Bai Kakaji Polymers IPO Overview
Latur (Maharashtra)-based PET preforms and plastic closures manufacturer raising ₹105.17 cr (100% fresh issue, no OFS). Price: ₹177-186. Lot: 600 shares (₹2,23,200 min investment for 1,200 shares / 2 lots).
Funds for debt repayment/prepayment, capex for additional plant and machinery, solar power project setup, general corporate purposes (detailed amounts not disclosed).
Lead: Hem Securities.
Registrar: Maashitla Securities.
Market Maker: Hem Finlease.
Founded 2013 (incorporated 2013 in Latur). Part of Bai Kakaji Group. PET preforms and plastic closures manufacturer serving packaged drinking water, carbonated soft drinks, juices, dairy products industries. 401 employees (144 permanent, 257 contractual as of April 30, 2025).
Products: PET Preforms (68.52% revenue Dec 2024) – wide-mouth preforms for water jars, bottles; Plastic Closures (19.60%) – Alaska water bottle closures, CSD caps (1881 standard), HDPE short-neck caps (26/22); Shrink Films (6.26%) – LDPE shrink films for secondary/tertiary packaging; Other Products (5.62%). 976 customers served, 232 repeat clients (past 3 years).
Four manufacturing units in Latur MIDC spread over 33,000+ sq meters (recently acquired M/s Bai Kakaji Industries business effective March 1, 2025). Annual capacity: ~20,000 MT PET Preforms, ~44,000 lacs units Closures (250 million HDPE Alaska caps, 38.5 million PP CSD caps monthly).
Advanced machinery: SACMI Continuous Compression Molding, ASB Preform Molding, HUSKY PET Injection Molding, Milacron systems. In-house testing facilities ensuring low rejection rates.
Sales concentrated in Maharashtra, Karnataka, Gujarat, Kerala, Telangana, Andhra Pradesh (94.21% revenue Dec 2024 9-month period) – strong western and southern India footprint. Top 5 customers: 29.80% revenue concentration (Dec 2024).
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME (BSE SME) |
| IPO Open Date | 23 December 2025 (Monday) |
| IPO Close Date | 26 December 2025 (Thursday) |
| Anchor Investor Bidding | 22 December 2025 (Sunday) |
| Allotment Date | 29 December 2025 (Monday) – Expected |
| Credit to Demat | 30 December 2025 (Tuesday) – Expected |
| Refund Initiation | 30 December 2025 (Tuesday) – Expected |
| Listing Date | 31 December 2025 (Wednesday) – Tentative |
| Price Band | ₹177 – ₹186 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares (minimum lot) |
| Min Investment (Retail) | ₹2,23,200 (1,200 shares / 2 lots at upper band ₹186) |
| sNII Investment | ₹3,34,800 (3 lots / 1,800 shares) minimum |
| bNII Investment | ₹10,04,400 (9 lots / 5,400 shares) minimum |
| Issue Size | ₹105.17 crore total |
| Fresh Issue | ₹105.17 crore (100%) – 56,54,400 shares |
| Offer for Sale (OFS) | NIL – No OFS component |
| Total Shares Offered | 56,54,400 equity shares |
| Listing | BSE SME |
| Post-Issue Market Cap | Data not fully disclosed in available sources |
Issue Break-up
| Category | Allocation |
| Anchor Investors | 28.44% (16,08,000 shares) |
| QIB (Qualified Institutional Buyers) | 19.02% (10,75,200 shares – Ex Anchor) |
| Total QIB (Including Anchor) | 47.45% (26,83,200 shares) |
| NII (Non-Institutional Investors) | 14.26% (8,06,400 shares) |
| Retail Individual Investors | 33.28% (18,81,600 shares) |
| Market Maker | 5.01% (2,83,200 shares) |
Selling Shareholders (OFS ₹0 crore)
No OFS Component – 100% Fresh Issue
Note: This is a 100% fresh issue IPO with no Offer for Sale. All proceeds go directly to the company for business purposes. Promoters are not exiting.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹105.17 crore) will be used for:
Specific amounts for each purpose not disclosed in available public documents. General utilization:
- Repayment and/or Pre-payment of Borrowings
- Full or partial repayment of existing debt
- Reduction of interest burden
- Improving financial health (D/E ratio 2.03 as of FY25)
