Xolopak India Submits IPO Draft Papers to NSE Emerge for Fundraising

Pune-based Xolopak India Ltd, a pioneering name in the sustainable disposable packaging industry, has taken a significant step toward expanding its operations. The company announced on Monday that it has filed draft papers with NSE Emerge, signaling its intention to raise funds through an Initial Public Offering (IPO). This move is poised to accelerate the company’s growth and solidify its position as a leader in eco-friendly disposable products.

Xolopak’s Impressive Growth and Financial Performance

In recent years, Xolopak India has demonstrated remarkable growth in its revenue and profitability. The company reported a nearly three-fold increase in revenue from operations, reaching Rs 31.47 crore in the fiscal year 2023-24, up from Rs 11.87 crore in the previous fiscal year. Alongside this revenue surge, Xolopak also recorded a significant rise in net profit, posting Rs 6.36 crore in FY24, compared to Rs 3.48 crore in FY23. The fresh issuance of 52,86,000 equity shares, each with a face value of Rs 10, is a key element of the IPO, aimed at further enhancing the company’s financial position.

Strategic Investments and Future Growth Plans

As detailed in its Draft Red Herring Prospectus (DRHP), Xolopak India plans to utilize Rs 20 crore of the IPO proceeds to acquire equity shares in Atharva Poly-Plast Pvt Ltd. An additional Rs 20.17 crore will be allocated toward purchasing a new plant and installing advanced machinery, with the remainder earmarked for general corporate purposes. This strategic acquisition will enable Atharva Poly-Plast to expand its manufacturing of components for appliances, electric scooters, and executive chairs, serving top brands like Godrej, Herman Miller, and Steelcase. Xolopak Atharva’s current manufacturing capacity of 3,000 metric tons per year, already at 70% utilization, positions the company for significant growth under its new management.

Conclusion: Xolopak India’s decision to file for an IPO marks a pivotal moment in its journey toward becoming a dominant player in the sustainable disposable packaging sector. With a robust growth trajectory, strategic investments, and experienced promoters, the company is well-positioned to capitalize on emerging opportunities in the market.

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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.