An Indore-based tarpaulin maker opens its Rs 26.93 crore BSE SME issue on September 15
Shakti Polytarp Ltd (SPL) operates in the flexible-plastics segment — the production of tarpaulins, the water-resistant sheets that protect goods, equipment, vehicles and building materials from rain, moisture, sun and wind.
It is a B2B-and-B2C manufacturer riding steady demand from agriculture, construction and transport, selling under its own brand “Dinotarp.” Tarpaulins are manufactured from polyethylene, polypropylene and granules, available in various sizes and thicknesses per application.
The product range is broad and specification-driven. SPL produces tarpaulins ranging from 70 GSM to 450 GSM in various sizes, colours and specifications, with a particular specialisation in durable six-layer and eight-layer variants.
Its wider portfolio spans shade nets, HDPE/PP tapes, woven fabrics, geotextiles, lumber wrap, house wrap, pond liners and green nets — custom sizes being the core pitch. It also trades in polymer granules (the raw material for tarpaulin), alongside its manufacturing.
The manufacturing base is integrated and modern. SPL’s unit at Nimrani, Khargone (Madhya Pradesh), spans about 1,98,450 sq ft on 30-year leased land, and is equipped with high-speed extrusion tapelines, extra-wide extrusion lamination, high-speed wide-width circular looms, high-strength sealing machines and recycling machines — fully integrated with in-built software for accuracy and efficiency.
This lets SPL melt, extrude, weave and laminate HDPE/PP tape in-house into finished covers. Products undergo examination, testing and evaluation for compliance with customer and industry standards.
Capacity utilisation was only around 48.66% in FY26 — a major concern, as SPL is raising money to expand capacity further (installed capacity ~6,900 MTPA, planned to roughly double to ~12,900 MTPA). And customer concentration is meaningful — the top customer contributed 41.16% of FY26 revenue.
It had 114 employees as of June 30, 2026, and the promoters are Ravi Singhal, Vivek Singhal, Trisha Singhal and Priyal Singhal.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 15, 2026 |
| Issue Closes | September 17, 2026 |
| Listing | BSE SME |
| Listing Date | September 22, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 56 – Rs 59 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 26.93 crore (45,64,000 shares, entirely fresh) |
| Min. Application | 4,000 shares (2 lots; multiples of 2,000 thereafter) |
| Min. Retail Investment | Rs 2,36,000 |
| Post-IPO Market Cap | Rs 101.06 crore |
| IPO as % of Post-IPO Capital | 26.65% |
| Lead Manager | Nexgen Financial Solutions Pvt. Ltd. |
| Market Maker | Prabhat Financial Services Ltd. |
| Registrar | Skyline Financial Services Pvt. Ltd. |
The issue is entirely a fresh issue. From the net proceeds, SPL will utilise Rs 20.88 crore for capex on plant and machinery (to expand capacity), with the rest for general corporate purposes — a growth-oriented use of proceeds. Post-IPO, paid-up equity rises from Rs 12.56 crore to Rs 17.13 crore, with promoter holding falling from 88.51% to ~64.92%.
Price Band
At the upper band of Rs 59, on FY26 earnings the issue is valued at a P/E of about 10.05x, with a P/BV of 2.66 on the March 31, 2026 NAV of Rs 22.18, easing to 1.84x on the post-IPO NAV of Rs 31.99.
GMP Watch
As of the days around opening, the Shakti Polytarp IPO GMP stood at ₹0.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 62.23 | 166.50 | 216.10 |
| Net Profit (PAT) | 0.98 | 4.97 | 10.06 |
| PAT Margin (%) | 1.58 | 2.99 | 4.66 |
| RoCE (%) | 8.87 | 14.87 | 17.87 |
Total income more than tripled from Rs 62.23 crore in FY24 to Rs 216.10 crore in FY26 (with a huge jump in FY25), and PAT leapt from Rs 0.98 crore to Rs 10.06 crore. PAT margin expanded from 1.58% to 4.66% over the same span.
Crucially, even after “expansion,” the margins remain thin (4.66%) — characteristic of the commoditised tarpaulin business, where granule (PP/LLDPE/LDPE/HDPE) costs dominate — and much of the “revenue” includes low-margin granule trading.
The company reported an average EPS of about Rs 5.52 and an average RoNW of 35.38% (a headline RoE of ~44% flattered by a thin equity base and the profit surge). Two clear flags: high leverage (debt-to-equity of about 2.60x, with rising borrowings), and low capacity utilisation of 48.66%. The company has no dividend history.
Peer Comparison
Commercial Syn Bags and Shree Tirupati Balajee Agro are peers, trading at P/Es of roughly 38.2x and 22.2x (as of September 11, 2026). These differ in scale and product mix, so the comparison isn’t strictly apples-to-apples — but SPL’s ~20x FY25 P/E sits below both, which lends the valuation some relative cover, even as the standalone FY25 multiple looks full for a thin-margin business.
Risks to ConsiderThe FY26 top- and bottom-line surge, concentrated in the pre-IPO year, has the hallmarks of window dressing, and margins remain thin at ~4.66% — so the durability of both the growth and the profitability is the central question.
Low capacity utilisation is a major concern. Utilisation was only 48.66% in FY26 — yet the entire capex (Rs 20.88 crore) funds further capacity expansion, raising real questions about whether existing, let alone new, capacity can be filled.
A debt-to-equity of ~2.60x with rising borrowings is a genuine concern for a small SME; the fresh issue funds capex rather than debt reduction, so leverage stays elevated and finance costs remain a monitorable.
Customer concentration is significant. The top customer contributed 41.16% of FY26 revenue — so the loss of, or reduced orders from, that single client could hit revenue disproportionately.
Raw-material price volatility and thin differentiation. Margins are exposed to PP/LLDPE/LDPE/HDPE granule prices, and the product has limited differentiation in a competitive, fragmented segment — so pricing pressure could compress already-thin margins.