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Plastene India Limited IPO (Plastene IPO) Detail

May 9, 2012 - May 15, 2012

Plastene IPO is a book built issue of Rs 77.74 crores.

Plastene IPO bidding started from May 9, 2012 and ended on May 15, 2012.

Plastene IPO price band is set at ₹81 to ₹84 per share. The minimum lot size for an application is 75 Shares. The minimum amount of investment required by retail investors is ₹6,300.

Motilal Oswal Investment Advisors Limited is the book running lead manager of the Plastene IPO, while Kfin Technologies Limited is the registrar for the issue.

Refer to Plastene IPO RHP for detailed information.

Plastene IPO Details

IPO Date May 9, 2012 to May 15, 2012
Listing Date [.]
Face Value ₹10 per share
Price Band ₹81 to ₹84 per share
Lot Size 75 Shares
Total Issue Size9,255,290 shares
(aggregating up to ₹77.74 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

Plastene IPO Reservation

Plastene IPO offers 9,255,290 shares. 4,600,000 (49.70%) to QIB, 1,380,000 (14.91%) to NII, 3,220,000 (34.79%) to RII, 55,290 (0.60%) to employees. 42,933 RIIs will receive minimum 75 shares and (sNII) and (bNII) will receive minimum 2,400 shares. (in case of oversubscription)

Investor Category Shares OfferedMaximum Allottees
Anchor Investor Shares Offered-NA
QIB Shares Offered4,600,000 (49.70%)NA
NII (HNI) Shares Offered1,380,000 (14.91%)
Retail Shares Offered3,220,000 (34.79%)42,933
Employee Shares Offered55,290 (0.60%)NA
Total Shares Offered9,255,290 (100%)

Plastene IPO Lot Size

Investors can bid for a minimum of 75 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 75 ₹6,300
Retail (Max) 31 2325 ₹195,300
Lot Size Calculator

About Plastene India Limited

Incorporated in 1998, Plastene India Limited is Gujrat based plastics packaging manufacturer. Company is part of Champalal group based in Gandhidham.

Plastene manufactures a variety of transport and storage containers (Jumbo bags/FIBCs) for both dry and liquid (bulk) goods, woven sack product (used in Chemicals, fertilizers, cement, urea, minerals, resin, polymers and rubber industry), variety of laminates (solvent less / solvent based) structures for food and non-food applications and wide range of high tenacity Polypropylene Multifilament yarn � dope dyed.

Plastene has four manufacturing facilities in India located at Gandhidham, Rajpur and Rakanpur in Gujrat. Plastene exports to around 30 countries and derives close to 49% sales from international customers.

Objects of the Issue (Plastene IPO Objectives)

The objects of the issue are:
1. Expansion of manufacturing facilities and purchase of plant and machinery for manufacturing of new product, block bottom valve bags at Nani Chirai;
2. Expansion of manufacturing facilities at Rajpur; and
3. General corporate purposes.

Plastene IPO Review (Avoid)

[Dilip Davda]  

Considering the current market status and higher asking price, it is better to stay away from this issue.

Read detail review...

Plastene IPO Subscription Status (Bidding Detail)

The Plastene IPO is subscribed 0.29 times on May 15, 2012 5:00:00 PM. The public issue subscribed 0.05 times in the retail category, 0.00 times in the QIB category, and 1.76 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Plastene India Limited IPO Grading

ICRA has assigned an IPO Grade 3 to Plastene India Ltd IPO. This means as per ICRA, company has 'Average Fundamentals'. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Read Plastene India Ltd IPO Grading Report.

IPO Notices

External Link

Plastene India Limited IPO Withdrawn

Plastene India Limited has withdrawn its IPO due to poor response from investor.

Plastene India public issue subscribed 0.2900 times on its final day of subscription. NII quota of the IPO subscribed most with bids received for 176% shares. The response in QIB and Retail Individual (RII) was worst. IPO didn't recieve a single bid in QIB quota.

