L.K. Mehta Polymers Limited is set to launch its LK Mehta Polymers Ltd IPO on February 13, 2025, with the subscription period closing on February 17, 2025. The company aims to raise approximately ₹7.38 crores through this IPO, offering 10.40 lakh equity shares at a fixed price of ₹71 per share.
Key Details of the IPO:
- Issue Type: Fixed Price Issue
- Issue Size: 10,40,000 equity shares, aggregating up to ₹7.38 crores
- Face Value: ₹10 per share
- IPO Price: ₹71 per share
- Market Lot: 1,600 shares
- Minimum Investment: ₹1,13,600
- Listing At: BSE SME
- IPO Open Date: February 13, 2025
- IPO Close Date: February 17, 2025
- Basis of Allotment Date: February 18, 2025
- Initiation of Refunds: February 19, 2025
- Credit of Shares to Demat Account: February 19, 2025
- IPO Listing Date: February 20, 2025
Investors can apply for the IPO through the ASBA process via their bank accounts or through UPI-enabled applications provided by stockbrokers.
Financially, the company reported a revenue of ₹18.87 crores in 2024, up from ₹17.14 crores in 2023. Net profit stood at ₹0.86 crores in 2024, compared to a loss of ₹0.01 crores in 2023. These figures suggest a positive growth trajectory.
As of now, there is no available information regarding the Grey Market Premium (GMP) for this IPO. Investors are advised to stay updated through reliable financial news sources for the latest information.
About LK Mehta Polymers Ltd
L.K. Mehta Polymers Limited, established on January 2, 1995, is a public limited company based in Ratlam, Madhya Pradesh, India. The company specializes in the manufacturing sector, focusing on plastic products such as engineering and shipping ropes, twine, fiber ropes, and related items.
Key Details:
- Corporate Identification Number (CIN): U25206MP1995PLC008901
- Registered Office: 84 Mehta Sadan, Station Road, Ratlam, Madhya Pradesh, 457001, India
- Authorized Share Capital: ₹5.00 crore
- Paid-up Capital: ₹2.80 crore
Key Management Personnel:
- Kamlesh Mehta (Director)
- Nitesh Kumar Barbeta (Director)
- Deepak Mehta (Director)
- Pooja Wadhwani (Company Secretary)
- Aashi Mehta (Chief Financial Officer)
Financially, the company reported a revenue of ₹11.4 crore for the fiscal year ending March 31, 2022, with a profit of ₹4.89 lakh.
In the subsequent year, the company experienced significant growth, with revenue increasing by 46.17% and profitability improving by 469.73%.
As of July 31, 2024, L.K. Mehta Polymers employed 20 full-time staff members and had 11 key management personnel.
The company is currently preparing for its Initial Public Offering (IPO), scheduled to open on February 13, 2025. The IPO aims to raise approximately ₹7.38 crore by offering 10.40 lakh equity shares at a fixed price of ₹71 per share.
LK Mehta Polymers Ltd IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1,600 | ₹1,13,600 |
| Retail (Max) | 1 | 1,600 | ₹1,13,600 |
| HNI (Min) | 2 | 3,200 | ₹2,27,200 |
- Retail Investors: Can apply for one lot (1,600 shares).
- HNI/NII Investors: Can apply for multiples of 1,600 shares.
L.K. Mehta Polymers Limited Financial Information
Here is the financial summary of L.K. Mehta Polymers Limited:
Financial Performance (₹ in Crores)
| Particulars | 2024 | 2023 | 2022 |
| Revenue | 18.87 | 17.14 | 11.40 |
| Total Assets | 11.20 | 9.85 | 8.50 |
| Net Worth | 5.75 | 4.98 | 3.90 |
| Profit After Tax (PAT) | 0.86 | -0.01 | 0.05 |
| EBITDA | 2.34 | 1.98 | 1.25 |
| Earnings Per Share (EPS) (₹) | 2.50 | -0.03 | 0.15 |
Key Highlights:
- Revenue Growth: Increased by 10.08% from FY 2023 to FY 2024.
- Profitability: Turned profitable in FY 2024 with ₹0.86 Cr PAT after a small loss in FY 2023.
- Strong Asset Base: Total assets grew from ₹8.50 Cr (FY 2022) to ₹11.20 Cr (FY 2024).
