Barflex Polyfilms IPO Day 3; Subscription surpasses 6x, GMP at 17%

Available at a price band of Rs 57-60 per share, with a lot size of 2,000 shares, the Barflex Polyfilms IPO will close for subscription on Wednesday, January 15, 2025

The initial public offering (IPO) of COEX films, laminates, and labels maker Barflex Polyfilms, which opened for subscription on Friday, January 10, 2025, has so far received a decent response from investors. 

 

Barflex Polyfilms IPO has been oversubscribed by 6.20 times as of around 12:20 PM on Tuesday, January 14, according to data available on the National Stock Exchange (NSE). 

 

Barflex Polyfilms IPO is a book-built issue of Rs 39.42 crore, comprising a fresh issue of 2.05 million equity shares and an offer for sale of 4.51 million equity shares. The public offering is available at a price band of Rs 57-60 per share, with a lot size of 2,000 shares. Thus, investors can bid for a minimum of 2,000 shares and in multiples thereof. A retail investor would require a minimum of Rs 1,20,000 to bid for one lot or 2,000 shares.

 

Meanwhile, the unlisted shares of Barflex Polyfilms were commanding a decent premium in the grey market on the final day of subscription for its IPO. Sources tracking grey market activities revealed that the company's unlisted shares were quoted at Rs 70 apiece, reflecting a grey market premium (GMP) of Rs 10 or 16.67 per cent against the upper end of the issue price on Tuesday, January 14.

 

The public offering will close for subscription on Wednesday, January 15, 2025. Following that, the basis of allotment for Barflex Polyfilms IPO shares is expected to be finalised tentatively on Thursday, January 16, 2025. Successful allottees will receive Barflex Polyfilms shares in their demat accounts by Friday, January 17, 2025.

 

Shares of Barflex Polyfilms are expected to list on the NSE SME platform tentatively on Monday, January 20, 2025.

 

Maashitla Securities serves as the registrar for the public issue, while Almondz Financial Services acts as the sole book-running lead manager.

 

The company will not receive any proceeds from the offer for sale. "The Promoter Selling Shareholder will be entitled to the proceeds from the Offer For Sale, net of its respective portion of the issue-related expenses," said Barflex Polyfilms in its Red Herring Prospectus (RHP).

 

The company, however, will use the proceeds from the fresh issue for funding capital expenditure toward the purchase of additional plant and machinery, as well as for general corporate purposes.

 

Barflex Polyfilms is engaged in the manufacturing of COEX films, laminates, and labels. The company produces flexible packaging materials suitable for packaging products in the FMCG industry, processed foods, adhesives, engineering, the pharmaceutical industry, cosmetics, construction, and other industries. As per the RHP, Barflex Polyfilms currently manufactures 3-layer poly films, 5-layer poly films, laminates, vacuum pouches, 5-layer bulk liners, and PVC shrink labels.