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Introduction:
Essen Speciality Films, a leading manufacturer and exporter of specialized plastic products in the home improvement and home furnishing industry, is set to launch its initial public offering (IPO) for public subscription on June 23. Here are ten important details investors should know about the upcoming IPO.
Company Overview:
Essen Speciality Films caters to renowned multinational modern trade retailers like IKEA, Walmart, and Kmart, supplying them with specialized plastic products. The company has established itself as a reliable manufacturer and exporter in the industry.
Industry Overview:
India's plastic industry is diverse, manufacturing a wide range of products such as plastics, linoleum, houseware items, packaging materials, and more. The government aims to significantly boost the plastic industry's economic activity from Rs 3 lakh crore ($37.8 billion) to Rs 10 lakh crore ($126 billion) in the next 4-5 years.
Issue Size:
The IPO consists of a fresh equity issue of up to 46.99 lakh equity shares with a face value of Rs 10 each. Additionally, there will be an offer for sale (OFS) of up to 15 lakh equity shares by selling shareholders.
Issue Structure:
Approximately 50% of the IPO shares are reserved for qualified institutional buyers (QIB), 15% for non-institutional investors, and 35% for retail investors.
Price Band:
Essen Speciality Films has set the price band for the IPO at Rs 101-107 per share. Investors can bid for a minimum of 1,200 shares in one lot.
Financial Performance:
In the financial year ending March 2023, Essen Speciality Films achieved revenues of Rs 118 crore, with a net profit of Rs 13.37 crore.
Objects of the Offer:
The IPO proceeds will be utilized for various purposes, including the repayment of debt, working capital requirements, and general corporate needs.
Book-Running Lead Managers:
GVR Capital Advisors has been appointed as the book-running lead manager for the IPO. Bigshare Services will serve as the registrar.
Listing of Shares:
Upon successful completion of the IPO, Essen Speciality Films' shares will be listed on the NSE Emerge platform.
Important Dates:
The IPO opens for subscription on June 23 and closes on June 27. Final allotment will be made on July 3, and the company's shares are expected to be listed on June 6.
Conclusion:
The Essen Speciality Films IPO presents an opportunity for investors to participate in a well-established player in the specialized plastic products industry. With a strong clientele and plans for future growth, the IPO has generated significant interest. Investors should carefully consider the company's financial performance and future prospects before making their investment decisions.
