All Time Plastics IPO review

•    The company is engaged in manufacturing plastic consumer ware products globally.
•    It generates over 85% revenue from exports and the rest from domestic markets.
•    It has renowned clients globally including IKEA, ASDA, Tesco etc.
•    The company posted steady growth in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the issue appears fully priced.
•    Investors can park funds for medium to long term.

ABOUT COMPANY:
All Time Plastics Ltd. (ATPL) is a manufacturing company with 14 years of experience of producing plastic consumer ware products for everyday household needs. It primarily produces consumer ware for customers to market under their own brand names (i.e., on a business-to-business (“B2B”) basis), which is known as white-label manufacturing. However, the company also sells its consumer ware products under proprietary “alltime” brand name (“All Time Branded Products”) (i.e., on a business-to-consumer (“B2C”) basis).

As at March 31, 2025, it had 1,848 stock-keeping units (“SKUs”) across eight categories: Prep Time (kitchen tools for preparing cooking ingredients); Containers (food storage containers); Organization (miscellaneous storage containers); Hangers (various types of hangers); Meal Time (kitchenware); Cleaning Time (cleaning equipment); Bath Time (bathroom products); and Junior (child-friendly tableware, cutlery and other items). Prep Time and Containers products contribute over 70% in its top line. The company derives around 87% revenues from exports and the rest from domestic markets.

In Fiscals 2025, 2024 and 2023, ATPL launched 598, 553 and 609 new SKUs, respectively, and discontinued 358, 352 and 674 SKUs, respectively. It primarily exports products to retailers in the European Union, the United Kingdom and the United States, and also sells its products in India to IKEA and other modern trade retailers, super distributors (who sell to distributors) and distributors (who sell to general trade stores). Its products were exported to 29 countries in Fiscal 2025.

It has long-standing relationships with global retailers, including IKEA, Asda Stores Limited, trading as Asda (“Asda”), Michaels Stores, Inc., trading as Michaels (“Michaels”) and Tesco Plc (“Tesco”). Further, the company also sells products to Indian retailers, including Spencer’s Retail Limited, among others.  The Company and Pyramid Plastics, the entity whose business/ operational assets were acquired by the Company, have been selling products to IKEA, its largest customer in Fiscal 2025, for more than 27 fiscal years, Asda, its second largest customer in Fiscal 2025, for more than 14 fiscal years, Michaels, r third largest customer in Fiscal 2025, for more than four fiscal years, and Tesco, fourth largest customer in Fiscal 2025, for more than 17 fiscal years. For its All-Time Branded Products, it collaborates with super distributors, distributors, and modern trade retailers, who play key roles in the distribution process. During Fiscal 2025, ATPL sold its All-Time Branded Products to 22 modern trade retailers, including Spencer’s Retail Limited, as well as five super distributors and 38 distributors with whom it does business directly across 23 states and six union territories in India.

Its manufacturing facilities use robotics and automatic assembly machines, and other modern machinery including “all electrical” injection moulding machines purchased from Japanese manufacturers. Further, it tracks the movement of products using an Enterprise Resource Planning (“ERP”) system throughout the entire supply chain from manufacturing to distribution to its end customers. This system of tracking allows it to monitor and manage every stage of the product journey, ensuring efficiency and transparency. Its inventory management is facilitated by a fully palletized system through Serialized Inventory Control, which enables efficient storage, faster product movement through conveyor belts, and reduced human interaction, minimizing errors and accelerating turnaround times. ATPL’s manufacturing facilities had a combined total installed production capacity of 33,000 tonnes per annum as at March 31, 2025. Its capacity utilization for Fiscals 2025, 2024 and 2023 was 79.48%, 84.59% and 74.81%, respectively.

ATPL’s workforce comprises its employees and contract labour. As at March 31, 2025, it had 690 employees and 1589 persons working as contract labour. The company place a strong emphasis on fostering an inclusive and supportive work environment, which is reflected in the various welfare initiatives it has undertaken to ensure that the diverse needs of workforce are addressed. As at March 31, 2025, women represented 63.70% of its employees. ATPL’s manufacturing facilities operate across three eight-hour shifts, with women participating equally in all shifts. By offering this flexibility, it supports the career development and work-life balance of female employees, while reinforcing its commitment to diversity and inclusion. In order to cater to evolving customer demands, the company leverages the expertise of its in-house product design and mould design teams.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO worth Rs. 400.60 cr. for 14567380 equity shares at the upper cap. The issue consists fresh issue worth Rs. 280.00 cr. (approx. 10181818 equity shares at the upper cap), and an Offer for sale for 4385562 equity shares (worth Rs. 120.60 cr. at the upper cap). The company has announced a price band of Rs. 260 – Rs. 275 per equity shares of Rs. 2 each. The issue opens for subscription on August 07, 2025, and will close on August 11, 2025. The minimum application to be made is for 54 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 22.24% of the post-IPO paid up equity capital. From the net proceeds of the fresh issue, the company will utilize Rs. 143.00 cr. for repayment/prepayment of certain borrowings, Rs. 113.71 cr. for capex on purchase of equipment/machinery and installation of automated storage and retrieval system for warehouse, and the rest for general corporate purposes.

The company has reserved 35750 equity shares (worth Rs. 0.98 cr. at the upper cap) for its eligible employees and offering them a discount of Rs. 26 per share. From the rest, it has allocated not more than 50% for QIBs, not less than 15% for HNIs and not less than 35% for Retail investors.

The joint Book Running Lead Managers (BRLMs) to this issue are Intensive Fiscal Services Pvt. Ltd., and DAM Capital Advisors Ltd., while KFin Technologies Ltd. is the registrar to the issue. Sharekhan Ltd. is the syndicate member.

The company has issued initial equity shares at par value. It has also further shares in the price range of Rs. 11.20 – Rs. 248.00 per share (based on Rs. 2 FV) between September 2010, and July 2025. It has also issued bonus shares in the ratio of 9 for 1 in July 2024. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 1.31 per share. 

Post-IPO, its current paid-up equity capital of Rs. 11.07 cr. will stand enhanced to Rs. 13.10 cr. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 1801.37 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a standalone basis) posted a total income/net profit, of Rs. 443.76 cr. / Rs. 28.27 cr. (FY23), Rs. 515.88 cr. / Rs. 44.79 cr. (FY24), and (on a consolidated basis) Rs. 559.24 cr. / Rs. 47.29 cr. (FY25). 

For the last three fiscals, the company has posted an average EPS of Rs. 8.25 and an average RoNW of 19.89%. The issue is priced at a P/BV of 5.80 based on its NAV of Rs. 47.39 as of March 31, 2025, and at a P/BV of 3.01 based on its post-IPO NAV of Rs. 91.41 per share (at the upper cap).

If we attribute FY25 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 38.09. Based on FY24 earnings, the P/E stands at 40.21. The issue appears fully priced.

The company has posted PAT margins of 6.37% (FY23), 8.68% (FY24), 8.46% (FY25), its RoCE margins of 17.16%, 22.64%, 16.99%, respectively for the referred periods.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It has already adopted a dividend policy in September 2024, based on its financial performance and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Shaily Engineering Plastics, and Cello World, as their listed peers. They are trading at a P/E of 81.9, and 37.8 (as of August 04, 2025). However, they are not truly comparable on an apple-to-apple basis. 

MERCHANT BANKER’S TRACK RECORD:
The two BRLMs associated with this offer have handled 19 issues in the last three fiscals, out of which 6 issues closed below the issue price on listing date.