Bai Kakaji Polymers Lists on BSE SME Platform with Modest 2% Grey Market Premium
Bai Kakaji Polymers listed on BSE SME platform on December 31 with a modest 2% grey market premium over the Rs 186 issue price. The Rs 105 crore IPO was subscribed 5.71 times, with strong institutional participation. The packaging company reported 12% revenue growth to Rs 332.12 crore in FY25 and plans to use proceeds primarily for Rs 64 crore debt repayment and capacity expansion.
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Bai Kakaji Polymers commenced trading on the BSE SME platform on December 31, with grey market indicators suggesting a modest premium of approximately 2% over the issue price. The cautious market sentiment reflects measured investor optimism despite the company's steady financial performance and successful IPO subscription.
IPO Performance and Subscription Details
The public offering was priced at Rs 186 per share, establishing a pre-issue market capitalisation of approximately Rs 398 crore. The 2% grey market premium indicates a potential listing price range of Rs 189-190 per share.
| Subscription Category: | Subscription Multiple |
|---|---|
| Overall Subscription: | 5.71 times |
| Qualified Institutional Buyers: | 8.00 times |
| Non-Institutional Investors: | 7.84 times |
| Retail Investors: | 3.56 times |
The company successfully raised Rs 29.91 crore from anchor investors prior to the public issue, providing institutional backing to the offering. The balanced demand across investor categories demonstrates broad-based interest in the company's business prospects.
Business Operations and Manufacturing Capabilities
Bai Kakaji Polymers operates in the packaging industry, specializing in the manufacturing of PET preforms, plastic caps, and closures. The company's products serve diverse end markets including packaged drinking water, carbonated beverages, juices, and dairy products.
The company maintains four manufacturing facilities in Latur, Maharashtra, spanning approximately 33,000 square metres. These operations utilize advanced machinery sourced from renowned global suppliers including SACMI, ASB, and HUSKY, ensuring quality production standards.
Financial Performance Highlights
The company demonstrated robust financial growth in recent periods, reflecting strong operational execution and market demand for its products.
| Financial Metric: | FY25 Performance | Growth Rate |
|---|---|---|
| Revenue: | Rs 332.12 crore | +12% YoY |
| Profit After Tax: | Rs 18.37 crore | Nearly doubled |
Fund Utilization Strategy
The company has outlined a clear deployment plan for the Rs 105 crore raised through the IPO. The primary focus involves debt reduction and operational expansion to strengthen the company's market position.
Key fund allocation priorities include:
- Debt Repayment: Rs 64 crore allocated for repaying or prepaying existing borrowings to reduce balance sheet leverage
- Capacity Expansion: Investment in expanding manufacturing capabilities
- Equipment Installation: Deployment of new plant and machinery to enhance production efficiency
- Solar Power Project: Implementation of renewable energy solutions to reduce operational energy costs
The debt reduction initiative represents the largest component of fund utilization, aimed at improving the company's financial flexibility and reducing interest burden. The remaining proceeds will support growth initiatives and operational efficiency improvements, positioning the company for sustained expansion in the packaging industry.
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