Manika Plastech
What they do: The company manufactures and sells battery casings and thinwall products, with sales influenced by seasonal demand in the battery and dairy industries.
By IPO Milega Research · Published · Updated
Analysis score 6.4 +1 for 11.22x QIB subscription
The company demonstrates solid financial fundamentals with a strong revenue growth trend and a healthy profit margin.
- Listing gain
- +0%
- Listed at ₹43
- Subscribed
- 29.46x
- Total
- Retail odds
- 4.2%
- 1 in 24
GMP is an unofficial grey market indication. GMP updated 21 Sept, 22:06 IST.
- Price band
- ₹40-43
- Lot size
- 348 shares
- Min. investment
- ₹14,964
- Issue size
- 125.50 Cr.
- Open11 Sept 2026
- Close16 Sept 2026
- Allotment17 Sept 2026
- Listing21 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 11.22x
- NII
- 66.58x
- Retail
- 23.98x
₹44 (+2.33%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹92.5 Cr
- Fresh issue
- To selling shareholders
- ₹33 Cr
- Offer for sale
- Funding the capital expenditure towards purchase of plant and machinery₹59.82 Cr51%
- Repayment and/or pre-payment, in part or full, of certain borrowings availed by our Company₹25 Cr21%
- General Corporate PurposesNot stated
- Offer for sale: goes to selling shareholders₹33 Cr28%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance7.0
- Flexibility7.0
- Timing7.0
- Risk4.0
The Grey Market Premium (GMP) indicates a potential gain of 30.23% on listing, suggesting strong investor interest and positive market sentiment. This is supported by the company's solid financial fundamentals, strategic market position, and favorable IPO timing.
Strengths3
- Improved working capital cycle from 70 days in FY 2024 to 53 days in Q1 FY 2027
- Reduced Debt-to-Equity ratio from 0.86 in FY 2024 to 0.59 in Q1 FY 2027
- Enhanced DSCR from 4.16 in FY 2024 to 6.74 in Q1 FY 2027
Concerns5
- High reliance on top five customers for revenue.
- Operational challenges due to leased facilities.
- Losses and negative cash flows in subsidiary.
- Dependence on government schemes for financial stability.
- Potential conflicts of interest in property investments.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,9641 lots, 348 shares
- Retail Maximum1,94,53213 lots, 4,524 shares
- S-HNI Minimum2,09,49614 lots, 4,872 shares
- S-HNI Maximum9,87,62466 lots, 22,968 shares
- B-HNI Minimum10,02,58867 lots, 23,316 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 348 | 14,964 |
| Retail Maximum | 13 | 4,524 | 1,94,532 |
| S-HNI Minimum | 14 | 4,872 | 2,09,496 |
| S-HNI Maximum | 66 | 22,968 | 9,87,624 |
| B-HNI Minimum | 67 | 23,316 | 10,02,588 |
Timing
7.0/10The market timing for Manika Plastech's IPO is generally favorable. The company has shown financial stability with a positive cash flow trend, which is a good indicator for potential investors. The IPO size is moderate, which aligns well with current market conditions, allowing for a successful capital raise without overwhelming the market. However, the presence of contingent liabilities, although not alarming, requires careful consideration by investors. The company's governance appears sound with minimal related party transactions, further supporting the positive timing assessment.
- Time to market
- The timing of the IPO is favorable due to the company's stable financial position and moderate IPO size, which aligns well with market conditions. The positive cash flow trend enhances investor confidence, although contingent liabilities need to be monitored. Overall, the strategic timing is good, but not without some risks.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 7.0
- Listing on
- BSE, NSE
Key milestones
- 11 Sept 2026IPO Opens
- 16 Sept 2026IPO Closes
- 17 Sept 2026Basis of Allotment
- 18 Sept 2026Refunds Initiated
- 18 Sept 2026Credit to Demat Account
- 21 Sept 2026Listing Date
Financials
7.0/10- Revenue
- ₹437 Cr
- +6.0%
- Profit after tax
- ₹22.4 Cr
- +15.9%
- Net margin
- 5.1%
- +0.4 pts
- Assets
- ₹324 Cr
- +0.8%
- Return on equity
- 15.18%
- Debt to equity
- 0.59
- Revenue CAGR
- 15%
- ROCE
- 18.77%
- Return on net worth
- 15.18%
- NAV per share (₹)
- 15.54
Financial performance trend
Amount ₹ in croresThe company demonstrates solid financial fundamentals with a strong revenue growth trend and a healthy profit margin. The debt-to-equity ratio is moderate, indicating a balanced capital structure. However, the company shows a significant dependency on a few suppliers and customers, which could pose risks.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks2
- Operational risks2
- Regulatory risks1
High customer concentration and operational dependencies pose significant risks, compounded by financial and regulatory challenges.
How the company offsets these
Diversify customer base and secure long-term contracts to reduce dependency.
Financial risks3
- Losses and negative cash flows in subsidiary.
- Dependence on government schemes for financial stability.
- Outstanding legal proceedings and statutory dues delays.
Market risks2
- High reliance on top five customers for revenue.
- Seasonality affecting revenue in key industries.
Operational risks2
- Operational challenges due to leased facilities.
- Potential conflicts of interest in property investments.
Regulatory risks1
- Outstanding legal proceedings and statutory dues delays.
Performance
7.0/10Manika Plastech Limited shows a mixed performance with fluctuating financial metrics but a strong strategic position in a growing market.
- Historical growth
- fluctuating, moderate
- Market comparison
- The company operates in a rapidly growing Indian rigid plastic packaging market, projected to grow at a CAGR of 6.75%, outpacing global averages.
- Future potential
- The battery casing market is expected to grow significantly, providing opportunities for expansion.
- Operational consistency
- The company's ROE and ROCE have shown fluctuations, indicating inconsistent financial performance.
- Experience
- The management has opted for strategic financial decisions like reducing debt and improving cash flow management.
- Track record
- The management has shown capability in improving financial metrics such as working capital and DSCR.
Key achievements
- 01Improved working capital cycle from 70 days in FY 2024 to 53 days in Q1 FY 2027
- 02Reduced Debt-to-Equity ratio from 0.86 in FY 2024 to 0.59 in Q1 FY 2027
- 03Enhanced DSCR from 4.16 in FY 2024 to 6.74 in Q1 FY 2027
Flexibility
7.0/10The company operates in a growing RPP market in India, with a diverse customer base across multiple industries. However, its market adaptability is limited by its reliance on a few key customers and the absence of long-term supply agreements.
Manika Plastech Limited shows strong operational agility with its ability to relocate machinery and adjust production across facilities. This flexibility allows it to respond to changes in demand efficiently.
Manika Plastech Limited demonstrates moderate flexibility and adaptability, with strengths in operational agility and product diversification, but faces challenges in financial stability and market adaptability.
- Product diversification
- The company offers a wide range of products, including battery casings, pails, and thinwall containers, catering to various industries such as automotive, energy storage, and FMCG.
- Future adaptability
- The company plans to expand its manufacturing capabilities and explore setting up a new facility in southern India, indicating potential for future adaptability.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.