Srigee DLM Limited IPO

Srigee DLM Limited is launching its SME IPO on the BSE SME platform from May 5 to May 7, 2025. The company, based in New Delhi, manufactures plastic and polymer products for industries such as home appliances and automotive. The IPO offers 1,714,800 equity shares at a price range of ₹94–99 per share, with a target of raising ₹16.12–16.98 crore. The minimum lot size is 1,200 shares, requiring an investment of ₹1,18,800. The allotment date is set for May 8, and shares are expected to be listed on May 12, 2025.

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Min Investment

₹1,18,800

Price Range

₹94.0 - 99.0

Issue Size

₹16.98 Cr

IPO Type

SME

Key Metrics

Face Value

₹ 10

EPS

₹ 8.66

P/E Ratio

11.43 x

RoNW

20.40%

ROE

23.61%

Debt to Equity

0.16

Timeline

IPO Opens 05/05/2025

IPO Closes 07/05/2025

Allotment 08/05/2025

Refund 09/05/2025

Listing 12/05/2025

IPO Objectives

The funds raised will be utilized to meet working capital requirements, ensuring smooth business operations.
A portion of the proceeds will be used to repay existing borrowings, reducing financial leverage.
The IPO aims to increase the company's brand visibility and expand its market presence.
It will strengthen the balance sheet by adding equity capital, improving financial stability.
The IPO will help Srigee DLM meet the listing requirements for the BSE SME platform.

Strengths

Strong Profitability: The company has demonstrated healthy financial performance with a solid Return on Equity (ROE) and Return on Net Worth (RoNW), reflecting efficient use of capital.
Low Debt Levels: With a low debt-to-equity ratio of 0.16, Srigee DLM maintains a conservative approach to leveraging, minimizing financial risk.
Experienced Management: The company is backed by a skilled and experienced management team with expertise in its sector.
Scalable Business Model: Srigee DLM’s business model is adaptable, enabling it to scale operations in line with growing demand.
Strong Market Position: The company has established a strong market presence, which enhances its ability to compete and expand.

Weaknesses

Dependence on a Few Clients: A significant portion of revenue might depend on a limited number of clients, which could expose the company to risks if these relationships are disrupted.
Limited Geographical Reach: Srigee DLM’s operations are primarily concentrated in specific regions, limiting its ability to tap into broader markets.
Exposure to Economic Fluctuations: As a company in the SME sector, it may be more susceptible to economic downturns and changes in market conditions.
Small Scale Operations: Compared to larger competitors, Srigee DLM’s scale of operations might be smaller, potentially limiting its competitive edge.
Dependence on External Financing: The company may rely on external financing to fund growth or working capital needs, which could be affected by market conditions or lender policies.