Jyoti Global Plast IPO: Full Details and Outlook

The Jyoti Global Plast IPO is set to open for subscription from August 4 to August 6, 2025, attracting significant interest from SME market investors. With a price band of ₹62 to ₹66 per share and a total issue size of ₹35.44 crore, the company aims to strengthen its market position in the industrial and specialty plastics sector.

The IPO comes at a time when small and medium enterprises (SMEs) in the Indian manufacturing space are gaining attention for their robust growth, diversified offerings, and potential for high returns in both listing and long-term investment scenarios.

Company Overview

Jyoti Global Plast Limited, headquartered in Mumbai, is a growing plastics and FRP moulding manufacturer. The company operates in diverse segments including:

• Industrial Packaging – UN and IATA-certified packaging solutions for chemicals and hazardous materials

• Automotive Components – Parts for two-wheelers, four-wheelers, and industrial vehicles

• Consumer Products – Toys, storage solutions, and FMCG packaging

• Aerospace and Defence – Special focus on drone parts manufacturing, an emerging growth area

Currently, the company operates two manufacturing units in Rabale, Navi Mumbai, and is setting up a third plant in MIDC Mahad, Raigad, Maharashtra to enhance production capacity and cater to expanding client needs.

The company’s strengths lie in customized design solutions, robust quality certifications, and a diverse client base of over 1,000 customers, spanning industrial and consumer sectors. Its strategic expansion into drone and aerospace parts positions it for future-ready growth.

IPO Details

The Jyoti Global Plast IPO is being launched to raise ₹35.44 crore, which includes both fresh issue and offer for sale (OFS) components:

• Fresh Issue: 40.50 lakh shares (~₹26.73 crore)

• Offer for Sale: 10.50 lakh shares (~₹6.93 crore)

• Total Shares Offered: 53.70 lakh

Other IPO Highlights:

• Face Value: ₹10 per share

• Lot Size: 2,000 shares (~₹1.32 lakh per lot at the upper band)

• Listing: NSE-SME Emerge platform

• Allotment Date: August 7, 2025

• Refunds & Demat Credit: August 8, 2025

• Listing Date: August 11, 2025

The lot size indicates that the IPO primarily targets HNI and retail investors comfortable with larger SME ticket sizes.

Financial Performance

Jyoti Global Plast has shown steady revenue growth and sharp profit expansion in recent years. Below is a snapshot of the standalone financials:

Key Financial Highlights:

• Revenue Growth: ~7% YoY

• PAT Growth: ~68%, showing improving profitability

• EBITDA Margin: ~12.5%

• Return on Equity (RoE): ~33%, indicating efficient capital usage

• Debt Reduction: Borrowings reduced, improving balance sheet strength

The financials indicate a solid growth trajectory and improving operational efficiency, which are positive signs for IPO investors.

Use of IPO Proceeds

The fresh issue proceeds will primarily be utilized for:

1. Setting up the third manufacturing unit at MIDC Mahad to expand production

2. Working capital requirements to support growing operations

3. Repayment of some borrowings to strengthen the balance sheet

4. General corporate purposes to enhance brand and market presence

IPO Reservation & Category Allocation

The IPO is structured with category-wise allocation to balance institutional and retail participation:

This structure ensures strong institutional support while giving retail investors a third of the issue.

Grey Market Premium (GMP) and Listing Outlook

The grey market premium (GMP) for the Jyoti Global Plast IPO is currently hovering around ₹12 per share.

• Upper Price Band: ₹66

• Estimated Listing Price: ~₹78

• Potential Listing Gain: ~18–20%

Rising GMP towards the IPO close indicates strong market sentiment and healthy listing expectations.

Strengths and Growth Drivers

1. Diversified Product Portfolio – Serving packaging, automotive, consumer, and aerospace sectors

2. Rising Aerospace/Drone Demand – Early mover advantage in a niche market

3. Strong Client Base – 1,000+ customers with repeat orders ensuring revenue stability

4. Capacity Expansion – Third plant to enhance production scale and efficiency

5. Financial Growth – Doubling PAT and improving RoE attract SME investors

Key Risks

1. Regional Concentration – 98% of revenue from Maharashtra and Gujarat

2. Raw Material Price Volatility – Dependence on polymer price stability

3. Environmental Regulations – Growing scrutiny on plastics usage

4. High SME Competition – Larger peers with higher capacity pose a threat

5. Power and Utility Dependence – Any supply disruption impacts production

Peer Comparison

Analysis:

• Jyoti Global Plast has a lower P/E, higher RoNW, and promising earnings growth, making it attractive compared to peers, particularly in the SME space.

Investor Strategy

Short-term Investors (Listing Gains):

• Current GMP suggests an ~18-20% potential upside.

• Positive sentiment and strong anchor participation could result in a healthy listing.

Long-term Investors:

• The company has robust growth prospects, expansion plans, and diversified offerings.

• Investors willing to hold beyond listing can benefit from sectoral growth and profitability expansion.

Caution: Being an SME IPO, liquidity can be lower, and price volatility may be higher post-listing.

Conclusion

The Jyoti Global Plast IPO presents a balanced opportunity for both short-term and long-term investors.

• Strong financial growth,

• Expansion into aerospace and drone components, and

• A reasonable valuation against peers

make this IPO attractive for well-informed investors.

The grey market trends and institutional participation indicate high listing confidence, while long-term growth potential lies in capacity expansion and diversified product offerings.

ALSO READ: Renol Polychem IPO Analysis & Outlook – Strong Growth Ahead