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G M Poly BSE SME IPO review (May apply)

Review By Dilip Davda on September 26, 2020

  • GMPL engaged in the manufacturing of HIPS, ABS and PET related products.
  • It has shown impressive growth with rising bottom lines.
  • Issue appears reasonably priced considering P/E and P/BV parameters.
  • Investors may consider investment with long term perspective.


The Lead Manager Gretex Corporate Services Pvt. Ltd. first made the announcement in media for the public issue of 506000 shares at Rs.160 per share with a market lot of 1000 shares. As the market lot was wrong, it modified the issue size to 508800 shares to match market lots mathematics and also reduced the price from Rs. 160 to Rs. 159 to match the final amount based on revised equity shares numbers. Thus lead manager garbled on many counts.


G M Polyplast Ltd. (GMPL) is in the business of manufacturing of H.I.P.S, A.B.S & P.E.T sheets, along with sheets it also manufactures the raw material used to manufacture the sheets called as granules. The company is known in the industry for manufacturing and supplying of high-grade Sheets and Granules in India. It has been keeping pace with modernization in all spheres of development, manufacturing, and marketing, emphasis on product quality & client satisfaction. A professional approach and constant interaction ensure client requirement is met with a high standard within the agreed guideline of time and cost. Its impressive growth has been largely due to confidence in its own capability and impressive infrastructure it has created over the years.

GMPL has been steadily diversifying as well as adding new products to its portfolio, besides adding additional infrastructure for increasing its manufacturing capability for its existing products. Its product range includes Acrylonitrile Butadiene Styrene (ABS) Plastic Sheets, High Impact Polystyrene (HIPS) Sheets, PET (Polyethylene Terephthalate) Sheets / Rolls, Amorphous Polyethylene Terephthalate (A-PET) Sheet, Recycled Polyethylene Terephthalate (R-PET) Sheet, HDPE (High-Density Polyethylene) Sheets / Rolls, PP (Polypropylene) Sheets / Rolls, Electrostatic discharge materials (ESD materials).


To meet its plans for working capital (Rs.3.70 cr.) and general corpus fund (Rs. 1.18 cr.) needs, GMPL is coming out with a maiden combo IPO of 508800 equity shares of Rs.10 each at a fixed price of Rs. 159 per share to mobilize Rs. 8.09 cr. The issue consists of fresh equity issue of 322800 equity shares (Rs. 5.13 cr.) and offer for sale of 186000 equity shares (Rs. 2.96cr.). The issue opens for subscription on September 30, 2020, and will close on October 06, 2020. Minimum application is to be made for 800 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME platform.

The issue constitutes 26.46% of the post issue paid-up capital of the company. The company will be spending Rs. 0.25 cr. (for Rs. 5.13 cr. fresh issue) and Rs. 0.40 cr. for the entire IPO process. The issue is solely lead managed by Gretex Corporate Services Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Gretex Share Broking Pvt. Ltd. is acting as a Market Maker for this company. Having raised entire equity so far at par, GMPL issued bonus shares in the ratio of 15 shares for 1 share held in June 2020.

The average cost of acquisition of shares by the promoters is Rs. 0.63 per share. Post issue, GMPL's current paid-up equity capital of Rs. 1.60 cr. will stand enhanced to Rs. 1.92 cr. With this IPO, the company is looking for a market cap of Rs. 30.72 cr.


On the financial performance front, for the last three fiscals, GMPL has posted turnover/net profits of Rs. 55.51 cr. / Rs. 0.92 cr. (FY18), Rs. 68.35 cr. / Rs. 1.38 cr. (FY19) and Rs. 63.43 cr. / Rs. 2.32 cr. (FY20). While the company has suffered a setback in top line for FY20, it has maintained growth in bottom lines for all these three fiscals.

For the last three fiscals, GMPL has posted an average EPS of Rs. 11.31 and an average RoNW of 26.28%. The issue is priced at a P/BV of 3.22 on the basis of its NAV of Rs. 49.64 as on March 31, 2020, and at a P/BV of 2.35 on the basis of post-issue NAV of Rs. 68.03.

If we attribute FY20 earnings on fully diluted post issue equity, then asking price is at a P/E of around 13.25, making it a reasonably priced offer.


As per offer documents, GMPL has shown Axel Poly, Supreme Ind. and Astral Poly as its listed peers. They are currently trading at a P/Es of around 00, 37.6 and 89.71. (As on September 25, 2020). However, they are strictly not comparable on an apple to apple basis.


On merchant banker's performance front, this is the 11th mandate from its stable in the last three fiscals. Out of last 10 listings, 1 opened at discount, 1 at par and the rest at premiums ranging from 1.32% to 7.64% on the day of listing.

Conclusion / Investment Strategy

GMPL has posted steady growth in bottom lines. Issue appears reasonably priced considering P/E and P/BV parameters. Investors may consider investment with a long term perspective. (Subscribe for long term).

Review By Dilip Davda on September 26, 2020

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).

GM Polyplast IPO FAQs

  1. 1. Why GM Polyplast IPO?

    The initial public offer (IPO) of G M Polyplast Limited offers an early investment opportunity in G M Polyplast Limited. A stock market investor can buy GM Polyplast IPO shares by applying in IPO before G M Polyplast Limited shares get listed at the stock exchanges. An investor could invest in GM Polyplast IPO for short term listing gain or a long term.

  2. 2. How is GM Polyplast IPO?

    Read the GM Polyplast IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. GM Polyplast IPO what should investors do?

    GM Polyplast IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the GM Polyplast IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is GM Polyplast IPO good?

    Our recommendation for GM Polyplast IPO is to subscribe for long term.

  5. 5. Is GM Polyplast IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the GM Polyplast IPO.

  6. 6. When will GM Polyplast IPO allotment status?

    The GM Polyplast IPO allotment status will be available on or around October 9, 2020. The allotted shares will be credited in demat account by October 13, 2020. Visit GM Polyplast IPO allotment status to check.

  7. 7. When will GM Polyplast IPO list?

    The GM Polyplast IPO will list on Wednesday, October 14, 2020, at BSE SME.