🚫 Avoid
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Packaging
Manika Plastech Limited IPO
₹125 Cr · Fresh Issue & OFS · Packaging
Price Band
₹40 – ₹43
Lot: 348 shares (₹14,964)
GMP (Grey Market)
₹10 (+23.26%)
Est. listing ₹53
Issue Size
₹125 Cr
Fresh Issue & OFS
Market Cap
₹501 Cr
At upper band
P/E Ratio
22.4x
P/S: 1.1x
Listing Date
21 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
11 Sep 2026
✓
Closes
16 Sep 2026
📋
Allotment
17 Sep 2026
₹
Refund
18 Sep 2026
📈
Listing
21 Sep 2026
IPO India Hub: Strong Avoid
Conviction
3/10
The company faces a severe revenue contraction of -37.2% over two years, collapsing from ₹437.3 Cr to ₹162.7 Cr in FY0, which signals fundamental operational distress that no valuation discount can offset. While the P/E of 22.4x appears fair at 0.97× sector midpoint, the collapsing top line and 8% net margin indicate the business is in structural decline, not temporary weakness.
Our Analysis — Key Points
✓ Strength
Valuation appears fair on P/E basis
The P/E of 22.4x sits at 0.97× the niche sector midpoint of 23x, placing it within the Subscribe threshold. The company also maintains a healthy D/E of 0.6x and ROCE of 18.77%, suggesting capital efficiency in normal operating conditions.
✓ Strength
Strong GMP signals market confidence
The 30.23% grey market premium exceeds the 25% SME bullish threshold, indicating retail and institutional demand. Promoter commitment remains solid at 74.95% post-issue, with only 26.3% OFS, suggesting insider confidence in recovery.
⚠ Risk
Catastrophic revenue decline in FY0
Revenue collapsed 62.8% year-on-year from ₹437.3 Cr (FY-1) to ₹162.7 Cr (FY0), and the 2-year CAGR is -37.2%. This is not a cyclical dip but a structural breakdown that raises questions about market loss, operational failure, or data anomaly that management must clarify before listing.
⚠ Risk
Deteriorating profitability despite valuation
Net profit margin of 8% is thin for packaging, and PAT declined 41.5% year-on-year despite the P/E appearing fair. The company is burning cash relative to its shrinking revenue base, making the IPO proceeds critical for survival rather than growth.
₹ Valuation
Fair P/E masks underlying distress
At 22.4x, the P/E is 0.97× the sector midpoint and would normally trigger a Subscribe verdict. However, this valuation assumes earnings stability; the -37.2% revenue CAGR and -17.8% PAT CAGR mean the denominator is likely to shrink further, making today's P/E a false bargain.
👁 Watch
Monitor FY1 results post-listing closely
Investors must demand clarity on whether FY0's collapse was a one-time event (asset sale, customer loss, supply disruption) or the start of terminal decline. If revenue does not stabilize or rebound within 12 months, the stock will re-rate downward sharply.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Manika Plastech Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹435.98 Cr
Net Profit
₹22.40 Cr
Industry
Packaging
Issue Type
Fresh Issue & OFS
Promoters
NIKUNJ MOHANLAL KAPADIA, MUNJAL NIKUNJ KAPADIA, MIHIR NIKUNJ KAPADIA, PRATIK NIKUNJ KAPADIA AND VRIDAA HOLDING TRUST
Lead Managers
Pantomath Capital Advisors
Quick Actions
Frequently Asked Questions
Avoid. The company faces a severe revenue contraction of -37.2% over two years, collapsing from ₹437.3 Cr to ₹162.7 Cr in FY0, which signals fundamental operational distress that no valuation discount can offset. While the P/E of 22.4x appears fair at 0.97× sector midpoint, the collapsing top line and 8% net margin indicate the business is in structural decline, not temporary weakness.
The current grey market premium (GMP) is ₹10, which is 23.26% above the upper band price of ₹43. This implies an estimated listing price of around ₹53. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 348 shares. At the upper band price of ₹43, the minimum investment per retail application is ₹14,964. You can apply for up to 13 lots (₹194,532) under the retail category (up to ₹2 lakh).
The IPO opens on 11 Sep 2026. It closes on 16 Sep 2026. Allotment is expected on 17 Sep 2026. Refunds initiate on 18 Sep 2026. Listing on BSE and NSE is on 21 Sep 2026.
The lead managers for the IPO are Pantomath Capital Advisors. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 16 Sep 2026. The minimum investment is ₹14,964 for one lot (348 shares). The company faces a severe revenue contraction of -37.2% over two years, collapsing from ₹437.3 Cr to ₹162.7 Cr in FY0, which signals fundamental operational distress that no valuation discount can offset. While the P/E of 22.4x appears fair at 0.97× sector midpoint, the collapsing top line and 8% net margin indicate the business is in structural decline, not temporary weakness.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 16 Sep 2026. The IPO is priced at a P/E of 22.4x. Market cap at issue price is ₹501 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 348 shares at ₹43 each, costing ₹14,964 per application. The issue closes on 16 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Manika Plastech Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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