All Time Plastics IPO — Should You Subscribe Or Avoid? Read Anand Rathi's Report For Key Details

All Time Plastics Ltd.'s Rs 400.60-crore IPO comprises of a fresh issue of 1.02 crore shares worth Rs 280 crores and an offer for sale of 0.44 crore shares aggregating to Rs 120.6 crore. Investors can place bids starting from a minimum of 54 shares and in multiples thereafter.

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Anand Rathi Report

All Time Plastics Ltd.'s initial public offering will open for subscription on Aug . 7 and closes on Aug. 11. The manufacturer of plastic consumer ware products has fixed the price band in the range of Rs 260-275 per equity share.

The Rs 400.60-crore IPO comprises of a fresh issue of 1.02 crore shares worth Rs 280 crores and an offer for sale of 0.44 crore shares aggregating to Rs 120.6 crore. Investors can place bids starting from a minimum of 54 shares and in multiples thereafter.

Intensive Fiscal Services Pvt. Ltd., DAM Capital Advisors Ltd. are the book-running lead managers for the public issue while KFin Technologies Ltd. is the registrar for the offer.

Objects of the Issue

1. Prepayment or repayment of all or a portion of certain outstanding Borrowings availed by the company

2. Purchase of equipment and machinery for the manekpur facility.

3. General Corporate Purpose.

Strengths:

• Strategically located and integrated manufacturing facilities, enabling high volume, low-cost and high quality plastic consumer ware production.

• Long-standing relationships with global retailers, including IKEA, Asda, Michaels and Tesco, and Indian retailers.

Key Strategies:

• Expand existing production capacity.

• Continue to expand their plastic homeware product offering.

• Diversify revenue stream through the manufacturing of bamboo products.

• Acquire new customers and sell more products to their existing customers.

• Selective Expansion into Overseas Markets

Valuation:

All Time Plastics operates strategically located, fully integrated manufacturing facilities that enable cost-effective, large-scale production of high-quality plastic consumer products. The company offers a diverse and growing range of consumer ware, supported by in-house expertise in product and mould design.

It serves both domestic and international markets with customized, innovative solutions. All Time Plastics has built long-standing relationships with global retailers such as IKEA, Asda, Michaels, and Tesco, as well as leading Indian retail chains.

Committed to sustainability, the company follows a strict landfill-free policy, ensuring all operational waste is recycled, reused, or repurposed, reflecting its dedication to environmental responsibility.

At the upper price band company is valuing at P/E of 36.1x to its FY25 earnings, with EV/Ebitda of 19.8x and market cap of Rs 18,013 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “Subscribe-Long Term” rating to the IPO.

Key Risk:

• Business largely depends upon their top four customers and in particular top customer. For Fiscals 2025, 2024 and 2023, revenue from their top customer represented 59.29% (consolidated), 60.36% and 58.54% of their revenue from operations, respectively, and their revenue from their top four customers represented 78.42% (consolidated), 83.30% and 82.65% of revenue from operations, respectively. The loss of any of their top four customers, and in particular their top customer, or the loss of revenue from sales to these top customers could have a material adverse effect on their business, financial condition, results of operations and cash flows.

• Company do not have long-term agreements for the sale of products with a majority of their customers. If customers choose not to source their requirements from them, it could have a material adverse effect on business, financial condition, results of operations and cash flows.

• Rapid increases in raw material prices, especially plastic granules prices, could have an adverse effect on their business, results of operations, financial condition and cash flows.

• Pricing pressure from their customers could adversely affect their gross margin and ability to increase their prices, which could in turn have a material adverse effect on their results of operations and financial condition.

• Company is currently dependent on the continued efforts and contributions of their promoters for the success of their business and if they cease to be involved in or decrease their involvement in their business prior to them having a succession plan in place, it could have a material adverse effect their business, financial condition, results of operations and cash flows.

• Company is engage in a competitive business and if they fail to compete effectively, it would have a material adverse effect on their business, financial condition, results of operations and cash flows.

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