Jyoti Global Plast IPO Lists Lower, Hits 5% Lower Circuit

The plastic molding solutions provider, Jyoti Global Plast Limited, made a weak debut on NSE SME on August 11, 2025. After closing its IPO bidding between August 4-6, 2025, the company commenced trading marginally lower at ₹65.90 before hitting the 5% lower circuit, reflecting investor concerns about the competitive plastic manufacturing sector.

Jyoti Global Plast Listing Details

Jyoti Global Plast Limited launched its IPO at ₹66 per share with a minimum investment of 4,000 shares costing ₹2,64,000. The IPO received moderate response with a subscription of 8.45 times - NII leading at 14.70 times, individual investors at 9.54 times, whilst QIB participation remained subdued at 1.86 times, indicating mixed investor sentiment in the plastic molding business model.

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First-Day Trading Performance Outlook

Listing Price: The Jyoti Global Plast share price opened at ₹65.90 on NSE SME, representing a marginal discount from the issue price of ₹66, before hitting the 5% lower circuit, highlighting market concerns about plastic manufacturing sector fundamentals.

Growth Drivers and Challenges

Growth Drivers:

Diverse Product Portfolio: Comprehensive plastic molding solutions including industrial packaging, automotive components, household products, drone components, and childcare products serving multiple industry verticals.

Established Client Base: Serving over 1,000 clients across paint, lubricants, chemicals, adhesives, food, and oil industries with strong relationships and repeat business opportunities.

Manufacturing Expansion Plans: Establishing new facility in Mahad, Maharashtra and solar power plant setup to enhance production capacity and reduce operational costs.

Strong Profitability Growth: PAT surged 68% to ₹6.08 crore in FY25 despite modest revenue growth, indicating improved operational efficiency and margin expansion.

Challenges:

Revenue Stagnation: Modest 7% revenue growth to ₹93.80 crore in FY25 indicating limited market expansion and competitive pressures in plastic manufacturing.

High Debt Leverage: Significant debt-to-equity ratio of 1.19 with total borrowings of ₹25.31 crore creating financial leverage concerns affecting cash flows.

Competitive Market Environment: Operating in a highly competitive and fragmented plastic manufacturing sector with pricing pressures and margin challenges.

Market Reception Concerns: Weak listing performance and lower circuit hit indicate investor scepticism about business prospects and sector fundamentals.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹11.17 crore for establishing a new manufacturing facility in Mahad, Maharashtra to expand production capabilities and market reach.

Solar Power Investment: ₹9 crore for capital expenditure towards solar power plant setup, reducing operational costs and improving sustainability.

Debt Reduction: ₹1.20 crore for repayment of borrowings improving capital structure and reducing financial leverage burden.

Financial Performance of Jyoti Global Plast

Revenue: ₹93.80 crore for FY25, showing modest 7% growth from ₹87.96 crore in FY24, reflecting limited market expansion in the plastic molding segment.

Net Profit: ₹6.08 crore in FY25, representing strong 68% growth from ₹3.62 crore in FY24, indicating improved operational efficiency despite competitive market conditions.

Financial Metrics: Strong ROE of 33.22%, moderate ROCE of 22.35%, high debt-to-equity of 1.19, solid RoNW of 28.49%, healthy PAT margin of 6.50%, moderate EBITDA margin of 12.47%.