Essen Speciality Films IPO opens June 27: Check date, offer price, and more

The company exports its products to 24 countries such as China, Saudi Arabia, United States of America, Qatar, United Kingdom, Germany, Italy, Canada, among others.

Manufacturer and exporter of plastic products, Essen Speciality Films Ltd (ESFL), has set a price band of Rs 101 - Rs. 107 per share for its upcoming initial public offering. At the upper end of the price band, the company will raise around Rs 66 crore. The issue will be open for bidding from June 23 till June 27. The company will be listed on the National Stock Exchange.

The initial public offering comprises of fresh issue of 46.99 lakh shares, and an offer for sale of 15 lakh shares.

The company will utilise the net proceeds for prepayment and repayment of certain borrowings, working capital and the rest for general corporate purposes.

ESFL posted a net profit of Rs 13.37 crore in FY23, up more than 100 percent from FY22. The company, in its draft red herring prospectus, declared Shaily Engineering Limited and Supreme Industries Limited as two of ESFL's competitors.

The company specialises in the home improvement and furnishing industry. These products are supplied to well-known multinational retail chains like IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's, and Kroger, among others. The Ministry of Commerce & Industry, Government of India, has acknowledged the company as a 'two-star export house'.

The company is a member of the Rajoo Group, led by its promoter group company and group company, Rajoo Engineers Limited ("REL"). REL has been listed on the BSE Limited since October 24, 1994, and currently holds a market capitalization of 270.67 Crore as of June 9, 2023.

GYR Capital Advisors Pvt. Ltd. is the sole lead manager and Bigshare Services Pvt. Ltd. is the registrar of the issue. SMC Global Securities Ltd. is the market maker for the company.

At the upper end of the IPO price band, the company will be valued at Rs 221.5 crore in terms of market capitalization.

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