Issue Period: May 9th-15th
Price Band (Rs): 81-84
Issue Size (Rs Cr): 75 - 77
Mcap (Rs Cr): 268 - 275
Grading (1 to 5): Grade 3
Promoter: Prakash H. Parekh
Listing: NSE, BSE
Grey Market: Discount
BRLM: Motilal Oswal
Plastene India Limited, incorporated in, 1998, was involved in importing plastic scrap and reprocessing it to manufacture agglomerates which were sold to various plastic manufacturers. In 2005, the company ventured into the manufacturing of woven sacks and woven fabrics for servicing the domestic salt, cement and fertilizer industries.
The company gradually expanded its product portfolio and started manufacturing FIBC (Flexible Intermediate Bulk Containers), flexible packaging, tarpaulin, multifilament yarn and master batch. In 2007, the company opened its second manufacturing unit in Rajpur village, Gujarat, to primarily manufacture woven bags and FIBC. Currently, the annual manufacturing capacity is 56,200 metric tons, of which 1,200 metric tons was added in FY 2012. The funds will be used for capacity expansion at Nani Chirai & Rajpur and should be completed by April 2013.
We recommend that investors avoid subscribing to the IPO of Plastene India as the underlying business of the company is volatile and the stock has been valued above its listed peers.
K.M.Global Finserv is an India based financial services firm. Company provides services in area of institutional equities, wealth management, corporate advisory including advisory services on mergers & acquisitions, restructuring, private placement of equity, debt and mezzanine instruments in domestic and international capital markets, trading in equity to high net worth individuals and Stock Broker services at BSE & NSE.
Research Analyst: Afshan Sayyad / +91 22 40023026
Head of Research: Aditya Damani / +91 22 22630125
KM Global Finserv Pvt. Ltd. 4th Floor, Surya Mahal, 5, Burjorji Bharucha Marg, Fort, Mumbai 400001
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