ISO 9001:2015 and BIS certified, specializing in uPVC pipes and rigid PVC electrical conduits with ongoing innovations.
Three advanced manufacturing facilities in Kerala and one in Tamil Nadu use the latest technology to produce high-quality uPVC pipes and electrical conduits. The fully automated plants are supported by a skilled team for efficient production and quality control.
Approved by BIS, CPWD, MES, and other agencies, the company received a Zero Failure License Achievement in 2024 and a BIS Certificate of Appreciation in 2022. It produces durable, affordable uPVC pipes and conduits using advanced technology.
Solve Plastic Products Ltd IPO Fundamental Analysis
Solve Plastic Products Limited Technologies’ financial analysis reveals a mixed performance. Revenue has increased steadily, equity has grown, profitability and EPS have improved, and RoNW has risen while inventory turnover has decreased, indicating potential sales or inventory challenges.
- Revenue Trend: The revenue increased from ₹5,506.51 lakhs in March 2022 to ₹6,077.17 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 4,619.13 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) has significantly increased from ₹(40.71) lakhs in March 2022 to ₹142.48 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹(1.34) in March 2022 to ₹4.66 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from (56.31)% to 32.47%, 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 increased, indicating strengthening 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.
Solve Plastic Products IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 5,506.51 | 6,077.17 | 4,619.13 |
| Equity (₹ in lakhs) | 72.29 | 192.56 | 438.79 |
| Expenses (₹ in lakhs) | 5,398.00 | 5,880.88 | 4,349.58 |
| Profit and Loss After Tax (₹ in lakhs) | (40.71) | 120.27 | 142.48 |
| Diluted EPS only (₹) | (1.34) | 3.96 | 4.66 |
| Return on Net Worth (%) | (56.31) | 62.46 | 32.47 |
| NAV per Equity Share (₹) | 2.38 | 6.34 | 14.31 |
| Total Assets (in lakhs) | 1,822.99 | 1,874.27 | 2,211.53 |
| Total Liabilities (in lakhs) | 1,750.7 | 1,681.71 | 1,772.74 |
| Debt Equity Ratio | 17.02 | 6.35 | 2.83 |
| Current Ratio (in times) | 0.85 | 0.91 | 1.03 |
| Inventory Turnover Ratio | 8.35 | 9.41 | 6.46 |
Solve Plastic Products Limited IPO Peer Comparison
Solve Plastic Products Limited has moderate earnings per share and a strong return on net worth compared to competitors. Companies like Captain Pipes Limited and Dutron Polymers Limited show higher earnings per share but varying profitability and asset returns.
| Company | Turnover (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Solve Plastic Products Limited | 4,619.13 | 10 | 19.52 | 4.66 | 32.47 | 14.31 |
| Captain Pipes Limited | 7,634.77 | 1 | 67.81 | 0.27 | 15.61 | 1.73 |
| Rungta Irrigation Limited | 14,877.30 | 10 | 22.34 | 4.47 | 6.50 | 43.60 |
| Dutron Polymers Limited | 11,924.43 | 10 | 42.97 | 4.08 | 9.26 | 44.05 |
| AIK Pipes and Polymers Limited | 3,727.25 | 10 | 24.12 | 6.69 | 15.56 | 34.46 |
Solve Plastic Products Ltd IPO Objective
The main objective of Solve Plastic Products Limited is to fund capital expenditure for new plants and machinery and meet working capital requirements.
- Funding Capital Expenditure towards Purchase of Additional Plant & Machinery: The company intends to utilize INR 5.53 crores to expand plant capacity for Rigid PVC Electrical Conduits and introduce HDPE Pipes production at existing facilities in Tamil Nadu and Kerala to meet growing market demand.
- Working Capital Requirement and Basis of Estimation: The company plans to utilize INR 17.15 crores in FY 2024-25 and INR 19.96 crores in FY 2025-26 for working capital, primarily for raw materials, inventory, and sundry debtors to support growth and operations.
- General Corporate Purpose: The company will allocate the balance funds INR 0.88 crores to general corporate goals, including strategic initiatives, brand building, addressing unforeseen contingencies, and other purposes to support overall business growth and operations.
