Premium Plast IPO Booked Over 3 Times On Day 1; GMP Climbs 28% - Check Details

The initial public offering (IPO) of Premium Plast Ltd. opened for subscription on Oct. 21. The NSE SME IPO, aimed at raising Rs 26.3 crore, is an entirely fresh issue of 53.46 lakh shares.

Investors who want to subscribe to the Premium Plast IPO should check these important details about the public offer before bidding.

The Premium Plast IPO price band has been fixed at Rs 46 to Rs 49 per share. Retail investors can apply for a minimum lot size of at least 3,000 shares, amounting to an investment of Rs 1,47,000.

Premium Plast IPO share allotment status is expected to be finalised on Oct. 24. The company will transfer the shares to the demat accounts of successful bidders on Oct. 25, while refunds will be initiated to non-allottees the same day.

Shares of Premium Plast Ltd. are scheduled to be listed on the NSE SME platform, Emerge, on Oct. 28.

Bigshare Services Pvt. Ltd. is the registrar for the Premium Plast IPO. On the other hand, Khandwala Securities Ltd. is the book-running lead manager of the issue and Asnani Stock Broker is its market maker.

The IPO was subscribed 3.76 times on Monday

• Qualified Institutions: 1 time

• Non-Institutional Buyers: 0.89 times

• Retail Investors: 7.25 times

Premium Plast IPO GMP (grey market premium) was at Rs 14 as of 6:27 p.m. on October 21, according to InvestorGain. This indicates a potential listing gain of 28.57%, with the listing price estimated to be Rs 63 per share, considering the upper end of the price band.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Incorporated in 1995, Premium Plast Ltd. directly supplies exterior, interior and hood plastic parts to commercial vehicle manufacturers. The company designs and manufactures these parts.

It also makes different injection and blow moulded plastic parts for several industries and applications. The products include automotive parts, industrial plastic parts, and packaging components

The company has three manufacturing units, two of which are located in Pithampur in Madhya Pradesh, while the other unit is located in Vasai, Maharashtra.

Use Of IPO Proceeds

Premium Plast will use the proceeds from the public offer to expand its manufacturing plant in Pithampur, Madhya Pradesh, and purchase machineries. A portion of the funds will also be used for funding capital expenditure to set up a rooftop grid solar power plant at its existing facility in Pithampur.

The company will also utilise a portion of the funds for repaying and prepaying debt, general corporate purposes, and offer-related expenses.

Premium Plast reported a revenue of Rs 46.7 crore in FY24, up 6% year-on-year compared to Rs 44.04 crore in the previous fiscal. The company’s profit after tax (PAT) also saw a multifold jump to Rs 4.77 crore in FY24 against Rs 1.59 crore in the preceding financial year.

In the June quarter of FY 2024-25, the company recorded a revenue of Rs 12.12 crore and a PAT of Rs 1.41 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.