- Funding Capital Expenditure for Additional Plant and Machinery
- Installation of new manufacturing equipment
- Capacity expansion for PET preforms and closures
- Technology upgrades for operational efficiency
- Funding Capital Expenditure for Solar Power Project Setup
- Installation of solar power generation facility
- Reducing electricity costs
- ESG compliance and sustainability initiatives
- General Corporate Purposes
- Working capital requirements
- Strategic initiatives
- Business expansion plans
Strategic Focus:
- Debt reduction critical given D/E ratio of 2.03 (high leverage)
- Capacity expansion through new machinery supporting growth
- Solar power addressing rising energy costs
- Strengthening balance sheet and operational capabilities
OFS Proceeds:
- NIL – No promoter exit
Note: 100% fresh issue for growth and deleveraging. Specific allocation percentages awaited in detailed RHP. High D/E ratio (2.03) suggests significant debt repayment component.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Hem Securities Limited
- Address: 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai – 400013
- Phone: +91-022-49060000
- Website: www.hemsecurities.com
Registrar:
- Maashitla Securities Private Limited
- Address: 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, New Delhi – 110034
- Phone: +91-11-45121795-96
Market Maker:
- Hem Finlease Private Limited (2,83,200 shares / 5.01% reserved)
Promoters & Management
Key Promoters (5 Promoters – Mundada Family):
Individual Promoters:
- Mr. Balkishan Pandurangji Mundada – Promoter
- Key founder and senior family member
- Associated with Bai Kakaji Group
- Mr. Harikishan Pandurangji Mundada – Promoter
- Co-founder and senior family member
- Mr. Akash Balkishan Mundada – Promoter
- Second generation, son of Balkishan
- Involved in business operations
- Mr. Akshay Balkishan Mundada – Promoter & Marketing Manager
- Second generation, son of Balkishan
- Oversees marketing and customer relationships
- Mr. Kiran Balkishan Mundada – Promoter
- Family member associated with business
Promoter Holding:
- Pre-IPO: Data not fully disclosed
- Post-IPO: Data not fully disclosed
Company History:
- Incorporated: 2013 as Bai Kakaji Polymers Private Limited
- Operations: 12 years in PET preforms and plastic closures manufacturing (2013-2025)
- Part of Bai Kakaji Group: Legacy family business group
- Evolution:
- 2013: Commenced operations with single machine for plastic closures
- 2013-2024: Steadily expanded capacity with additional machines
- Adopted advanced manufacturing: SACMI, HUSKY, ASB, Milacron systems
- March 1, 2025: Acquired business of M/s Bai Kakaji Industries (inorganic expansion)
- Grown to 4 manufacturing units across 33,000+ sq meters in Latur MIDC
- Expanded product portfolio: Preforms, Closures, Shrink Films, Adhesive Films
- Built customer base: 976 customers, 232 repeat clients (past 3 years)
- Workforce: 401 employees (144 permanent, 257 contractual as of April 30, 2025)
- Milestone:
- Annual capacity: ~20,000 MT PET Preforms, ~44,000 lacs units Closures
- Monthly output: 250 million HDPE Alaska caps, 38.5 million PP CSD caps, 1,600 MT PET preforms
- 12% revenue growth (FY24-25), 96% PAT growth (FY24-25)
- ROE 41.23%, ROCE 25.71% (FY25)
Company Contact:
- Registered & Manufacturing Office: Plot No. M3 & M4, MIDC Industrial Area, Latur, Maharashtra – 413531, India
- Phone: +91 9028254663
- Website: www.baikakajipolymers.com
COMPANY OVERVIEW
Establishment & Background:
- Incorporated: 2013 (12 years operations)
- Industry: Plastic Packaging – PET Preforms & Closures Manufacturing
- Headquarters: Latur, Maharashtra
- Positioning: Regional PET preforms and plastic closures manufacturer serving beverage and packaging industries with strong western/southern India presence
Business Model:
Product Portfolio – Rigid Packaging Solutions:
- PET Preforms (68.52% revenue Dec 2024)
