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L.K.Mehta Polymers Ltd IPO
Status: Closed
Overview
IPO date
13 Feb 2025 to 17 Feb 2025
Face value
₹ 0 per share
Price
₹ 71 per share
Issue Size
1,040,000 shares
(aggregating up to ₹ 7.38 Cr)
(aggregating up to ₹ 7.38 Cr)
Allotment Date
18 Feb 2025
Listing at
NSE
Issue type
Fixed Price - SME
Sector
Plastic products
Objectives of L.K.Mehta Polymers Ltd IPO
Initial public issue of 10,40,000 equity shares of face value of Rs. 10/- each of L.K.Mehta Polymers Limited ("L.K. or the "Company" or the Isuer") for cash at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share (the "Issue Price") aggregating to Rs. 7.38 crores ("The Issue"), of which 54,400 equity shares of face value of
Rs. 10/- each for cash at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share aggregating to Rs. 0.38 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 9,85,600 equity shares of face value of Rs. 10/- each at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share aggregating to Rs. 7.00 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 27.08% and 25.67% respectively of the post issue paid up equity share capital of the company.
The face value of the equity shares is Rs. 10/- each and the issue price is Rs. 71/-. The issue price is 7.10 times of the face value.
L.K.Mehta Polymers Ltd IPO Strategy
- Focus on dealing in quality standard products.
- Develop cordial relationship with our Suppliers, Customer and employees.
- Diversification- addition in our Geographical reach.
About L.K.Mehta Polymers Ltd
L.K.Mehta Polymers Limited was originally incorporated as Public Limited, on January 2, 1995 vide Certificate of Incorporation issued by the Registrar of Companies, Gwalior, Madhya Pradesh with a object to acquire and takeover the existing proprietorship business of a sole proprietorship as going concern carried by Suresh Kumar Mehta in the name and style as M/s. Sajjan Plastic Industries' on April 4, 1995.
The Company, promoted by Kamlesh Mehta HUF along with their relatives is involved in the trading and manufacturing of comprehensive array of Plastic products. Their product line is specifically designed to encompass a wide range of ropes and twines, including monofilament ropes, danline ropes, tape ropes, baler twines, packaging twine (sutli). The Company is also engaged in trading and reprocessing of basic raw materials like polypropylene granules and polyethylene granules for various customers.
A significant milestone was reached in 2002 with the expansion of its operations with the establishment of a new production unit, the actual working of the unit was started by the Company in 2004, focusing on woven sack bags and pipes. Despite initial challenges with availability of a high-power electricity line at its location, the Company demonstrated remarkable resilience by operating the unit until
2022. In 2022, the unit was transferred afterwards. Through continuous innovation and a relentless pursuit of excellence, the Company navigated through challenges and emerged strong, maintaining its growth trajectory.
The Company is planning an IPO of upto 10,40,000 Equity Shares by raising capital aggregating to Rs 7.38 Crore through Fresh Issue.
.
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T&C*
Strengths vs Risks of L.K.Mehta Polymers Ltd
Know the pros & cons
Strengths
Experienced Promoters.- Generational Management.
- Quality Service.
- High Level of Customer Satisfaction.
- Existing Client Relationship.
Risks
- Our Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect our revenues and profitability.
- Our Company is dependent on few States. Loss of any of this large States may affect our business operations.
- Our Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect our business operations.
- Our business is dependent on our manufacturing facility. The loss of or shutdown of operations of our manufacturing facility may have a material adverse effect on our business, financial condition and results of operations.
- Some part of our revenue from operation is generated from sale of Gold and related products.
- Our Company has not entered into any agreements/ contracts for the supply of raw material and other utilities. Risks related to shortfall or non-availability of raw material and other utilities may adversely affect our manufacturing processes and have an adverse impact on our operations and financial condition.
- We will continue to be controlled by our Promoters after the completion of the Issue.
- Our Company, Promoters, Directors and Group Companies are involved in certain legal proceedings. Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect our business and results of operations.
- Our lenders have charge over our movable and immovable properties in respect of finance availed by us and our group company, Promoters, Directors and member of Promoters and Promoter Group have provided their personal guarantee for such debt facility availed by us.
- Our Company's some part of the sales are dependent on some of the Related Parties. Loss of any of this Related Parties Transaction it may affect our revenues and profitability.
- Our Company's some part of the Purchase are dependent on some of the Related Parties. Loss of any of this Related Parties Transaction it may affect our business operation.
- We have experienced negative cash flows from operations in the recent past, and we may have negative cash flows in the future.
- We have experienced significant working capital requirements in past and may continue to experience in future also. If we experience insufficient cash flows from our operations or are unable to borrow to meet our working capital requirements, it may materially and adversely affect our business, cash flows and results of operations.
