BLS Polymers IPO subscribed 3.9 times on Day 1; gets bullish brokerage nod

BLS Polymers ₹255crore IPO opened for bidding on Tuesday, and the issue received bullish views from brokerages, with analysts highlighting the company’s ability to formulate application-specific compounds and maintain product consistency supports customer retention.

 

Brokerage view

 

SBI Securities

 

The brokerage gave a ‘Subscribe for long-term’ rating to the company, noting that BLS Polymers’ portfolio includes HDPE, MDPE, LLDPE, XLPE, HFFR, PVC, CFC and 3LPE adhesive compounds, formulated to meet customers’ technical requirements.

 

It added that the company’s repeat customers contributed 96.5 per cent of revenue from operations in FY26, indicating established relationships and recurring demand. The company’s ability to formulate application-specific compounds and maintain product consistency supports customer retention.

 

 

SBI Securities said that India’s polymer-compounds industry is expected to benefit from growing demand for wires and cables and industrial pipelines, supported by investments in power transmission, renewable energy, telecommunications, construction and pipeline infrastructure. Increasing requirements for application-specific, flame-retardant and high-performance compounds should further support demand for customised polymer formulations.

 

“Considering its presence in a niche segment, improving profitability, underutilised existing capacity and proposed capacity expansion, we recommend investors to subscribe to the issue for a Long-Term investment horizon,” SBI said.

 

Swastika

 

Swastika also gave a Subscribe rating to the IPO, noting that the pricing is fair to slightly aggressive relative to pure-play domestic peers like Plastiblends and Ddev Plastiks. However, the higher valuation multiple is supported by its superior return ratios (ROE exceeding 30 per cent) and expanding Ebitda margins over the past 3 years.

 

It added that trading contributed 32 per cent of FY26 revenue, up from 14 per cent in FY24, while manufactured sales declined from ₹255 crore to ₹238 crore. The IPO may suit investors seeking listing gains or medium-term opportunities, but limited valuation comfort and execution risks make it a moderate-to-high-risk investment.

 

The brokerage added that BLS Polymers manufactures custom-formulated polymer compounds utilized for sheathing, jacketing, and insulation of wires and cables across the telecommunications, power, and railway industries, alongside protective coatings for underground oil, gas, and water pipelines.

 

IPO Details

 

BLS Polymers IPO is a book build issue of ₹255.00 crores. The issue is entirely a fresh issue of 1.70 crore shares 

 

BLS Polymers IPO opened for subscription on Oct 27, 2026 and will close on Oct 29, 2026. 

 

BLS Polymers IPO is set issue price band at ₹142 to ₹150 per share. The lot size for an application is 100 shares. The minimum amount of investment required by an individual investor is ₹15,000 

 

Unistone Capital Pvt.Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.

 

IPO Subscription

 

BLS Polymers’ IPO has received bids for 4.64 crore shares against 1.19 crore shares on offer, translating into an overall subscription of 3.90 times. The Qualified Institutional Buyers (QIB) category was subscribed 7.52 times. The Non-Institutional Investors (NII) category saw 2.88 times subscription. The Retail Individual Investors (RII) category was subscribed 2.27 times.

 

 Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.