Jyoti Global NSE SME IPO review

•    The company is engaged in plastic and FRP moulding plastic products for variety of industrial uses.
•    It marked set-back in its top line for FY24.
•    The bottom line posted growth for all the three years.
•    Based on its recent financial data, the issue appears aggressively priced.
•    Well-informed/cash surplus investors may park moderate funds for long term.

ABOUT COMPANY:
Jyoti Global Plast Ltd. (JGPL) is engaged in the business of plastic & FRP (Fiber-Reinforced Polymer) moulding, providing custom solutions based on client-specific requirements for polymer-based products (HDPE-PP grade) such as drums, carboys, jerrycans, barrels, pail buckets, toys, automobile parts, etc. and FRP based products such as drone components and connectors. Its products are used in industries such as pharmaceutical, chemical, food & beverage, lube and industrial oil, adhesives, childcare, automotive, defence and aerospace, etc. The company closely collaborates with its clients to understand their unique requirements, optimizing the manufacturing process to meet their individual needs, offering superior quality and cost-effective solutions. With a commitment to delivering value, its products are crafted using cutting-edge moulding technologies. 

JGPL leverages advanced blow moulding and injection moulding technologies to produce a wide range of packaging and non-packaging products, including HDPE drums, barrels, jerrycans, bottles, toys etc., and automobile components and defence & aerospace products such as drone components and connectors. Additionally, injection moulding technology is also utilized on a job-work basis for creating durable HDPP-based products such as pail buckets. Presently, it operates two strategically located state-of-the-art manufacturing units, which are located in Rabale, Navi Mumbai. It is soon starting manufacturing unit III at Mahad, Raigad. Its current combined production capacity is 7,416 MT p.a.

Company’s manufacturing units are equipped with latest technology, advanced automation, and an integrated conveyor system, boasting superior in-house facilities for extrusion, blow-moulding and injection moulding processes, cooling and solidification, quality inspection and product labelling and packaging, ensuring that the highest standards of quality, precision, performance and cost-effectiveness are met across all products. Additionally, its in-house logistics network enhances the supply chain, enabling faster deliveries and more cost-effective operations. Furthermore, it utilises specialised quality testing equipment for raw materials and finished goods to ensure compliance with recognized international and Indian quality standards. As of the date of filing this offer document, it had 47 employees on its payroll and additional 62 contract workers in various departments.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 5370000 equity shares of Rs. 10 each to mobilize Rs. 35.44 cr. at the upper cap. It has announced a price band of Rs. 62 – Rs. 66 per share. The issue consists of 4320000 fresh equity shares issue (worth Rs. 28.51 cr. at the upper cap), and an OFS (Offer for Sale) of 1050000 shares (worth Rs. 6.93 cr. at the upper cap). The issue opens for subscription on August 04, 2025, and will close on August 06, 2025. The minimum number of shares to be applied is for 4000 shares and in multiples of 2000 shares, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 27.09% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, it will utilize Rs. 11.17 cr. for capex on part financing new manufacturing facility at Mahad, Rs. 9.00 cr. for capex on solar power plant, Rs. 1.20 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes. 

The IPO is solely lead managed by Unistone Capital Pvt. Ltd., and MUFG Intime India Pvt. Ltd., is the registrar to the issue. L.  F. C. Securities Pvt. Ltd. is a market maker as well as a syndicate member.

The company has issued entire initial equity shares at par value. It has issued bonus equity shares in the ratio of 30 for 1 in March 2025. The average cost of acquisition of shares by the promoters/ selling stakeholders is Rs. 0.32 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 15.50 cr. will stand enhanced to Rs. 19.82 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 130.81 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 89.35 cr. / Rs. 2.32 cr. (FY23), Rs. 87.96 cr. / Rs. 3.62 cr. (FY24), Rs. 93.80 cr. / Rs. 6.08 cr. (FY25). 

For the last three fiscals, the company has reported an average EPS of Rs. 2.99 and an average RoNW of 25.46%. The issue is priced at a P/BV of 4.79 based on its NAV of Rs. 13.77 as of March 31, 2025, and at a P/BV of 2.62 based on its post-IPO NAV of Rs. 25.15 per share (at the upper cap). 

If we attribute FY25 super earnings on post-IPO fully diluted equity capital, then the asking price is at a P/E of 21.50. Based on FY24 earnings, the P/E stands at 36.26. Thus, the issue appears aggressively priced.

For the reported periods, the company has posted PAT margins of 2.61% (FY23), 4.14% (FY24), 6.50%, (FY25), and RoCE margins of 13.42%, 15.92%, 22.35%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.

COMPARISION WITH LISTED PEERS:
As per the offer document, the company has shown TPL Plast, Pyramid Techno, Mitsu Chem Plast, as their listed peers. They are trading at a P/E of 26.1, 23.2, and 21.8 (as of July 31, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORD:
This is the 24th mandate from Unistone Capital in the last three fiscals including the ongoing one.  Out of the last 10 listings, 3 opened at discount, and the rest with premium ranging from 3.84% to 36.72% on the date of listing.