Manika Plastech Ltd IPO
Status: Current
Overview
IPO date
11 Sept 2026 to 16 Sept 2026
Face value
₹ 2 per share
Price
₹ 40 to ₹43 per share
Issue Size
29,186,045 shares
(aggregating up to ₹ 125.5 Cr)
(aggregating up to ₹ 125.5 Cr)
Allotment Date
17 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Plastic products
Unlock Stock of the Month
T&C*
Strengths vs Risks of Manika Plastech Ltd
Know the pros & cons
Strengths
- Proximity to key customers locations, operational flexibility enables customer retention and customer service.
- Entry Barriers for Competitors and Retention Drivers/Exit Barriers for customers.
- Integrated value-added services through in-house design, development, and labelling capabilities.
- De-risked business model with diverse industry applications / customer base / suppliers / location / product portfolio and operational flexibility.
- Longstanding relationships with well-known customers and well-established supply chain.
- Integrated quality assurance infrastructure.
- Commitment to sustainable packaging and adherence to ESG Standards.
- Experienced promoters and management team, having domain knowledge.
Risks
- About 58%-69% of the company operating revenue came from its top five customers, though the company served between 168 - 242 customers during the three months ended June 30, 2026, and the prior three Fiscals. The loss of any of the company's top customers, or the loss of revenue from these top customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- In order to cater to the requirements of the company's key customers and maintain its relationship with them, the company typically set up its Operating Facilities or warehouses in proximity of their manufacturing units, which exposes the company's facilities to potential fluctuations in the scale of business of its customers and related industry trends.
- Out of the company's diversified product portfolio, about 54% - 68% of its revenue from operations was derived from the sale of battery casings during the three month period ended June 30, 2026 and the preceding three Fiscals. Any significant loss of sales in the company's battery casings could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company derived about 93%-98% of its revenue from operations from repeat customers in the three month period ended June 30, 2026 and the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's Subsidiary, Manika Automotive Private Limited has incurred losses and negative cash flows in the past. Such losses or negative cash flows may impact its reputation or business or financial results, on a consolidated basis.
- The company does not own certain premises used by its. Disruption of the company's rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company operations and, consequently, its business.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- The company's Promoter, VRIDAA Holding Trust, is a private trust, and its Promoter Group comprises multiple trusts, which may lead to concerns in determining ultimate control and beneficial ownership of the Company.
- The company is unable to trace bank statements for certain allotments made by its. In the event the company is found not to be in compliance with any applicable regulations in relation to such allotments, its may be subject to regulatory actions or penalties for any such possible non-compliance and the company's business, financial condition and reputation may be adversely affected.
- There have been a few instances of non-compliances in the past with respect to reporting requirements related to the company's erstwhile subsidiary, Aquiline Inc (FZE) for which the Ministry of Corporate Affairs, imposed a fine of Rs. 0.03 million on each of its Individual Promoters. Consequently, the company may be subject to regulatory actions and penalties for any such non-compliance in the future and its business, financial condition and reputation may be adversely affected.
- A downgrade in the company's credit rating could adversely affect its ability to raise capital in the future.
- The company's Individual Promoters, Directors and certain members of its Promoter Group have been associated with companies that have been struck off by the Registrar of Companies, and any future instances of strike off may lead to regulatory actions.
- Some of the company profitability and performance indicators have fluctuated in the three months period ended June 30, 2026 and the preceding three Fiscals. Further, its trail behind the company's listed peers in some of its key performance indicators.
- Certain of the company's corporate records and filings made by it are not traceable or have certain discrepancies or have been filed with a delay. Further, the Company has inadvertently failed to make certain filings with the RoC which may lead to penal action by the competent regulatory authority in relation to such discrepancies.
- The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.
- The company is subject to risks arising from interest rate fluctuations for its borrowings, which could reduce the profitability of the company operations and adversely affect its business, financial condition and results of operations.
- The shortage, interruption or non-availability of power may adversely affect the company's business, result of operations, financial conditions and cash flows.
- The company depends on its senior management and other personnel with technical expertise, and if the company is unable to recruit and retain qualified and skilled personnel, its business and the company's ability to operates or grow its business may be adversely affected.
- The Company had acquired certain properties from one of its Individual Promoters, members forming part of Promoter Group and entities with which two of the company's Individual Promoters were associated. Its Individual Promoters shall be deemed to be interested in the purchase of the aforementioned properties.
