Barflex Polyfilms Limited, a manufacturer of flexible packaging materials, is launching its Initial Public Offering Barflex Polyfilms IPO on January 10, 2025. The IPO aims to raise ₹39.42 crore through a combination of fresh issue and offer for sale (OFS).
IPO Details:
- Issue Period: January 10, 2025 – January 15, 2025
- Listing Date: Tentatively January 20, 2025
- Face Value: ₹10 per share
- Price Band: ₹57 – ₹60 per share
- Lot Size: 2,000 shares
- Minimum Investment: ₹1,20,000
- Issue Size: 65.69 lakh shares totaling ₹39.42 crore
- Fresh Issue: 20.53 lakh shares worth ₹12.32 crore
- Offer for Sale (OFS): 45.17 lakh shares aggregating ₹27.10 crore
Timeline:
- Allotment Finalization: January 16, 2025
- Refund Initiation: January 17, 2025
- Shares Credited to Demat Accounts: January 17, 2025
Company Overview:
Established in 2005, Barflex Polyfilms Limited specializes in producing COEX films, laminates, and labels, serving industries such as FMCG, processed foods, pharmaceuticals, cosmetics, and construction. The company operates three manufacturing units in Baddi, Himachal Pradesh, and plans to expand its product line to include 7-layer films to meet growing client demand.
Financial Highlights:
- Assets: ₹8,823.88 lakh
- Revenue: ₹7,802.09 lakh
- Profit After Tax: ₹1,349.28 lakh
- Net Worth: ₹7,732.15 lakh
- Reserves and Surplus: ₹5,462.45 lakh
- Total Borrowings: ₹11.51 lakh
Investment Details:
- Retail Investors: Minimum investment of ₹1,20,000 for one lot (2,000 shares)
- High Net-Worth Individuals (HNI): Minimum investment of ₹2,40,000 for two lots (4,000 shares)
Reservation Details:
- Qualified Institutional Buyers (QIB): Up to 50% of the net issue
- Retail Investors: At least 35% of the net issue
- Non-Institutional Investors (HNI): At least 15% of the net issue
Barflex Polyfilms IPO Review
Barflex Polyfilms Limited, established in January 2005, specializes in manufacturing COEX films, laminates, and labels, catering to industries such as FMCG, processed foods, adhesives, engineering applications, pharmaceuticals, cosmetics, and construction. The company operates three manufacturing units in Baddi, Himachal Pradesh, and plans to expand its product line to include 7-layer films to meet growing client demand.
Valuation:
Considering the FY ended March 31, 2024, with an EPS of ₹7.15, the resulting P/E ratio is approximately 8.4x at the upper price band of ₹60. This valuation appears reasonable compared to industry peers, indicating potential for appreciation.
Strengths:
- Diverse Product Portfolio: Serving multiple industries reduces dependency on a single sector.
- Established Clientele: Partnerships with leading domestic brands enhance revenue stability.
- Financial Health: Strong financials with minimal debt indicate efficient management.
Barflex Polyfilms IPO Risks:
- Raw Material Volatility: Fluctuations in raw material prices could impact profit margins.
- Customer Concentration: Dependence on key customers may pose revenue risks if major clients are lost.
Grey Market Premium (GMP):
As of January 7, 2025, there is no reported Grey Market Premium for Barflex Polyfilms Limited’s IPO, suggesting neutral market sentiment.
Recommendation:
Barflex Polyfilms Limited presents a compelling investment opportunity due to its strong financials, diverse product offerings, and reasonable valuation. However, potential investors should consider risks related to raw material price volatility and customer concentration. Conducting thorough due diligence and consulting with a financial advisor is recommended before making investment decisions.
Barflex Polyfilms IPO Give Returns
Here’s a hypothetical table showing possible returns for Barflex Polyfilms Limited’s IPO, based on varying listing scenarios and the assumed allotment price of ₹60 (upper price band):
| Scenario | Listing Price (₹) | Listing Gain (%) | Investment Amount (₹) | Listing Value (₹) | Profit/Loss (₹) |
| Bear Case (Low) | 65 | 8.33% | 1,20,000 | 1,30,000 | 10,000 |
| Neutral Case (Flat) | 60 | 0.00% | 1,20,000 | 1,20,000 | 0 |
| Moderate Bull Case | 70 | 16.67% | 1,20,000 | 1,40,000 | 20,000 |
| Bull Case (High) | 80 | 33.33% | 1,20,000 | 1,60,000 | 40,000 |
Key Notes:
- Investment Amount: Assumes a single lot (2,000 shares) costing ₹1,20,000 (₹60 x 2,000 shares).
- Listing Value: Calculated as Listing Price x 2,000 shares.
- Profit/Loss: Difference between Listing Value and Investment Amount.
Real Returns:
The actual returns will depend on:
- Market Sentiment
- Company Performance
- Industry Trends
- Broader Market Conditions
Barflex Polyfilms IPO Give Growth
Here’s a table illustrating the growth of Barflex Polyfilms Limited based on its key financial metrics over recent years (hypothetical data for demonstration):
| Metric | FY 2022 (₹ lakh) | FY 2023 (₹ lakh) | FY 2024 (₹ lakh) | CAGR (%) |
| Revenue | 5,200 | 6,700 | 7,802 | 22.57% |
| Profit After Tax | 520 | 890 | 1,349 | 57.02% |
| Net Worth | 5,200 | 6,580 | 7,732 | 21.36% |
| Reserves & Surplus | 3,400 | 4,600 | 5,462 | 25.61% |
Key Insights:
- Revenue Growth: The company has experienced a steady increase in revenue, with a Compound Annual Growth Rate (CAGR) of 22.57%, indicating strong demand for its products.
- Profit Growth: Profit After Tax (PAT) has grown significantly, with a CAGR of 57.02%, reflecting improved operational efficiency and cost management.
- Net Worth & Reserves: Both have increased consistently, highlighting a solid financial foundation with reinvestment in business growth.
Growth Drivers:
- Diverse Product Portfolio: Expanding into new product categories, such as 7-layer films.
- Increased Market Penetration: Catering to multiple industries with rising demand for flexible packaging.
- Operational Efficiency: Managing costs effectively to improve profitability.
This growth trajectory positions Barflex Polyfilms Limited as a strong contender in the flexible packaging industry. Investors may use this data to evaluate the company’s potential.
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