A Gujarat-based plastic packaging solutions maker with backward integration into IML labels plans to raise Rs 36.36 crore via the BSE SME platform.
Dhaval Packaging Ltd., a manufacturer of plastic packaging solutions for the food and FMCG segments, opens for subscription on July 30 with the issue closing on August 3. The company is listing on the BSE SME platform. All proceeds are a fresh issue, with the majority earmarked for a new manufacturing facility.
What the Company Does
Dhaval Packaging designs, manufactures, and supplies plastic packaging solutions — primarily for food and FMCG categories including sweets, dairy, dry fruits, and bakery products. Its core product range covers In-Mold Labeling (IML) food containers, IML sweet boxes, plastic food containers, square boxes, lids, spoons, trays, and end caps.
The IML format — where the label is fused into the container during the moulding process rather than applied as a separate step — produces a higher-quality, tamper-evident, moisture-resistant finish that is increasingly preferred by branded food companies for premium shelf presence.
The company’s manufacturing infrastructure spans over 60,000 sq. ft. with 21 IML machines and 1 vacuum forming machine, with a combined output capacity of over 8,000 kg per day. A notable structural strength is backward integration through Octa Labels — a group entity that supplies the in-mold labels — giving the company greater control over quality, design, and supply chain continuity than a purely outsourced model. As of May 31, 2026, it had 54 permanent employees and 112 contract workers. The company holds ISO 9001, ISO 14001, ISO 45001, and ISO/IEC 17025:2017 certifications across its manufacturing operations.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 30, 2026 |
| Issue Closes | August 3, 2026 |
| Listing | BSE SME |
| Price Band | Rs 92 – Rs 97 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 36.36 crore (100% Fresh Issue) |
| Total Shares | 37,48,800 shares |
| Lot Size | 1,200 shares (min 2 lots = 2,400 shares) |
| Min. Retail Investment | Rs 2,32,800 |
| Employee Discount | Rs 5 per share |
| Post-IPO Market Cap | Rs 133.25 crore |
| IPO Constitutes | 27.29% of post-IPO equity |
| BRLM | Rarever Financial Advisors Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
| Market Maker | New Berry Capitals Pvt. Ltd. |
From net proceeds: Rs 27.19 crore for capex on a new manufacturing facility, Rs 3.75 crore for debt repayment, balance for general corporate purposes. Post-IPO, paid-up equity increases from Rs 9.99 crore to Rs 13.74 crore.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 48.08 | 52.44 | 65.20 |
| PAT | 1.55 | 6.04 | 8.04 |
| PAT Margin | 3.23% | 11.52% | 12.33% |
| RoCE | 12.38% | 25.28% | 22.58% |
Revenue has grown consistently from Rs 48.08 crore in FY24 to Rs 65.20 crore in FY26. The more striking data point is the PAT trajectory — from Rs 1.55 crore in FY24 to Rs 6.04 crore in FY25 and Rs 8.04 crore in FY26. PAT margins expanded from 3.23% to 11.52% in a single year — an extraordinary jump for a plastic packaging manufacturer where margins are structurally constrained by polymer raw material costs and competitive pricing. Average EPS over three years is Rs 7.72 and average RoNW is 40.16%.
At the upper band of Rs 97, the P/E is 16.58x on FY26 earnings and 22.05x on FY25 earnings, and the P/BV is 3.15x on pre-IPO NAV of Rs 30.78 and 1.99x on post-IPO NAV of Rs 48.85. Total borrowings of Rs 24.13 crore as of March 31, 2026 are elevated relative to the company’s scale and profit base and are flagged as a concern. No dividends have been paid since incorporation. The listed peer — Mold-Tek Packaging — trades at a P/E of 33.4x, though the comparison is not directly applicable given scale and product range differences.
BRLM Track Record: This is the 2nd mandate from Rarever Financial Advisors. The only prior listing achieved a premium of 38.02% on the listing date — a strong debut for the sole data point available, but with just one reference listing, the track record is limited.
Risks to Consider
The PAT margin expansion from 3.23% to 12.33% in two years in a plastic packaging segment — where margins are characteristically thin and driven by volume — is the central concern the analyst raises. In a polymer-intensive business, achieving 12%+ PAT margins requires either an unusually favourable raw material environment, a significant product mix shift, or operating efficiencies that are difficult to replicate at scale.
The sustainability of this improvement through a full commodity cycle has not been demonstrated. Total debt of Rs 24.13 crore adds interest burden that could crimp margins if profitability normalises. The new manufacturing facility being funded by the IPO will add fixed costs before incremental revenues are realised. The plastic packaging segment faces both competitive pressure from organised players and raw material price volatility from petrochemical feedstocks.
Analyst View
Analysts note that while Dhaval Packaging marked growth in its top and bottom lines, the boosted bottom lines from FY25 onwards raise eyebrows in a highly competitive and fragmented segment. The inflated margins appear designed to support the IPO valuation rather than reflecting durable business improvement. The issue appears fully priced based on recent earnings, note analysts.