{"id":74733,"date":"2026-11-04T17:40:49","date_gmt":"2026-11-04T12:10:49","guid":{"rendered":"https:\/\/deccanexpress.co.in\/index.php\/2026\/11\/04\/vedant-poly-fabs-ipo-price-band-rs-88-94-rs-56-68-crore-sme-issue-key-things-to-know\/"},"modified":"2026-11-04T17:40:49","modified_gmt":"2026-11-04T12:10:49","slug":"vedant-poly-fabs-ipo-price-band-rs-88-94-rs-56-68-crore-sme-issue-key-things-to-know","status":"publish","type":"post","link":"https:\/\/deccanexpress.co.in\/index.php\/2026\/11\/04\/vedant-poly-fabs-ipo-price-band-rs-88-94-rs-56-68-crore-sme-issue-key-things-to-know\/","title":{"rendered":"Vedant Poly Fabs IPO: Price band Rs 88\u201394, Rs 56.68 crore SME issue &amp; key things to know"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>Kolkata (West Bengal) [India], November 3:<\/strong> <em>Kolkata-based flexible packaging maker is raising money for working capital, debt repayment and new machines on NSE Emerge; issue closes November 04, 202<\/em><\/p>\n<h4 class=\"wp-block-heading\">Key highlights<\/h4>\n<ul class=\"wp-block-list\">\n<li>Issue opened <strong>November 2, 2026<\/strong> and closes <strong>November 4, 2026<\/strong>; shares are proposed to list on <strong>NSE Emerge<\/strong>, with listing expected on or about <strong>November 9, 2026<\/strong>.<\/li>\n<li><strong>Price band: \u20b988 to \u20b994<\/strong> per share (face value \u20b910); lot size <strong>1,200 shares<\/strong>.<\/li>\n<li>Offer of up to <strong>60,30,000 shares<\/strong>: fresh issue of up to <strong>54,26,400 shares<\/strong> plus an offer for sale (OFS) of up to <strong>6,03,600 shares<\/strong> by promoter <strong>Sethsawaria Poly Fab LLP<\/strong>.<\/li>\n<li>Issue size works out to roughly <strong>\u20b956.68 Cr*<\/strong>;<\/li>\n<li>FY26 revenue stood at <strong>\u20b9115.14 crore<\/strong>, registering a <strong>42.11%<\/strong> year-on-year growth compared to FY25. Profit After Tax (PAT) stood at <strong>\u20b910.96 crore<\/strong>, reflecting approximately <strong>140% year-on-year growth<\/strong>.<\/li>\n<li><strong>No anchor investors<\/strong> for this issue.<\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><em>*calculated at the upper price band<\/em><\/p>\n<h3 class=\"wp-block-heading\">The offer<\/h3>\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/vedantpolyfabs.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Vedant Poly Fabs Limited<\/a><\/strong>, a <strong>Barasat (West Bengal)-based maker of flexible packaging materials<\/strong>, opened its initial public offer on Monday. The company has set a <strong>price band of \u20b988\u201394 per share<\/strong>, according to its <strong>Red Herring Prospectus (RHP) dated October 27, 2026<\/strong>.<\/p>\n<p class=\"wp-block-paragraph\">At the band, a retail investor needs a <strong>minimum of two lots of 2,400 shares<\/strong>, or about <strong>\u20b92,11,200\/-at the floor price and \u20b92,25,600 at the cap price<\/strong>.<\/p>\n<p class=\"wp-block-paragraph\">The offer comprises a <strong>fresh issue of up to 54,26,400 equity shares (\u20b951.01 Cr, calculated at upper price band)<\/strong> and an <strong>OFS of up to 6,03,600 shares (\u20b95.67 Cr, calculated at upper price band)<\/strong>. The company will not receive any money from the OFS. The offer is about <strong>29.9% of the post-issue paid-up capital<\/strong>.<\/p>\n<p class=\"wp-block-paragraph\">Of the net offer, <strong>not more than 50%<\/strong> is for qualified institutional buyers, <strong>at least 15%<\/strong> for non-institutional investors and <strong>at least 35%<\/strong> for retail investors. A reserved portion of up to <strong>3,04,800 shares<\/strong> is earmarked for the market maker, <strong>Giriraj Stock Broking<\/strong>. <strong>Affinity Global Capital Market<\/strong> is the sole book running lead manager and <strong>Cameo Corporate Services<\/strong> is the registrar.<\/p>\n<p class=\"wp-block-paragraph\"><strong>Tentative timetable:<\/strong> the issue closes <strong>November 4, 2026<\/strong>; refunds and credit of shares to demat accounts are expected on or about <strong>November 6, 2026<\/strong>; trading is expected to begin on or about <strong>November 9, 2026<\/strong>.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/content-preview.com\/wp-content\/uploads\/2026\/11\/PNN-2026-11-03T113800.065-1024x576.jpg\" alt=\"Vedant Poly\" class=\"wp-image-2686\"\/><\/figure>\n<\/div>\n<h3 class=\"wp-block-heading\">What does the company do?<\/h3>\n<p class=\"wp-block-paragraph\">Incorporated in <strong>December 2018<\/strong> and converted into a public company in <strong>2025<\/strong>, <strong>Vedant Poly Fabs<\/strong> makes multilayer films (3-layer and 5-layer), shrink films, barrier films, printed laminates, and milk and oil pouches. Its products are used by food and beverage, dairy and other consumer-goods companies.