LK Mehta Polymers IPO - AstroIPO

LK Mehta Polymers IPO


February 8, 2025 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

LK Mehta Polymers Ltd. is gearing up for its market debut with an intriguing IPO offering in the dynamic plastic and polymer sector. LK Mehta Polymers IPO, which specializes in the trading and manufacturing of diverse plastic products, is opening its subscription window from February 13th to February 17th, 2025, presenting an opportunity to invest in India’s growing manufacturing landscape.

The IPO comes with a fixed price of ₹71 per share, with the company offering 10,40,000 shares to raise ₹7.38 crores. Investors can participate with a minimum lot size of 1,600 shares, requiring an investment of ₹1,13,600. The shares, carrying a face value of ₹10, will be listed on the BSE.

LK Mehta Polymers IPO Details

The key details of LK Mehta Polymers’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.

IPO Size ₹7.38 Cr
Price Range ₹71
Retail Quota 50%
QIB Quota --
NII Quota 50%
Employee Discount --
Listing at BSE
Minimum Quantity 1600
Investment (cut-off price) ₹1,13,600
Pre IPO Promotor Holding 100.00%
Post IPO Promotor Holding 72.92%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

LK Mehta Polymers IPO Timelines

The IPO process for LK Mehta Polymers includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.

13/02/2025
Start Date
17/02/2025
End Date
18/02/2025
Allotment Date View Status
19/02/2025
Refund Initiation
20/02/2025
Credit of Shares to Demat Ac
21/02/2025
Listing Date

LK Mehta Polymers IPO Lot Size

The LK Mehta Polymers IPO has a fixed lot size of 1,600 shares, at a price band of ₹71 per share, requiring ₹113,600 per lot for retail investors. For HNI investors, the minimum application is 3,200 shares (2 lots) amounting to ₹227,200.

Application Lot Size Shares Amount
Retail Minimum 1 1600 ₹1,13,600
Retail Maximum 1 1600 ₹1,13,600
HNI Minimum 2 3200 ₹2,27,200

LK Mehta Polymers IPO Subscription Status

The subscription status for LK Mehta Polymers IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.

QIB NII Retail EMP Total
-- 42.88x 46.25x -- 44.57x

IPO Performance on Listing Day

On the listing day (February 21, 2025), LK Mehta Polymers made a flat debut on the stock exchange. The stock opened at ₹71.10, showing a negligible premium of 0.1% over its issue price of ₹71. During the trading session, after touching its day’s high at the opening price, the stock faced selling pressure, declining to ₹67.54. The shares closed at ₹68.10, recording a loss of 4.1% from the issue price, indicating a subdued market response to this polymer manufacturer.

Opening Price Closing Price Day High Day Low
₹71.10 ₹68.10 ₹71.10 ₹67.54

LK Mehta Polymers IPO Company Financials

LK Mehta Polymers reports robust performance in FY2024 with Total Income of ₹18.87 crores, managing expenses at ₹17.87 crores, and achieving a strong PAT (Profit After Tax) of ₹0.86 crores, demonstrating significant growth potential ahead of its public offering.

Year Total Income Total Expense PAT
FY 2022 ₹11.94 ₹11.80 ₹0.04
FY 2023 ₹17.14 ₹17.14 -₹0.01
FY 2024 ₹18.87 ₹17.87 ₹0.86
FY 2025 (3 M) ₹4.01 ₹3.72 ₹0.21

About Company

L.K. Mehta Polymers Limited, established in 1995, specializes in the trading and manufacturing of plastic products. The company also deals with the trading and reprocessing of raw materials like polypropylene and polyethylene granules for various clients. Operating under the brand name “Super Pack,” the company is committed to delivering high-quality products and fostering long-term customer relationships, with stringent systems in place to ensure timely deliveries and minimal errors.

