Purv Flexipack lists at 266% premium at Rs 260 per share

Purv Flexipack Limited distributes a range of plastic products, including BOPP film, Polyester Films, CPP films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Acetate, and Titanium Dioxide, debuted on the Indian stock market today.

The Purv Flexipack stock opened at Rs 260 per share on the NSE, reflecting a substantial 266% premium over the final issue price of Rs 71 per share. The current market capitalization on the NSE stands at Rs 518 crore. Currently, it is at Rs 247 per share on the NSE.

IPO Proceeds:

The Net Proceeds from the Fresh Issue will be used by the company for repaying existing borrowings from scheduled commercial banks, meeting working capital requirements, and addressing general corporate purposes.

Company profile:

Purv Flexipack Limited distributes a range of plastic products, including BOPP film, Polyester Films, CPP films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Acetate, and Titanium Dioxide.

The company’s product portfolio encompasses Plastic Granules, Biaxially oriented polypropylene (BOPP) Films, HS BOPP, Matt BOPP, Glossy/Plain/Printing Grade BOPP, Tape and Textile BOPP, Pearlized BOPP, Polyester Films, and Cast Polypropylene (CPP) Films.

Providing diverse packaging solutions for a broad customer base, the company operates four warehouses designed for efficient inventory storage and management. These warehouses are equipped with modern facilities and equipment to ensure the safe and secure storage of products. Maintained under optimal conditions, the facilities aim to preserve the quality and integrity of stored items. Additionally, the company has implemented stringent inventory management systems to ensure accurate tracking of inventory.

Subscription details:

On February 29, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 421.78 times. The public issue received remarkable interest, with the retail category being subscribed 448.73 times, while the QIB and NII categories reached a subscription rate of 157.32 and 690.72 times respectively.

The IPO price band was between Rs 70 to Rs 71 per share, with a face value of Rs 10 per share and a lot size of 1600 shares. The total size of the company’s IPO was Rs 40.21 crore, and the final share issue price was fixed at Rs 71 each.

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned a whopping 266% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.