Solve Plastic Products shares list at 12% premium over IPO price on NSE SME

Founded in 1994, Solve Plastic Products manufactures unplasticized polyvinyl chloride (uPVC) pipes and Rigid PVC conduits under the 'BALCOPIPES' brand.

Solve Plastic Products Ltd made a decent debut on the NSE SME platform, with shares of the PVC pipe manufacturer listing at Rs 102, reflecting a 12 percent premium compared to the issue price of Rs 91.

The Rs 11.85-crore IPO consisted entirely of a fresh issue of 13.02 lakh shares, with the shares priced at Rs 91 each. Retail investors needed to invest a minimum of Rs 1.09 lakh for one lot (1,200 shares), while the minimum investment for High Net-worth Individuals (HNIs) was Rs 2.18 lakh for two lots (2,400 shares).

The allotment for Solve Plastic Products IPO was finalised on August 19. Finshore Management Services Ltd acted as the book-running lead manager for the IPO, while Integrated Registry Management Services Pvt Ltd served as the registrar.

The issue was subscribed 34.2 times as of the close of bidding on August 16. The retail category was subscribed 46.8 times, while the NII category saw a subscription of 19.5 times.

The funds raised from the IPO will be used for capital expenditure on additional plant and machinery, meeting working capital requirements, covering issue expenses, and general corporate purposes.

Founded in 1994, Solve Plastic Products operates three manufacturing units in Kerala and one in Tamil Nadu. The company's products have gained approval from authorities including the Bureau of Indian Standards (BIS), the Central Public Works Department (CPWD) of Chennai and Kochi, Military Engineer Services (MES), Integral Coach Factory, Public Works Department (PWD) of Kerala and Tamil Nadu, and the Tamil Nadu Housing Board. The company primarily distributes its products within Kerala.

In the financial year ending March 31, 2024, Solve Plastic Products' revenue declined 24 percent on year to Rs 47.2 crore. However, it managed to boost its profit after tax (PAT) by 18 percent to Rs 1.4 crore.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.