- If our Company is unable to protect its intellectual property, or if our Company infringes on the intellectual property rights of others, our business may be adversely affected.
- We have offered Equity Shares during the last one year at a price below the Issue Price.
- Our insurance coverage may not adequately protect us against certain operating risks and this may have an adverse effect on the results of our business.
- We are dependent on third party transportation providers for procuring raw material from our suppliers and delivery of finish products and materials to our clients. Any failure on the part of such servic e providers to meet their obligations could have a material adverse effect on our business, financial condition and results of operation.
- Failure to manage our appropriate level of inventory could have an adverse effect on our net sales, profitability, cash flow and liquidity.
- We could be exposed to risks arising from misconduct, fraud and trading errors by our employees and Business Associates.
- A shortage or non-availability of electricity or water may adversely affect our manufacturing operations and have an adverse effect on our business, results of operations and financial condition.
- Dependence on debt and outflow of finance cost leads to outflow of cash flows and reduce overall
profitability.
- Our manufacturing activities are dependent upon availability of skilled and unskilled labour.
- Our success depends on our ability to attract and retain our key management personnel. If we are unable to do so, it would adversely affect our business and results of operations.
- In addition to regular remuneration, other benefits and expense reimbursement our Promoters, Directors, KMPs and SMPs hold a vested interest in our Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving our Company, whether with themselves individually or with our group companies/entities. Our Company in future may enter in related party transactions subject to necessary compliances.
- .Strikes, work stoppages or increased wage demands by our employees or any other kind of disputes with our employees/workmen in future could adversely affect our business and results of operations.
- Our business requires us to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect our business operations.
- Compliance with and changes in safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase our compliance costs and a such adversely affect our results of operations and our financial condition.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- The average cost of acquisition of Equity shares by our Promoters is lower than the Issue price.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- There is no monitoring agency appointed by our Company to monitor the utilization of the Issue proceeds.
- Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of our Company.
- Any future issuance of our Equity Shares may dilute prospective investors' shareholding, and sales of our Equity Shares by our major shareholders may adversely affect the trading price of our Equity Shares.
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
- In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The requirements of being a public listed company may strain our resources and impose additional requirements.
- Certain data mentioned in this Prospectus has not been independently verified.
How to check the allotment status of L.K.Mehta Polymers Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 13 Feb 2025 & closes on 17 Feb 2025.
L.K.Mehta Polymers Limited was originally incorporated as Public Limited, on January 2, 1995 vide Certificate of Incorporation issued by the Registrar of Companies, Gwalior, Madhya Pradesh with a object to acquire and takeover the existing proprietorship business of a sole proprietorship as going concern carried by Suresh Kumar Mehta in the name and style as M/s. Sajjan Plastic Industries' on April 4, 1995.
The Company, promoted by Kamlesh Mehta HUF along with their relatives is involved in the trading and manufacturing of comprehensive array of Plastic products. Their product line is specifically designed to encompass a wide range of ropes and twines, including monofilament ropes, danline ropes, tape ropes, baler twines, packaging twine (sutli). The Company is also engaged in trading and reprocessing of basic raw materials like polypropylene granules and polyethylene granules for various customers.
A significant milestone was reached in 2002 with the expansion of its operations with the establishment of a new production unit, the actual working of the unit was started by the Company in 2004, focusing on woven sack bags and pipes. Despite initial challenges with availability of a high-power electricity line at its location, the Company demonstrated remarkable resilience by operating the unit until
2022. In 2022, the unit was transferred afterwards. Through continuous innovation and a relentless pursuit of excellence, the Company navigated through challenges and emerged strong, maintaining its growth trajectory.
The Company is planning an IPO of upto 10,40,000 Equity Shares by raising capital aggregating to Rs 7.38 Crore through Fresh Issue.
.
L.K.Mehta Polymers Ltd IPO will close on 17 Feb 2025.
- Experienced Promoters.
- Generational Management.
- Quality Service.
- High Level of Customer Satisfaction.
- Existing Client Relationship.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Kamlesh Mehta | 2270800 | 81.1 | 2270800 | 59.14 |
| 2 | Rina Mehta | 242400 | 8.66 | 242400 | 6.31 |
| 3 | Kamlesh Mehta HUF | 272800 | 9.74 | 272800 | 7.1 |
| 4 | Ashi Mehta | 7000 | 0.25 | 7000 | 0.18 |
| 5 | Dollchi Mehta | 6200 | 0.22 | 6200 | 0.16 |
| 6 | Babulal Mehta | 400 | 0.01 | 400 | 0.01 |
| 7 | Chetan Moonat | 400 | 0.01 | 400 | 0.01 |
- Our Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect our revenues and profitability.
- Our Company is dependent on few States. Loss of any of this large States may affect our business operations.
