Shakti Polytarp IPO

Shakti Polytarp Limited was incorporated in March 2018 and is engaged in manufacturing water-resistant tarpaulins and related products. Its products are used across agriculture, construction, automotive, transportation, logistics and consumer applications. The company manufactures six-layer and eight-layer tarpaulins using materials including polypropylene, LLDPE, LDPE and HDPE. Its manufacturing facility is located at Nimrani in Khargone, Madhya Pradesh, and covers approximately 1,98,450 square feet. The facility includes extrusion tapelines, extrusion lamination machines, circular looms, sealing machines and recycling equipment. The company also trades plastic granules used as raw material in tarpaulin production and provides product design and customisation services.

Shakti Polytarp is raising ₹26.93 Cr through a 100% fresh issue of 45.64 lakh equity shares at a price band of ₹56 to ₹59 per share. The issue includes 2.30 lakh shares reserved for the market maker, while the remaining shares form the net public issue. The company proposes to utilise ₹20.88 Cr of the net proceeds for capital expenditure towards purchase of plant and machinery at its Nimrani manufacturing facility, with the balance intended for general corporate purposes. Revenue increased from ₹62.23 Cr in FY24 to ₹166.50 Cr in FY25 and ₹216.10 Cr in FY26, while PAT increased from ₹0.98 Cr to ₹4.97 Cr and ₹10.06 Cr over the same period. FY26 RoNW stood at 44.04% and debt-to-equity was 2.60x, indicating strong profitability alongside relatively high financial leverage. At the upper issue price of ₹59, the post-issue market capitalisation is approximately ₹101.06 Cr and the post-issue P/E is 10.05x.