- The company currently receive benefits under certain schemes issued by the Government. Cancellation or its inability to meet the conditions under such schemes may result in adversely affect the company's business operations, cash flows, results of operations and financial condition.
- While the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term supply agreements. If these customers stop or reduce buying from the company, its may not have any recourse against them and it may have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The average cost of acquisition of Equity Shares held by the company's Promoters, including its Promoter Selling Shareholder could be lower than the Offer Price.
- The company is dependent on information technology systems in carrying out the company's business activities and it forms an integral part of its business. Further, the company does not have a data security insurance policy or cybercrime insurance policy, therefore, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failures of its information technology systems, it may adversely affect the company's business and results of operations.
- The company is unable to sustain or manage its growth, the company's business, results of operations, financial condition, cash flows and future prospects may be materially adversely affected.
- Some of the company's Individual Promoters have extended personal guarantees with respect to loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- The company intend to diversify its product portfolio by utilising upto [*]% of the Net Proceeds towards purchase of injection stretch blow moulding machinery. While the company has a longstanding experience of manufacturing packaging containers through injection moulding, however the company does not have experience of manufacturing products through injection stretch blow moulding. Accordingly, its expansion into new product categories and an increase in the number of products offered by the company may expose it to new challenges and additional risks.
- The company's insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on the company's business, financial condition and results of operations.
- During the three-month period ended June 30, 2026 and the preceding three Fiscals, out of the company's revenue from operations from 24 states/union territories across India, about 26% to 39% came from north India, particularly from Himachal Pradesh during the said periods. Its Manufacturing Facilities are concentrated in the northern India, and any adverse developments affecting the company operations in these regions could have an adverse impact on its revenue and results of operations.
- The company's Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
- The company's Subsidiary was formed to engage in line of business that is synergistic to its and may compete with the company.
- The company is yet to place orders for most of plant and machinery proposed to be funded through this Offer. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machinery in a timely manner, or at all, it may result in time and cost over-runs and the company's business, results of operations, financial condition and cash flows may be adversely affected.
- The company is dependent on third parties for the transportation and timely delivery of its products to customers and delivery of raw materials to the company's facilities. Any failures by or loss of a third party transport service provider could result in delays and increased costs, which may adversely affect its business.
- There have been certain instances of delays in payment of statutory dues by the Company in the past. Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may have an adverse effect on the Company's business, financial condition, results of operation and cash flows.
- The company's business is subject to seasonality in the industries in which its customers operates, which may contribute to fluctuations in the company's results of operations and financial condition.
- There are outstanding litigations involving the Company, if determined adversely, may adversely affect its business and financial condition.
- Fluctuations in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Majority of the company's key raw material purchases, being PPCP, sourced from well-known suppliers, is not under any long term purchase agreements. Any reduction of supplies or its discontinuation of supplies from the company's top suppliers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Any fluctuation in prices of the company's raw materials, may have a material adverse effect on its business, results of operations, prospects and financial condition.
- All the company Operating Facilities are equipped with quality control infrastructure. Despite its quality check and control processes, if there are any defects or malfunction of the company's products, its could be liable for claims against the company which may reduce demand for its products lead to sales return and damage to the company's reputation.
- The company proposed capex plans are subject to the risk of unanticipated delays in implementation and cost overruns.
- A part of the Net Proceeds will be utilized for the repayment or prepayment of indebtedness availed of by the Company. Accordingly, the utilization of the Net Proceeds will not result in creation of any tangible assets.
- The company has been expanding its product portfolio historically and have recently ventured into manufacturing of thinwall containers and painting of automotive components in the Fiscal 2024, and therefore have a limited operating history in these operations. Its may be unable to adequately address risks arising from such operations, which may impact the company's business and financial condition.
- There is an increased awareness towards plastic waste management and many countries including India have joined the efforts to ban/reduce certain types of plastic products. In case any key raw material used by the company or end-use consumer product that is packaged using its products is banned in India, it could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company Operating Facilities are subject to operating risks. Any shutdown of its Operating Facilities or other production problems caused by unforeseen events may reduce sales and adversely affect the company's business, cash flows, results of operations and financial condition.
