MUMBAI, Mega Flex Plastics Limited, a packaging solutions company, one of the leading manufacturers of Leno bags used for packaging agricultural products and woven fabrics, on September 06, 2022, for subscription of its Rs. 11.40 crore public issue is going to be opened.
The company has received approval to launch its public issue on the National Stock Exchange’s SME Emerge platform. The funds raised through the issue will be used to meet working capital requirements for expansion plans, business activities of the company and other corporate purposes. Finshore Management Services Limited is the lead manager of the issue. The public issue will close on September 09.
In this IPO Rs. 11.40 crore per share worth Rs. 40 (including premium of Rs. 30 per equity share) at Rs. Includes issuance of 28.5 lakh new equity shares of face value of Rs. The minimum lot size for application is 3,000 shares worth Rs. 1.2 lakhs.
Retail allocation for IPO is 50 percent i.e. Rs. 5.70 crore worth will be 13.53 lakh shares. The company’s leadership team consists of Mr. Mohan Lal Parekh, Mr. Hukumchand Bothra and Mr. Rakesh Sethia who have decades of experience in the field of packaging solutions.
Commenting on the development, Mr. Hukumchand Bothra, Managing Director, Mega Flex Plastics Limited said, “We are focusing on expansion, diversification and increasing sales by expanding our reach into new areas. Over the past few years we have expanded our operations beyond West Bengal
And we are emphasizing on meeting the needs of other states besides West Bengal especially Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh and Punjab. The company is also exploring opportunities to increase its production capacity by processing the fabric into bags.
With this increase in production capacity, we will also be able to expand our client base geographically. We are hopeful that post the proposed public issue we will be able to execute our growth strategy in a manner that maximizes value creation for all stakeholders and continues to deliver quality products.”
For the financial year 2021-22, the company has invested Rs. 47.39 crore in gross receipts, Rs. 4.21 crore Ebitda and Rs. 2.66 crores net profit has been recorded. The total assets, reserves and surplus of the company after the issue stood at Rs. 42.45 crore and Rs. 31.05 crore will be. Book value per share as on March 31, 2022 Rs. 176.99 is. RONW as on March, 2022 is 8.56 percent. After the issue, the share capital of the company increased to Rs. 10.74 crore will be. Presently the promoter group holding in the company is 99.79 percent which will increase to 73.32 percent after the issue. The company’s shares will be listed on the NSE Emerge platform.