Share price of LK Mehta Polymers sees modest start with 0.14% gain on listing day

Market Performance

LK Mehta Polymers shares made a flat debut on February 21, listing at ₹71.10 on BSE SME, reflecting a 0.14% increase from its issue price of ₹71.

The IPO, valued at ₹7.38 crore, was open for subscription from February 13 to February 17. Despite the modest listing gain, the IPO witnessed significant demand, receiving 44.57 times bids, with 4.39 crore shares bid against 9.85 lakh shares on offer. The retail investor segment saw 46.25 times subscription, while non-institutional investors (NII) subscribed 42.88 times.

IPO Details

The LK Mehta Polymers IPO was an entirely fresh issue of 10.40 lakh shares with no offer-for-sale (OFS) component. The minimum application for retail investors was a lot of 1,600 shares, translating to a minimum investment of ₹1.13 lakh.

The proceeds from the IPO will be used to:

• Fund the company's incremental working capital requirements.
• Support operational expansion and liquidity management.
• Allocate a portion for general corporate purposes to strengthen its financial position and pursue strategic initiatives.

Swastika Investmart Ltd., the book-running lead manager, managed the IPO, with Bigshare Services Pvt Ltd. acting as the registrar and Swastika Investmart Limited acting as the market maker.

Company Overview

Founded in 1995, LK Mehta Polymers Limited trades and manufactures plastic products. The company specializes in trading and reprocessing polypropylene and polyethylene granules, catering to a diverse customer base.The company operates as “Super Pack, " delivering superior-quality products and ensuring customer satisfaction.

To maintain efficiency, LK Mehta Polymers has implemented stringent quality control systems to ensure timely deliveries and minimal errors. Orders undergo meticulous checks at each stage, reinforcing the company's commitment to reliability and customer loyalty.

Summary

LK Mehta Polymers made a flat debut on the BSE SME, listing at ₹71.10, just 0.14% above its issue price of ₹71. The company's ₹7.38 crore IPO saw strong demand, with a subscription rate of 44.57 times. The funds raised will be used for working capital and corporate purposes. Established in 1995, LK Mehta Polymers specializes in trading and manufacturing plastic products under the "Super Pack" brand, focusing on quality and timely delivery.