- The Company may not be able to obtain, renew or maintain its statutory and regulatory permits and approvals required to operates the company's businesses on time or at all. Its paid environmental compensation charges and ground water restoration charges of Rs. 0.50 million in Fiscal 2025. There were delays in obtaining and/or renewing certain licenses and approvals required for the company operations. Any failures to obtain, maintain or renew the required approvals, licenses, registrations or permits, may adversely affect its operations.
- While the company cater to well-known customers across its product categories, however, if the company is unable to collect customer receivables, it may affect its cash flows and results of operations.
- Most of the company's manufacturing is based on confirmed orders under direct arrangements. If there are any fluctuations in the demand for its products, it could affect the company's inventory levels, operations, financial condition and cash flow.
- The Company has registered corporate trademark and 30 designs for battery containers and battery lids under the Designs Act, 2000. Its may not be able to prevent others from unauthorised use of the company's intellectual property and may in the future become subject to patent, trademark and/or other intellectual property infringement claims.
- The objects of the Fresh Issue and deployment of funds are based on management estimates and have not been appraised by any external independent agency. There is no assurance that the company's expansion and existing plans will be successful.
- Since its incorporation in the year 1996, the company has expanded its business, scale of operations and delivered variety of products for which the company faces competitive pressures in its business and the company's inability to compete effectively would be detrimental to its business and prospects for future growth.
- The company has taken secured and unsecured loans. Its indebtedness has increased in the recent periods primarily to fund capital expenditure and operations. The company's inability to meet its obligations, including financial and other covenants under the company's debt financing arrangements could adversely affect its business, results of operations and financial condition.
- Any variation in the utilization of the Net Proceeds shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company operations are labor intensive. Any non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in its Manufacturing Facilities.
- The Company has significant working capital requirement. Its inability to meet the company's working capital requirements including failures to realize receivables and inventories may have an adverse effect on its results of operations and overall business.
- The company may be subject to forex losses, export-import duties for its international business.
- Non-compliance with and changes in, safety, health, labour and environmental laws and other applicable regulations, may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has incurred significant capital expenditure during the three month period ended June 30, 2026 and the preceding three Fiscals and may continue to so in the future and such expenditure may not yield the benefits its anticipate which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company is currently dependent on its Promoters for the success of the company's business and if they cease to be involved in or decrease their involvement in its business prior to the company having a succession plan in place, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Any under-utilization of the company's manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Further, information relating to the company's installed capacity and capacity utilization is based on various assumptions and estimates.
- Any failures to adapt to industry trends and evolving technologies to meet the company's customers demands could have a material adverse effect on its business and results of operations.
- The company's success depends upon its ability to attract, develop and retain trained manpower while also maintaining low labour costs.
- The company's Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- The company's future fund requirements, in the form of further issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.
- Significant differences exist between Ind AS used to prepare the company's financial information and other accounting principles, such as U.S. GAAP and IFRS, which may affect investors assessments of the Company's financial condition.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its businesses and reputation could be adversely affected.
- Statistical and industry data in this Red Herring Prospectus are derived from the Technopak Report, which was commissioned and paid for by the company for the purpose of the Offer. Reliance on information from the Technopak Report for making an investment decision in the Offer is subject to inherent risks.
- One of the company's Directors is associated with an entity engaged in securities market. Any adverse actions against such company or against its Director on account such association, may impact the company's reputation and business.
- Majority of the company's Directors does not have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- The determination of the Price Band is based on various factors and assumptions and the Offer Price of the Equity Shares could not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges. Investors bear the risk of fluctuations in the price of Equity Shares and there can be no assurance that a liquid market for the Equity Shares will develop following the listing of the Equity Shares on the Stock Exchanges.
- Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Offer. The Equity Shares will be listed on the Stock Exchanges.
- The company will not receive any proceeds from the Offer for Sale.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after Bid/Offer Closing Date.
- There is no guarantee that the company's Equity Shares will be listed on BSE and NSE in a timely manner or at all.
- The requirements of being a listed company may strain its resources.
- Any future issuance of Equity Shares or convertible securities or other equity linked securities by the Company may dilute your shareholding and sales of the Equity Shares by its major shareholders may adversely affect the trading price of the Equity Shares.
- Foreign investors are subject to foreign investment restrictions under Indian laws that may limit the company's ability to attract foreign investors, which may have a material adverse impact on the market price of the Equity Shares.
- Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares and dividends paid on the Equity Shares.
