Unveiling Jyoti Global Plast: A Deep Dive into Their Upcoming Offering
The investment landscape is constantly evolving, with new opportunities emerging for savvy investors. One such opportunity on the horizon is the public offering from Jyoti Global Plast Limited, a company with a strong foothold in the plastic molding solutions sector. This blog post delves into the specifics of their upcoming offering, providing a comprehensive overview to help you make informed decisions. We'll explore their business, financial health, investment details, and the strategic objectives behind this significant move.
Understanding the Enterprise: Jyoti Global Plast Limited
Established in January 2004, Jyoti Global Plast Limited has carved a niche for itself by specializing in innovative plastic molding solutions. They are a prominent manufacturer of polymer-based packaging containers and toys, serving a diverse clientele across critical industries.
Core Business & Product Range:
- Manufactures a wide array of plastic molding products, including HDPE-PP items like drums, carboys, jerrycans, barrels, and pails.
- Caters to vital sectors such as pharmaceuticals, chemicals, food & beverage, oil, adhesives, and childcare.
- Offers a diverse portfolio encompassing Industrial Packaging, Automotive Components, Household & Consumer Products, Drone Components, Childcare and Baby Products, and Custom Molding Solutions.
- Operates two manufacturing units in Mumbai, Maharashtra, serving over 1000 clients.
Key Strengths:
- Extensive and well-established client network.
- Specialization in HDPE packaging solutions, offering a comprehensive product line.
- Integrated in-house logistics, testing, and labeling capabilities, ensuring quality control.
- Possession of crucial quality and environmental responsibility certifications.
- Guidance from an experienced team of promoters and senior management.
The Public Offering at a Glance
The upcoming public offering from Jyoti Global Plast is structured as a book-building issue, aimed at raising capital for future growth initiatives.
Key Offering Specifications:
| Detail | Information |
|---|---|
| Issue Price Band | ₹62 to ₹66 per share |
| Face Value | ₹10 per share |
| Total Issue Size | 53,70,000 shares (aggregating up to ₹35.44 Crores) |
| Issue Type | Bookbuilding Public Issue |
| Offer Structure | Combination of Fresh Issue and Offer for Sale (OFS) |
| Fresh Issue Component | 40,50,000 shares (₹26.73 Crores) |
| Offer for Sale Component | 10,50,000 shares (₹6.93 Crores) |
| Exchange for Listing | NSE SME |
Investment Lot Sizes:
Investors can bid for a minimum of 2,000 shares, and in multiples thereof. Here’s a breakdown of the minimum and maximum investment for different investor categories:
| Investor Type | Minimum Lots | Minimum Shares | Minimum Amount |
|---|---|---|---|
| Individual Investors (Retail) | 2 | 4,000 | ₹2,64,000 |
| Small HNI (sNII) | 3 | 6,000 | ₹3,96,000 |
| Big HNI (bNII) | 8 | 16,000 | ₹10,56,000 |
Tentative Offering Timeline:
| Event | Date |
|---|---|
| Offer Open Date | Monday, August 4, 2025 |
| Offer Close Date | Wednesday, August 6, 2025 |
| Anchor Bid Date | Friday, August 1, 2025 |
| Allotment Finalization | Thursday, August 7, 2025 |
| Initiation of Refunds | Friday, August 8, 2025 |
| Credit of Shares to Demat | Friday, August 8, 2025 |
| Tentative Listing Date | Monday, August 11, 2025 |
Visual Timeline:
(Visual representation of the offering timeline)
Allocation Breakdown:
The total shares offered are strategically distributed among various investor categories:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker Portion | 2,70,000 | 5.03% |
| Qualified Institutional Buyers (QIB) | 25,46,000 | 47.41% |
| - Anchor Investors | 15,26,000 | 28.42% |
| - QIB (Excluding Anchor) | 10,20,000 | 18.99% |
| Non-Institutional Investors (NII / HNI) | 7,66,000 | 14.26% |
| - bNII (> ₹10 Lakhs) | 5,10,000 | 9.50% |
| - sNII (< ₹10 Lakhs) | 2,56,000 | 4.77% |
| Retail Individual Investors (RII) | 17,88,000 | 33.30% |
| Total Shares Offered | 53,70,000 | 100.00% |
Anchor Investor Participation:
The company successfully raised ₹10.07 crore from anchor investors on August 1, 2025. These investors will have a lock-in period for their shares: 50% for 30 days (till September 6, 2025) and the remaining 50% for 90 days (till November 5, 2025).
Financial Performance Overview
A glance at Jyoti Global Plast Limited's recent financial performance reveals a growing trajectory, particularly in profitability.
Financial Health Snapshot (Restated):
| Metric (₹ Crore) | March 31, 2025 | March 31, 2024 | March 31, 2023 |
|---|---|---|---|
| Assets | 56.81 | 51.84 | 43.54 |
| Revenue | 93.80 | 87.96 | 89.35 |
| Profit After Tax (PAT) | 6.08 | 3.62 | 2.32 |
| EBITDA | 11.66 | 7.75 | 5.82 |
| Net Worth | 21.34 | 15.26 | 11.65 |
| Total Borrowing | 25.31 | 28.95 | 23.84 |
Notably, between March 31, 2024, and March 31, 2025, the company reported a 7% increase in revenue and an impressive 68% rise in Profit After Tax (PAT), indicating strong operational efficiency and growth.