The company’s product portfolio includes a range of plastic products, such as Monofilament Ropes, Danline Ropes, and Tape Ropes, which are used in industries like transportation, agriculture, shipping, mining, and heavy machinery. Additionally, L.K. Mehta Polymers manufactures Twines, such as Baler Twine and Sutli, commonly used in agriculture, harvesting, and packaging. The company also reprocesses polyethylene and polypropylene granules for plastic product manufacturing. As of July 31, 2024, L.K. Mehta Polymers employs 20 full-time staff members.

Incorporation Date Sector Managing Director
1995 Plastic Products kamlesh mehta

Know Before Investing

When evaluating LK Mehta Polymers's IPO potential, understanding both its market advantages and inherent risks becomes crucial for your investment. Below are the key insights you should consider.

LK Mehta Polymers IPO Strengths

  • The company is guided by experienced promoters, which can lead to sound strategic decisions.
  • A commitment to quality service helps in building lasting relationships with clients, contributing to customer loyalty.
  • High customer satisfaction levels indicate that the company meets or exceeds customer expectations, leading to repeat business and positive referrals.
  • Established relationships with existing clients provide a stable revenue base and opportunities for upselling and cross-selling.
  • The company offers a variety of plastic products, including ropes, twines, and granules, catering to diverse customer needs and reducing reliance on a single product line.
  • Engaging in trading and reprocessing basic raw materials adds value to the company’s operations and enhances its profitability.
  • Selling products under the “Super Pack” brand reflects a commitment to superior quality, helping the company differentiate itself in the market.

LK Mehta Polymers IPO Risks

  • Investments in equity and equity-related securities involve risk, and investors could lose their entire investment. Investors are advised to read the risk factors carefully before taking an investment decision in the Issue.
  • The company’s operations may be working capital intensive and could result in operational constraints.
  • Revenue has increased, it is important to consider past performance.
  • The specific market the stock has could create an additional risk.
  • The company can be susceptible to economic downturn and other events that can affect the economy.
  • While the company reported a profit of ₹0.86 crores in 2024, past financial performance shows fluctuations. Future profitability is not guaranteed.

Swot Analysis for LK Mehta Polymers IPO

Understanding LK Mehta Polymers's SWOT analysis is your first step towards making a confident investment decision. Let's evaluate its core strengths and potential challenges ahead.

Strengths

Experienced promoters, Customer satisfaction, Quality service, Existing client relationships

Weaknesses

Operates in competitive industry, Limited financial history

Opportunities

Growing plastic demand, Market expansion, Meet diverse customer needs

Threats

Raw material price fluctuations, Regulatory changes, Intense competition

Company Details

L.K. Mehta Polymers Limited

1103/2, Mhow-Neemuch Road, Ratlam, 457001

Phone: +91-9669903095

Email: info@lkmehtapolymersltd.com

Website: https://lkmehtapolymersltd.com/

IPO Registar Details

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200

Email: ipo@bigshareonline.com

Website: https://ipo.bigshareonline.com/IPO_Status.html

FAQs

The key objectives of LK Mehta Polymers IPO are:

  • To Meet Incremental Working Capital Requirement
  • General Corporate Purpose

Swastika Investmart Ltd is the book-running lead managers for the LK Mehta Polymers IPO.

LK Mehta Polymers IPO shows growth potential in the growing plastics and polymer industry. With increasing demand for packaging and industrial applications, the company’s market expansion and product innovation could drive future growth, depending on competition and operational efficiency.

The issue price for the LK Mehta Polymers IPO is set to ₹71 per share.

To invest in one lot of LK Mehta Polymers IPO, you need ₹1,13,600 at the fixed price band (₹71 per share) for a lot size of 1600 shares.

LK Mehta Polymers IPO shares are scheduled to be listed on the Bombay Stock Exchange (BSE) on February 21, 2025.

Refund/unblocking of funds for LK Mehta Polymers IPO will begin on February 19, 2025. ASBA/UPI blocks will be removed within 1 working day.

You can sell shares your LK Mehta Polymers IPO shares on listing day (February 21, 2025) after they are credited to your demat account. If you want to sell in the pre-open market, the timing for that session is from 9:00 AM to 9:15 AM. Otherwise, you can sell after 10:00 AM during regular trading hours.

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