Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on September 8, 2025
- The company is engaged in the manufacturing of Blister Foils and aluminium pharma foils.
• The company marked growth in its top and bottom lines for the reported periods.
• The RI is at a discount of around 26% based on its last traded price.
• The issue appears to be a fully priced bet.
• Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
GSM Foils Ltd. (GFL) is engaged in the business of manufacturing Blister Foils and Aluminium Pharma Foils (also known as “Strip Foils”) which is used in packaging of pharmaceutical medicines which includes capsules and tablets both. This is a primary packaging material which comes in direct contact with the medicine, hence, utmost care is taken with regards to its quality. Over the past few years, it has acquired definite know how in different types of foils used in pharmaceuticals companies. The company offers Aluminium foils in different sizes, shapes and thickness to meet diverse needs of clients. The range of its products includes plain and printed aluminium foils and strip foils along with Alu base foils and it ranges from 0.020/ 0.025/ 0.030/ 0.040 micron for coated /ploy laminated/ blister/ strip printed foils.
GFL is an ISO 9001:2015 certified company, and its management system complies with the Current Good Manufacturing Practice (CGMP) standards for the production of aluminium-coated blister foils, strip pharma foils, and printed foils for the pharmaceutical industry. It has developed a manufacturing facility at Gala No 06/106/206/306, Sapphire Building, Diamond Industrial Estate, Vasai East IE, Thane, Vasai, Maharashtra, India, 401208 in 7,973 Sq. feet area with ground plus 3 floors for smooth execution of all the business operations. GFL’s manufacturing facilities are equipped with the necessary tools, machineries, other equipment’s and amenities, to support a seamless manufacturing process, hassle-free production, Quality testing, research, storage and packaging. All its machinery is periodically upgraded and lubricated with experienced personnel so as to retain production rate.
Our Company has PAN India presence with clientele base including in the states like Maharashtra, Gujarat, Goa, Delhi and Sikkim and Union territory of Daman and Diu for domestic market based on sales made for the financial year ended March 31, 2025. The principal raw materials required for manufacturing process includes Aluminium foils, LDPE FILMS, Chemicals Includes-Ethyl acetate, Vinyl Powder, Acetone, MEK, Diesel, Shellac Chips. The offer document is silent on its employees’ strength data.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 1281165 equity shares of Rs. 10 each at a fixed price of Rs. 180.00 per share to mobilize Rs. 23.06 cr. The RI opens for subscription on September 09, 2025, and will close on September 18, 2025. The company is offering RI in the ratio of 1 for 10 to its eligible stakeholders as of the record date of August 28, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on NSE SME Emerge. The company is spending Rs. 0.18 cr. for this RI process, and from the net proceeds, it will utilize Rs. 20.00 cr. for working capital, and Rs. 2.89 cr. for general corporate purposes.
The RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Mark Corporate Advisors Pvt. Ltd. is the advisor to the RI.
Post-RI, company’s current paid-up equity capital of Rs. 12.81 cr. (12811649 equity shares) will stand enhanced to Rs. 14.09 cr. (14092814 equity shares). Based on the RI pricing, the company is looking for a market cap of Rs. 253.67 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 51.75 cr. / Rs. 1.88 cr. (FY24), and Rs. 133.80 cr. / Rs. 9.65 cr. As per NSE filing, for Q1 of FY26 ended on June 30, 2025 (unaudited), it earned a net profit of Rs. 3.83 cr. on a total income of Rs. 52.06 cr.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: GSMFOILS (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 225.55 on August 26, 2025, and opened on an ex-right basis at Rs. 212.00 on August 28, 2025. Since then, it has marked a high/low of Rs. 243.45 / Rs. 206.00. The scrip last closed at Rs. 243.00 as of September 05, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 243.45 / Rs. 71.57. Based on its last traded price of Rs. 243.00, the RI is at a discount of around 25.93%.
The promoters’ holding has been constant around 73.14% for the last three quarters ended with June 30, 2025. The counter is well managed above the RI price to tempt investors.
Conclusion / Investment Strategy
GFL is engaged in the manufacturing of Blister Foils and aluminium pharma foils. The company marked growth in its top and bottom lines for the reported periods. The RI is at a discount of around 26% based on its last traded price. The issue appears to be a fully priced bet. Well-informed investors may park moderate funds for long term.
Review By Dilip Davda on September 8, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