Plastene India stands withdrawn

Dilip Davda (May 15th, 2012)

Plastene India IPO that opened on 09.05.12 and was to close on 15.05.12 got just 29% subscription till 5.00 pm on the last day and thus remained heavily undersubscribed and stood withdrawn. Surprisingly, the subscription pattern has once again raised eyebrows with QIB (0%), HNI (1.76 times) Retail (0.6%) and Employees (0.75%). For this it is said that with some operators having good HNI clients, the issue was subscribed by 1.76 times with under the table deal and for employees portion, company managed to got 75% subscription with loans given to employees, but as far as QIBs concerned, they stayed away from bidding in this offer. We always see that merchant bankers say that they discover the price band from the feedbacks received from this lot for whom the IPO is reserved upto 50% of the total issue, and they only duped them. Against sheer contrast to this, Samvardhana Motherson (SMFL) IPO that got full subscription from Anchor Investors who applied at a lower price band of Rs. 115 failed to garner further response with ultimate subscription of just 38% (including Anchor portion) till the last day and stood withdrawn. Thus Plastene India is the second casualty in just a week's time indicating situation worsening day by day and secondary as well as primary markets are heading for doom.

Plastene IPO Prospectus

Plastene IPO Rating

Rating:Rated 3.1 stars
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Plastene India Limited Contact Details

Plastene India Limited
H.B. Jirawala House,
13, Navbharat Society,
Usmanpura, Ahmedabad 380 013
Phone: +91 79 2756 1000

Plastene IPO Registrar

Kfin Technologies Limited

Phone: 04067162222, 04079611000

Plastene IPO - Buy or Not

Plastene IPO Recommendation Summary

Review By Subscribe Neutral Avoid
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Members 0 0 0

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Plastene IPO FAQs

Plastene IPO is a main-board IPO of 9,255,290 equity shares of the face value of ₹10 aggregating up to ₹77.74 Crores. The issue is priced at ₹81 to ₹84 per share. The minimum order quantity is 75 Shares.

The IPO opens on May 9, 2012, and closes on May 15, 2012.

Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Plastene IPO opens on May 9, 2012 and closes on May 15, 2012.

Plastene IPO lot size is 75 Shares, and the minimum amount required is ₹6,300.

You can apply in Plastene IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Plastene IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Plastene IPO allotment status.

The Plastene IPO listing date is not yet announced. The tentative date of Plastene IPO listing is [.].
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Plastene IPO Message Board

Ranked Members of Forum  Ranked Members | Most Liked Members



16. rajesh narang |   Link |  Bookmark |May 17, 2012 8:39:50 PM
finally i am happy at awakening of indian investors ,these greedy promoters, merchant advisors should be punished in such manners. even GOI is also fooling people by offering high priced equity.last example being MCX trading below offer price .
15. marketmint |   Link |  Bookmark |May 16, 2012 12:27:42 PM
I had said already on may-07 that this ipo may be withdrawn like samvardhan.Investors being saved from being caught.
14. gundu anna |   Link |  Bookmark |May 15, 2012 7:22:18 PM (500+ Posts, 100+ Likes)
Book Running Lead Manager to the issue has informed the Exchange that the Book Building issue of Plastene India Limited has been withdrawn.
13. gundu anna |   Link |  Bookmark |May 15, 2012 3:45:45 PM (500+ Posts, 100+ Likes)
Hehehehe IPO!!!! Good response retail!!! this is a good lesson for those blood suckers....
12. gundu anna |   Link |  Bookmark |May 13, 2012 9:43:52 AM (500+ Posts, 100+ Likes)
Hi All,

Decided NOT to apply for plastene IPO. Now whatever the listing gain(loss), I dont care.

This is being issued at expensive valations.... There may be some circular trading and price manipulation....but dont want to take risk. Also there is nothing unique in plastic bag manufacturing to invest....
11. hemant kumar |   Link |  Bookmark |May 12, 2012 1:30:43 PM
IPO subscription is being managed by the promoters that is why subscription only in non institutional investor quota.
10. Dilip Davda |   Link |  Bookmark |May 11, 2012 9:45:42 AM
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Despite murky situation for primary market, after Plastene IPO we have two more IPOs opening shortly. Monarch Healthcare is a small issue of Rs. 12 crore for BSE-SME platform listing and is having a fixed price of Rs. 40 per share. Issue opens on 12.05.12 and will close on 16.05.12. The NAV is boosted with promoter's placement at higher price, but company has yet to start operations. The other IPO is of Speciality Restaurant that opens on 16.05.12 and closes on 18.05.12. However, based on total size, issue is likely to be priced around Rs. 150, which appears to he on higher side.

