Manika Plastech Ltd. IPO

Manika Plastech

• Manika Plastech is coming out with a 100% book building; initial public offering (IPO) of 3,07,99,418 shares of face value Rs 2 each in a price band Rs 40-43 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 11, 2026 and will close on September 16, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 20.00 times of its face value on the lower side and 21.50 times on the higher side.
• Book running lead manager to the issue is Pantomath Capital Advisors.
• Compliance officer for the issue is Karishma Himatbhai Waghela. 

Profile of the company

Manika Plastech is a design-led, precision engineered, rigid polymer packaging manufacturing company, catering to diversified critical industries such as energy storage, dairy and edible food products, paints, and chemicals. The company’s products are designed and developed in-house, with 30 designs registered as unique intellectual property, under the Designs Act, 2000 and the Designs Rules, 2001.

With focus on application specific performance, durability, product safety and efficiency, the company has its product portfolio built around precision engineered solutions such as high-performance battery casings, pail & thinwall containers, each tailoring to serve industrial and consumer use cases. These products and services cater to a broad spectrum of industries, including automotive, energy storage, telecommunications, paints, lubricants, agrochemicals, construction chemicals, food, and dairy, among others. The company undertakes production in injection moulded, rigid polymer components, such as precision battery casings that are integral to the performance and durability of energy storage systems. It also manufactures pails and thin wall containers. While pails serve packaging needs across paints, lubricants, and industrial chemicals, the food grade thinwall containers are used for secure packaging and distribution of dairy and edible products. The packaging is designed to align with the shelf life of the product it holds, ensuring that its structural strength, ability to protect, and ease of handling are maintained throughout the product’s expected lifecycle, across different end use environment.

The company provides RPP solutions to its customers, starting from design to development, sourcing raw materials, manufacturing, heat sealing, labelling, quality assurance and to delivery. Over the years, it has developed the capability of providing its customers with customized packaging products. Its facilities are equipped to design automotive battery casings compliant with Japanese and German technical standards developed and published by Japanese Industrial Standards (JIS) and Deutsches Institut Fur Normung (DIN), respectively which enables it to align its products with the final product specifications and quality requirements of its customers. JIS and DIN ensure compatibility with existing filling and labelling lines and providing consistent performance characteristics.

Proceed is being used for: 

• Funding the capital expenditure towards purchase of plant and machinery
• Repayment and/or pre-payment, in part or full, of certain borrowings availed by the company
• General corporate purposes

Industry overview

The India's packaging industry spans a variety of materials, formats, and applications, serving multiple industries. From major food & beverage companies to pharmaceutical firms, battery manufacturers to e-commerce businesses, effective and innovative packaging solutions are essential for product protection, preservation, branding, and enhancing consumer convenience. Additionally, government initiatives aimed at promoting organized retail and food safety are driving the need for high quality, standardized packaging solutions. In FY 2025, the Indian packaging market was valued at Rs 7,274.69 billion, marking a growth of 2.70% CAGR from Rs 6,204.18 billion in FY 2019. Further, the market is projected to expand at a CAGR of 6.00%, reaching Rs 9,195.36 billion by FY 2029. Meanwhile, rigid plastic packaging, made from durable materials like polypropylene (PP), polyethylene terephthalate (PET), high-density polyethylene (HDPE), and polyvinyl chloride (PVC), holds a significant 34.20% share of the plastic packaging market in FY 2025. The Indian RPP market has a large Total Addressable Market (TAM), with a market size of Rs 1,066.65 billion in FY 2025. It is projected to grow at a CAGR of 6.75%, reaching Rs 1,385.22 billion by FY 2029.

The sector is divided into two main segments: Consumer and Industrial. In FY 2025, rigid plastic packaging for the consumer segment accounted for 70.45% of the market, focusing on visually appealing containers, tubs, and bottles that are designed to attract consumer attention at the point of sale. Industries that utilize consumer rigid plastic packaging include paint & lubricants, energy sector, food and beverages, personal care, consumer goods, ecommerce, pharmaceuticals, agrochemicals, construction chemicals etc. On the other hand, the industrial segment of rigid plastic packaging includes durable, functional solutions like drums and stackable bins, designed to safely transport and store bulk materials throughout the supply chain. Key industries using industrial rigid plastic packaging include chemical and petrochemical, automotive, agriculture & agrochemicals, construction, electronics, medical & laboratory etc.