Solve Plastic Products IPO Risks And Challenges
Solve Plastic Products Limited’s risk includes potential delays or cost overruns in machinery procurement, counterfeit products harming revenue and reputation, and reliance on a single business segment, which could impact revenue and financial stability.
- Delays or cost escalations in procuring machinery for the Tamil Nadu and Kerala facilities may cause time and cost overruns, affecting expansion, capital expenditures, and business operations and potentially leading to adverse outcomes.
- Counterfeit and look-alike products pose risks in India, as existing intellectual property protections may be insufficient. This could lead to revenue loss, legal expenses, and reputational damage, adversely affecting business and financial outcomes.
- Reliance on a single business segment, PVC Pipes and Electrical Conduits exposes us to risks such as reduced demand, increased competition, technological changes, raw material price fluctuations, and regulatory changes, potentially impacting revenue and financial condition.
Solve Plastic Products Ltd IPO – Industry & Market Potential
The Indian plastic industry, crucial to the economy, has evolved since 1957 and includes over 30,000 processing units. The government aims to triple its economic impact, with ten approved plastic parks to boost growth and employment.
In FY24 (until February), India’s plastic exports reached US$ 10.43 billion, with significant growth in human hair products, medical items, plastic pipes, and FRP composites. February 2024 saw a 19.7% increase in floorcoverings, leathercloth, and laminate exports.
India exports plastic to over 200 countries, with major markets including the USA, China, and the UAE. In 2022-23, the USA and China accounted for 19.37% and 5.78% of total exports, respectively. Recent agreements with UAE and Australia aim to boost exports.
Solve Plastic Products Limited IPO – Type of Offer
Solve Plastic Products Limited is coming up with an IPO consisting of a fresh issue of 13,02,000 shares worth INR 11.85 crores. The company aims to fund plant machinery, meet working capital needs, and support general corporate purposes.
Solve Plastic Products IPO Offer Size
The offer size of Solve Plastic Products Limited is INR 11.85 crores, consisting of a fresh issue of 13,02,000 shares. The company seeks funds for plant machinery, meet working capital needs, and support general corporate purposes.
Solve Plastic Products Limited IPO Allotment Structure
Solve Plastic Products Limited’s IPO 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 66,000 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 66,000 shares for this purpose.
How to apply for the Solve Plastic Products IPO?
To apply for the Solve Plastic Products 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.
- Check for IPO Details: Once your account is active, you can check for the Solve Plastic Products Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Solve Plastic Products 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 Solve Plastic Products IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- 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.
- 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.
- Select the Solve Plastic Products 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 Solve Plastic Products Limited IPO.
- 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 Solve Plastic Products Limited IPO:
● Registrar’s Website: Visit the website of Integrated Registry Management Services (P) Limited, the registrar of the Solve Plastic Products 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.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) 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.
Solve Plastic Products Ltd IPO Offer Registrar
The registrar for the Solve Plastic Products Limited IPO is Integrated Registry Management Services (P) Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
INTEGRATED REGISTRY MANAGEMENT SERVICES (P) LIMITED
No 30, Ramana Residency, 4th Cross, Sampige Road,
Malleswaram, Bengaluru – 560003, India
Telephone: 080-23460815/816/817/818
Email: [email protected]
Website: www.integratedregistry.in
Solve Plastic Products SME IPO – FAQs
1. What is the allotment date of the Solve Plastic Products IPO?
The allotment date of the Solve Plastic Products Limited IPO is August 19, 2024.
2. What is the price band of the Solve Plastic Products IPO?
The price band of the issue is INR 91 per share.
3. What is the size of the Solve Plastic Products IPO?
The offer size of Solve Plastic Products Limited is INR 11.85 crores, consisting of a fresh issue of 13,02,000 shares. The company seeks funds for plant machinery, meet working capital needs, and support general corporate purposes.
4. What is the listing date of the Solve Plastic Products IPO?
The listing date of Solve Plastic Products Limited’s IPO is August 21, 2024.
