Consumerware products maker All Time Plastics plans to enter capital markets for fund raising via an initial public offering, as it has filed preliminary papers with the regulator SEBI on September 30.
The IPO is a combination of fresh issuance of equity shares worth up to Rs 350 crore by the company, and an offer-for-sale of 52.5 lakh equity shares by the existing shareholders.
Promoters - Kailesh Punamchand Shah, Bhupesh Punamchand Shah, and Nilesh Punamchand Shah will be selling 17.5 lakh shares each in the offer-for-sale.
The company may also raise Rs 70 crore via pre-IPO placement before the filing of red herring prospectus with the Registrar of Companies. The said amount will get reduced from the fresh issue component if it manages fund raising in pre-IPO placement (private placement).
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All Time Plastics is primarily a white-label manufacturing, wherein it manufactures consumerware for customers to market under their own brand names including global retailers like IKEA, Asda Stores, Michaels Stores Inc, and Tesco Plc. Further, it also sells products to Indian retailers, including Spencer’s Retail. In fact, it was the second largest manufacturer of plastic consumerware products in the business-to-business (B2B) segment in India in terms of revenue for FY23.
The Maharashtra-based company that competes with only listed peer Shaily Engineering Plastics also sells its consumerware products under its 'alltime' brand. It had 1,608 stock-keeping units (SKUs) across eight categories in FY24 including kitchen tools, food storage containers, hangers, kitchenware, cleaning equipment, and bathroom products.
With manufacturing facilities in Daman and Silvassa, All Time Plastics generated 70 percent business from its top two categories - kitchen tools and food storage containers. Revenue from operations during the fiscal year 2024 increased by 15.6 percent to Rs 512.85 crore compared to previous year.
Also read: SEBI objects to use of IPO proceeds for paying back promoter loans
Net profit for the year ended March 2024 grew by 58.4 percent to Rs 44.8 crore YoY, driven by strong operating margin performance. EBITDA (earnings before interest, tax, depreciation and amortisation) surged 32.3 percent to Rs 97.1 crore and margin soared 240 bps to 18.9 percent compared to previous fiscal.
The Shah family-owned company is going to utilise Rs 120 crore out of the net fresh issue proceeds (fresh issue less IPO expenses) for repaying debt, and Rs 133.73 crore for purchase of equipment and machinery for its Manekpur facility. The remaining IPO funds will be used for general corporate purposes.
Intensive Fiscal Services, DAM Capital Advisors are appointed as the book running lead manager to the issue.
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