Sylvan Plyboard (India) IPO Review

 
Sylvan Plyboard IPO Review

IPO Open Date: June 24, 2024

IPO Close Date: June 26, 2024

IPO Price: ₹55 per share

Lot Size: 2000 Shares

Listing: July 01, 2024

Sylvan Plyboard is scheduled to hit the market on June 24, 2024 and close on June 26, 2024. Sylvan Plyboard plans to raise around ₹28.05 Cr through an IPO with a sale of up to 5,100,000 equity shares of ₹10 each. The Retail offered 50%, Other Shares Offered 50%.

Sylvan Plyboard (India) Ltd, established in 2002, specializes in producing a wide range of wood products like plywood, block boards, flush doors, veneer, and sawn timber in different grades and thicknesses. The company operates through 223 Authorized Dealers spread across 13 states, ensuring a widespread market presence for its products that adhere to the quality standards set by the Bureau of Indian Standards (BIS) such as IS 303:1989, IS 710:2010, IS 2202:1999, IS 1659:2004, IS 5509:2021, and IS 10701:2012. Additionally, Sylvan Plyboard holds ISO certifications including ISO 9001:2015 for Quality Management System, ISO 14001:2015 for Environmental Management System, and ISO 45001:2018 for Occupational Health & Safety Management System, underscoring its commitment to quality across its manufacturing operations of Veneer, Plywood, Block Board, and Flush Door at its facility in Hooghly, West Bengal.

The company's products cater to a diverse range of industries like shipping, construction, real estate, interior decor, furniture, aviation, education, hospitals, transport, banking, and government projects. These industries rely on Sylvan Plyboard's offerings for both commercial and residential infrastructure needs. With a workforce of 817 employees working across various departments as of June 2024, Sylvan Plyboard (India) Ltd stands as a significant player in the wood products manufacturing sector in India, ensuring quality products that meet industry standards and certifications for its wide customer base.

Sylvan Plyboard



Sylvan Plyboard IPO Details

Sylvan Plyboard IPO opens on June 24, 2024, and closes on June 26, 2024. The Listing date for Sylvan Plyboard IPO is on July 01, 2024. The price band for IPO is ₹55 per share and lot size of 2000 Shares.

IPO DateJune 24, 2024 to June 26, 2024
Listing DateJuly 01, 2024
Price₹55 per share
Lot Size2000 Shares
Issue Size₹28.05 Cr
Face Value₹10 per share

Sylvan Plyboard IPO Tentative Timetable

Sylvan Plyboard opening date is June 24, 2024 and close date is June 26, 2024. The IPO allotment date is June 27, 2024. The refund initiation of IPO is on June 28, 2024. The credit of shares in demat account is on June 28, 2024. The listing date is on July 01, 2024.

EventDate
IPO OpeningJune 24, 2024
IPO ClosingJune 26, 2024
IPO Allotment DateJune 27, 2024
Refund InitiationJune 28, 2024
Shares Credit to DematJune 28, 2024
Lisiting DateJuly 01, 2024

Sylvan Plyboard IPO Lot Size

Lot Size of this IPO is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or ₹110,000).

CategoryLotsSharesAmount
Retail(Minimum)12000₹110,000
Retail(Maximum)12000₹110,000
S-HNI (Minimum)24000₹220,000

Sylvan Plyboard IPO Promoter Holding

Pre Issue Share Holding99.80%
Post Issue Share Holding71.23%

Sylvan Plyboard IPO Review

SPIL has shown steady growth in revenue, with a notable increase in profitability from FY22 onwards, raising concerns about the sustainability of this trend. For FY21, the company reported a total income of Rs. 110.29 crore and a net profit of Rs. 0.37 crore. In FY22, revenue increased to Rs. 172.93 crore with a net profit of Rs. 3.05 crore, and in FY23, revenue further grew to Rs. 199.15 crore with a net profit of Rs. 3.53 crore. For the nine months ending December 31, 2023, the company achieved a net profit of Rs. 4.48 crore on a total income of Rs. 161.93 crore. The significant boost in profitability since FY22 is surprising and warrants a closer look at the company's operational improvements and market conditions. For the last three fiscals, SPIL has reported an average EPS of Rs. 2.06 and an average RoNW of 3.31%. The issue is priced at a P/BV of 0.83 based on its NAV of Rs. 66.25 as of December 31, 2023, and at a P/BV of 0.89 based on its post-IPO NAV of Rs. 61.69 per share. The P/E ratio based on annualized FY24 earnings stands at 17.86, indicating that the issue is fully priced considering the company's super FY24 earnings.

SPIL's IPO aims to raise Rs. 28.05 crore by issuing 5,100,000 equity shares at a fixed price of Rs. 55 per share. The proceeds will be used for capital expenditure on additional plant and machinery (Rs. 3.71 crore), working capital (Rs. 16.94 crore), and general corporate purposes (Rs. 4.30 crore). Post-IPO, the company's paid-up equity capital will increase from Rs. 14.28 crore to Rs. 19.38 crore, targeting a market capitalization of Rs. 106.56 crore at the upper price band. The IPO is managed by Finshore Management Services Ltd., with Bigshare Services Pvt. Ltd. as the registrar. The issue constitutes 26.32% of the post-IPO paid-up capital. Notably, Finshore Management's track record shows that out of their last 10 listings, most have opened at premiums, enhancing the attractiveness of this IPO.

Sylvan Plyboard (India) Ltd. operates in a highly competitive and fragmented segment. While the company has demonstrated steady growth in revenue, the sudden boost in profitability from FY22 onwards raises questions about the sustainability of such performance. The IPO appears fully priced based on FY24 super annualized earnings. Well-informed investors should weigh the potential risks and rewards carefully. The company's established market presence, diversified product range, and steady revenue growth are positive indicators. However, the recent surge in profitability and the highly competitive nature of the plywood industry suggest a cautious approach. For those with a long-term investment horizon, parking moderate funds in SPIL's IPO could yield rewards, but it is crucial to monitor the company's ongoing performance and market dynamics closely.

Sylvan Plyboard IPO Subscription Status (Bidding Details)

Table not found

Sylvan Plyboard IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Sylvan Plyboard IPO FAQs

What is Sylvan Plyboard IPO?

Sylvan Plyboard is issuing 5,100,000 equity shares with a face value of ₹10 each, totaling up to ₹28.05 Cr. The shares are being offered at a price of ₹55 each, with a minimum order quantity of 2000 shares.

Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Sylvan Plyboard IPO will open?

Sylvan Plyboard will open on June 24, 2024 for QIB, NII, and Retail Investors.

When Sylvan Plyboard IPO will end?

Sylvan Plyboard will end on June 26, 2024.

What is Sylvan Plyboard IPO Size?

Sylvan Plyboard IPO size is 28.05 Cr.

What is Sylvan Plyboard IPO Price Band?

Sylvan Plyboard price band is ₹55 per share.

What is the Sylvan Plyboard IPO Allotment Date?

Sylvan Plyboard allotment date is June 27, 2024.

What is the Sylvan Plyboard IPO Listing Date?

Sylvan Plyboard listing date is July 01, 2024. The IPO is to be listed on BSE and NSE.

How to Sylvan Plyboard IPO through Zerodha?

To apply for the IPO “Sylvan Plyboard” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Sylvan Plyboard IPO through Upstox?

To apply for the IPO “Sylvan Plyboard” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Sylvan Plyboard IPO Allotment Status?

For Sylvan Plyboard IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Sylvan Plyboard IPO GMP?

You can check out here: Sylvan Plyboard IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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