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Purv Flexipack IPO
Purv Flexipack Limited
₹1,12,000 /1600 sharesMinimum investment
IPO details
Minimum investment
₹1,12,000
Price range
₹70 - ₹71
Lot size
1,600
Issue size
40.21 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
27 Feb 2024
IPO open date
29 Feb 2024
IPO close date
1 Mar 2024
Allotment date
1 Mar 2024
Funds unblock or debit
5 Mar 2024
Tentative listing date
About
Founded in
2005
MD/CEO
Mr. Vanshay Goenka
Parent organisation
Purv Flexipack Limited
Purv Flexipack Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
As per the company, it is a one-stop solution for packaging materials. Some of its products include plastic granules, masterbatch, films, ink, and adhesives, simplifying the sourcing process.
The company’s slitting machine provides customization to meet specific client requirements. It possesses six slitting machines catering to the eastern part of India. These are capable of converting jumbo rolls from 2000mm to 50mm rolls.
The company offers single roof solution for colours, sizes, thicknesses, and packaging. It has developed the "Window Metalized” to address the increasing demand for transparency in packaging.
The company’s revenue from operations was Rs. 133.04 cr, Rs. 222.37 cr, and Rs. 333.17 cr in the FY 2021, 2022, and 2023 respectively. For the same time periods, the company reported profit after tax of Rs. 5.68 cr, Rs. 6.27 cr, and Rs. 8.26 cr respectively.
Since the company is a distributor of various plastic-based products, it is dependent on timely sourcing of products & packaging materials. Delay in sourcing and price fluctuations of these products could have a material impact on the company’s business operations.
The company has a significant dependency on a restricted number of suppliers, with 76.32%, 80.74%, and 74.79% of its Total Purchases originating from the top 5 suppliers for the period ending on September 30, 2023, and for the Fiscal Years ending on March 31, 2023, 2022, and 2021.
The company has entered into a Del Credere Associate (DCA) Agreement and Del Credere Associate Operated Polymers Warehouse (DOPW) agreement with Indian Oil Corporation Ltd. (“IOCL”). Any termination, non-renewal, or significant modification of the agreement terms unfavourable to the company's interests could have a material and adverse impact on its ability to sustain business operations and future financial performance.
The company derives a significant portion of its revenues from its top 10 clients. Sales to the top 10 customers amounted to Rs. 20.58 cr, Rs. 58.82 cr, Rs. 62.81cr, and Rs. 38.07 cr, representing 37.45%, 37.45%, 36.73%, and 37.23% of its revenue from operations for the period ending on September 30, 2023, Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively.
The company, along with its Promoters, Directors, and Group Companies, faces pending litigations. Any unfavourable decisions in these proceedings could lead to liabilities or penalties, potentially impacting the business, operational results, and financial condition.
Its group companies, comprising Purv Films Private Limited, Apex Flexipack Private Limited, Millenium Plastipack Private Limited, Purv Ecoplast Private Limited, Purv Packaging Private Limited, and its subsidiary company Cool Caps Industries Limited, are engaged in business activities similar to the company's operations. This similarity could result in a potential conflict of interest and have adverse effects on its business, financial conditions, and operational results.
The company and its subsidiaries have availed certain unsecured loans from promoters, directors and group entities, which may be recalled on demand.
The company had a negative cash flow from operating activities in the past three years. In FY 2021, its cash flow from operating activities was Rs. (5.89) cr and in FY 2022 it was (1.11) cr. Sustained negative cash flow could impact its growth and business.
Application details
For Purv Flexipack IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹70 - ₹71 | ₹2 - ₹5 Lakhs | 1600 |
| High Networth Individual | ₹70 - ₹71 | ₹2 - ₹5 Lakhs | 1600 |