Premium Plast IPO to hit the D-Street on October 21, price band set at ₹46-49 apiece; check latest GMP

The Premium Plast IPO subscription period commences on Monday, October 21, and concludes on Wednesday, October 23. The price band for each equity share in the Premium Plast SME IPO is established at ₹46-49, with a face value of ₹10. Following this, bids can be made in multiples of 3,000 equity shares, with a minimum bid of 3,000 equity shares.

The company directly provides automotive components to original equipment manufacturers (OEMs) as a tier-1 supplier. Their offerings consist of designing, manufacturing, and supplying exterior plastic components, interior cabin components, and under the hood components for commercial vehicle OEMs.

A wide variety of injection and blow moulded plastic articles benefit a diverse range of industries and applications through the firm. The company's products cover automotive parts, plastic industrial components, and packaging components, catering to a wide range of industries.

The red herring prospectus (RHP) of the company mentions Varroc Engineering Ltd as a listed peer, with a P/E of 17.00, and Uno Minda Ltd, with a P/E of 64.80.

In the financial year ending on March 31, 2024, Premium Plast Limited saw a 6% increase in revenue and a 200% rise in profit after tax (PAT) compared to the previous year ending on March 31, 2023.

Premium Plast IPO details

Premium Plast IPO consists of fresh issue of 5,346,000 equity shares aggregating to ₹26.20 crore. There's no offer for sale (OFS) component.

The funds raised from the offer will be used by the company for the following objectives: expansion of the existing manufacturing facility in Pithampur, Madhya Pradesh, and the acquisition of new machinery; fulfilling the capital expenditure requirements for setting up a Rooftop Grid Solar Power Plant at the current manufacturing facility; repayment of some or all of the outstanding borrowings obtained by the company; general corporate purposes; and addressing expenses associated with the offer.

The book running lead manager for the Premium Plast IPO is Khandwala Securities Limited, and Bigshare Services Pvt Ltd will be the registrar for the issue. As for the Premium Plast IPO, Asnani Stock Broker will serve as the market maker.

Premium Plast IPO GMP today

Premium Plast IPO GMP today is +5. This indicates Premium Plast share price was trading at a premium of ₹5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Premium Plast share price is indicated at ₹54 apiece, which is 10.2% higher than the IPO price of ₹49.

According to experts at investorgain.com, there hasn't been any significant movement in the GMP trend for today's IPO based on the grey market activities from the last 3 sessions. They anticipate that this trend will continue until the listing day.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.