Dilip Davda
SEBI registered Research Analyst

Read my IPO Reviews

9. GOEL BERIWALA |   Link |  Bookmark |May 9, 2012 6:57:20 PM




8. gundu anna |   Link |  Bookmark |May 9, 2012 7:21:07 AM (500+ Posts, 100+ Likes)
One more junk. This may go up in the short time but over a period of time, this is going to be another varun industires or vaswani.

Let us wait see some brokerage recommendation to decide to apply or not.

As of now, my decision is not to apply. If any change in this view, I will keep u updated...
7. bangalore king |   Link |  Bookmark |May 8, 2012 4:11:37 PM (400 Posts)
CM rating 35/100 .. doubt what company is thinking when coming out ?

The company's total consolidated net sales for FY 2011 have increased by 55% to Rs 484.43 crore. Of this, consolidated net sales of traded products increased by 65.37% to Rs 174.56 crore. The growth in domestic sales was 73% in FY 2011, while the growth in export sales was 34%. Out of total net sales, revenue from jumbo bags is Rs 129.81 crore (27% of sales), woven sack, fabric & tarpaulin is Rs 149.7 crore (31% of sales), multi-layer films & bags is Rs 57.91 crore (12% of sales), fillers, master batches, webbings, multi filament yarn is Rs 17.53 crore (4% of sales) and trading of granules is Rs 122.6 crore (26% of sales). The operating profit margin has gone down by 180 basis points to 10.1%. The net profit was up by 62% to Rs 21 crore.

The company's consolidated net sales for ten months ended January 2012 stood at Rs 382.51 crore. Out of total net sales, revenue from jumbo bag is Rs 135.98 crore (36% of sales), woven sack, fabric & tarpaulin is Rs 107.44 crore (28% of sales), multi layer films & bags is Rs 52.3 crore (14% of sales), Fillers, master batches, webbings, multi filament yarn is Rs 10.3 crore (3% of sales) and trading of granules is Rs 75.6 crore (20% of sales). The operating profit margin stood at 10.6%. The net profit stood at Rs 10.95 crore.

At a price band of Rs 81 to Rs 84 per equity share of Rs 10 face value, the P/E at the lower band works out to 13.27 times and at upper band it works out to be 13.76 times the EPS of Rs 6.1 for FY 2011 (on post-IPO equity). In packaging sector, the companies such as Jumbo Bag, Neo Corp International, Emmbi Polyarns, Flexituff International, Uflex and Karur KCP Packagings are trading at a PE of 16.7x, 7.1x, 7.8x, 21.8x, 1.1x and 3.5x times their respective FY 2011 earnings. Plastene India's 10-months annualized EPS works out to only Rs 3.7 (on post-IPO equity), which is discounted 22 to 23 times by the offer price band.
6. gundu anna |   Link |  Bookmark |May 7, 2012 9:46:52 PM (500+ Posts, 100+ Likes)
if any brokerage recommendation available please post here with the appropriate link.
5. Investors Friendly |   Link |  Bookmark |May 7, 2012 5:49:29 PM
4. marketmint |   Link |  Bookmark |May 7, 2012 1:16:39 PM
This ipo might be withdrawn too like samvardhan it seems. One must stay away from this ipo as the price may come to Rs.40.
3. GOOD BROKER |   Link |  Bookmark |May 7, 2012 11:39:35 AM
today market is down to 5000 index why waste time in applying in this ipo
i doubt to have any listing gains
fill money in these bags of the company only you will not loose or else loss in ipo
2. Investors Friendly |   Link |  Bookmark |May 6, 2012 4:40:00 PM
1. A LA |   Link |  Bookmark |May 6, 2012 3:19:57 PM