Premium Plast Listing: Stock lists at ₹51.45, a mere 5 per cent premium to IPO price

Premium Plast Listing: Premium Plast made a muted market debut today as its shares were listed at ₹51.45 each on NSE SME, indicating a premium of 5% over the issue price of ₹49. The SME IPO, valued at 26.20 crore, was open for subscription from October 21 to October 23, 2024, with a price of between ₹46 and ₹49 apiece.

The issue saw a healthy response from investors, being oversubscribed by 38 times. Specifically, the retail investors segment was oversubscribed 65 times, while the non-institutional portion was oversubscribed 19.56 times. The QIB portion has also been booked at 6.74 times, as per the exchange data.

The company plans to use the net proceeds from the offer for the expansion of its existing manufacturing facility in Pithampur, Madhya Pradesh, purchasing machinery, funding capital expenditure for setting up a rooftop grid solar power plant at the current manufacturing facility, prepaying or repaying a portion of certain outstanding borrowings, covering general corporate purposes, and meeting offer-related expenses.

About Premium Plast

The company is a Tier-1 supplier, directly serving original equipment manufacturers (OEMs) in the automotive components sector. Specializing in the design, manufacturing, and supply of exterior plastic components, interior cabin parts, and under-the-hood components, it provides products specifically for commercial vehicle OEMs.

The company produces a wide range of injection- and blow-molded plastic items across industries and applications. Its offerings span automotive parts, plastic industrial components, and molded packaging, serving a broad spectrum of markets.

Within automotive manufacturing, it employs advanced injection and blow molding techniques to create a diverse array of components, including exterior automotive parts, interior components, steering wheels, and other specialized parts.

Originally established to manufacture automotive components for various OEMs, the company has since diversified its portfolio to include industrial plastic parts and molded packaging solutions.

Automotive plastic components (both injection and blow molding) accounted for 84% of its revenue in the first nine months of FY24, with industrial plastic parts and molded packaging contributing 9% and 7%, respectively, as per the company's DRHP report. 

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