Get ready for an exciting day in the IPO market! Today, there is a flurry of activity in the SME sector, with four SME IPOs—Aelea Commodities Ltd, Sati Poly Plast Ltd, Prizor Viztech Ltd, and Three M Paper Boats Ltd getting ready for their public issues. This wave of IPOs presents a unique opportunity for investors to get in on the ground floor of promising Indian businesses.
But before you dive in, let’s unpack these companies’ objectives, financial health, Grey Market Premium (GMP), and other key details to help you make informed decisions. So, let’s explore what these IPOs bring to the table!
Aelea Commodities Ltd
SME IPO Details
| Offer Price | ₹91 – ₹95 per share |
| Face Value | ₹10 per share |
| Opening Date | 12 July 2024 |
| Closing Date | 16 July 2024 |
| Total Issue Size (in Shares) | 5,368,800 |
| Total Issue Size (in ₹) | ₹51 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1200 Shares |
Aelea Commodities aims to raise ₹51.00 crore through a fresh issue of 53.69 lakh equity shares. The IPO opens on July 12th and closes on July 16th. Each lot size is 1,200 shares, requiring a minimum investment of ₹114,000. Allotment is expected to be finalized by July 18th, with a listing date of July 22nd.
Objectives of the IPO
The company plans to use the IPO proceeds for three main purposes:
- Setting up a new manufacturing unit and installing machinery.
- Upgrading existing machinery at their current facility.
- General corporate purposes (this category typically includes expenses like working capital).
Grey Market Premium (GMP)
The current GMP for Aelea Commodities sits at ₹20 per share. It’s important to remember that GMP is an unofficial estimate of the potential premium a stock might trade at after listing compared to its issue price. It shouldn’t be solely relied upon for investment decisions.
Company Overview
Aelea Commodities Ltd. (ACL) started in 2018 as a trader of agricultural products, including sugar, cashews, and pulses. They’ve since expanded into cashew processing, setting up a dedicated unit in Surat. Today, ACL focuses on processing and selling cashews to both businesses (B2B) and individual consumers (B2C) across India and internationally. They also ACL sells to clients in India (Rajasthan, Karnataka, Gujarat, etc.) and internationally (primarily Dubai and Sri Lanka). Their business model involves two channels:
- B2B: This channel caters to wholesale buyers for cashews, sugar, pulses, and other commodities.
- B2C: This channel sells directly to consumers, primarily for processed cashews.
Financial Performance
Aelea Commodities has shown promising growth recently. Their revenue jumped 31.2% from FY23 to FY24, and their profit after tax (PAT) saw a significant increase of 539.22% during the same period. In FY24, they reported a net profit of ₹12.22 crore on a revenue of ₹144.50 crore, compared to a net profit of ₹1.91 crore and revenue of ₹110.14 crore in FY23.
SWOT Analysis of Aelea Commodities Ltd.
| STRENGTHS | WEAKNESSES |
|---|---|
| Increasing revenue and profitability Diversified product portfolio Presence in both B2B and B2C segments (for cashews) | Relatively new company with a limited track record Reliant on imports of raw materials Concentrated customer base (especially for international sales) |
| OPPORTUNITIES | THREATS |
| Growing demand for processed cashews Expanding into new markets Utilizing IPO proceeds for further growth | Fluctuations in commodity prices Competition in the cashew processing industry Changes in government regulations |
Sati Poly Plast Ltd
IPO Details
| Offer Price | ₹123 – ₹130 per share |
| Face Value | ₹10 per share |
| Opening Date | 12 July 2024 |
| Closing Date | 16 July 2024 |
| Total Issue Size (in Shares) | 1,335,000 |
| Total Issue Size (in ₹) | ₹17.36 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1000 Shares |
Sati Poly Plast aims to raise ₹17.36 crore through a fresh issue of 13,35,000 equity shares. The IPO opens on July 12th and closes on July 16th. Here’s a breakdown of the investment details:
- Minimum lot size: 1,000 shares (₹130,000 minimum investment for retail investors)
- HNI minimum investment: 2 lots (2,000 shares, ₹260,000)
- Allotment: Expected July 18th
- Listing: Tentative date of July 22nd on NSE SME
Objectives of the IPO
The company plans to utilize the IPO proceeds for two main purposes:
- Working Capital Requirements: This is the primary focus, aiming to meet their short-term operational needs.
