Sati Poly Plast IPO: A Green Light for Investors or a Red Flag?

NiftyTrader • July 11, 2024

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Sati Poly (IPO) opens on July 12, 2024, and closes on July 16, 2024. The allotment for the Sati Poly IPO is anticipated to be completed on Thursday, July 18, 2024. The IPO will be listed on the NSE and SME, with a tentative date of Monday, July 22, 2024.

The price band for the Sati Poly IPO is set at Rs 123 to 130 per share. The IPO is a book-built issue of Rs 17.36 crores, entirely a fresh issue of 13.35 lakh shares.

Sati Poly Plast IPO Details

IPO Date	July 12, 2024 to July 16, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹123 to ₹130 per share
Lot Size	1000 Shares
Total Issue Size	1,335,000 shares (aggregating up to ₹17.36 Cr)
Fresh Issue	1,335,000 shares (aggregating up to ₹17.36 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding pre-issue	3,612,000
Shareholding post issue	4,947,000
Market Maker portion	70,000 shares

Sati Poly Plast IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1000	₹130,000
Retail (Max)	1	1000	₹130,000
HNI (Min)	2	2000	₹260,000

Sati Poly Plast IPO Objectives

The objectives of the Issue are:

To meet working capital requirements.
General Corporate Purpose.

About Sati Poly Plast Limited

Established in 1999, Sati Poly Plast specializes in manufacturing flexible packaging materials for a wide range of industries. The company operates two manufacturing units in Noida, with a combined capacity of 1,080 tons per month.

Between 2018 and 2019, Sati Poly Plast successfully increased its installed capacity from 250 tons per month to 500 tons per month.

The company supplies packaging materials to several states, including Assam, Bihar, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Puducherry, Punjab, and Rajasthan.

Sati Poly Plast’s client portfolio includes renowned companies such as Pidilite, Adani Wilmar, and JVL.

Sati Poly Plast Limited Financial Information

Sati Poly Plast Limited’s revenue decreased by -6.05% and profit after tax (PAT) rose by 6.39% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	5,637.57	4,194.08	3,578.70
Revenue	17,940.98	19,096.69	17,522.39
Profit After Tax	328.64	308.89	28.23
Net Worth	1,230.28	397.64	88.75
Reserves and Surplus	869.08	291.24	-17.65
Total Borrowing	2,520.14	2,630.50	2,358.89

Sati Poly Plast IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50.00% of the Net Issue
Retail Shares Offered	Not less than 35.00% of the Issue
NII (HNI) Shares Offered	Not less than 15.00% of the Issue

Sati Poly Plast IPO Timeline

Sati Poly Plast IPO opens on July 12, 2024, and closes on July 16, 2024.

IPO Open Date	Friday, July 12, 2024
IPO Close Date	Tuesday, July 16, 2024
Basis of Allotment	Thursday, July 18, 2024
Initiation of Refunds	Friday, July 19, 2024
A credit of Shares to Demat	Friday, July 19, 2024
Listing Date	Monday, July 22, 2024
Cut-off time for UPI mandate confirmation	5 PM on July 16, 2024

Conclusion

Sati Poly Plast Limited, a company established in 1999 specializing in flexible packaging materials, is set to open its IPO on July 12, 2024, and close on July 16, 2024. With a price band of Rs 123 to 130 per share, the IPO is a book-built issue worth Rs 17.36 crores, comprising 13.35 lakh fresh issue shares. The company aims to use the raised funds for working capital requirements and general corporate purposes. Sati Poly Plast, known for its clients like Pidilite and Adani Wilmar, will list on the NSE SME with a tentative listing date of July 22, 2024. The allotment is expected on July 18, 2024, and the shares will be credited to demat accounts by July 19, 2024.