SSF Plastics India Limited, a major player in manufacturing rigid plastic packaging and plastic engineering components in India, has announced its IPO plans. The company filed its draft red-herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) this week aiming to raise Rs 550 crore.
SSF Plastics is currently the fourth biggest manufacturer in rigid plastic packaging and engineering plastic components and touts itself as a ‘one-stop packaging solutions provider’ for segments such as bottles and containers, caps/closures and tubs among other plastic components. The company’s clientele includes firms across industries such as personal care, food and beverages, homecare, consumer electronics, engine oil and lubricants, and pharmaceuticals. The company has 15 manufacturing plants across the country.
The company’s financial reports show a profit of Rs 15.19 crore in the six months ended in September 2024 from a revenue of Rs 297.41 crore. In FY24, the company had posted a profit after tax of Rs 59.52 crore from an EBITDA of Rs 132.33 crore and revenue of Rs 739.72 crore. As of March 2024, the company’s RoE stood at 17.88% and net debt to eqiity ratio at 0.99x. The company’s listed peers are Mold-Tek Packaging, Time Technoplast and Shaily Engineering as per the DRHP.
According to the draft papers, SSF Plastics IPO will be a book built issue of total Rs 550 crore. The public issue will consist of a fresh issuance of equity shares worth Rs 300 crore and an offer for sale (OFS) of Rs 250 crore by existing promoters and promoter group entities that currently hold 100% stake in the company. Kapil Dhawan, Sunil Dhawan, Ramesh Madhavdas Chugh, Daksh Sunil Dhawan, Pulkeet Sunil Dhawan are the promoters selling shareholders whereas Rama Dhawan, Manisha Dhawan and Dhruv Dhawan are the promoter group selling shareholder as per the DRHP.
The company’s shares will be listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company has appointed IIFL Capital, Nuvama and MUFG Intime as its book running lead managers.
At least 15% and 35% of the net issue will be reserved for the non-institutional investors (NIIs) and retail investors respectively, and maximum of 50% of the issue will be reserved for the qualified institutional buyers (QIBs).
The IPO details such as date, issue price, face value of shares, lot size and other key details will be public after the approval of the draft red herring prospectus.
The company has said that it plans to use around Rs 160 crore from the net proceeds from towards payment and/or repayment of its debt and another Rs 80 crore to fund capital expenditure requirements for the purchase of plant and machinery. A portion of the net proceeds will also be used for general corporate purposes.