Srigee DLM, listed on the BSE SME platform at ₹188.10 price, with a 90% premium

Srigee DLM Limited, an emerging player in design-oriented manufacturing, is set to be listed on the SME platform of BSE after wrapping up the IPO bidding between May 5 and 6, 2025. It is engaged in plastic moulding, mobile phone assembling, and manufacturing various tools for different industries in electronics and consumer durables. It raised ₹16.98 crore by way of a fresh issue of 17.15 lakh shares to set up a new facility, acquire machinery, and meet working capital requirements.

Srigee DLM Listing Details

Srigee DLM Limited released its IPO through a book-building mechanism at a price range starting from ₹99 per share. The minimum investment for the IPO required a purchase of 1200 shares at ₹1,18,800 total cost. A massive number of shareholders expressed their optimism by subjecting the IPO to 27.88 times oversubscription in the retail segment, while the NII segment experienced 45.55 times the demand.

• Listing Price: Srigee DLM IPO share price debut on the BSE SME platform on May 12, 2025 at a price of ₹188.10, with a post-issue market capitalisation estimated at ₹59.14 crore.
• Investor Sentiment: Srigee DLM has drawn attention for its design-led manufacturing services in plastics and electronics. With strong OEM partnerships and scalable operations in place, and expansion underway, the company has long-term investor potential to grow in this dynamic manufacturing arena of India.

First-Day Trading Performance Outlook

Srigee DLM plans to start market pricing on May 12, 2025, after detecting positive early market indications. The mixture of consistent Srigee DLM growth with enhanced market focus and optimal placement positively positions the company for high initial results. Some experts within the market sector think the upcoming IPO is already priced at its full worth which could constrain initial post-listing earnings. Company stakeholders maintain positive expectations for performance after being listed but predict enduring value growth.

Market Sentiment and Analysis

Srigee DLM is a dependable and scalable design-led manufacturing partner for major sectors as consumer durables, electronics, and automotive components. The company was started in 2005 and gained ground in diversification with its range of services: plastic injection moulding, tool room and die manufacturing, polymer compounding, and mobile phone sub-assembly. 

• Market Sentiment: Strong interest from investors has been evidenced in the oversubscription by the IPO, predominantly among the retail and HNI segments. Analysts have a positive stance on Srigee DLM considering its steady financial growth.
• Performance Indicators: The trade appears fully priced, yet the company boasts strong discipline with RoE at 24.49% and RoCE at 25.80% in terms of finances and operations.
• Listing Outlook: The company is expected to make a stable debut, backed by sound fundamentals and sectoral tailwinds.

Growth Drivers and Challenges

Srigee DLM belongs to a high-potential sector supported by the thrust given to manufacturing in India and the rising demand for contract-based production. Expansion plans and a solid client base provide for long-term growth, whereas, as a young SME, the company will have to face competitive pressure; execution-related risks and the challenges in scaling operations efficiently will confront it as well.

Growth Drivers:

• Diverse Service Portfolio: The company operates through moulding and assembly services and tooling and polymer trading activities across various market segments.
• Trusted OEM Partnerships: The company maintains solid OEM partnerships with well-known brands, which produce recurring business opportunities.
• Favourable Policy Support: The company benefits from the “Make in India” initiative and production-linked incentives.
• Robust Financials: The company demonstrates strong financial health through its 24.49% RoE and its 0.15 debt-to-equity ratio.

Challenges:

• Fully Priced IPO: The fully priced IPO may limit short-term gains for investors who list their shares.
• Client Concentration: The company faces risks because it depends heavily on a small number of major clients.
• High Growth Pressure: The company needs capital and talent and must execute its expansion plans with precision to achieve its growth targets.
• Competitive Landscape: The company operates in a competitive market where it competes with larger, established industry leaders.

Utilisation of IPO Proceeds

Srigee DLM intends to use the ₹16.98 crore IPO funds to drive its upcoming expansion initiatives and enhance operational performance.

• Capital Expenditure: The company will dedicate ₹5.43 crore to establish a new manufacturing facility at Ecotech-X in Greater Noida to boost production capacity and satisfy rising market demand.
• Machinery Acquisition: The company will use ₹9.51 crore to acquire advanced injection moulding and assembly equipment for the new unit, which will improve automation and precision.

Financial Performance of Srigee DLM

Srigee DLM showcased steady financial growth for operations and a spike in demand: 

• Revenue: ₹54.47 crore by December 31, 2024, representing uninterrupted demand from OEM clients on consumer durables and electronics.
•  Net Profit: ₹3.77 crore by December 2024, representing good cost control, thus boosting profits even with the rise in input prices. 
• Net Worth: Went up from ₹10.6 crore in FY23 to ₹18.46 crore by December 2024, pointing to good reinvestments and financial discipline.

Srigee DLM needs an IPO to pursue essential growth objectives. The financial strength and business expansion plans of Srigee DLM enable the Indian manufacturing sector to benefit from its operations. An investor looking for a promising long-term value opportunity should give due consideration to Srigee DLM.