Manas Polymers NSE SME IPO review

•    The company is primarily engaged in the business of manufacturing and supply of premium food-grade PET performs and PET bottles, Jars, Caps etc.
•    The company has entered in to solar power segment as well.
•    Post turning public limited entity, it has performed only for about 15 months.
•    It has posted average performance from Jan. 24 to March 25.
•    Based on its recent financial data, the issue appears aggressively priced.
•    There is no harm in skipping this “High Risk/Low Return” pricey bet.

ABOUT COMPANY:
Manas Polymers & Energies Ltd. (MPEL) is primarily engaged in the business of manufacturing and supply of premium food-grade PET preforms and PET bottles, jars and closure caps. It sells products i.e., PET preforms and PET bottles, jars and closure caps to the PET (plastics) industry. The company is also engaged in the renewable energy. The Company was incorporated on January 19, 2024 for the purpose of expansion of business and, accordingly, it acquired the business of “M/s. Manas Polymers” and “M/s. Manas Power and Infrastructure” in terms of a Business Transfer Agreement dated January 25, 2024 on a going concern basis. 

The company is engaged into renewable power generation and distribution business and operate as renewable energy producer in Madhya Pradesh. Over the years, it has developed, operated and maintained utility scale solar power projects and generates revenue through sale of electricity to various off-takers including private corporations, state government-backed entities and to the state’s power grid for balance of units generated (if any). Currently, its solar power project (which started as a pilot plant) has a capacity of ~1.00 MW at a single location. Further, for expanding the portfolio, it has identified the land wherein the company intends to set-up another solar power project having capacity of ~5 MW at Sakedi, Tehsil. Shajapur, Shajapur- Madhya Pradesh – 465001. It started the development of solar projects in Madhya Pradesh under the proprietorship firm which the Company had acquired in terms of business takeover agreement dated January 25, 2024. The company had started this business to capitalize on the opportunities in the Indian renewable energy industry.

MPEL manufactures and supplies premium food-grade PET preforms, PET bottles, jars and closure caps to the PET (plastics) industry. Its manufacturing facility having an area admeasuring 1533.45 sq. ft. is situated at Plot No. 3, Baraghata, Industrial Area, Jhansi, Road, Lashkar, Gwalior-474001, Gird, Madhya Pradesh, India. In addition to its manufacturing operations, the company is also engaged in the trading of PET preforms and closure caps, of these 2 products, the Company does manufacture and trading of the PET Preforms and does only trading in the closure caps to supply different grades of caps as required by the customer. It procures these products from select third-party who meet its quality benchmarks and operational standards based on customer specifications and supply them to clients. The company also does trade business with Diksha Polymers Private Limited, Diksha Containers Private Limited and Diksha Packaging. As of August 31, 2025, it had 30 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 2904000 equity shares worth Rs. 23.52 cr. at the upper cap. The company has announced a price band of Rs. 76 – Rs. 81 per share of Rs. 10 each. The IPO opens for subscription on September 26, 2025, and will close on September 30, 2025. The minimum application to be made is for 3200 shares and in multiple of 1600 shares thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 37.35% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 13.50 cr. for capex on setting up of solar power plant, Rs. 2.97 cr. for capex on purchase of fixed assets, and the rest for general corporate purposes.

The IPO is solely lead managed by Expert Global Consultants Pvt. Ltd., while Purva Sharegistry (India) Pvt. Ltd., is the registrar to the issue. Prabhat Financial Services Ltd., is the market maker. Nexgen Financial Solutions Pvt. Ltd. is a syndicate member. The IPO is underwritten to the tune of 15.01% by Narnolia Financial, and 84.99% by Prabhat Financial. Shreni Shares Ltd. is a syndicate member. The issue is underwritten to the tune of 15% by Expert Global and up to 85% by Cumulative Capital Pvt. Ltd.

After issuing initial equity shares at par value, the company issued further equity shares at a fixed price of Rs. 100.00 per share in February 2024, and has also issued bonus shares in the ratio of 7 for 1 in March 2024. The average cost of acquisition of shares by the promoters is Rs. Negligible, and Rs. 1.43 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 4.87 cr. will stand enhanced to Rs. 7.78 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 62.99 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total Income/Net Profit of Rs. 20.36 cr. / Rs. 0.79 cr. (FY23), Rs. 20.09 cr. / Rs. 1.70 cr. (FY24 – two broken periods), and Rs. 33.06 cr. / Rs. 4.29 cr. (FY25). Boosted bottom lines in a pre-IPO year raise concern as it appears to be a window dressing to pave the way for fancy valuations. Its financial results for FY23 and FY24 (from 01.04.23 to 24.01.24) is as a proprietorship concern), and FY24 (from 25.01.24 to 31.03.24) and FY25 is as a corporate entity (MPEL). Pre-IPO performance appears to be fabricated numbers to fetch fancy valuations.

For the last three fiscals, the company has reported an average EPS of Rs. NA, and an average RoNW of 42.42%. The issue is priced at a P/BV of 3.86 based on its NAV of Rs. 21.00 as of March 31, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute its FY25 super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 14.67, and based on its FY24 earnings, the P/E stands at 36.99. Thus, based on its recent financial data, the issue appears aggressively priced.

The company has posted PAT margins of 5.31% (FY23), 9.92% (FY24), 12.99% (FY25), and RoCE Margins of 11.61%, 14.28%, 22.82%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends since incorporation. It has already adopted a dividend policy in July 2024, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Mitsu Chem Plast, Technopack Poly, as its listed peers. They are currently trading at a P/E of around 19.0 and 12.7 (as of September 26, 2025).  However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORDS:
This is the 19th mandate from Expert Global in the last four fiscals (including the ongoing one). Out of the last 10 listings, 1 opened at discount, and the rest with premium ranging from 6.31% to 89.84% on the date of listing.