Dhaval Packaging Limited IPO Overview
Dhaval Packaging is a Gujarat-based manufacturer of plastic packaging solutions, primarily catering to food, FMCG, and industrial sectors. Incorporated in 2015, the company operates as a design-led, integrated packaging partner, translating brand requirements into scalable and production-efficient packaging formats. The company’s core business revolves around In-Mold Labeling (IML) containers, which account for over 73% of FY25 revenue, and are widely used in categories such as dairy, sweets, ice cream, bakery, and ready-to-eat foods. Alongside this, Dhaval Packaging manufactures pipe protection plastic caps (End Caps) for industrial applications such as oil & gas and infrastructure, contributing ~27% to revenue. The company runs three manufacturing facilities in Sanand, Gujarat, with a combined production capacity exceeding 8,000 kg per day and a network of 21 injection molding machines.
The company is now launching its SME IPO on the BSE SME platform. The public issue aims to raise around ₹36.36 crore and is offered in a price band of ₹92 to ₹97 per share, with a market lot of 1,200 shares. The IPO opens on 30 July 2026 and closes on 3 August 2026, with listing expected on 6 August 2026 on the BSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 30 July 2026 |
| IPO Close Date | 3 August 2026 |
| Allotment Date | 4 August 2026 (Expected) |
| Refund Initiation | 5 August 2026 |
| Credit to Demat | 5 August 2026 |
| Listing Date | 6 August 2026 (Tentative) |
| Price Band | ₹92 – ₹97 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,32,800 (2 lots = 2,400 shares) |
| Minimum Investment (HNI) | ₹3,49,200 (3 lots = 3,600 shares) |
| Issue Size | ₹36.36 crore |
| Fresh Issue | 37,48,800 shares (₹36.36 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. Of the total issue, 1,88,400 shares aggregating up to ₹1.83 crore are reserved for the market maker, and the net issue to the public is 35,60,400 shares aggregating up to ₹34.54 crore.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | 1,88,400 shares (Reserved) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for business expansion.
Objects of the Issue (Fund Utilization)
The company proposes to utilise the net proceeds from the issue towards the following: part-finance the cost of establishing a new manufacturing facility at Sanand, Ahmedabad — ₹27.19 crore; and full or part repayment and/or prepayment of certain outstanding secured borrowings — ₹3.95 crore. The remainder will be used for general corporate purposes.
- Setting up a new manufacturing facility at Sanand, Ahmedabad — ₹27.19 crore
- Repayment / prepayment of outstanding secured borrowings — ₹3.95 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Rarever Financial Advisors Pvt. Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
- Email: [email protected]
- Market Maker: New Berry Capitals Pvt. Ltd.
Promoters & Management
The promoters of the company are Manish Nanalal Dagla, Dhaval Nanalal Dagla, Shah Aalap Dipak, Jigar Harivadan Contractor, and Jigar Manubhai Shah.
As of May 31, 2026, Dhaval Packaging had 54 permanent employees and 112 contract workers supporting manufacturing, quality control, sales & marketing, accounts, compliance, and administrative functions.
Company Details
IML technology embeds labels directly into the container during manufacturing, resulting in superior durability, tamper evidence, and enhanced shelf appeal — critical factors for branded consumer products. The company benefits from backward integration through its promoter group’s label manufacturing business and maintains in-house tooling capabilities, enabling customised product development and faster delivery. Dhaval Packaging supplies packaging solutions to industries including dairy, bakery, sweets, frozen foods, pharmaceuticals, edible oils, construction, infrastructure, oil & gas, and heavy engineering.
Sectors Served:
- Dairy, Ice Cream & Bakery
- Sweets & Ready-to-Eat Foods
- Pharmaceuticals & FMCG
- Oil & Gas and Infrastructure (End Caps)
- Construction & Heavy Engineering
Key Products:
- In-Mold Labeling (IML) Containers (~73% of revenue)
- Pipe Protection Plastic Caps / End Caps (~27% of revenue)
Key Capabilities:
- Fully automated in-house IML manufacturing with backward integration, dual product portfolio comprising IML food containers and industrial End Caps, strong customization, tooling, and product development capabilities.
- Exports to Malaysia, Mauritius, Canada, UAE, Qatar, and Australia — providing geographical diversification beyond domestic operations.
Manufacturing Facilities:
- Three manufacturing facilities in Sanand, Gujarat, with a combined production capacity exceeding 8,000 kg per day and a network of 21 injection molding machines.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin |
| FY24 | ₹48.08 | ₹1.55 | 3.23% |
| FY25 | ₹52.44 | ₹6.04 | 11.52% |
| FY26 | ₹65.20 | ₹8.04 | 12.33% |
Key Financial Metrics
- Revenue increased by 24% and PAT rose by 33% between FY25 and FY26.
- Average EPS of ₹7.72 and average RoNW of 40.16% over the last three fiscals. The issue is priced at a P/BV of 3.15 based on its NAV of ₹30.78 per share as of March 31, 2026, and at a P/BV of 1.99 based on post-IPO NAV of ₹48.85 per share.
- At the asking price, P/E stands at 16.58x based on FY26 earnings and 22.05x based on FY25 earnings.
- Post-IPO Market Cap: ~₹133.25 crore
Company Strengths
- Niche leadership in IML food packaging and industrial pipe protection products — a specialized segment with limited direct competition.
- Fully automated manufacturing facilities supported by backward integration for label production, enabling cost efficiency and quality control.
- Diversified end-user base spanning food, FMCG, pharma, and industrial sectors — reducing sector-specific risk
- Strong financial growth with 24% revenue growth and 33% PAT growth in FY26, backed by improving margins.
- Export presence across 6 countries including UAE, Canada, and Australia — providing geographic diversification
- IPO proceeds largely earmarked for a new manufacturing facility, directly supporting future capacity expansion
Key Risks & Challenges
- The company operates in a highly competitive and fragmented packaging segment — sustainability of the recent sharp improvement in margins raises concerns.
- The top 10 customers contributed 46.37% of revenue from operations in FY25 — loss of any one major customer could materially reduce sales.
- The company depends on a limited number of suppliers for raw material requirements and does not have definitive agreements or fixed terms of trade with most of its suppliers.
- PAT margin jumped from 3.23% in FY24 to 11.52% in FY25 and 12.33% in FY26 — the sharp bottom-line improvement raises questions about the sustainability and quality of earnings going forward.
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME platform
- Heavy reliance on Sanand, Gujarat for all manufacturing — geographic concentration risk in operations
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
