L.K. Mehta Polymers IPO is set to open for subscription on February 13, 2025, and will close on February 17, 2025. This is a Fixed Price Issue IPO, with a price band of ₹71 per share. The company aims to raise ₹7.38 crores, entirely through a fresh issue of 10.40 lakh shares, and there is no Offer for Sale (OFS).
The minimum lot size is 1600 shares, requiring a minimum investment of ₹1,13,600 for retail investors. High Net-worth Individuals (HNI) must apply for at least two lots (3,200 shares), amounting to ₹2,27,200. The allotment of shares is expected to be finalized on February 18, 2025, and the IPO is scheduled to list on the BSE SME platform on February 21, 2025.
The quota allocation for retail investors, Qualified Institutional Buyers (QIBs), and High Net-worth Individuals (HNIs) is yet to be announced. L.K. Mehta Polymers has demonstrated financial growth, reporting a revenue of ₹18.87 crores in 2024, up from ₹17.14 crores in 2023.
The company also turned profitable, posting a net profit of ₹0.86 crores in 2024, compared to a loss of ₹0.01 crores in 2023. Given the company’s financial performance and fixed pricing, investors may consider subscribing to the IPO for long-term potential.
Overview of Contents
L.K. Mehta Polymers IPO Overview
| Particulars | Details |
|---|---|
| IPO Opening Date | February 13, 2025 |
| IPO Closing Date | February 17, 2025 |
| IPO Listing Date (Tentative) | To be announced |
| Issue Type | Fixed Price Issue IPO |
| IPO Price Band | ₹71 per share |
| Face Value | ₹10 per equity share |
| Market Lot Size | 1,600 shares |
| Minimum Investment (Retail) | ₹1,13,600 (1 lot - 1,600 shares) |
| Minimum Investment (HNI) | ₹2,27,200 (2 lots - 3,200 shares) |
| Total Issue Size | 10,40,000 shares (aggregating up to ₹7.38 crores) |
| Fresh Issue | 10,40,000 shares (aggregating up to ₹7.38 crores) |
| Offer for Sale (OFS) | Not Applicable |
| Pre-Issue Shareholding | 28,00,000 shares |
| Post-Issue Shareholding | 38,40,000 shares |
| Market Maker Portion | 54,400 shares |
| Listing Exchange | BSE SME |
| DRHP | Click here |
| RHP | Click here |
L.K Mehta Polymers IPO Lot Size
| Investor Category | Lots | Total Shares | Investment Amount |
|---|---|---|---|
| Retail (Minimum Investment) | 1 Lot | 1,600 Shares | ₹1,13,600 |
| Retail (Maximum Investment) | 1 Lot | 1,600 Shares | ₹1,13,600 |
| Small HNI (S-HNI) Minimum Investment | 2 Lots | 3,200 Shares | ₹2,27,200 |
L.K Mehta Polymers IPO Dates
| Event | Date |
|---|---|
| IPO Opens | 13 February 2025 |
| IPO Closes | 17 February 2025 |
| Allotment Finalization | 18 February 2025 |
| Refund Initiation | 19 February 2025 |
| Demat Account Credit | 19 February 2025 |
| Expected Listing Date | 20 February 2025 |
About L.K Mehta Polymers IPO
L.K. Mehta Polymers Limited, established in 1995, specializes in the manufacturing and trading of plastic products. The company is also actively involved in the trading and reprocessing of essential raw materials such as polypropylene and polyethylene granules, catering to a diverse range of industries.
Operating under its proprietary brand “Super Pack,” L.K. Mehta Polymers is committed to delivering high-quality products while maintaining strong customer relationships. The company follows a stringent quality control system, ensuring seamless order processing, timely deliveries, and minimal errors, which enhances customer satisfaction and builds long-term trust.
The company’s product portfolio includes monofilament ropes, Danline ropes, and tape ropes, widely used in sectors like agriculture, packaging, transportation, and heavy industries, including mining and shipping. Additionally, its twine products, such as baler twine and packaging sutli, serve applications in agriculture, handicrafts, retail packaging, and household use. The company also deals in polyethylene and polypropylene granules, essential for reprocessing and plastic manufacturing.
