• IPO and capex: The ₹120 crore IPO (priced at ₹40 to ₹43 with a ₹92.5 crore fresh issue and ₹33 crore OFS) allocates ₹54.9 crore to brownfield expansion across six existing plants, raising capacity by nearly 30% from 29,200 MT to 38,000 MT.
• Product diversification: The company is expanding into the ISBM segment to manufacture PET and recycled PET bottles, expanding its addressable market across pharmaceuticals, personal care, cosmetics, and beverages.
• Revenue breakdown: In Q1 FY25, battery casings contributed 54% of revenue, paint pails and thin-wall packaging accounted for 28%, and automotive components contributed 4% to 4.5%, while overall capacity utilization surpassed 80%.
• Debt reduction: The company will utilize ₹15 crore of IPO proceeds to reduce its long-term debt from around ₹28 crore to roughly ₹13 crore, maintaining an existing ₹60 crore sanctioned working capital limit.
• Input cost pass-through: Rising polypropylene costs stemming from geopolitical tensions in West Asia are fully passed on to customers via existing contract mechanisms, shielding operating margins from raw material volatility.