- General Corporate Purposes: This category typically includes expenses like working capital.
Grey Market Premium (GMP)
The current GMP for Sati Poly Plast sits at ₹50 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview
Established in 1999, Sati Poly Plast Limited (Sati Poly) is an ISO-certified manufacturer of flexible packaging materials. It offers versatile packaging solutions to various industries.
In 2017, they transitioned into manufacturing, currently operating two production units in Noida. Both plants boast a production capacity of 540 tons per month. Notably, the company has increased its installed capacity from 250 tonnes per month in 2018 to 500 tonnes per month in 2019. Sati Poly has established a client base with well-known names like Pidilite, Adani Wilmar, and JVL.
Financials
Sati Poly Plast’s financial performance shows a mixed picture. While their profit after tax (PAT) increased by 6.39% between FY24 and FY23, their revenue declined by -6.05% during the same period.
SWOT Analysis of Sati Poly Plast Ltd.
| STRENGTHS | WEAKNESSES |
|---|---|
| Established presence in the flexible packaging industry Diversified client base Increased production capacity | The recent decline in revenue Reliant on a limited product portfolio (flexible packaging only) |
| OPPORTUNITIES | THREATS |
| Growing demand for flexible packaging in various sectors Potential for expanding their product range Utilizing IPO proceeds to strengthen operations | Competition in the flexible packaging market Fluctuations in raw material prices Regulations impacting the packaging industry |
Prizor Viztech Ltd.
IPO Details
| Offer Price | ₹82 – ₹87 per share |
| Face Value | ₹10 per share |
| Opening Date | 12 July 2024 |
| Closing Date | 16 July 2024 |
| Total Issue Size (in Shares) | 2,891,200 |
| Total Issue Size (in ₹) | ₹25.15 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1600 Shares |
Here’s a breakdown of the bidding process:
- Minimum investment: 1600 shares (minimum ₹131,200 for retail investors)
- Reservation for investor categories:
- Non-institutional investors: 15%
- Retail investors: 35%
- QIBs (Qualified Institutional Buyers): 50%
- Market Maker: Up to 5.53%
The IPO opens on July 12th and closes on July 16th. Allotment is expected on July 18th, with a tentative listing date of July 22nd on the NSE SME exchange.
Objectives of the IPO
The company plans to utilize the IPO proceeds for three main purposes:
- Funding capital expenditure: It includes setting up a display center and storage facility in Ahmedabad, Gujarat.
- Working capital requirements: This will help meet their short-term operational needs.
- General corporate purposes: This category typically includes expenses like working capital.
Grey Market Premium (GMP)
The current GMP for Prizor Viztech sits at ₹50 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview
Established in 2017, Prizor Viztech offers security and surveillance solutions. Its products include CCTV cameras and video management software, which it provides to various sectors, including retail, government, and education.
Expanding Products and Reach:
In 2022, Prizor Viztech expanded its product line beyond security. It now offers televisions, touch panels, and monitors under its brand (manufactured by third parties). Its products have reached 17 states and 2 union territories in India.
Prizor Viztech’s Product Portfolio:
- Security and Surveillance Solutions: Network cameras, high-definition analog cameras, network video recorders, and digital video recorders.
- LED televisions, Monitors, & Touch Panels: New product line launched in 2022.
Financials
Prizor Viztech’s financials show impressive growth. Between FY24 and FY23, their profit after tax (PAT) skyrocketed by 2546.91%, while their revenue increased by 155.95%.
