Diksha Polymers, a company in the packaging segment, has opened its Initial Public Offering (IPO) today, with the allotment expected to be finalized on June 22 and shares scheduled to list on the BSE SME platform on June 24. The IPO aims to raise funds primarily for debt reduction and general corporate purposes.
Retail investors can apply for a minimum of two lots, comprising 2,400 shares, requiring an investment of Rs 2.69 lakh. High-net-worth investors need to bid for at least three lots or 3,600 shares, translating into an investment of Rs 4.03 lakh. Aryaman Financial Services is the book-running lead manager to the issue, while Cameo Corporate Services is the registrar. Shreni Shares will act as the market maker.
Diksha Polymers manufactures PET bottles, PET preforms, and caps used across various industries, including food and beverages, lubricants, pharmaceuticals, consumer goods, and agrochemicals. The company operates three manufacturing facilities with an installed capacity of 2,163 metric tonnes per annum (MTPA) for PET bottles and 1,913 MTPA for PET preforms.
The IPO proceeds will largely be used to reduce debt, with around Rs 13.75 crore allocated for repayment or prepayment of certain outstanding borrowings and Rs 2.25 crore for general corporate purposes. On the financial front, Diksha Polymers reported a 20% increase in total income to Rs 51 crore in FY26, with profit after tax rising 56% to Rs 4.12 crore.
With no premium visible in the grey market, investor attention will now shift to subscription levels during the three-day bidding period and the company's ability to attract demand in a mixed SME market environment.
Background
Diksha Polymers' entry into the public market comes at a time when the SME sector is experiencing mixed investor sentiment. The company's strategic focus on debt reduction and its diversified product portfolio may attract investor interest despite the absence of a grey market premium.
As the IPO unfolds, market participants will be keenly observing the subscription levels and subsequent listing performance, which could provide insights into investor sentiment in the current market climate.
