LK Mehta Polymers IPO listed at ₹71.10 per share on the BSE SME platform on February 21, marking a flat listing compared to its IPO price of ₹71 per share.
L.K. Mehta Polymers IPO was subscribed 9.82x overall, with Anchor Investors and Market Makers at 1x each. QIBs subscribed 1.21x, while NIIs saw a high demand of 21.39x. Retail Investors showed strong interest with a 10.04x subscription, totaling 1.32 crore bids from 7,013 applications worth ₹185.58 crore.
L.K. Mehta Polymers IPO had a last recorded GMP of ₹5, suggesting an estimated listing price of ₹76 (₹71 issue price + ₹5 GMP). However, the stock listed at ₹71.10, significantly below the expected price, resulting in a flat listing with just a 0.14% gain, far lower than the anticipated 7.04% gain based on GMP.
Overview of Contents
Details About L.K. Mehta Polymers IPO
L.K. Mehta Polymers IPO is a Fixed Price Issue at ₹71 per share, aiming to raise ₹7.38 crore through a fresh issue of 10.40 lakh shares, with no Offer for Sale (OFS). The IPO allotment is expected on February 18, 2025, with listing on the BSE SME platform on February 21, 2025. The company reported ₹18.87 crore revenue in 2024, up from ₹17.14 crore in 2023, and turned profitable with ₹0.86 crore net profit, compared to a ₹0.01 crore loss in 2023.
- Retail Investors: Minimum 1 lot (1,600 shares) = ₹1,13,600 investment
- High Net-worth Individuals (HNIs): Minimum 2 lots (3,200 shares) = ₹2,27,200 investment
- Qualified Institutional Buyers (QIBs): Quota yet to be announced
L.K. Mehta Polymers IPO Funds Deployment:
- Working Capital: To meet incremental working capital requirements for growth.
- General Corporate Purpose: Remaining funds allocated for business needs.
L.K. Mehta Polymers IPO Financial Performance
L.K. Mehta Polymers reported a revenue of ₹11.98 Cr as of Dec 2024, up from ₹18.87 Cr in March 2024 and ₹17.14 Cr in 2023. Profit After Tax (PAT) stood at ₹0.42 Cr, improving from ₹0.86 Cr in 2024 and a loss of ₹0.01 Cr in 2023. Total assets grew to ₹11.87 Cr, while net worth rose to ₹3.74 Cr. The company’s borrowings increased to ₹6.69 Cr, reflecting its expansion efforts.
About Company
L.K. Mehta Polymers Limited, established in 1995, manufactures and trades plastic products, including monofilament ropes, Danline ropes, and packaging twines under its “Super Pack” brand. The company also deals in polypropylene and polyethylene granules for various industries like agriculture, packaging, and shipping. With a strong focus on quality, timely delivery, and customer satisfaction, it has built long-term client relationships. As of January 25, 2025, it employs 21 professionals. The IPO aims to meet incremental working capital requirements and support general corporate purposes.