- Anya Polytech IPO Review, B2B and B2C Business Models, Financial Analysis, HDPE and PP Bags Manufacturer, SME IPO 2024
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Review
Key Highlights of Anya Polytech IPO
IPO Details at a Glance
| Parameter | Details |
|---|---|
| IPO Opening Date | December 26, 2024 |
| IPO Closing Date | December 30, 2024 |
| Listing Date | January 2, 2025 |
| Price Band | ₹13 to ₹14 per share |
| Minimum Lot Size | 10,000 shares (Retail: ₹1,40,000) |
| Issue Type | Book Built Issue |
| Total Issue Size | ₹44.80 Crores (3.20 crore shares) |
| Face Value | ₹2 per share |
| Listing Exchange | NSE SME |
| Market Capitalization | ₹168 Crores |
| Lead Manager | Beeline Capital Advisors Pvt. Ltd |
| Registrar | Skyline Financial Services Pvt. Ltd |
Business Overview: Anya Polytech & Fertilizers Ltd.
Anya Polytech & Fertilizers Limited, incorporated in 2011, is a prominent manufacturer specializing in:
- HDPE (High-Density Polyethylene) Bags: Offering durable cost effective solutions for bulk packaging of food grains, sugar, urea, cement.
- PP (Polypropylene) Bags: The most common use is for packing food grains and fertilizers and industrial goods.
- Zinc Sulphate Fertilizers: Plant growth are essential fertilizers that increase crop yield and quality.
It has a strong infrastructure which enables it to manufacture over 750 lakh bags annually into a turnover of more than ₹100 crores. Secondly, it is targeting high margin B2C opportunities while serving the B2B sector extensively.
Financial Performance
Anya Polytech’s financial trajectory reflects solid growth in revenue and profitability, demonstrating its resilience and operational efficiency.
| Financial Year (In ₹ Lakhs) | Revenue | Profit After Tax (PAT) | Net Worth | Debt/Equity Ratio |
|---|---|---|---|---|
| 2023-24 | 12,505.80 | 997.71 | 3,721.28 | 1.22 |
| 2022-23 | 11,601.88 | 570.33 | 2,733.76 | 1.87 |
| 2021-22 | 9,198.21 | 70.22 | 2,534.94 | 1.05 |
Key Performance Indicators
- ROE: 28.25%
- ROCE: 16.47%
- PAT Margin: 7.76%
- P/E Ratio: 9.26 (Post-IPO)
The 75% growth in PAT in FY 2023-24 highlights the company’s strong financial health and its ability to generate shareholder value.
Objectives of the Issue
Anya Polytech aims to utilize the IPO proceeds for the following purposes:
- Capital Expenditure & Working Capital: Improving Operations and Expanding Operations in Anya Polytech & Fertilizers Limited.
- Subsidiary Projects: In Arawali Phosphate Limited and Yara Green Energy Private Limited.
- General Corporate Purposes: Increasing the lender control over the means of making payments.
Competitive Strengths
Anya Polytech’s growth is underpinned by several competitive advantages:
- Technology Upgradation: The manufacture by advanced machinery.
- Product Diversity: HDPE/PP bags, fertilizers and Catering to multiple industries.
- Experienced Team: Operational excellence is guaranteed by a skilled workforce of 126 employees.
- Strong Customer Base: A preferred partner for B2B clients.
Subscription Details and Timeline
Reservation for Investor Categories
| Investor Category | Shares Offered |
|---|---|
| QIB (Qualified Institutional Buyers) | Not more than 50% of the Net Issue |
| Retail Investors | Not less than 35% of the Net Issue |
| NII (Non-Institutional Investors) | Not more than 15% of the Net Issue |
Tentative Schedule
| Event | Date |
|---|---|
| IPO Open Date | December 26, 2024 |
| IPO Close Date | December 30, 2024 |
| Basis of Allotment | December 31, 2024 |
| Refund Initiation | January 1, 2025 |
| Shares Credited to Demat | January 1, 2025 |
| Listing Date | January 2, 2025 |
Promoter and Management
Anya Agro & Fertilisers Pvt. Ltd. and Mr. Yashpal Singh Yadav jointly promote the company, making for a substantial pre-IPO shareholding of 89.19% which will dilute to 65.40% post-IPO.
Anchor Investors
| Event | Details |
|---|---|
| Raised Funds | Anya Polytech successfully raised ₹12.74 crores from anchor investors on December 24, 2024. |
| Lock-in Periods | 50% Shares: Locked until January 30, 2025. Remaining Shares: Locked until March 31, 2025. |
| Bid Date | December 24, 2024 |
| Shares Offered | 91,00,000 |
| Anchor Portion Size | ₹ 12.74 Crores |
Risks and Challenges
While Anya Polytech presents a strong investment case, potential investors should consider the following risks:
- Dependency on Raw Materials: The profitability will be affected by HDPE and PP materials’ price volatility.
- Sector-Specific Risks: Changes in regulatory environment of the agricultural and packaging sectors.
- Working Capital Requirements: It may put on a strain on cash flow as it needs high working capital.
Anya Polytech IPO Review: Should You Invest?
Tech Venture Spot Team Review:
Anya Polytech has established market presence, cost control measures, is aiming into the high margin B2C segment, which makes it a promising medium-to-long term investment. An IPO based on FY 2024-25 earnings looks reasonably priced and presents the opportunity to investors to play the growth of a company.
Pros of Investing:
- Growth profitability with strong financials.
- Product diversity serving high demand sectors.
- Reasonable valuation with promising ROE and PAT margin.
Cons of Investing:
- The risks in a market and small and medium sized enterprises (SMEs).
- It had no experience with B2C operations.
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