- Subsequent to the listing of the Equity Shares, its may be subject to pre-emptive surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
Manika Plastech Ltd Peer Comparison
Understand the company’s industry standing
Manika Plastech Limited*
Hitech Corporation Limited
Mold-Tek Packaging Limited
Face Value
2
10
5
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
435.98
640.4
886.61
EPS-Basis
2.36
8.84
21.93
EPS-Diluted
2.36
8.84
21.93
NAV Per Share
15.54
165.72
207.64
P/E-Basic EPS
---
37.85
32.34
P/E-Diluted EPS
---
---
---
RONW(%)
15.18
5.34
10.56
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 11 Sept 2026 & closes on 16 Sept 2026.
Manika Plastech Limited was incorporated as a private Company under the name and style of Manika Moulds Private Limited' dated April 25, 1996 issued by the Additional Registrar of Companies, Mumbai. Further, the Company name was changed to Manika Plastech Private Limited' and a fresh certificate of incorporation dated April 25, 2022 was issued by the Registrar of Companies, Gujarat at Ahmedabad. Subsequently, status was converted into a public Company, consequent to which its name was changed to Manika Plastech Limited', and a fresh certificate of incorporation dated December 18, 2024, was issued by the Central Processing Centre.
Manika Plastech is a design-led, precision engineered, rigid polymer packaging manufacturing company, catering to diversified critical industries such as energy storage, dairy and edible food products, paints, and chemicals. Company undertakes production in injection moulded, rigid polymer components, such as precision battery casings that are integral to the performance and durability of energy storage systems. While pails serve packaging needs across paints, lubricants, and industrial chemicals, the food grade thinwall containers are used for secure packaging and distribution of dairy and edible products.
The Company had commenced its manufacturing operations through the unit situated at Saily (Dadra and Nagar Haveli and Daman and Diu) in year 1999. Over the years, it has expanded by periodically setting up additional Operating Facilities at various locations. In 2008, it expanded manufacturing unit in Dehradun, set up production unit in Hosur in 2010; diversified the business by adding paint pails in 2012; set up a unit in Una in 2017, further established an additional unit in Dehradun in 2021, set up production unit in Dadra in 2023 followed by diversification of products through thinwall containers in 2023; set up Painting facility in Hosur in 2024 and then in Panipat in 2024.
Company is planning the initial public issue to raise capital aggregating to Rs 115 Crore equity shares having the face value of Rs 2/- each through fresh issue and by issuing 15,000,000 equity shares via offer for sale.
Manika Plastech Ltd IPO will close on 16 Sept 2026.
- Proximity to key customers locations, operational flexibility enables customer retention and customer service.
- Entry Barriers for Competitors and Retention Drivers/Exit Barriers for customers.
- Integrated value-added services through in-house design, development, and labelling capabilities.
- De-risked business model with diverse industry applications / customer base / suppliers / location / product portfolio and operational flexibility.
- Longstanding relationships with well-known customers and well-established supply chain.
- Integrated quality assurance infrastructure.
- Commitment to sustainable packaging and adherence to ESG Standards.
- Experienced promoters and management team, having domain knowledge.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Nikunj Mohanlal Kapadia | 712500 | 0.75 | 712500 | 0.61 |
| 2 | Munjal Nikunj Kapadia | 475000 | 0.5 | 475000 | 0.41 |
| 3 | Mihir Nikunj Kapadia | 475000 | 0.5 | 475000 | 0.41 |
| 4 | Pratik Nikunj Kapadia | 475000 | 0.5 | 475000 | 0.41 |
| 5 | Vridaa Holding Trust | 92150000 | 97 | 84475582 | 72.5 |
| 6 | Neha Munjal Kapadia | 237500 | 0.25 | 237500 | 0.2 |
| 7 | Vaishali Mihir Kapadia | 237500 | 0.25 | 237500 | 0.2 |
| 8 | Reena Pratik Kapadia | 237500 | 0.25 | 237500 | 0.2 |
- About 58%-69% of the company operating revenue came from its top five customers, though the company served between 168 - 242 customers during the three months ended June 30, 2026, and the prior three Fiscals. The loss of any of the company's top customers, or the loss of revenue from these top customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- In order to cater to the requirements of the company's key customers and maintain its relationship with them, the company typically set up its Operating Facilities or warehouses in proximity of their manufacturing units, which exposes the company's facilities to potential fluctuations in the scale of business of its customers and related industry trends.