<\/p>\n<p class=\"wp-block-paragraph\">The company works on a <strong>business-to-business model<\/strong> and manufacturer to customer specifications on size, thickness, composition and printing. Its in-house capabilities span <strong>multilayer extrusion, CI flexo and rotogravure printing, lamination, slitting and pouching<\/strong> at a single facility. <strong>West Bengal<\/strong> is its principal market, though it supplies customers across India.<\/p>\n<p class=\"wp-block-paragraph\">The company is led by <strong>Chairman and Managing Director Pankaj Kumar Maheshwari<\/strong>. The board has <strong>three executive directors and three independent directors<\/strong>, two of the independent director are women.<\/p>\n<h3 class=\"wp-block-heading\">Financials: fast growth, sharply higher margins<\/h3>\n<p class=\"wp-block-paragraph\">The company&#8217;s numbers have scaled quickly over the past three years.<\/p>\n<figure class=\"wp-block-table\">\n<table class=\"has-fixed-layout\">\n<tbody>\n<tr>\n<th><strong>\u20b9 lakh<\/strong><\/th>\n<th class=\"has-text-align-right\" data-align=\"right\"><strong>FY24<\/strong><\/th>\n<th class=\"has-text-align-right\" data-align=\"right\"><strong>FY25<\/strong><\/th>\n<th class=\"has-text-align-right\" data-align=\"right\"><strong>FY26<\/strong><\/th>\n<th class=\"has-text-align-right\" data-align=\"right\"><strong>Apr\u2013Jun 2026*<\/strong><\/th>\n<\/tr>\n<tr>\n<td><strong>Revenue from operations<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">4,953.46<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">8,102.12<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>11,513.91<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">3,028.78<\/td>\n<\/tr>\n<tr>\n<td><strong>Operating EBITDA<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">128.59<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">774.24<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>1,900.12<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">659.11<\/td>\n<\/tr>\n<tr>\n<td><strong>Operating EBITDA margin<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">2.60%<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">9.56%<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>16.50%<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>21.76%<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Profit after tax<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">63.59<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">456.06<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>1,096.62<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">347.81<\/td>\n<\/tr>\n<tr>\n<td><strong>PAT margin<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">1.28%<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\">5.63%<\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>9.52%<\/strong><\/td>\n<td class=\"has-text-align-right\" data-align=\"right\"><strong>11.48%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p class=\"wp-block-paragraph\"><em>*Three-month stub period; not annualised and not comparable with full-year figures.<\/em><\/p>\n<p class=\"wp-block-paragraph\">Revenue grew about <strong>64% in FY25<\/strong> and about <strong>42% in FY26<\/strong>, a roughly <strong>52% compound annual rate over two years<\/strong>. Operating EBITDA margin has widened from <strong>2.60% in FY 2023\u201324 to 16.50% in FY 2025\u201326<\/strong>, and the company says its revenue mix has tilted towards manufacturing segments. <strong>FY26 return on equity stood at 38.03% and return on capital employed at 30.65%<\/strong>, while <strong>net worth was \u20b942.26 crore at March 31, 2026<\/strong>.<\/p>\n<h3 class=\"wp-block-heading\">Utilization of the proceeds<\/h3>\n<p class=\"wp-block-paragraph\">From the fresh issue, the company plans to spend:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>\u20b924.61 crore<\/strong> on incremental working capital (against a total estimated FY27 working capital requirement of \u20b968.47 crore).<\/li>\n<li><strong>\u20b98.00 crore<\/strong> on prepaying or repaying borrowings.<\/li>\n<li><strong>\u20b96.51 crore<\/strong> on plant and machinery at its existing facility.<\/li>\n<li>The balance on general corporate purposes and offer expenses.<\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\">The company&#8217;s <strong>installed capacity was 88.5 lakh kg in FY26 and 1.10 crore kg*<\/strong> for the June 2026 period, with utilisation at about <strong>71.64% in FY26<\/strong>. The planned new machinery is estimated to take capacity to <strong>1.32 crore kg a year<\/strong>. <strong>Brickwork Ratings<\/strong> is the monitoring agency for the use of proceeds.