SSF Plastics India Ltd Files Draft for an IPO with SEBI

SSF Plastics India Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company, a key player in the packaging industry, plans to raise capital through a fresh issue of equity shares and an offer for sale (OFS).

Business Overview and Financial Performance

SSF Plastics provides end-to-end packaging solutions across various product categories, including bottles, containers, caps, tubs, and engineered plastic components. Its diverse clientele spans industries such as personal care, home care, food and beverages, pharmaceuticals, engine oil, and consumer electronics.

For the six-month period ending September 2024, the company reported a profit of ₹15.19 crore on a revenue of ₹397.41 crore. Its listed competitors include Mold-Tek Packaging, Time Technoplast and Shaily Engineering Plastic.

IPO Structure and Fund Utilisation

The IPO comprises a fresh issue of ₹300 crore and an OFS of ₹250 crore from promoters and promoter group entities, who currently hold full ownership of the company. The proceeds will be directed towards debt repayment, capital expenditure for plant and machinery acquisition, and general corporate purposes.

IIFL Capital Services Ltd and Nuvama Wealth Management Ltd are managing the issue as book-running lead managers.

Conclusion

SSF Plastics’ IPO marks a significant step in its growth journey, aiming to strengthen its financial position and expand its operational capabilities. The offering is set to attract investor interest, given the company’s strong industry presence and financial performance.

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