- Out of the company's diversified product portfolio, about 54% - 68% of its revenue from operations was derived from the sale of battery casings during the three month period ended June 30, 2026 and the preceding three Fiscals. Any significant loss of sales in the company's battery casings could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company derived about 93%-98% of its revenue from operations from repeat customers in the three month period ended June 30, 2026 and the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's Subsidiary, Manika Automotive Private Limited has incurred losses and negative cash flows in the past. Such losses or negative cash flows may impact its reputation or business or financial results, on a consolidated basis.
- The company does not own certain premises used by its. Disruption of the company's rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company operations and, consequently, its business.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- The company's Promoter, VRIDAA Holding Trust, is a private trust, and its Promoter Group comprises multiple trusts, which may lead to concerns in determining ultimate control and beneficial ownership of the Company.
- The company is unable to trace bank statements for certain allotments made by its. In the event the company is found not to be in compliance with any applicable regulations in relation to such allotments, its may be subject to regulatory actions or penalties for any such possible non-compliance and the company's business, financial condition and reputation may be adversely affected.
- There have been a few instances of non-compliances in the past with respect to reporting requirements related to the company's erstwhile subsidiary, Aquiline Inc (FZE) for which the Ministry of Corporate Affairs, imposed a fine of Rs. 0.03 million on each of its Individual Promoters. Consequently, the company may be subject to regulatory actions and penalties for any such non-compliance in the future and its business, financial condition and reputation may be adversely affected.
- A downgrade in the company's credit rating could adversely affect its ability to raise capital in the future.
- The company's Individual Promoters, Directors and certain members of its Promoter Group have been associated with companies that have been struck off by the Registrar of Companies, and any future instances of strike off may lead to regulatory actions.
- Some of the company profitability and performance indicators have fluctuated in the three months period ended June 30, 2026 and the preceding three Fiscals. Further, its trail behind the company's listed peers in some of its key performance indicators.
- Certain of the company's corporate records and filings made by it are not traceable or have certain discrepancies or have been filed with a delay. Further, the Company has inadvertently failed to make certain filings with the RoC which may lead to penal action by the competent regulatory authority in relation to such discrepancies.
- The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.
- The company is subject to risks arising from interest rate fluctuations for its borrowings, which could reduce the profitability of the company operations and adversely affect its business, financial condition and results of operations.
- The shortage, interruption or non-availability of power may adversely affect the company's business, result of operations, financial conditions and cash flows.
- The company depends on its senior management and other personnel with technical expertise, and if the company is unable to recruit and retain qualified and skilled personnel, its business and the company's ability to operates or grow its business may be adversely affected.
- The Company had acquired certain properties from one of its Individual Promoters, members forming part of Promoter Group and entities with which two of the company's Individual Promoters were associated. Its Individual Promoters shall be deemed to be interested in the purchase of the aforementioned properties.
- The company currently receive benefits under certain schemes issued by the Government. Cancellation or its inability to meet the conditions under such schemes may result in adversely affect the company's business operations, cash flows, results of operations and financial condition.
- While the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term supply agreements. If these customers stop or reduce buying from the company, its may not have any recourse against them and it may have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The average cost of acquisition of Equity Shares held by the company's Promoters, including its Promoter Selling Shareholder could be lower than the Offer Price.
- The company is dependent on information technology systems in carrying out the company's business activities and it forms an integral part of its business. Further, the company does not have a data security insurance policy or cybercrime insurance policy, therefore, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failures of its information technology systems, it may adversely affect the company's business and results of operations.
- The company is unable to sustain or manage its growth, the company's business, results of operations, financial condition, cash flows and future prospects may be materially adversely affected.
- Some of the company's Individual Promoters have extended personal guarantees with respect to loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- The company intend to diversify its product portfolio by utilising upto [*]% of the Net Proceeds towards purchase of injection stretch blow moulding machinery. While the company has a longstanding experience of manufacturing packaging containers through injection moulding, however the company does not have experience of manufacturing products through injection stretch blow moulding. Accordingly, its expansion into new product categories and an increase in the number of products offered by the company may expose it to new challenges and additional risks.
- The company's insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on the company's business, financial condition and results of operations.