- Polyethylene Terephthalate (PET) preforms – test-tube shaped plastic parts
- Used in blow molding to create PET bottles
- Wide-mouth preforms for water jars, bottles
- Applications: Packaged drinking water, carbonated soft drinks, juices, dairy products
- Capacity: ~20,000 MT annually, 1,600 MT monthly
- Plastic Closures (19.60% revenue Dec 2024)
- Alaska Water Bottle Closures: HDPE closures for packaged drinking water (250 million units/month capacity)
- CSD Caps (1881 Standard): PP caps for carbonated soft drinks (38.5 million units/month capacity)
- HDPE Short-Neck Caps (26/22): Closures for various beverages
- Capacity: ~44,000 lacs units annually
- Shrink Films (6.26% revenue Dec 2024)
- LDPE (Low-Density Polyethylene) shrink films
- Secondary and tertiary packaging for bottled water, soft drinks, energy drinks
- Cost-effective alternative to corrugated boxes
- Other Products (5.62% revenue Dec 2024)
- Adhesive films
- Other packaging materials
Manufacturing Infrastructure:
Four Integrated Units in Latur MIDC (33,000+ sq meters):
- Recent Acquisition: Business of M/s Bai Kakaji Industries (effective March 1, 2025) – inorganic expansion
- Advanced Machinery (Globally Reputed OEMs):
- SACMI Continuous Compression Molding (Italy)
- ASB Preform Molding (Japan)
- HUSKY PET Injection Molding (Canada)
- Milacron Systems (USA)
- In-House Testing & Quality Control:
- SST Secure Seal Tester (analogue & digital)
- Bridge Strength Tester
- Vernier Calipers
- Low rejection rates ensuring quality
Customer Base:
- 976 Customers served across beverage and packaging industries
- 232 Repeat Clients (past 3 years) demonstrating customer retention
- Top 5 Customer Concentration: 29.80% of revenue (Dec 2024) – moderate concentration risk
- Industries Served:
- Packaged drinking water companies
- Carbonated soft drink bottlers
- Juice manufacturers
- Dairy product companies
- Packaging materials distributors
Geographic Presence:
- Sales Concentration (Dec 2024 9-month period): 94.21% from 6 states
- Maharashtra (stronghold – Latur base)
- Karnataka
- Gujarat
- Kerala
- Telangana
- Andhra Pradesh
- Regional Focus: Western and Southern India footprint
Revenue Model:
- Sales of PET preforms, plastic closures, shrink films to B2B customers
- High-volume, commodity-like business model
- Revenue mix: Preforms 68.52%, Closures 19.60%, Shrink Films 6.26%, Others 5.62% (Dec 2024)
Value Proposition:
- Integrated Packaging Solutions: Preforms, closures, shrink films under one roof
- Advanced Machinery: SACMI, HUSKY, ASB, Milacron ensuring quality and efficiency
- In-House Quality Control: Testing facilities ensuring low rejection rates
- Strategic Location: Latur MIDC providing logistical advantages for western/southern India
- Repeat Customer Base: 232 repeat clients demonstrating satisfaction
- Capacity: ~20,000 MT preforms, ~44,000 lacs closures annually
Market Position:
- Regional player in PET preforms and closures segment
- 12 years operational track record (2013-2025)
- 4 manufacturing units, 33,000+ sq meters
- 401 employees (144 permanent, 257 contractual)
Operations
Service Delivery:
- Manufacturing Base: Latur MIDC, Maharashtra (4 integrated units, 33,000+ sq meters)
- Geographic Focus: Western and Southern India (Maharashtra, Karnataka, Gujarat, Kerala, Telangana, Andhra Pradesh – 94.21% revenue)
- Distribution: Direct B2B sales to beverage bottlers and packaging companies
Company Strengths
- Strong Financial Performance – 12% Revenue, 96% PAT Growth (FY24-25):
- Revenue grew 12% from ₹296 cr (FY24) to ₹332 cr (FY25)
- PAT nearly doubled – 96% growth from ₹9.37 cr to ₹18.37 cr
- PAT margin expanded from 3.27% to 5.64% – improving profitability
- Exceptional Capital Efficiency – 41.23% ROE, 25.71% ROCE:
- ROE of 41.23% demonstrating outstanding returns to shareholders
- ROCE of 25.71% indicating excellent capital allocation
