📌 At a Glance
GLEN Industries is rolling out a ₹63 Cr fresh issue only IPO at ₹92–₹97 per share, with zero anchor bids (yes, literally ₹0.00 Cr from big boys). The company makes eco-friendly food packaging — mostly thin-wall containers and compostable straws. With a 113% PAT jump in FY25 and margins smoother than a butter dosa, the company looks tasty. But is it sustainable, or is this just IPO buffet season?
1. 🧃 WTF Do They Even Do?
- Makes eco-packaging for HoReCa, beverages, food industry
- Core products: Thin-wall food containers & compostable straws (paper + PLA)
- Current production capacity: 665 MT/month containers, 255 MT/month straws
- New 90,000 sq. ft. facility in Dhulagarh = expansion ready
- Target markets: India, EU, USA, Australia, Middle East
- Client base: 25 loyal clients — not huge, but focused
TL;DR: They’re anti-plastic with plastic ambitions — selling green dreams in brown cartons.
2. 📈 Financials – Can a Straw Make ₹18 Cr PAT?
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 119.59 | 145.22 | 171.28 |
| PAT | 1.49 | 8.58 | 18.27 |
| EBITDA | 13.89 | 24.87 | 40.43 |
| PAT Margin | 1.2% | 5.9% | 10.7% ✅ |
| EBITDA Margin | 11.6% | 17.1% | 23.6% ✅ |
| Borrowings | 81.65 | 88.83 | 132.83 🚨 |
| Net Worth | 18.07 | 26.65 | 40.21 |
💥 Profit has 12Xed in 2 years
💥 Margins doubled
💥 But debt also jumped 50% — not exactly biodegradable
3. 💰 Valuation – Is It Compostable or Compounding?
- Issue Price: ₹92–₹97
- FY25 EPS (Post IPO): ₹7.59
- P/E: ~12.78x
- P/B: 0.22 (Wait… that’s oddly low?)
- Market Cap: ₹233.40 Cr
🧠 SME manufacturing IPOs usually range between 10x–16x P/E
🌱 Given the margins and growth, pricing is not unreasonable
🎯 EduInvesting Fair Value Range™: ₹84 – ₹100/share
📦 Anything above ₹105 starts to smell like packaged hype
4. 🏭 What’s Cooking?
- IPO funds mostly go into new factory at Purba Bardhaman, WB (₹47.73 Cr)
- Scaling up eco-packaging biz for exports
- Zero anchor = institutional investors swiped left
- Boosted PAT raises typical “just-in-time-for-RHP” eyebrows
- Still, sector is real — plastic bans are making these guys relevant
- Massive infra being built — which could crush margins if demand lags
5. 🧾 Balance Sheet – Thin-Wall Margins, Thick Debt
- Debt: ₹132.83 Cr
- Net Worth: ₹40.21 Cr
- Debt/Equity = 2.28 ⚠️
- Massive capex + working capital cycle = tight rope walk
- Unless margins sustain and revenue doubles again, this is fragile
6. 💸 Cash Flow – Do Straws Print Cash?
- No explicit cash flow data
- But EBITDA has ballooned = probably positive cash ops
- High inventory model + exports = working capital intensive
- IPO funds are being used for capacity expansion, not deleveraging
- So… you’re buying into a growth+debt+hope story
7. 📐 Ratios – Sexy or Stressed?
| Metric | Value | Verdict |
|---|---|---|
| ROCE | 16.94% | 💪 Good |
| RoNW | 45.43% | 🤯 High |
| PAT Margin | 10.7% | ✅ Smooth |
| EBITDA Margin | 23.6% | 👌 Classy |
| D/E Ratio | 2.28x | 🚨 Red Flag |
| P/E (Post IPO) | 12.78x | 🟡 Fully Priced |
8. 🌍 Peer Comparison – Who’s the Packaging King?
| Company | P/E | PAT Margin | D/E Ratio | Listing |
|---|---|---|---|---|
| GLEN Industries | 12.78x | 10.7% | 2.28 | BSE SME |
| Yash Pakka Ltd | ~17x | ~8% | 0.8 | BSE |
| TPL Plastech | ~12x | ~6% | 0.6 | NSE |
👉 Glen has better margins, but more leverage and less liquidity
🏭 It’s the small fish in a shallow pool — but making ripples
9. 🧑💼 Promoters & Shareholding
Promoters:
- Lalit Agrawal
- Lata Agrawal
- Nikhil Agrawal
- Niyati Seksaria
- Pre-IPO Holding: 100%
- Post-IPO Holding: TBD (likely ~73–75%)
✅ No OFS = all fresh money goes to company
🚫 But dilution is ~27% — that’s a lot of equity sold in one shot
🔌 IPO Structure: No Anchors, High Stakes
- ₹63 Cr via Fresh Issue only
- No anchor investment (zero) — rare for ₹60 Cr+ IPO
- Employee quota gets ₹5 discount
- Market Maker: Giriraj Stock Broking
🧠 Translation: Retail & HNIs, you’re on your own. Institutions aren’t biting.
10. 🧑⚖️ EduInvesting Verdict™
“GLEN is that biodegradable straw trying to survive in a steel tumbler economy.”
✅ Positives:
- Explosive profit growth
- Strong margins
- Eco-packaging theme has legs
- Expansion-focused use of funds
🚨 Risks:
- High leverage
- Recent profit boost = sustainability uncertain
- No anchors = market confidence missing
- Client base is niche (25 clients only)
- SME listing = lower liquidity, volatile listing behavior
🎯 Fair Value Range: ₹84 – ₹100/share
📦 IPO Price Band: ₹92 – ₹97 = fully priced but not ridiculous
Verdict:
If FY26 margins hold, this might scale big. If not, you’ll be sipping regret through a PLA straw.
✍️ Written by Prashant | 📅 July 7, 2025
Tags: GLEN Industries IPO, BSE SME IPO, Eco packaging IPO, Compostable straw company, Thin wall container manufacturer, Plastic ban opportunity, SME IPO July 2025, GYR Capital IPO, EduInvesting IPO review