As of January 25, 2025, L.K. Mehta Polymers employs 21 full-time professionals who contribute to its operational excellence. The company’s key strengths lie in its experienced leadership, generational business expertise, focus on quality service, high customer satisfaction, and long-standing client relationships, which give it a competitive edge in the industry.
Object of the issue
- To Meet Incremental Working Capital Requirement
- General Corporate Purpose
L.K. Mehta Polymers IPO – Financial Overview
| Financial Metrics | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Revenue | ₹11.98 Cr | ₹18.87 Cr | ₹17.14 Cr | ₹11.94 Cr |
| Profit After Tax (PAT) | ₹0.42 Cr | ₹0.86 Cr | ₹-0.01 Cr | ₹0.04 Cr |
| Total Assets | ₹11.87 Cr | ₹10.49 Cr | ₹7.20 Cr | ₹8.23 Cr |
| Net Worth | ₹3.74 Cr | ₹3.02 Cr | ₹2.16 Cr | ₹2.17 Cr |
| Reserves & Surplus | ₹0.94 Cr | ₹2.39 Cr | ₹1.54 Cr | ₹1.54 Cr |
| Total Borrowings | ₹6.69 Cr | ₹6.48 Cr | ₹3.90 Cr | ₹4.39 Cr |
L.K. Mehta Polymers Limited – Key Performance Indicators (KPIs)
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 28.35% |
| Return on Capital Employed (ROCE) | 16% |
| Return on Net Worth (RoNW) | 28.35% |
| Price-to-Earnings (P/E) Ratio | 41.04 |
| Earnings Per Share (EPS) (Basic) | ₹3.42 |
| Net Asset Value (NAV) per Share | ₹12.07 |
| Debt-to-Equity Ratio | 2.15 |
| EBITDA Margin | 5.58% |
| Profit After Tax (PAT) Margin | 4.53% |
L.K. Mehta Polymers IPO Promoter Holding
Mr. Kamlesh Mehta and Rina Mehta are the promoters of the company
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 72.92% |
L.K. Mehta Polymers IPO Review – Should You Invest?
L K Mehta Polymers Ltd. is engaged in the trading and manufacturing of plastic products, mainly ropes and twines. While the company has shown revenue growth, its profitability has been inconsistent. The IPO is priced aggressively, making it a risky bet in a highly competitive and fragmented market.
Key Concerns:
- Erratic profit trends despite revenue growth.
- High IPO valuation with stretched P/E.
- Small post-IPO equity base, leading to a long gestation period.
Given these factors, the IPO appears overpriced with limited upside potential. Investors may consider avoiding this offer.
L.K. Mehta Polymers IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
IPO Lead Managers aka Merchant Bankers
- Swastika Investmart Ltd
Company Address
L.K. Mehta Polymers Limited
1103/2,
Mhow-Neemuch Road,
Ratlam, 457001
Phone: +91-9669903095
Email: info@lkmehtapolymersltd.com
Website: https://lkmehtapolymersltd.com/
L.K. Mehta Polymers IPO FAQs
What are the LMPL IPO opening and closing dates?
The IPO opens on February 13, 2025, and closes on February 17, 2025.
What is the LMPL IPO price and lot size?
The fixed price is ₹71 per share, with a minimum lot size of 1,600 shares.
Where will LMPL IPO be listed?
The shares will be listed on BSE SME.
What is the issue size of LMPL IPO?
The company is issuing 10,40,000 equity shares, aiming to raise ₹7.38 crore.
What is the post-IPO market cap of LMPL?
The expected market capitalization post-IPO is ₹27.26 crore.
How will LMPL use the IPO proceeds?
Funds will be used for working capital (₹5.34 crore) and general corporate purposes (₹1.34 crore).
Who is the lead manager for the LMPL IPO?
Swastika Investmart Ltd. is the lead manager, and Bigshare Services Pvt. Ltd. is the registrar.
Should you invest in LMPL IPO?
The IPO appears overpriced with limited growth potential, and investors may consider avoiding it.