- During the three-month period ended June 30, 2026 and the preceding three Fiscals, out of the company's revenue from operations from 24 states/union territories across India, about 26% to 39% came from north India, particularly from Himachal Pradesh during the said periods. Its Manufacturing Facilities are concentrated in the northern India, and any adverse developments affecting the company operations in these regions could have an adverse impact on its revenue and results of operations.
- The company's Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
- The company's Subsidiary was formed to engage in line of business that is synergistic to its and may compete with the company.
- The company is yet to place orders for most of plant and machinery proposed to be funded through this Offer. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machinery in a timely manner, or at all, it may result in time and cost over-runs and the company's business, results of operations, financial condition and cash flows may be adversely affected.
- The company is dependent on third parties for the transportation and timely delivery of its products to customers and delivery of raw materials to the company's facilities. Any failures by or loss of a third party transport service provider could result in delays and increased costs, which may adversely affect its business.
- There have been certain instances of delays in payment of statutory dues by the Company in the past. Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties and in turn may have an adverse effect on the Company's business, financial condition, results of operation and cash flows.
- The company's business is subject to seasonality in the industries in which its customers operates, which may contribute to fluctuations in the company's results of operations and financial condition.
- There are outstanding litigations involving the Company, if determined adversely, may adversely affect its business and financial condition.
- Fluctuations in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of the company's Equity Shares, independent of its operating results.
- Majority of the company's key raw material purchases, being PPCP, sourced from well-known suppliers, is not under any long term purchase agreements. Any reduction of supplies or its discontinuation of supplies from the company's top suppliers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Any fluctuation in prices of the company's raw materials, may have a material adverse effect on its business, results of operations, prospects and financial condition.
- All the company Operating Facilities are equipped with quality control infrastructure. Despite its quality check and control processes, if there are any defects or malfunction of the company's products, its could be liable for claims against the company which may reduce demand for its products lead to sales return and damage to the company's reputation.
- The company proposed capex plans are subject to the risk of unanticipated delays in implementation and cost overruns.
- A part of the Net Proceeds will be utilized for the repayment or prepayment of indebtedness availed of by the Company. Accordingly, the utilization of the Net Proceeds will not result in creation of any tangible assets.
- The company has been expanding its product portfolio historically and have recently ventured into manufacturing of thinwall containers and painting of automotive components in the Fiscal 2024, and therefore have a limited operating history in these operations. Its may be unable to adequately address risks arising from such operations, which may impact the company's business and financial condition.
- There is an increased awareness towards plastic waste management and many countries including India have joined the efforts to ban/reduce certain types of plastic products. In case any key raw material used by the company or end-use consumer product that is packaged using its products is banned in India, it could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company Operating Facilities are subject to operating risks. Any shutdown of its Operating Facilities or other production problems caused by unforeseen events may reduce sales and adversely affect the company's business, cash flows, results of operations and financial condition.
- The Company may not be able to obtain, renew or maintain its statutory and regulatory permits and approvals required to operates the company's businesses on time or at all. Its paid environmental compensation charges and ground water restoration charges of Rs. 0.50 million in Fiscal 2025. There were delays in obtaining and/or renewing certain licenses and approvals required for the company operations. Any failures to obtain, maintain or renew the required approvals, licenses, registrations or permits, may adversely affect its operations.
- While the company cater to well-known customers across its product categories, however, if the company is unable to collect customer receivables, it may affect its cash flows and results of operations.
- Most of the company's manufacturing is based on confirmed orders under direct arrangements. If there are any fluctuations in the demand for its products, it could affect the company's inventory levels, operations, financial condition and cash flow.
- The Company has registered corporate trademark and 30 designs for battery containers and battery lids under the Designs Act, 2000. Its may not be able to prevent others from unauthorised use of the company's intellectual property and may in the future become subject to patent, trademark and/or other intellectual property infringement claims.
- The objects of the Fresh Issue and deployment of funds are based on management estimates and have not been appraised by any external independent agency. There is no assurance that the company's expansion and existing plans will be successful.
- Since its incorporation in the year 1996, the company has expanded its business, scale of operations and delivered variety of products for which the company faces competitive pressures in its business and the company's inability to compete effectively would be detrimental to its business and prospects for future growth.
- The company has taken secured and unsecured loans. Its indebtedness has increased in the recent periods primarily to fund capital expenditure and operations. The company's inability to meet its obligations, including financial and other covenants under the company's debt financing arrangements could adversely affect its business, results of operations and financial condition.