<\/p>\n<h3 class=\"wp-block-heading\">Shareholding<\/h3>\n<p class=\"wp-block-paragraph\"><strong>Promoters hold 98% of the company before the issue<\/strong>, with <strong>Sethsawaria Poly Fab LLP alone at 90%<\/strong>; the promoter group holds the remaining 2%, and public shareholders hold a negligible stake. The LLP&#8217;s <strong>weighted average cost of acquisition is \u20b925.93 per share<\/strong>. After the issue, promoters&#8217; holding is expected to fall to roughly <strong>70.08%<\/strong>, going by the offer structure (our calculation).<\/p>\n<p class=\"wp-block-paragraph\"><em>*capacity is taken on an annualized basis<\/em><\/p>\n<h3 class=\"wp-block-heading\">Risks to weigh<\/h3>\n<p class=\"wp-block-paragraph\">The RHP flags several issues investors should read closely:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Customer concentration:<\/strong> the top ten customers accounted for <strong>69.64% of sales in FY26 and 79.33% in the April\u2013June 2026 period<\/strong>, up from 13.49% in FY24. Two customers each contributed about 23% of stub-period sales.<\/li>\n<li><strong>Related-party dealings:<\/strong> related-party transactions were <strong>41% of revenue in FY26 and 26% in the stub period<\/strong>. One related party, <strong>Sethsawaria Poly Fab LLP<\/strong>, was among the larger customers, and the company has undertaken to route such sales directly going forward. <strong>Lakhotia Packwell<\/strong>, a top supplier, accounted for <strong>47% of FY26 purchases<\/strong>.<\/li>\n<li><strong>Verbal orders:<\/strong> the company generally receives orders verbally, without formal purchase orders or long-term contracts, and says it is moving to record an order book against purchase orders.<\/li>\n<li><strong>Geographic concentration:<\/strong> a significant share of revenue comes from <strong>West Bengal<\/strong>.<\/li>\n<li><strong>Raw material dependence:<\/strong> the business relies on a limited set of suppliers and is exposed to input price swings.<\/li>\n<li><strong>SME-platform liquidity:<\/strong> NSE Emerge shares can be thinly traded, and the RHP notes there is no assurance of active or sustained trading after listing.<\/li>\n<li><strong>Working Capital Intensity:<\/strong> The quick ratio remained below <strong>1.00 during FY 2023\u201324 to FY 2025\u201326<\/strong>, while the Net Capital Turnover Ratio declined from <strong>14.17 in FY 2023\u201324 to 8.37 in FY 2025\u201326<\/strong>, indicating increased working capital requirements as the business expanded.<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\">The bottom line<\/h3>\n<p class=\"wp-block-paragraph\"><strong>Vedant Poly Fabs<\/strong> offers a small-ticket packaging play with <strong>strong growth and improving margins<\/strong>, at a valuation that looks moderate against peers on post-issue numbers. Against that, the business is concentrated in a few customers and related parties, relies on verbal orders, and will trade on the <strong>SME platform<\/strong>, where liquidity and volatility can be a concern.<\/p>\n<p class=\"wp-block-paragraph\"><em>If you object to the content of this press release, please notify us at pr.error.rectification@gmail.com. We will respond and rectify the situation within 24 hours.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kolkata (West Bengal) [India], November 3: Kolkata-based flexible packaging maker is raising money for working capital, debt repayment and new machines on NSE Emerge; issue closes November 04, 202 Key highlights Issue opened November 2, 2026 and closes November 4, 2026; shares are proposed to list on NSE Emerge, with listing expected on or about [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":74732,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sb_editor_width":"","footnotes":""},"categories":[1230],"tags":[],"class_list":["post-74733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"relative_dates":{"created":"1 hour ago","modified":"1 hour ago"},"_links":{"self":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/74733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=74733"}],"version-history":[{"count":0,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/74733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/media\/74732"}],"wp:attachment":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=74733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=74733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=74733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}