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Issue Details / Capital History
The firm is popping out with its maiden e-book constructing route IPO of 2325000 fairness shares of Rs. 10 every to mobilize Rs. 29.06 cr. on the higher cap. The firm has introduced a value band of Rs. 119 – Rs. 125 per share. The minimal utility to be made is for 2000 shares and in multiples of 1000 shares thereon, thereafter. The problem opens for subscription on September 23, 2026 and can shut on September 25, 2026. The shares will likely be listed on BSE SME. The IPO represent 30.03% of the post-IPO paid-up capital of the corporate. From the online proceeds of the difficulty, the corporate will make the most of Rs. 2.11 cr. for capex on buy of plant and equipment for Meerut Plant, Rs. 18.66 cr. for working capital, and the remainder for basic company functions.
The IPO is solely lead managed by Comfort Securities Ltd., whereas Maashitla Securities Pvt. Ltd. is the registrar to the difficulty. SMC Global Securities Ltd. is a market maker.
After issuing / changing preliminary fairness capital at par worth, the corporate additionally issued additional fairness shares within the value vary of Rs. 12.50 – Rs. 481.00 per share, between September 2012, and December 2025. It has additionally issued bonus shares within the ratio of three for 1 in March 2026. The information for the typical price of acquisition of shares by the promoters is Rs. 6.17, Rs. 9.26, and Rs. 14.71 per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 5.42 cr. (5418320 fairness shares) will stand enhanced to Rs. 7.74 cr. (7743320 fairness shares). Based on the higher band of the IPO pricing, the corporate is searching for a market cap of Rs. 96.79 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has posted whole revenue/ internet revenue, of Rs. 23.31 cr. / Rs. 0.72 cr. (FY24), Rs. 48.65 cr. / Rs. 1.54 cr. (FY25), Rs. 67.00 cr. / Rs. 7.48 cr. (FY26). The firm posted progress in its high and backside traces for the reported durations. Bumper income for FY26 seems window dressing to pave the best way for fancy valuations of the IPO. Rising commerce receivables year-on-year, increase alarms
For the final three fiscals, the corporate has reported a mean EPS of Rs. 8.24 and a mean RoNW of 28.68%. The problem is priced at a P/BV of three.42 based mostly on its NAV of Rs. 36.50 per share as of March 31, 2026, however its post-IPO NAV information is lacking from the provide paperwork.
If we attribute FY26 earnings to its post-IPO totally diluted paid-up fairness capital, then the asking value is at a P/E of 12.94, and based mostly on FY25 earnings, the P/E stands at 62.81. The problem seems aggressively priced based mostly on its latest common earnings.
The firm has posted PAT Margins of three.35% (FY24), 3.20% (FY25), 11.22% (FY26) and RoCE margins of 9.99%, 10.78%, 22.91%, respectively for referred durations.
The firm has not paid any dividends for the reported durations of the provide doc. It will undertake a prudent dividend coverage, based mostly on its monetary efficiency and future prospects.
Comparison with Listed Peers
As per the provide doc, the corporate has no listed friends to match with.
S. Ok. Offset Ltd. (SKOL) is engaged within the enterprise of Printing and packaging options. The enterprise initially began with offset printing operations, that are generally used for medium- to large-scale print manufacturing. Offset printing is a standard printing course of by which ink is transferred from plates onto paper or different surfaces. This methodology is usually used for objects comparable to textual content books, brochures, catalogues, stationery, pamphlets, enterprise varieties, advertising and marketing supplies, and different industrial print necessities the place uniformity and bulk manufacturing are concerned. Over the time, the enterprise added labelling and promotional printing actions to its operations. This space contains the printing of stickers, labels, barcodes, and associated supplies which can be generally used for product identification, packaging data, branding, and promotional communication.
Label printing could embody adhesive labels and product stickers produced in several sizes, codecs, and finishes relying on utility. In latest years, the enterprise expanded into in-house packaging options by buying new machines. This section contains designing and printing cartons, packing containers, and different packaging-related supplies used for product storage, transport, show, and branding functions throughout totally different sectors. Packaging work could contain printed outer packing containers, folding cartons, mono cartons, and customised packaging codecs relying on shopper necessities. As a part of this section, digital design companies are additionally obtainable for packaging art work, format preparation, color formatting, and print-ready file improvement.
The Company operates as an built-in supplier of printing and packaging options, providing merchandise comparable to offset printing of books, mono cartons, labels, grasp cartons. Its operations embody printing, designing, graphics, lithography, and publication of basic books, technical books, youngsters’s books, textbooks, magazines, journals, and different supplies. It can also be concerned in buying and selling, importing, and exporting printing and packaging associated supplies together with paper, paperboard, foils, ink and so on. The Company operates primarily from 4 amenities in Meerut with an mixture coated space of roughly 38313 sq. toes. The Company has executed ahead integration and expanded its product choices throughout printing, packaging and labelling segments. This has enabled clients to supply a number of merchandise from a single provider, supporting operational effectivity, utilization of producing capability, and diversification throughout merchandise and clients. As of the date of this provide doc, it had 111 workers on its payroll.
Merchant Banker’s Track Record
This is the threerd mandate from Comfort Securities Ltd., within the final three fiscals (together with the continuing one). Out of the final 2 listings, 1 opened at low cost, and the 1 listed with a premium of 10.14% on the itemizing date. The lead supervisor has a mean monitor file.
Conclusion
SKOL is engaged in printing, packaging and labeling enterprise and likewise buying and selling in associated merchandise. The firm posted progress in its high and backside traces for the reported durations. Quantum bounce in its internet income for FY26 (a pre-IPO 12 months) increase eyebrows and concern over its sustainability. Small fairness base post-IPO, indicated longer gestation interval for migration. Based on its latest common monetary information, the difficulty seems aggressively priced.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the main market. Drawing on over three many years of market expertise and shut interplay with service provider bankers, his opinions concentrate on detailed basic and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The data offered herein is solely for academic and informational functions and doesn’t represent a suggestion, solicitation, or advice to purchase or promote any securities. Readers are suggested to seek the advice of a certified monetary advisor earlier than making any funding choices. Investments within the securities market are topic to market dangers. The creator doesn’t intend to spend money on the securities mentioned.
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