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Manika Plastech IPO Oversubscribed on Day 1
11 Sep
Summary
- Manika Plastech IPO subscribed 1.42 times on its first day.
- The company plans to use Rs 54.93 crore for capital expenditure.
- Its FY2026 sales increased 7.3% to Rs 435.98 crore.
The Initial Public Offering (IPO) of Manika Plastech saw significant investor interest, with subscriptions reaching 1.42 times the offer size on its first bidding day, September 11, 2026. The subscription period for this IPO remains open until September 16, 2026.
The company is poised to raise up to Rs 92.50 crore through fresh share issuance. A substantial portion, Rs 54.93 crore, is designated for capital expenditure to acquire plant and machinery. This investment is projected to boost the company's installed capacity from 29,200 tonnes per annum to 38,000 tonnes per annum.
Additional funds from the IPO will be allocated to repay borrowings, totaling Rs 15 crore. The remaining proceeds will support general corporate purposes. Manika Plastech, a manufacturer of rigid polymer packaging products, reported a 7.3% rise in consolidated sales to Rs 435.98 crore in FY2026.
During the last three financial years, Manika Plastech has served a wide customer base across India. The company operates seven facilities, including six manufacturing units strategically located in Dehradun, Hosur, Panipat, Una, and Dadra. These facilities collectively contribute to its current installed capacity.
Financial performance in FY2026 showed an operating profit increase of 28.3% to Rs 58.14 crore, with a margin improvement to 13.34%. For the quarter ended June 2026, net profit was Rs 13.07 crore on net sales of Rs 162.45 crore, with a notable operating profit margin of 15.01%.
