Purv Flexipack IPO: Issue oversubscribed on second day, retail, NII share sees strong demand; Check GMP

The Purv Flexipack IPO opened for subscription on Tuesday, February 27th and closes on Thursday, February 29th. The price range for Purv Flexipack's IPO has been set in the range of ₹70 tonnes ₹71 each with a face value of ₹10 each. The lot size of the Purv Flexipack IPO consists of 1,600 shares. Investors can bid for at least 1,600 shares and multiples thereof.

Purv Flexipack IPO has reserved not less than 50% of the shares of the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Institutional Investors (NII) and not less than 35% of the offering is reserved for retail investors. The market maker category is reserved for up to 3,48,800 shares.

Purv Flexipack's primary business is the distribution of various plastic-based products, including polyester films, cast polypropylene films (CPP), biaxially oriented polypropylene films (BOPP), plastic granules, inks, adhesives, masterbatches, ethyl acetate and titanium dioxide. Additionally, the company is a Dealer Operated Polymer Warehouse (DOPW) and a Del Credere Associate (DCA) for Indian Oil Corporation Limited's polymer sector.

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The founders of the company are Rajeev Goenka, Poonam Goenka and M/s Purv Logistics Private Limited. The company's listed competitors are Sah Polymers Limited (with a P/E ratio of 54.95), according to the company's Red Herring prospectus (RHP).

Between March 31, 2022 and March 31, 2023, Purv Flexipack Limited's profit after tax (PAT) increased by 31.82% and revenue increased by 48.66%.

Purv Flexipack IPO Subscription Status

Purv Flexipack's IPO subscription status is 143.51 times on the second day so far. The issue received positive response from retail investors whose share was subscribed 231.83 times and non-institutional buyers whose share was subscribed 116.10 times, as per data available on chittorgarh.com. The portion of qualified institutional buyers was subscribed 6.04 times.

According to chittorgarh.com, the company has received offers for 54,50,94,400 shares against 37,98,400 shares on offer as of 5:24 pm IST.

Purv Flexipack's IPO subscription status was 59.27 times on the first day.

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Purv Flexipack IPO details

The IPO of Purv Flexipack, which is worth it ₹40.21 crore, comprising a fresh issue of 56,64,000 equity shares of face value ₹10. This is a completely new problem and there is no offer component.

The Company intends to use the net proceeds of the New Issue to fund its objectives to meet the Company's working capital requirements; financing of general corporate purposes; and the full or partial repayment of certain current fund-based loans borrowed by the Company from regular commercial banks.

The Book Running Lead Manager of Purv Flexipack IPO is Holani Consultants Private Limited and the Registrar is Link Intime India Private Ltd. Holani Consultants is the market maker for the Purv Flexipack IPO.

Also Read: Purv Flexipack IPO: Price Range, Issue Size, GMP, Important Details You Should Know

Purv Flexipack IPO GMP today

Purv Flexipack IPO GMP or gray market premium is +115. This suggests that Purv Flexipack's share price was trading at a premium of ₹115 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current gray market premium, Purv Flexipack's expected listing price was ₹186 per piece, which is 161.97% higher than the IPO price of ₹71.

Based on the gray market activity of the last 12 sessions, IPO GMP is pointing higher today and expects a strong listing. The lowest GMP is ₹0, while the highest is GMP ₹125, according to analysts at investorgain.com.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend that investors consult certified experts before making an investment decision.

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