- Any variation in the utilization of the Net Proceeds shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company operations are labor intensive. Any non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in its Manufacturing Facilities.
- The Company has significant working capital requirement. Its inability to meet the company's working capital requirements including failures to realize receivables and inventories may have an adverse effect on its results of operations and overall business.
- The company may be subject to forex losses, export-import duties for its international business.
- Non-compliance with and changes in, safety, health, labour and environmental laws and other applicable regulations, may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has incurred significant capital expenditure during the three month period ended June 30, 2026 and the preceding three Fiscals and may continue to so in the future and such expenditure may not yield the benefits its anticipate which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company is currently dependent on its Promoters for the success of the company's business and if they cease to be involved in or decrease their involvement in its business prior to the company having a succession plan in place, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Any under-utilization of the company's manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Further, information relating to the company's installed capacity and capacity utilization is based on various assumptions and estimates.
- Any failures to adapt to industry trends and evolving technologies to meet the company's customers demands could have a material adverse effect on its business and results of operations.
- The company's success depends upon its ability to attract, develop and retain trained manpower while also maintaining low labour costs.
- The company's Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- The company's future fund requirements, in the form of further issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.
- Significant differences exist between Ind AS used to prepare the company's financial information and other accounting principles, such as U.S. GAAP and IFRS, which may affect investors assessments of the Company's financial condition.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its businesses and reputation could be adversely affected.
- Statistical and industry data in this Red Herring Prospectus are derived from the Technopak Report, which was commissioned and paid for by the company for the purpose of the Offer. Reliance on information from the Technopak Report for making an investment decision in the Offer is subject to inherent risks.
- One of the company's Directors is associated with an entity engaged in securities market. Any adverse actions against such company or against its Director on account such association, may impact the company's reputation and business.
- Majority of the company's Directors does not have prior experience of holding a directorship in a company listed on the Stock Exchanges.
- The determination of the Price Band is based on various factors and assumptions and the Offer Price of the Equity Shares could not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges. Investors bear the risk of fluctuations in the price of Equity Shares and there can be no assurance that a liquid market for the Equity Shares will develop following the listing of the Equity Shares on the Stock Exchanges.
- Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Offer. The Equity Shares will be listed on the Stock Exchanges.
- The company will not receive any proceeds from the Offer for Sale.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after Bid/Offer Closing Date.
- There is no guarantee that the company's Equity Shares will be listed on BSE and NSE in a timely manner or at all.
- The requirements of being a listed company may strain its resources.
- Any future issuance of Equity Shares or convertible securities or other equity linked securities by the Company may dilute your shareholding and sales of the Equity Shares by its major shareholders may adversely affect the trading price of the Equity Shares.
- Foreign investors are subject to foreign investment restrictions under Indian laws that may limit the company's ability to attract foreign investors, which may have a material adverse impact on the market price of the Equity Shares.
- Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares and dividends paid on the Equity Shares.
- Subsequent to the listing of the Equity Shares, its may be subject to pre-emptive surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
The Issue type of Manika Plastech Ltd is Book Building.
The minimum application for shares of Manika Plastech Ltd is 348.
The total shares issue of Manika Plastech Ltd is 29186045.
Initial public offering of up to 29,186,045 equity shares of face value of Rs. 2/- each ("Equity Shares") of the company for cash at a price of Rs. 43 per equity share (Including a Share Premium of Rs. 41 per Equity Share) ("Offer Price") aggregating up to
Rs. 125.5 Crores (the "Offer") comprising a fresh issue of up to 21,511,627 equity shares of face value of Rs. 2/- each aggregating up to Rs. 92.5 Crores by the company (the "Fresh Issue") and an offer for sale of up to 7,674,418 equity shares of face value of Rs. 2/- each aggregating up to Rs. 33 Crores by Vridaa Holding Trust ("the Promoter Selling Shareholder") ("Offer for Sale"). The offer will constitute [*] % of the post-offer paid-up equity share capital.
Price Band: Rs. 40 to Rs. 43 per equity share of face value of Rs. 2 each.
The floor price and the cap price are 20 times and 21.50 times the face value of the equity shares, respectively.
Bids can be made for a minimum of 348 equity shares of face value of Rs. 2 each and in multiples of 348 equity shares of face value of Rs. 2 each thereafter.