All Time Plastics Ltd., a prominent plastic houseware manufacturer, concluded its Initial Public Offering (IPO) on a high note, with the issue being oversubscribed 1.57 times on the final day of bidding. The Rs 400.6 crore IPO, which saw a gradual increase in investor interest over its subscription period, closed with strong participation across various investor categories.

Subscription Details

The book-built issue, comprising a fresh issue of 1.02 crore shares worth Rs 280 crore and an offer for sale of 44 lakh shares amounting to Rs 120.6 crore, witnessed varied response from different investor segments:

The subscription trend showed a significant uptick over the three-day bidding period, rising from 0.29 times on day one to 1.02 times on day two, before closing at 1.57 times on the final day.

Grey Market Premium

The grey market is showing positive sentiment towards the All Time Plastics IPO. The current grey market premium stands at Rs 7, suggesting a potential listing gain of 2.55%. Based on this premium, the implied listing price is estimated at Rs 282.

Company Profile and IPO Utilization

All Time Plastics Ltd. has established itself as a significant player in the plastic houseware industry, with a notable clientele that includes Swedish furniture giant Ikea. The company operates through two main channels:

1. B2B supply to major retailers
2. Direct consumer sales under the All Time Branded Products label

The company plans to utilize the IPO proceeds primarily for debt repayment and general corporate purposes, which could potentially strengthen its financial position and support future growth initiatives.

Investor Interest

The strong oversubscription, particularly in the retail and employee categories, indicates robust investor confidence in All Time Plastics' business model and growth prospects. The company's established relationship with major clients like Ikea and its dual-channel approach in both B2B and B2C segments appear to have resonated well with investors.

As the market awaits the listing of All Time Plastics shares, the positive grey market premium suggests optimism among investors. However, it's important to note that grey market premiums are unofficial and may not always accurately predict listing day performance.

All Time Plastics Ltd., a prominent plastic houseware manufacturer, launched its Initial Public Offering (IPO) with a lukewarm response on the first day of subscription. The Rs 400.6 crore IPO saw a 13% subscription rate, primarily driven by retail investors.

IPO Details and Subscription Status

The book-built issue, set to conclude on Monday, comprises a fresh issue of Rs 280 crore and an offer-for-sale of Rs 120.6 crore. Here's a breakdown of the subscription status after day one:

• Overall subscription: 13%
• Retail investors' participation: 22%
• Non-institutional investors' participation: Not available
• Qualified institutional buyers' participation: Not available

Company Profile and Financial Performance

All Time Plastics Ltd. has established itself as a significant player in the plastic houseware manufacturing sector, with IKEA among its major clients. The company's financial performance shows a positive trend:

The company has demonstrated growth in both total income and profit after tax from FY24 to FY25.

Grey Market Premium and Potential Listing Gains

The grey market is showing optimism for All Time Plastics' IPO:

• Grey Market Premium (GMP): Rs 25
• Potential listing gains: 9.09%
• Implied listing price: Rs 300

This GMP indicates a positive sentiment among investors and suggests the possibility of listing gains.

Utilization of IPO Proceeds

The company plans to utilize the proceeds from the fresh issue for:

1. Debt repayment
2. General corporate purposes

Investor Outlook

While the first day's subscription rate of 13% might seem modest, it's important to note that IPOs often gather momentum in the final days of the subscription period. The absence of institutional and non-institutional investors' data on day one is not uncommon, as they typically participate later in the subscription window.

The retail investors' participation of 22% suggests some interest from individual investors, possibly attracted by the company's association with major clients like IKEA and its recent financial performance.

As the IPO progresses, investors will be closely watching the subscription trends, particularly the participation of institutional investors, which could significantly influence the overall subscription rates and potentially the listing performance.

Potential investors should carefully consider the company's financials, growth prospects, and the risks associated with the plastic manufacturing industry before making an investment decision. As always, it's advisable to consult with financial advisors and thoroughly review the company's prospectus before participating in any IPO.