RFBL Flexi Pack Lists at ₹52.50, Up 10.20%

RFBL Flexi Pack Ltd, incorporated in July 2005 as a manufacturer and trader of printed multilayer flexible packaging materials including plastic film rolls, pouches, woven fabric packaging material, polyester laminated films, BOPP, CPP, and laminated films serving food, pharmaceuticals, and home care industries through B2B model, made a modest debut on NSE SME on Tuesday, May 19, 2026. The RFBL Flexi Pack share price opened at ₹52.50 representing premium of 5.00% from issue price of ₹50.00, hit upper circuit at ₹55.10 (up 10.20%).

RFBL Flexi Pack Listing Details

RFBL Flexi Pack launched its fresh issue IPO at ₹50 per share with minimum investment of 6,000 shares costing ₹3,00,000 raising ₹35.33 crore. The IPO received decent response with subscription of 21.48 times - retail investors at 11.36 times, NII at 24.12 times, QIB strongly subscribed at 124.39 times, total applications of 11,087 despite broker recommendation to avoid the issue.

First-Day Trading Performance

Listing Price: RFBL Flexi Pack stock price opened at ₹52.50 representing premium of 5.00% from issue price, hit upper circuit at ₹55.10 (up 10.20%), with VWAP at ₹52.65. The modest listing delivered gains for IPO investors with turnover of ₹32.46 crore, traded volume of 61.65 lakh shares, delivery of 100%, and market capitalisation of ₹128.47 crore against pre-IPO market cap of ₹116.58 crore.

Growth Drivers and Challenges

Growth Drivers:

Strong Revenue Growth: Revenue growing from ₹46.86 crore in FY23 to ₹135.46 crore in FY25 (2.9x growth), 6M FY26 revenue of ₹69.66 crore.

Capacity Expansion: Planned addition of 5,840 mtpa capacity to existing 5,040 mtpa (more than doubling capacity), integrated manufacturing with trading network enabling scalability.

Diversified Product Portfolio: Customised multilayer plastic films using BOPP, CPP, and laminated films for food, pharmaceuticals, and home care industries ensuring durability, moisture resistance, and product safety.

Challenges:

Capacity Utilisation Mismatch: Current capacity utilisation at only 52% yet company adding another 5,840 mtpa capacity raising questions about demand visibility and capital allocation decisions.

Thin Margins and Small Scale: PAT margin of only 5.51%, EBITDA margin of 8.55%, just 6 employees indicating limited operational depth, leveraged balance sheet with debt-to-equity of 0.80.

Utilisation of IPO Proceeds

Working Capital: ₹17.76 crore for funding working capital requirements representing bulk of proceeds supporting inventory and operations.

Capital Expenditure: ₹12.41 crore for capacity expansion adding 5,840 mtpa to existing 5,040 mtpa manufacturing capacity.

General Corporate Purposes: Remaining amount.

Financial Performance

Revenue: ₹69.66 crore for 6 months ended September 2025 (approximately 51% of full FY25), ₹135.46 crore for FY25, growth from ₹79.96 crore in FY24 and ₹46.86 crore in FY23.

Net Profit: ₹3.84 crore for 6 months FY26, ₹8.33 crore in FY25, growth from ₹5.79 crore in FY24 and ₹0.67 crore in FY23, with post-IPO EPS of ₹3.29 and P/E of 15.19x. Investors tracking RFBL Flexi Pack share price should note ROE of 19.26% and ROCE of 14.26%.

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