Shakti Polytarp IPO Day 3: Subscribed 1.13x; Retail jumps 44.2% intraday
- Shakti Polytarp IPO reaches 1.13x subscription by end of Day 3
- Retail demand surges 44.2% intraday, jumping from 0.43x to 0.62x
- Non-Institutional Buyers (bHNI) lead with 2.65x subscription
- QIBs enter on final day with 0.45x subscription
- Issue priced between ₹56.00000 and ₹59.00000
*this image is generated using AI for illustrative purposes only.
Shakti Polytarp IPO has reached 1.13x subscription by the end of Day 3, driven by a sharp 44.2% intraday jump in retail demand. Non-Institutional Buyers (bHNI) lead the issue at 2.65x, while Qualified Institutional Buyers (QIBs) entered on the final day with 0.45x.
Subscription Status
The issue saw accelerated demand on Day 3, pushing the total subscription to 1.13x. This marks a significant rise from 0.63x on Day 1 and 0.79x on Day 2. The final day witnessed participation across all key investor categories, ensuring the issue is oversubscribed before its close.
| 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 | 0.49x | 2.33x | 0.26x | 0.79x |
| Day 3 | 17-09-2026 | 0.45x | 0.73x | 2.65x | 0.62x | 1.13x |
Category-wise Breakdown
Non-Institutional Buyers (bHNI) emerged as the strongest segment, subscribing 2.65x times. Small HNI investors also showed robust interest with 0.73x subscription. Retail investors contributed 0.62x, picking up pace significantly. QIBs, who remained absent in the first two days, entered on Day 3 with 0.45x. Employee quota remained unsubscribed at 0x.
Intra-day Timeline
The subscription activity on Day 3 was concentrated, with the total reaching 1.00x by 11:15 AM IST and ticking up to 1.13x by 13:15 PM IST. Retail demand jumped +44.2% during this window, driving the overall momentum.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.45x | 0.65x | 0.43x | 1.00x |
| 12:15 | 0.45x | 0.68x | 0.53x | 1.07x |
| 13:15 | 0.45x | 0.73x | 0.62x | 1.13x |
Offer Details
Shakti Polytarp has priced its IPO in the band of ₹56.00000 to ₹59.00000. The issue size ranges between ₹224000 and ₹500000. The minimum bid quantity is set at 4000 units. The IPO opened on 2026-09-15 and closes on 2026-09-17.
About the Company
Shakti Polytarp is engaged in the production of tarpaulins, water-resistant materials designed to safeguard goods from rain, moisture, and weather exposure. Operating from a 1,98,450 sq. ft. facility in Khargone, Madhya Pradesh, the company produces tarpaulins ranging from 70 GSM to 450 GSM under the brand name Dinotarp. It also sells granules used as raw material for tarpaulin production. The business operates primarily on a B2B model, supplying to various industries, while also catering to the B2C segment.
Financial Highlights
The company reported revenue from operations of ₹215.65 crores for the year ended 31/03/2026, up from ₹166.24 crores in FY2025 and ₹62.01 crores in FY2024. Profit after tax stood at ₹10.06 crores in FY2026, compared to ₹4.97 crores in FY2025 and ₹0.98 crores in FY2024.
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 215.65 | 166.24 | 62.01 |
| Total Profit (₹ crores) | 10.06 | 4.97 | 0.98 |
| Total Assets (₹ crores) | 110.12 | 71.39 | 40.29 |
Objects of the Issue
The net proceeds from the IPO will be utilized for:
- Capital Expenditure: ₹20.88 crores towards purchase of plant and machinery to enhance production capacity and operational efficiency.
- General Corporate Purposes: Balance proceeds for strategic initiatives, marketing network strengthening, and brand building, not exceeding 15% of gross proceeds or ₹10 crores.
Risk Factors
- Substantial Dependence on Limited Product Range and Customer Concentration: Top customer contributes 41.16% of revenue.
- Manufacturing Facilities Not Owned by Company: Registered office and manufacturing unit are leased.
- Under-utilization of Manufacturing Capacity: Operated at 60.17% capacity in FY2024-25.
- Heavy Dependence on Limited Supplier Base: Top supplier contributes 55.87% of purchases.
- Negative Cash Flow History: Negative operating cash flows in FY2025 and FY2024.
How might the late entry of QIBs with only 0.45x subscription impact the listing premium compared to IPOs with stronger institutional backing?
Given the company's negative operating cash flows in FY2024 and FY2025, how will the proposed capital expenditure for capacity expansion affect near-term liquidity and debt servicing?
With 41.16% of revenue dependent on a single customer, what are the potential risks to Shakti Polytarp's valuation if this key client renegotiates contracts or shifts suppliers post-listing?
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