The IPO with a face value of Rs 2 per equity share, is a mix of fresh issue of up to Rs 750 Cr and an offer of sale up to Rs 2250 Cr by AI Lenarco Midco Limited.
FinTech BizNews Service
Mumbai, August 21, 2024: Advent International backed Manjushree Technopack, the largest rigid plastic packaging (“RPP”) player in terms of installed capacity in India as of March 31, 2024 operating in the consumer rigid plastics industry, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 3000 crore through an initial public offering (IPO).
The IPO with a face value of Rs 2 per equity share, is a mix of fresh issue of up to Rs 750 Cr and an offer of sale up to Rs 2250 Cr by AI Lenarco Midco Limited. The offer also includes a reservation for a subscription by eligible employees.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer or any other method aggregating up to Rs 150 crores as Pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issue to the extent of Rs500 cr will be used for repayment/ prepayment, in full or part, of outstanding borrowings availed by the Company; funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.
Incorporated in the year 1987, Manjushree Technopack is a one stop packaging solutions provider with end-to-end capabilities (i.e., from design to delivery). The company’s product range includes containers, preforms, caps and closures, pumps and dispensers, along with in-house recycling capabilities.
Since March 31, 2018, the company has expanded its operations from two product categories (containers and preforms) to five, now including pumps and dispensers, caps and closures, and recycling.
It is a derivative of the consumer industry given its presence across wide range of end industries including food and beverages, home care, personal care, alco-beverage, paints and adhesives, pharmaceuticals, nutraceuticals, dairy and agrochemicals, according to a Technopak Report as mentioned in the DRHP.
The Company is the largest consumer RPP player in terms of revenue in Fiscal 2023 in India and its revenue from operations almost doubled the revenues of the second largest RPP player in India. Further, in the same year, it has the highest market share in terms of revenue of 7.4% in the organized consumer RPP industry in India. According to the Technopak Report, mentioned in the DRHP, ranks first in containers, first in preforms, first in pumps and dispensers, first in caps and closures and first in recycle (in-house recycling of post-consumer plastic waste made of polypropylene (“PP”) and high-density polyethylene (“HDPE”)) categories in terms of revenue in the consumer RPP industry in India, in Fiscal 2023.
According to the Technopak Report, in Fiscal 2024, its estimated market share in terms of revenue was 7.6% in the organized consumer RPP industry in India. Further, its estimated market share in terms of revenue (including revenue of Oriental Containers on a proforma basis) in Fiscal 2024 was 8.8% in the organized consumer RPP industry in India.
The Company has a diversified customer base of 964 customers in Fiscal 2024 enables it to de-risk and reduce its dependency on any customer or group of customers. Some of its marquee customers include Varun Beverages Limited, Dabur India Limited, Marico Limited, Honasa Consumer Limited, Hershey India Private Limited, Kansai Nerolac Paints Limited, Pernod Ricard Private Limited and Parag Milk Foods Limited.
Manjushree Technopack is the only Indian RPP player to fully own and operate a greenfield captive recycling plant with an installed capacity of 6,000 metric tons per annum as of March 31, 2024, according to a Technopack report mentioned in the DRHP. Additionally, it is also one of the leading companies in sustainable packaging and environmental, social, and governance (“ESG”) standards in India in terms of use of renewable power and recycled plastic as of March 31, 2024.
Manjushree Technopack’s revenue from operations grew at a CAGR of 20.13% from Rs1,467.05 crore to Rs2,117 crore between Fiscals 2022 and 2024, according to the Technopak Report mentioned in the DRHP, 3.4 times the growth of the Indian consumer RPP market. Profit after tax increased by 137.70% from Rs59.23 crore in Fiscal 2023 to Rs140.79 crore in Fiscal 2024.
JM Financial Limited, Avendus Capital Private Limited, Citigroup Global Markets India Private Limited, Global Sachs (India) Securities Private Limited and ICICI Securities Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.