- NAV ₹34.12 reflecting strong book value
- Integrated Packaging Solutions – Preforms, Closures, Shrink Films:
- Comprehensive product portfolio: PET preforms (68.52%), closures (19.60%), shrink films (6.26%)
- One-stop solution for beverage bottlers reducing vendor dependency
- Cross-selling opportunities within customer base
- Advanced Manufacturing Infrastructure – SACMI, HUSKY, ASB, Milacron:
- Globally reputed machinery ensuring quality and efficiency
- 4 integrated units across 33,000+ sq meters in Latur MIDC
- Annual capacity: ~20,000 MT preforms, ~44,000 lacs closures
- Strong Customer Base – 976 Customers, 232 Repeat Clients:
- 976 customers served demonstrating market acceptance
- 232 repeat clients (past 3 years) indicating customer satisfaction and retention
- Top 5 customers: 29.80% revenue – moderate concentration (not overly dependent)
- India’s Booming Beverage & Packaged Goods Sector:
- Packaged drinking water, soft drinks, juices, dairy growing rapidly
- Rising disposable incomes driving packaged consumption
- Urbanization and health consciousness boosting bottled water demand
Key Risks & Challenges
- Intense Competition – Manjushree Technopack, Mold-Tek, SSWL, Unorganized:
- Competes with larger listed players: Manjushree Technopack, Mold-Tek Packaging, SSWL Limited
- Thousands of small unorganized players in PET preforms/closures segment
- Price-based competition limiting pricing power in commodity-like business
- High Leverage – D/E Ratio 2.03, High Debt Burden:
- Debt-to-Equity ratio of 2.03 (FY25) indicating high leverage
- Significant debt servicing pressure with interest liabilities
- IPO proceeds include debt repayment – acknowledges debt burden issue
- Geographic Concentration – 94% Revenue from 6 States (West/South India):
- 94.21% revenue from Maharashtra, Karnataka, Gujarat, Kerala, Telangana, Andhra Pradesh (Dec 2024)
- Limited pan-India presence – exposed to regional market risks
- No significant presence in North/East India limiting addressable market
- Raw Material Price Volatility – PET Resin, HDPE, PP Dependency:
- PET resin, HDPE, PP prices volatile based on crude oil prices
- Limited pricing power to pass on cost increases immediately to customers
- Commodity business with thin margins (5.64% PAT margin) vulnerable to input cost spikes
- Valuation Concerns – P/B 5.45, Premium for SME Player:
- Price to Book Value of 5.45 elevated for commodity manufacturing business
- PAT margin 5.64% relatively thin for manufacturing sector
- Valuation premium may not be justified for regional SME player
- Heavy Contractual Workforce – 257 of 401 Employees (64%) Contractual:
- 64% workforce contractual (257 of 401) creating operational instability
- Labor issues, strikes, attrition risks
- Only 144 permanent employees for ₹332 cr revenue business raises sustainability questions
Disclaimer
This information is based on publicly available sources. Investors should conduct their own research and consult financial advisors before investing.
The company reported solid performance (FY25: 12% revenue growth to ₹332 cr, 96% PAT growth to ₹18.37 cr, 5.64% PAT margin, 41.23% ROE, 25.71% ROCE) as 12-year PET preforms/closures manufacturer with 4 units (33,000+ sq meters), 976 customers, 232 repeat clients, advanced machinery (SACMI, HUSKY, ASB, Milacron), serving beverage/packaging industries (water, soft drinks, juices, dairy), but faces significant risks including intense competition from Manjushree Technopack, Mold-Tek and unorganized players, high leverage (D/E 2.03 requiring debt repayment), 94% revenue concentration in 6 western/southern states limiting pan-India reach, raw material price volatility (PET resin, HDPE, PP dependent on crude), valuation concerns (P/B 5.45 premium for commodity SME), and 64% contractual workforce (257 of 401 employees) creating operational instability. SME listing on BSE.
