IPO Injection: Manika Plastech Moulds a ₹1.15B Future with Fresh Shares & OFS

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Manika Plastech Private Limited, one of the significant players in the plastic moulding business, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for its first public offering. The IPO will consist of both a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders. This move is expected to improve the financial flexibility of the company and support its growth trajectory.

IPO Structure

Fresh Issue: Equity shares worth up to ₹1.15 billion to be offered to raise funds for expansion and debt repayment.
Offer for Sale (OFS): Up to 15 million shares to be offered by existing investors for partial exit and liquidity.

About the Company

Established: 1996
Head Office: Dadra & Nagar Haveli, India
Business Operations: Manufacturing of battery casings, pails, thin-wall containers, and automotive components.
Production Capacity: Exceeding 27,000 metric tons per year across multiple facilities.

Financial Overview

Revenue Range (FY23): ₹100–500 crore
EBITDA Growth: 7.48% YoY
Net Worth Growth: 9.87% YoY

Utilisation of Proceeds

Capacity expansion
Debt repayment
General corporate purposes

What This Implicates

The IPO is a strategic decision by Manika Plastech to increase operations and strengthen its market position in the packaging and automotive plastics industry. Having a well-established customer base and stable financial history, the company is poised to attract investor interest.

Sources: Bloomberg: Manika Plastech Official Website, CARE Ratings, Tofler, ZaubaCorp