Shakti Polytarp IPO Day 2: Subscribed 0.71x; Retail jumps 11.8%
- Shakti Polytarp IPO is subscribed 0.71x on Day 2.
- Retail demand jumped 11.8% to 0.19x.
- QIB remains unsubscribed at 0.00x.
- NII (bHNI) leads with 2.20x subscription.
- Issue closes on 2026-09-17.
*this image is generated using AI for illustrative purposes only.
Shakti Polytarp IPO is subscribed 0.71 times on Day 2, with Retail investors driving the latest momentum. The segment jumped 11.8% intra-day to reach 0.19x. Qualified Institutional Buyers (QIB) remain completely unsubscribed, while Non-Institutional Buyers (bHNI) continue to lead the overall demand at 2.20x.
Subscription Status
The issue has seen a marginal increase in overall subscription from Day 1 to Day 2. The total subscription moved from 0.63x to 0.71x. Qualified Institutional Buyers (QIB) remain completely unsubscribed, indicating a lack of institutional confidence so far. The primary demand is coming from the High Net-worth Individual (bHNI) segment within the Non-Institutional category.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 15-09-2026 | 0.00x | 0.28x | 2.11x | 0.11x | 0.63x |
| Day 2 | 16-09-2026 | 0.00x | 0.37x | 2.20x | 0.19x | 0.71x |
Category-wise Breakdown
- Qualified Institutional Buyers (QIB): 0.00x
- Non-Institutional Buyers (bHNI): 2.20x
- Non-Institutional Buyers (sHNI): 0.37x
- Retail: 0.19x
- Employees: 0.00x
Intra-day Timeline
Subscription figures picked up pace after midday on Day 2. Retail demand showed the most significant movement, ticking up by 11.8% between 11:15 and 12:15 IST.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.36x | 0.17x | 0.69x |
| 12:15 | 0.00x | 0.37x | 0.19x | 0.71x |
Offer Details
- Price Band: ₹56.00000 - ₹59.00000
- Issue Size: 224000 - 500000
- Min Bid Qty: 4000
- Open Date: 2026-09-15 10:00:00
- Close Date: 2026-09-17 16:00:00
About the Company
Shakti Polytarp is engaged in the production of tarpaulins, water-resistant materials designed to safeguard goods from rain, moisture, and other weather-related exposure. The company operates a manufacturing unit located at 45-48 I.I D.C.A.B. Road, Nimrani, Dist.-Khargone Madhya Pradesh, spanning 1,98,450 sq. ft., capable of producing various tarpaulin ranging from 70 GSM to 450 GSM in different sizes, colors and specifications. The company sells products under the brand name Dinotarp and is also engaged in the business of sale of granules which serve as raw material for producing tarpaulin. The business primarily operates on a B2B model, supplying tarpaulin and other products to various industries, while also catering to the B2C segment.
Financial Highlights
| Particulars | FY 2026 (₹ crores) | FY 2025 (₹ crores) | FY 2024 (₹ crores) |
|---|---|---|---|
| Revenue from Operations | 215.65 | 166.24 | 62.01 |
| Total Profit | 10.06 | 4.97 | 0.98 |
| Total Assets | 110.12 | 71.39 | 40.29 |
| Total Equity | 27.86 | 17.80 | 10.84 |
Objects of the Issue
- Capital Expenditure: ₹20.88 crores towards capital expenditure for the purchase of plant and machinery to enhance existing production capacity and improve operational efficiency.
- General Corporate Purposes: Balance net proceeds for general corporate purposes including strategic initiatives, strengthening marketing network & capability, meeting exigencies, and brand building exercises.
Risk Factors
- Substantial Dependence on Limited Product Range and Customer Concentration: The company derives significant revenue from manufacturing tarpaulins (46.29% in FY2026) and trading granules (48.25% in FY2026), with the top customer contributing 41.16% of total revenue.
- Manufacturing Facilities Not Owned by Company: The company's registered office and manufacturing facility are leased properties, not owned by the company. Any termination or non-renewal of lease agreements could severely disrupt operations.
- Under-utilization of Manufacturing Capacity: The company operated at only 64.64% capacity utilization in FY2023-24, improving to 60.17% in FY2024-25. Continued inability to effectively utilize existing and proposed manufacturing capacity may adversely affect business performance.
- Heavy Dependence on Limited Supplier Base: The company sources 90.61% of raw materials from its top 10 suppliers, with the top supplier alone contributing 55.87% of total purchases.
- Negative Cash Flow History and Working Capital Constraints: The company experienced negative operating cash flows of ₹1,078.51 lakhs in FY2025 and ₹205.12 lakhs in FY2024, primarily due to increased working capital requirements.
What's Next
- Allotment Date: 2026-09-18
- Listing Date: 2026-09-22
Will the complete lack of QIB subscription on Day 2 deter institutional participation on the final day, potentially leading to a listing at a discount?
How might Shakti Polytarp's high customer concentration (41% from top client) impact its revenue stability and valuation in the post-listing period?
Given the company's history of negative operating cash flows, will the proceeds from this IPO be sufficient to resolve working capital constraints without further dilution?
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