SWOT Analysis of Prizor Viztech Ltd.
| STRENGTHS | WEAKNESSES |
|---|---|
| Strong recent revenue and profit growth Diversified product portfolio beyond just security solutions Established presence in various Indian states | Relatively new company with a limited track record Reliant on third-party manufacturers for some products |
| OPPORTUNITIES | THREATS |
| Growing demand for security solutions and electronic devices in India Potential for further product line expansion Utilizing IPO proceeds for growth initiatives | Competition in the security and electronics market Fluctuations in raw material prices Changes in government regulations |
Three M Paper Boats Ltd.
IPO Details
| Offer Price | ₹67 – ₹69 per share |
| Face Value | ₹10 per share |
| Opening Date | 12 July 2024 |
| Closing Date | 16 July 2024 |
| Total Issue Size (in Shares) | 5,772,000 |
| Total Issue Size (in ₹) | ₹39.83 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 2000 Shares |
Three M Paper Boats aims to raise ₹39.83 crore through a fresh issue of 5,772,000 equity shares. Here’s a breakdown of the bidding process:
- Minimum investment: 2,000 shares (minimum ₹138,000 for retail investors)
- HNI minimum investment: 2 lots (4,000 shares, ₹276,000)
- Reservation for investor categories:
- Retail investors: 35%
- QIBs (Qualified Institutional Buyers): 50%
- NIIs (High Net Worth Individuals): 15%
- Market Maker: 5%
Allotment is expected on July 18th, with a tentative listing date of July 22nd on the BSE SME exchange.
Objectives of the IPO
The company plans to utilize the IPO proceeds for several purposes:
- Working Capital Requirements: This will help meet their day-to-day operational needs.
- New Machinery & Modernization: Funds will be used to install new machinery and upgrade existing processes at their manufacturing facility.
- Debt Repayment: They plan to use some of the proceeds to pay back all or part of their outstanding debt.
- Plastic-Fired Boiler: The company intends to install a new boiler for potentially lower fuel costs.
- General Corporate Purposes: This category typically includes expenses like working capital.
Grey Market Premium (GMP)
The current Three M Paper Boats GMP sits at ₹30 per share. Remember, GMP is an unofficial estimate, not a guarantee, of the potential premium the stock might trade at after listing compared to its issue price. Don’t base your investment decisions solely on GMP.
Company Overview
Three M Paper Boats is an environmentally conscious company producing recycled paperboard products used for packaging in various industries. They emphasize using 100% recycled waste paper and creating fully biodegradable products. They also focus on innovation in product development and production methods.
The company’s headquarters are in Mumbai, and its production facility with advanced technology is located in Chiplun, Maharashtra. This facility has the capacity to produce up to 72,000 TPA (tonnes per annum) of paperboard as of March 31, 2024. Their products cater to both domestic and international markets.
Financials
Three M Paper Boats’ financials show a contrasting picture. While their profit after tax (PAT) increased by 71.53% between FY24 and FY23, their revenue declined by -16.3% during the same period.
SWOT Analysis of Three M Paper Boats Ltd.
| STRENGTHS | WEAKNESSES |
|---|---|
| Focus on sustainability with recycled materials and biodegradable products Established presence in domestic and international markets Modern production facility with high capacity | Recent decline in revenue despite increasing profits (needs further investigation) Reliant on a single product line (paperboard) |
| OPPORTUNITIES | THREATS |
| Growing demand for eco-friendly packaging solutions Potential for product diversification Utilizing IPO proceeds for expansion and modernization | Competition in the paperboard packaging industry Fluctuations in the price of recycled paper Government regulations impacting the packaging industry |
Conclusion
These four SME IPOs from diverse sectors like commodities, plastics, technology, and packaging offer a chance to participate in their growth. Carefully evaluating each company’s objectives, financials, and GMP is crucial before making investment decisions. Remember, thorough research is key in the stock market.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
