Solve Plastic Products IPO open date is August 13 and the IPO close date is August 16
Solve Plastic Products has published that its IPO is going to be open on 13th August and will end on 16th August. It is an India-based eco-friendly plastic manufacturer in diverse industries that offers sustainable solutions to its clients. It aims to gather INR 11.85 crore through an IPO with an equity share of 13,02,000 equity shares with a face value of INR 10 each and a market lot of a minimum of 1,200 shares.
Company Overview
Solve Plastic Products is the industry’s innovative leader in sustainable plastics, with a mission to revolutionize the plastic market and make it greener. The company deals in the manufacture and distribution of superior-quality plastic parts for everyday use as well as for industrial purposes, and the end products are reusable and recyclable. It uses new-age innovative technology to produce strong, multiple-functional, and sustainable substitutes for plastics. The policies of research and development of this company have always emphasized the factors of low environmental effects and at the same time, high product efficiency.
Company Strategy
The business strategy of Solve Plastic Products is geared towards sustainability, innovation and international expansion. Another is to focus on environmental conservation by developing environmentally friendly products such as recycled and biodegradable plastics in a bid to achieve zero waste. High investment in research and development makes it possible to design and produce high-performance, environmentally sustainable materials to replace plastics. It also focuses on client-centric solutions, which guarantee product quality and satisfaction creating a loyal customer base. Operating in a circular economy model, the company works with its partners to ensure that plastic products are recycled or disposed of properly.
Details on IPO Date and Price Band
| IPO Open: | August 13, 2024 |
| IPO Close: | August 16, 2024 |
| IPO Size: | Approx INR 11.85 Crores (13,02,000 Equity Shares) |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 91 Per Equity Share |
| IPO Listing on: | NSE SME |
| Retail Quota: | 50% |
| QIB Quota: | 0% |
| NII Quota: | 50% |
IPO Objective:
The IPO funds will be used to meet capital expenses in the form of plant and machinery that would help expand production lines and increase productivity. Moreover, some portions will be allocated to working capital, whereby funds will be employed to cater to the company’s day-to-day operations to guarantee continued fluidity. A share of the funds will go towards paying for the costs associated with issues arising from an IPO. Finally, the rest of the money will be set aside for miscellaneous corporate uses, which allows for more agility to pursue new opportunities, acquisitions, initiatives, and other corporate applications to help the company in its growth and expansion.
Market Lot Information on Solve Plastic Products IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,200 shares) for INR 1,09,200
- Retail Maximum: 1 lot (1,200 shares) for INR 1,09,200
- S-HNI Minimum: 2 lots (2,400 shares) for INR 2,18,400
Allotment Dates for Solve Plastic Products IPO
Solve Plastic Products IPO open date is August 13 and the IPO close date is August 16. The IPO allotment date is August 19 and listing date is August 21.
| IPO Open Date: | August 13, 2024 |
| IPO Close Date: | August 16, 2024 |
| Basis of Allotment: | August 19, 2024 |
| Refunds: | August 20, 2024 |
| Credit to Demat Account: | August 20, 2024 |
| IPO Listing Date: | August 21, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Solve Plastic Products. On the other hand, the IPO forms are also available for download on the NSE and BSE websites which the candidates can fill and submit.
Financial Analysis of Company
| Year | Revenue | Expense | PAT |
| 2022 | INR 55.78 | INR 53.98 | INR -0.41 |
| 2023 | INR 62.25 | INR 58.81 | INR 1.20 |
| 2024 | INR 47.16 | INR 43.50 | INR 1.42 |
The key financial analysis of Solve Plastic Products has revealed that the profit and loss figures were fluctuating from 2022 to 2024. For the year ended 2022, the company generated a total revenue of INR 55.78 crore, whereas the operating loss was INR 0.41 crore. But in 2023, it earned, a total revenue of INR 62.25 crore, with expenses estimated to be roughly above INR 58.81 crore, leading to a profit after tax (PAT) of INR 1.20 crore. Later in the fiscal year 2024, revenue was again bolstered, reaching INR 47.16 crore. The company managed to further improve its profitability, with expenses reduced to INR 43.50 crore and a PAT of INR 1.42 crore. This trend indicates effective cost management and a capacity to maintain profitability within profit volatility.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 4.66 with Return on Net Worth (RoNW) of 32.47% and a Net Asset Value (NAV) per share of INR 14.31 in the financial year 2024. The IPO price band of INR 91, with issue of 13,02,000 equity shares to raise INR 11.85 crore and face value INR 10 per share to offer high-performance, eco-friendly alternatives to traditional plastics in diverse industries.
| Earnings Per Share (EPS): | INR 4.66 per Equity Share |
| Price/Earning P/E Ratio: | 19.52 |
| Return on Net Worth (RoNW): | 32.47% |
| Net Asset Value (NAV): | INR 14.31 per Equity Share |
Competitor Analysis
- Captain Pipes Limited
Captain Pipes Limited is a prominent firm that deals with the sale and distribution of quality PVC, UPVC, and CPVC piping systems. Founded in 1989 in Rajkot, India, it operates under principles such as durability, reliability, and quality standard compliance. Captain Pipes engages in advanced technology & quality control and provides pipes for agricultural, industrial, and domestic use. A company with sustainable business practices and the vision to offer quality services to customers seeks to increase its market share and empower the region through infrastructure investment.
- Rungta Irrigation Limited
Rungta Irrigation Limited provides agriculture water management solutions that are sophisticated in nature with the help of efficient irrigation systems. It produces sprinkler systems, drip irrigation systems and PVC Pipes besides employing the latest technology and quality assurance. Its products can effectively address the problems that deal with water consumption, increasing crop productivity and advancing sustainable agriculture. The strong distribution channel of Rungta Irrigation Limited caters to a wide cross-section of customers across India and overseas, who are expeditiously promoting pro-farmer agriculture’s growth through efficient and green irrigation tools.
- Dutron Polymers Limited
Dutron Polymers Limited is a manufacturer and supplier of polymer products such as effective piping and tubing materials. It was incorporated in 1981 and is located in Ahmedabad, India. The company specializes in PVC, CPVC, PPR and HDPE pipes and fittings. Dutron Polymers regularly employs modern technology and quality standards to produce articles that are strong and resistant and comply with international standards. Serving segments such as agriculture, construction, and infrastructure. With a strong distribution system, it has expanded its market all over the world, helping to achieve the goal of establishing advanced water management systems.
- AIK Pipes and Polymers Limited
AIK Pipes and Polymers is a leading manufacturer of high-quality plastic pipes and fittings. It was set up primarily to offer various products required for construction and infrastructural works, such as PVC, CPVC, HDPE pipes, etc. The company has adopted the use of advanced technology and high-quality process knowledge to produce long-lasting and quality pipes and polymers and focuses on different sectors, including agriculture, plumbing, and related industries.
The upcoming IPO of Solve Plastic Products, scheduled from August 13 to August 16, 2024, presents a significant opportunity for growth and expansion. This India-based company, a pioneer in sustainable plastic solutions, is aiming to raise INR 11.85 crore by offering 13,02,000 equity shares. Solve Plastic Products stands out in the industry for its commitment to eco-friendly manufacturing practices, producing reusable and recyclable plastic parts for both everyday and industrial use. The funds from the IPO will primarily be allocated towards expanding production capabilities, enhancing working capital, and covering various corporate expenses. This move is set to fortify the company’s leading position in the market, pushing forward its mission to innovate and promote sustainability within the plastic industry.
