Manika Plastech is flat on debut

Shares of Manika Plastech were currently trading at Rs 41 at 10:15 IST on the BSE, representing a discount of 4.65% as compared with the issue price of Rs 43.

The scrip was listed at 113, matching the initial public offer (IPO) price.

So far, the stock has hit a high of Rs 43 and a low of Rs 40.86. On the BSE, over 4.10 lakh shares of the company were traded in the counter so far.

Manika Plastech was subscribed 28.14 times. The issue received bids for 60,18,93,840 shares against 2,13,86,919 shares on offer. The price band has been fixed at Rs 40 to Rs 43 per share, with a minimum bid of 348 equity shares and multiples thereof.

 

The issue comprised a fresh issue of shares aggregating up to Rs 92.50 crore and an offer for sale of up to 76.74 lakh equity shares. At the upper price band, the OFS is worth around Rs 33 crore.

Of the proceeds from the fresh issue, Rs 54.93 crore will be used for capital expenditure towards the purchase of plant and machinery. The company expects the proposed expansion to increase its installed capacity to 38,000 tonnes per annum from the existing 29,200 tonnes per annum. Another Rs 15 crore will be used for repayment or pre-payment, in part or full, of certain borrowings, with the remaining funds earmarked for general corporate purposes.

Manika Plastech manufactures rigid polymer packaging products, including battery casings, pails and thinwall containers. Its products cater to industries such as automotive, energy storage, telecommunications, paints, lubricants, agrochemicals, construction chemicals, food and dairy.

The company operates seven facilities, including six manufacturing facilities in Dehradun, Hosur, Panipat, Una and Dadra, and one paint facility in Hosur. These facilities have a combined installed capacity of 29,200 tonnes per annum and cover more than 51,000 square metres.

Manika Plastech served between 168 and 242 customers across 24 states and union territories during the last three financial years. Its top 20 customers had an average relationship tenure of more than 10 years as of 30 June 2026. 242 For FY2026, consolidated sales increased 7.3% to Rs 435.98 crore. Operating profit rose 28.3% to Rs 58.14 crore, while the operating profit margin improved to 13.34% from 11.14% in FY2025. Profit before tax increased 19.7% to Rs 30.44 crore, while profit after tax rose 15.9% to Rs 22.40 crore.

For the three months ended June 2026, net profit stood at Rs 13.07 crore on net sales of Rs 162.45 crore. The operating profit margin for the quarter was 15.01%.

The company had consolidated borrowings of Rs 92.46 crore as of 30 June 2026, compared with Rs 88.19 crore as of 31 March 2026. The proposed Rs 15 crore debt repayment from the fresh issue proceeds is expected to reduce its interest burden.

The company has identified customer concentration, dependence on repeat orders, crude oil-linked raw material prices, working capital requirements and reliance on leased manufacturing sites among the key risks to its business. Its top five customers accounted for 58.75% of revenue in the three months ended June 2026 and 62.95% in FY2026.

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