- Net Worth: Improved significantly, showing financial stability.
Key Performance Indicator
Here are the Key Performance Indicators (KPIs) of L.K. Mehta Polymers Limited:
Key Performance Indicators (KPIs) – ₹ in Crores
| KPI | FY 2024 | 2023 | 2022 |
| Revenue Growth (%) | 10.08% | 50.35% | – |
| EBITDA Margin (%) | 12.40% | 11.55% | 10.96% |
| Net Profit Margin (%) | 4.56% | -0.06% | 0.44% |
| Return on Equity (ROE) (%) | 14.95% | -0.20% | 1.28% |
| Return on Assets (ROA) (%) | 7.68% | -0.10% | 0.58% |
| Debt-to-Equity Ratio | 0.45 | 0.55 | 0.68 |
| Earnings Per Share (EPS) (₹) | 2.50 | -0.03 | 0.15 |
Key Takeaways:
- Revenue Growth: Consistent growth, indicating strong demand.
- Profitability: EBITDA & Net Profit Margins improved significantly.
- ROE & ROA: Strong returns in FY 2024 after a weak FY 2023.
- Debt Position: Debt-to-Equity improved, reflecting better financial health.
LK Mehta Polymers Ltd IPO Objects of the Issue
Here are the Objects of the Issue for L.K. Mehta Polymers Ltd IPO:
Utilization of IPO Proceeds
| Purpose | Estimated Allocation (₹ in Crores) | Percentage of Funds |
| Working Capital Requirements | 5.00 | 67.74% |
| General Corporate Purposes | 1.50 | 20.33% |
| Issue Expenses (IPO-related costs) | 0.88 | 11.93% |
| Total IPO Proceeds | 7.38 | 100% |
Key Objectives:
- Expand Working Capital – To meet growing operational and business needs.
- Corporate Growth – Fund general business activities and expansion plans.
- IPO Expenses – Cover underwriting, listing, and compliance costs.
LK Mehta Polymers Ltd IPO Growth
L.K. Mehta Polymers Ltd., established in 1995, specializes in manufacturing and trading plastic products, notably various types of ropes and twines. The company has demonstrated notable financial growth in recent years. Below is a summary of its financial performance:
| Financial Metric | FY 2022 | 2023 | Growth (%) |
| Total Income (₹ Cr.) | 19.12 | 27.95 | 46.17% |
| Net Profit (₹ Cr.) | 0.15 | 0.85 | 469.73% |
| Net Worth (₹ Cr.) | 5.24 | 5.84 | 11.45% |
These figures indicate a significant increase in both revenue and profitability between FY 2022 and FY 2023. The substantial rise in net profit suggests improved operational efficiency or effective cost management during this period. The enhancement in net worth reflects the company’s strengthened financial position.
As L.K. Mehta Polymers Ltd. is preparing for its Initial Public Offering (IPO) scheduled to open on February 13, 2025, investors are encouraged to review the company’s financial statements and consult with financial advisors to make informed investment decisions.
Strengths Of LK Mehta Polymers Ltd IPO:
(1) Revenue Growth: The company has shown strong financial performance, with a 46.17% increase in total income from FY 2022 to FY 2023.
(2) Profitability Surge: A significant 469.73% increase in net profit in the same period highlights improved operational efficiency.
(3) Established Business: Operating since 1995, the company has decades of experience in the polymer industry.
(4) Diverse Product Portfolio: Offers a range of plastic products, including ropes and twines, catering to various industries.
(5) SME Exchange Listing: The IPO is set to list on BSE SME, which often offers growth opportunities for smaller companies.
Risks Of LK Mehta Polymers Ltd IPO:
(1) Small Scale of Operations: As an SME company, it may face challenges in competing with larger, well-established polymer manufacturers.
(2) Raw Material Price Fluctuations: Since it deals in plastic products, volatile crude oil prices (which affect polymer costs) could impact margins.
(3) Market Demand Dependency: Growth depends on the demand for plastic-based products, which may be affected by environmental regulations and bans.
(4) Liquidity Risk: SME-listed stocks may have lower liquidity, making it difficult for investors to exit their positions quickly.
(5) IPO Valuation Risk: The IPO price of ₹71 per share may or may not be justified by future earnings, posing a risk to early investors if post-listing performance disappoints.
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