—By Dilip Davda
- The company is engaged in polymer manufacturing, specializing in piping systems and solutions.
- It posted inconsistency in its top lines for the reported periods, but bottom line marked improvement.
- The company is operating in a highly competitive and fragmented segment.
- Based on its recent average financial data, the issue appears aggressively priced.
- There is no harm in skipping this pricey and dicey offer.
ALERT: IN VIEW OF THE LIKELY BANK STRIKE FROM 28.09.26 TO 30.09.26, THE IPOS/PRIMARY OFFERS THAT ARE FALLING BETWEEN THESE THREE DAYS, IPOS SCHEDULE TIME LINE MAY CHANGE AND THE REVISED DATES WILL GET EFFECTIVE FOR OPENING AND / OR CLOSING SCHEDULES, AS THE CASE MAY BE. INVESTORS ARE REQUESTED TO MAKE A NOTE OF THIS.
ABOUT COMPANY:
Shree TNB Polymers Ltd. (STPL) is polymer manufacturing company specializing in piping systems and plastic solutions. The Company primarily offers product portfolio comprising HDPE pipes & fittings, PP
(Polypropylene) and PPH (Polypropylene Homopolymer) pipes & fittings, Double Wall Corrugated (DWC) pipes, sprinkler pipes, drip irrigation systems, solid industrial sheets and Well pack sheets for packaging and industrial applications. With a strong focus on engineering excellence, durability, and application-specific performance, STPL delivers reliable and scalable solutions across infrastructure, agriculture and industrial sectors.
The Company’s products are designed to meet the evolving demands of critical applications such as irrigation and agriculture, potable water supply schemes, sewerage and drainage systems, telecom cable protection, construction, and industrial usage. Its HDPE piping systems are widely used in borewell and underground water extraction, as well as in specialized applications including seawater intake systems, desalination plants, and dredging operations- highlighting the company’s capability to operate in both conventional and high performance environments.
In addition to piping systems, it has established a strong presence in value-added polymer segments. Its well pack sheets are extensively used for signage, packaging, construction floor protection, industrial partitions and advertising boards, while solid industrial sheets are utilized in chemical tanks, scrubber linings, CNC (Computer Numerical Control) machining, industrial fabrication, and automotive
components. The company’s DWC pipes are widely deployed in underground sewerage networks, drainage systems, culverts, cable ducts, and highway infrastructure projects, positioning STPL as a comprehensive polymer solutions provider. As of July 31, 2026, it had 298 employees on its payroll, and additional 39contact workers.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 6000000 equity shares of Rs. 10 each to mobilize Rs. 31.20 cr. at the upper cap. The company has announced a price band of Rs. 47 – Rs. 52 per share. The minimum application to be made is for 4000 shares and in multiples of 2000 shares thereon, thereafter. The issue opens for subscription on September 28, 2026 and will close on October 05, 2026. The shares will be listed on BSE SME. The IPO constitute 28.11% of the post-IPO paid-up capital of the company. From the net proceeds of the issue, the company will utilize Rs. 15.86 cr. for capex on purchase of machinery, Rs. 2.60 for capex on installation of rooftop solar plant, Rs. 1.32 cr. capex on construction/installation of pre-engineered building structure for new manufacturing facility, Rs.5.62 cr. repayment of borrowings, and the rest for general corporate purposes.
The IPO is solely lead managed by Corporate Makers Capital Ltd., while MUFG Intime India Pvt. Ltd. is the registrar to the issue. Asnani Stock Brokers Pvt. Ltd. is a market maker. The IPO is underwritten to the tune of 15% by Corporate Makers Capital and 85% by Asnani Stock Brokers Pvt. Ltd.
After issuing/converting initial equity capital at par value, the company issued further equity shares in the price range of Rs. 25.00 – Rs. 67 per share between October 2007 and March 2025. It has also issued bonus shares in the ratio of 1 for 4 in September 2009, and 1 for 2 in February 2026. The average cost of the acquisition of shares by the promoters is Rs. 6.13, Rs. 11.75, Rs. 12.81, Rs. 15.10, Rs. 19.50, Rs. 20.66, Rs. 20.75, Rs. 21.69, Rs. 22.30, Rs. 22.41, and Rs. 25.16 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 15.34 cr. (15344997 equity shares) will stand enhanced to Rs. 21.34 cr. (21344997 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 110.99 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income/ net profit, of Rs. 207.96 cr. / Rs. 5.03 cr. (FY24), Rs. 175.70 cr. / Rs. 5.77 cr. (FY25), Rs. 198.31 cr. / Rs. 7.13 cr. (FY26). The company posted inconsistency in its top and bottom lines for the reported periods. The boosted profits for FY26 (Pre-IPO year) appears a window dressing to fetch fancy valuation for IPO. Though it posted lower top line, bottom line posted higher net than FY24. Rising trade receivables year-on-year, raise alarms. Its contingent liability stood at Rs. 0.10 cr. as of March 31, 2026.
If we attribute FY26 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 15.57, and based on FY25 earnings, the P/E stands at 19.26. The issue appears aggressively priced based on its recent average earnings. Bumper profits in pre-IPO Year (FY26), appears a window dressing to fetch fancy valuations for IPO.
The company has posted PAT Margins of 2.42% (FY24), 3.29% (FY25), 3.60% (FY26) and RoCE margins of 17.06%, 15.25%, 16.02%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has already adopted a dividend policy in September 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Captain Pipes, Texmo Pipes, Malpani Pipes, as its listed peers. They are currently trading at a P/E of 19.8, 11.0, and 7.86 (as of September 25 2026). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACL RECORD:
This is the 16th mandate from Corporate Makers Capital, in the last three fiscals (including the ongoing one). Out of the last 10 listings, 5 opened at discount, 3 at par, and the rest listed with a premium ranging from 4.35% to 53.38% on the listing date. The merchant banker has a poor track record.
CONCLUSION:
STPL is engaged in polymer manufacturing, specializing in piping systems and solutions. It posted inconsistency in its top lines for the reported periods, but bottom line marked improvement for FY25. The company is operating in a highly competitive and fragmented segment. Based on its recent average financial data, the issue appears aggressively priced. Marchant Banker has a poor track-record. There is no harm in skipping this pricey and dicey offer.
Review By Dilip Davda on August, 2026
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 ).
