Manjushree Technopack Ltd IPO

About Manjushree Technopack Limited IPO

Manjushree Technopack Limited IPO is an IPO aggregating up to ₹3,000 crores. It consists of an offer for sale aggregating up to ₹2,250 crores and a fresh issue aggregating up to ₹750 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on a date TBA and the initiation of refunds will take place on a date TBA.

Objective of Manjushree Technopack Limited IPO

• Repayment/prepayment, in full or part, of outstanding borrowings of the company.
• Pursuing inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

Industry Outlook

Plastic packaging dominates the Indian packaging industry, holding a substantial share of 45% in the overall market in fiscal 2023.

India's packaging industry is a vital and rapidly transforming sector, mirroring the nation's expanding consumer base, and evolving industrial landscape. This approximately USD 8,000 crores market encompasses a wide range of materials, formats, and applications, catering to diverse end-use sectors. In fiscal 2023, the Indian packaging market was valued at ₹63,990,000 crores, growing at a CAGR of 2.8% from ₹55,810,000 crores fiscal 2018. The market is estimated to reach ₹66,560,000 crores in fiscal 2024 growing at a rate of 4.0% in the last financial year. The market is further projected to grow at CAGR of 6.7%, to reach a market size of ₹86,200,000 crores in fiscal 2028.

India is the fastest growing country in the Rigid Plastic Packaging Market (“RPP”) globally as the CAGR of global rigid plastic packaging from 2023 to CY 2028 is estimated to be approximately 4.5% while India’s RPP market is growing at a CAGR of approximately 7.0% during the same period. India’s RPP market accounted for approximately 5.2% of the global RPP market in 2023 and it is estimated to increase to 5.3% by CY 2028.

Accounting for 65% of the plastic packaging market in fiscal 2023, the FPP (Flexible Plastic Packaging) market was valued at ₹18,720,000 crores and is estimated to reach ₹18,490,000 crores in fiscal 2024. The market is further projected to grow at a CAGR of 8% in the next four years to reach a market size of ₹25,160,000 crores.

Company Information

Manjushree Technopack Limited is the largest rigid plastic packaging (RPP) player in terms of installed capacity in India as of March 31, 2024, operating in the consumer rigid plastics industry, according to the Technopak Report. They are a one-stop packaging solutions provider with end-to-end capabilities (i.e., from design to delivery) across containers, preforms, caps and closures, pumps and dispensers, and captive recycling capabilities.

Risks of Manjushree Technopack Limited IPO

• The company’s business is dependent on suppliers to procure their raw materials, packing materials, and tools and equipment (their top supplier, top five suppliers and top 10 suppliers contributed to 33.21%, 44.73% and 48.63%, respectively, of total expenses in fiscal 2024). They have not entered into long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of supplies or volatility in their prices could have an adverse impact on their business, financial condition, cash flows and results of operations.

• A significant portion of their revenues (24.55% of their revenue from operations in Fiscal 2024) is attributable to the carbonated soft drinks (“CSD”) industry.Any economic cyclicality coupled with reduced demand or negative trend in the CSD industry or other industries that they operate in, could adversely affect their business, results of operations and financial condition.

• There is an increased awareness towards controlling plastic pollution and many economies including India have joined in the efforts to ban certain types of plastic products. In case any key plastic material used by them or end-use consumer product that is packaged using their solutions is banned in India or in any of the markets where they export their products, it could have a material and adverse effect on their business, financial condition, cash flows and results of operations.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

JM Financial Limited Avendus Capital Private Limited Citigroup Global Markets India Private Limited Goldman Sachs (India) Securities Private Limited ICICI Securities Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through the following sources:

Providing packaging solutions with end-to-end capabilities (i.e., from design to delivery) across containers, preforms, caps and closures, pumps and dispensers and captive recycling capabilities.

Company Growth Trajectory

According to the Technopak Report, in fiscal 2024, the company’s estimated market share in terms of revenue was 7.6% in the organised consumer RPP industry in India. Further, their estimated market share in terms of revenue (including revenue of Oriental Containers on a proforma basis) in fiscal 2024 was 8.8% in the organised consumer RPP industry in India. (Source: Technopak Report). Their revenue from operations grew at a CAGR of 20.13% from ₹146.70 crores to ₹211.70 crores between fiscals 2022 and 2024, which according to the Technopak Report, was 3.4 times the growth of the Indian consumer RPP market between fiscals 2022 and 2024.

Company Market Position

Manjushree Technopack Limited Company commenced operations in 1987 and over the last 37 years, they have expanded their operations and strengthened their market position as the largest RPP player in India in terms of installed capacity as of March 31, 2024 and in terms of revenue in fiscal 2023, according to the Technopak Report.

They have the highest market share in terms of revenue of 7.4% in fiscal 2023 in the organised consumer RPP industry in India (Source: Technopak Report). According to the Technopak Report, they ranked first in containers, first in preforms, first in pumps and dispensers, first in caps and closures and first in recycle (in-house recycling of post-consumer plastic waste made of polypropylene (PP) and high-density polyethylene (HDPE)) categories in terms of revenue in the consumer RPP industry in India, in Fiscal 2023.

They are also the only Indian RPP player to fully own and operate a greenfield captive recycling plant (Source: Technopak Report) with an installed capacity of 6,000.00 metric tons per annum as of March 31, 2024 which transforms post-consumed plastic waste into high-quality post-consumer recycled (PCR) resin. They are one of the few RPP players in India to have closed-loop recycling capabilities as of March 31, 2024 (Source: Technopak Report).

How To Check Allotment Status of Manjushree Technopack Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Manjushree Technopack Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Manjushree Technopack Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Manjushree Technopack Ltd IPO?

To apply for Manjushree Technopack Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.