Essen Speciality Films Limited IPO: A Sustainable Path to Growth in the Home Decor Industry

Introduction:

Essen Speciality Films Limited, a leading manufacturer of sustainable plastic products for the Home Decor and Home Furnishing Industry, is set to enter the primary market with its Initial Public Offering (IPO) on June 23, 2023. This article explores the details of the IPO, the company’s offerings, its market presence, and its growth potential in the industry.

1. Essen Speciality Films Limited IPO Details:

IPO Dates and Closing:

The IPO subscription period for Essen Speciality Films Limited commences on June 23, 2023, and concludes on June 27, 2023. Investors have the opportunity to participate in this significant offering for a limited time.

Offer Details:

The IPO consists of a fresh issue of up to 46,99,200 equity shares, amounting to Rs. 66.33 crores. The equity shares of Essen Film Specialty Ltd. are priced in the range of Rs. 101 to Rs. 107 per share. Retail investors are required to subscribe to a minimum of 1 lot, comprising 1200 shares.

2. About Essen Speciality Films Limited:

Company Overview:

Essen Speciality Films Limited, established in 2002, is a pioneer in manufacturing sustainable plastic products for the Home Decor and Home Furnishing Industry. The company’s commitment to quality and compliance with various Indian and International standards has earned it a reputable position in the market.

Diversified Product Categories:

Essen Speciality Films Limited caters to the market through six distinct product categories: Bath Essentials, Kitchen & Dining, Home Décor, Storage & Organization, Fitness & Lifestyle, and Outdoor & Utility. The company’s extensive range of sustainable plastic products is globally certified by organizations such as the Global Recycled Standard, Recycled Claim Standard, Forest Stewardship Council, and OEKO-TEX (standard 100), ensuring its adherence to global quality standards.

Market Presence:

With its focus on sustainable manufacturing practices and innovative product offerings, Essen Speciality Films Limited has emerged as a trusted supplier to renowned multinational modern trade and Fortune 500 retailers. The company’s products are in high demand, with 78% of its total sales generated from exports and 22% from domestic sales.

3. Growth Potential in the Industry:

Favorable Market Conditions:

The demand for polypropylene, the primary material used in Essen Speciality Films Limited’s products, is experiencing a positive trajectory due to increasing urbanization, rising disposable income, and the growing emphasis on decorative plastic and recycled plastic for sustainability. India’s polypropylene demand witnessed a Compound Annual Growth Rate (CAGR) of approximately 8.51% from 2015 to 2019, and it is projected to achieve a healthy growth rate in the period of 2022-2030.

Global Plastic Market Outlook:

According to the report “Global Plastic Market 2021-2025,” the global plastic market is forecasted to grow by $19,683.57 million during 2021-2025, progressing at a CAGR of 5.73%. This positive market outlook indicates significant opportunities for Essen Speciality Films Limited to expand its presence in the global market.

4. Essen Speciality Films Limited IPO: Key Points to Consider:

Issue Dates and Listing:

The IPO opens for public subscription on June 23, 2023, and closes on June 27, 2023. The allotment of shares will be finalized on July 03, with refunds initiated on July 04, 2023. Share credits to Dem

at accounts will take place on July 05, 2023, followed by the listing of Essen Speciality Films Limited on July 06, 2023, on the NSE Emerge platform.

Price Bands and Issue Size:

The equity shares of Essen Speciality Films Limited are priced between Rs. 101 and Rs. 107 per share. The IPO size amounts to Rs. 66.33 Crores.

IPO Share Reservations:

The IPO allocation process designates a maximum of 50% of the Net Issue for Qualified Institutional Buyers (QIBs), including Anchor investors. Non-Institutional Investors can avail themselves of a minimum allocation of 15% of the Net Offer, while Retail Individual Investors have access to at least 35% of the Net Offer.

Lot Size and Minimum Investment:

The market lot size for Essen Speciality Films Limited IPO is 1200 equity shares. Retail investors are required to invest a minimum amount ranging from Rs. 1,21,200 (Lower Band) to Rs. 1,28,400 (Upper Band) for one lot.

Key Intermediaries:

GYR Capital Advisors Pvt. Ltd. serves as the Book Running Lead Manager for the IPO, and Bigshare Services Pvt. Ltd. assumes the role of Registrar to the Offer.