Key Performance Indicators (KPIs):
| KPI | Value (FY25) |
|---|---|
| Return on Equity (ROE) | 33.22% |
| Return on Capital Employed (ROCE) | 22.35% |
| Debt/Equity Ratio | 1.19 |
| Return on Net Worth (RoNW) | 28.49% |
| Profit After Tax (PAT) Margin | 6.50% |
| EBITDA Margin | 12.47% |
These indicators suggest healthy operational performance and efficient use of capital. The debt-to-equity ratio of 1.19 is manageable, reflecting a balanced approach to financing.
Earnings Per Share (EPS):
- Pre-Offering EPS: ₹3.92 (Based on pre-issue shareholding and FY25 earnings)
- Post-Offering EPS: ₹3.00 (Based on post-issue shareholding and annualized FY25 earnings)
Strategic Objectives of the Public Offering
Jyoti Global Plast Limited intends to utilize the net proceeds from this offering for key strategic initiatives designed to fuel its expansion and enhance operational capabilities.
| S.No. | Objective | Expected Allocation (₹ Crores) |
|---|---|---|
| 1 | Part finance the establishment of a new manufacturing facility at MIDC, Mahad, to expand production. | 11.17 |
| 2 | Funding capital expenditure for setting up a Solar Power Plant. | 9.00 |
| 3 | Partial or full repayment/pre-payment of existing borrowings. | 1.20 |
| 4 | General corporate purposes. | (Remaining Funds) |
Promoter Group and Holding Structure
The promoters overseeing Jyoti Global Plast Limited are Bhawanji Khimji Shah, Hiren Bhawanji Shah, Deven Bhawanji Shah, Karan Deven Shah, and Sainyum Hiren Shah.
| Share Holding | Percentage (%) |
|---|---|
| Pre-Offering Shareholding | 100.00% |
| Post-Offering Shareholding | 72.91% |
SWOT Analysis: Assessing the Landscape
A strategic assessment of Jyoti Global Plast Limited reveals a balanced set of internal strengths and weaknesses, alongside external opportunities and threats in the market.
Strengths:
- Niche Expertise: Specialization in custom plastic molding provides a competitive edge in a diverse market.
- Established Market Presence: A client network of over 1000 and two manufacturing units in a key industrial hub like Mumbai demonstrate strong operational roots.
- Diverse Product Portfolio: Catering to essential sectors like pharma, chemicals, and food & beverage offers resilience against sector-specific downturns.
- Integrated Operations: In-house logistics, testing, and stickering capabilities ensure quality control and operational efficiency.
- Experienced Leadership: The involvement of seasoned promoters and a capable management team inspires confidence in strategic direction.
Weaknesses:
- Capital Intensive Business: Manufacturing, especially in plastics, often requires significant capital for machinery and expansion.
- Reliance on Industrial Demand: Performance is closely tied to the health and demand cycles of the industrial sectors it serves.
- Raw Material Price Volatility: Plastic raw material prices can fluctuate, impacting production costs and profit margins.
- Post-Issue Dilution: Promoters' shareholding will decrease from 100% to 72.91% post-issue, which is a natural outcome of public offering but represents dilution.
Opportunities:
- Sectoral Growth: Continued growth in packaging, automotive, and emerging areas like drone components presents significant expansion avenues.
- Technological Advancement: Adoption of advanced molding technologies can enhance product quality, efficiency, and introduce new product lines.
- Capacity Expansion: The planned new manufacturing facility directly addresses scaling production capabilities to meet increasing demand.
- Sustainability Initiatives: Investment in a solar power plant aligns with global sustainability trends, potentially attracting environmentally conscious investors and reducing operational costs.
Threats:
- Intense Competition: The plastic molding industry can be highly competitive, with numerous players vying for market share.
- Economic Downturns: Broader economic slowdowns can reduce industrial demand, directly impacting sales volumes.
- Regulatory Changes: Evolving environmental regulations concerning plastics and manufacturing could impose new compliance costs or restrictions.
- Supply Chain Disruptions: Global or local disruptions in raw material supply chains could affect production and delivery.
Important Stakeholders and Contacts
Understanding who manages the offering and where to get further information is crucial.
Book-Running Lead Manager:
- Unistone Capital Pvt Ltd
Issue Registrar:
- MUFG Intime India Private Limited (Link Intime)
- Phone: +91-22-4918 6270
- Email: jyotiglobal.ipo@in.mpms.mufg.com
Market Maker:
- L F C Securities Private Limited
Company Contact Information:
- Address: R-554/555, TTC MIDC Area Rabale, Navi Mumbai, Maharashtra, 400701
- Phone: +91 91521 53987
- Email: info@jyotiglobalplast.com
- Website: jyotiglobalplast.com
Applying for the Offering: A Quick Guide
For those interested in participating, the application process is streamlined through popular brokerage platforms.
General Application Process (Online):
You can apply online using either UPI or ASBA as a payment method. ASBA is typically available through your bank's net banking portal, while UPI is offered by many popular brokerage firms.
Example: Applying via a Discount Brokerage Platform:
- Log in to your broker's platform (e.g., their console or back office).
- Navigate to the "IPOs" or "Portfolio" section.
- Locate "Jyoti Global Plast IPO" and select the 'Bid' option.
- Enter your UPI ID, desired quantity (in multiples of the lot size), and the bid price.
- Submit your application form.
- Finally, approve the mandate in your UPI application (e.g., banking app or BHIM) to finalize the payment.
Conclusion
Jyoti Global Plast Limited's upcoming offering presents an opportunity for investors to consider a growing company in the essential plastic molding sector. With a robust product line, expanding client base, and clear objectives for growth, the company is poised to strengthen its market position. Reviewing the detailed financial performance, strategic expansion plans, and overall market dynamics will be key for potential investors. Always conduct thorough due diligence and consult with a financial advisor to align any investment decisions with your personal financial goals and risk tolerance.