- Our Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect our business operations.
- Our business is dependent on our manufacturing facility. The loss of or shutdown of operations of our manufacturing facility may have a material adverse effect on our business, financial condition and results of operations.
- Some part of our revenue from operation is generated from sale of Gold and related products.
- Our Company has not entered into any agreements/ contracts for the supply of raw material and other utilities. Risks related to shortfall or non-availability of raw material and other utilities may adversely affect our manufacturing processes and have an adverse impact on our operations and financial condition.
- We will continue to be controlled by our Promoters after the completion of the Issue.
- Our Company, Promoters, Directors and Group Companies are involved in certain legal proceedings. Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect our business and results of operations.
- Our lenders have charge over our movable and immovable properties in respect of finance availed by us and our group company, Promoters, Directors and member of Promoters and Promoter Group have provided their personal guarantee for such debt facility availed by us.
- Our Company's some part of the sales are dependent on some of the Related Parties. Loss of any of this Related Parties Transaction it may affect our revenues and profitability.
- Our Company's some part of the Purchase are dependent on some of the Related Parties. Loss of any of this Related Parties Transaction it may affect our business operation.
- We have experienced negative cash flows from operations in the recent past, and we may have negative cash flows in the future.
- We have experienced significant working capital requirements in past and may continue to experience in future also. If we experience insufficient cash flows from our operations or are unable to borrow to meet our working capital requirements, it may materially and adversely affect our business, cash flows and results of operations.
- If our Company is unable to protect its intellectual property, or if our Company infringes on the intellectual property rights of others, our business may be adversely affected.
- We have offered Equity Shares during the last one year at a price below the Issue Price.
- Our insurance coverage may not adequately protect us against certain operating risks and this may have an adverse effect on the results of our business.
- We are dependent on third party transportation providers for procuring raw material from our suppliers and delivery of finish products and materials to our clients. Any failure on the part of such servic e providers to meet their obligations could have a material adverse effect on our business, financial condition and results of operation.
- Failure to manage our appropriate level of inventory could have an adverse effect on our net sales, profitability, cash flow and liquidity.
- We could be exposed to risks arising from misconduct, fraud and trading errors by our employees and Business Associates.
- A shortage or non-availability of electricity or water may adversely affect our manufacturing operations and have an adverse effect on our business, results of operations and financial condition.
- Dependence on debt and outflow of finance cost leads to outflow of cash flows and reduce overall profitability.
- Our manufacturing activities are dependent upon availability of skilled and unskilled labour.
- Our success depends on our ability to attract and retain our key management personnel. If we are unable to do so, it would adversely affect our business and results of operations.
- In addition to regular remuneration, other benefits and expense reimbursement our Promoters, Directors, KMPs and SMPs hold a vested interest in our Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving our Company, whether with themselves individually or with our group companies/entities. Our Company in future may enter in related party transactions subject to necessary compliances.
- .Strikes, work stoppages or increased wage demands by our employees or any other kind of disputes with our employees/workmen in future could adversely affect our business and results of operations.
- Our business requires us to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect our business operations.
- Compliance with and changes in safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase our compliance costs and a such adversely affect our results of operations and our financial condition.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- The average cost of acquisition of Equity shares by our Promoters is lower than the Issue price.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- There is no monitoring agency appointed by our Company to monitor the utilization of the Issue proceeds.
- Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of our Company.
- Any future issuance of our Equity Shares may dilute prospective investors' shareholding, and sales of our Equity Shares by our major shareholders may adversely affect the trading price of our Equity Shares.
- The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
- In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect our revenues and results of operations.
- We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The requirements of being a public listed company may strain our resources and impose additional requirements.
- Certain data mentioned in this Prospectus has not been independently verified.
The Issue type of L.K.Mehta Polymers Ltd is Fixed Price - SME.
The minimum application for shares of L.K.Mehta Polymers Ltd is 1600.
The total shares issue of L.K.Mehta Polymers Ltd is 1040000.
Initial public issue of 10,40,000 equity shares of face value of Rs. 10/- each of L.K.Mehta Polymers Limited ("L.K. or the "Company" or the Isuer") for cash at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share (the "Issue Price") aggregating to Rs. 7.38 crores ("The Issue"), of which 54,400 equity shares of face value of
Rs. 10/- each for cash at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share aggregating to Rs. 0.38 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 9,85,600 equity shares of face value of Rs. 10/- each at a price of Rs. 71/- per equity share including a share premium of Rs. 61/- per equity share aggregating to Rs. 7.00 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 27.08% and 25.67% respectively of the post issue paid up equity share capital of the company.
The face value of the equity shares is Rs. 10/- each and the issue price is Rs. 71/-. The issue price is 7.10 times of the face value.
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