Meanwhile, the battery casing sector in India is gaining momentum alongside the rapid growth of battery storage systems and renewable energy integration. Battery casings are critical components that ensure the safety, structural integrity, and thermal management of battery packs. The battery casing market in India is valued at Rs 39.00 billion in FY 2025 and is expected to grow at a CAGR of 12.00% in the next four years to reach a market value of Rs 61.00 billion by FY 2029. India's battery storage sector is witnessing significant growth, fuelled by the country’s focus on renewable energy, the rising adoption of electric vehicles (EVs), and the increasing use of distributed energy systems. As India advances toward a sustainable energy future, battery storage is becoming essential for maintaining grid stability, enhancing energy efficiency, and enabling decarbonization.

Pros and strengths 

Customer proximity and operational efficiency: The company has a customer focused manufacturing strategy, wherein most of its operating facilities and warehouses are situated in close proximity to its customers, with an intent to offer enhanced customer service, convenience and accessibility to its customers by facilitating their effective and reliable sourcing, flexible production planning and inventory management. The company’s widespread operational network gives it a competitive advantage as it facilitates integration of its products into its customers’ manufacturing workflows by reducing overall delivery time, inventories and related costs and infrastructure.

Strong entry barriers in the RPP industry: The RPP industry requires manufacturing infrastructure that can scale with the demand and growth strategy of the leading end-product manufacturers. For instance, over the years it has established six Manufacturing Facilities across northern, western, and southern regions of India, out of which four Manufacturing Facilities and two warehouses have been established in proximity to its customers to increase their accessibility and to enable it to offer targeted solutions and improved customer service. The company’s customers generally prefer working with a limited number of suppliers to ensure consistent quality, reliable quantities, and streamlined procurement processes, which creates a barrier to entry for others. The company’s association with key customers for over two decades gives it a competitive edge over new entrants in the industry. Market knowledge, financial resources, and the time involved in developing a stable customer base present significant entry barrier for competition.

Integrated design-to-delivery solutions: To meet evolving customer demands, the company has launched new products either independently or on their request, by leveraging its experience, market insights, and in-house design and development team. Its manufacturing infrastructure is equipped to offer RPP products to its customers, right from design to delivery. It provides one-stop-shop services to its customers, which starts from product design and development, mould design, product manufacturing, quality testing, packing, and delivery. Once the designs of its products are finalised, the corresponding moulds are manufactured through third parties specialised therein. As part of its new product development initiative, it takes full ownership of the entire process, from in-house design and development to coordinating with mould makers, reviewing and approving their designs, and ultimately procuring the required moulds and then manufacture the end product, ensuring the delivery of a high-quality final product to its customers.

Strong quality assurance and customer approvals: The company has implemented quality assurance systems and standard operating procedures in all of its Operating Facilities, which enables it to meet the requirements of its customers and maintain its track record of reliability. The company has gone through its customers’ internal supplier approval and audit processes of its key customers across its product divisions. Such audit exercise included quality certifications, inspection of records of training, customer complaints, corrective action taken pursuant to the complaints, infrastructure inspection, review of standard operating procedure and traceability of products, among others. Obtaining such approvals is time consuming, which constitutes barrier-to-entry for new players.

Risks and concerns

High customer concentration risk: About 58%-69% of its operating revenue came from its top five customers, though it served between 168 - 242 customers during the three months ended June 30, 2026, and the prior three Fiscals. The loss of any of its top customers, or the loss of revenue from these top customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

High revenue dependence on battery casings: Out of the company’s diversified product portfolio, about 54% - 68% of its revenue from operations was derived from the sale of battery casings during the three-month period ended June 30, 2026 and the preceding three Fiscals. Any significant loss of sales in its battery casings could have an adverse effect on its business, financial condition, results of operations and cash flows.

Reliance on repeat customer relationships: The company has derived about 93%-98% of its revenue from operations from repeat customers in the three-month period ended June 30, 2026 and the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect its business, results of operations, financial condition and cash flows.

Risk of loss of longstanding customers: The company has longstanding relationship with several of its customers. It has entered into long term supply agreements with only a few of them. Customers who have partnered with the company for over a decade contributed 43.75%, 42.34%,42.15% and 31.30% to its revenue from operations during the three-month period ended June 30, 2026, and in Fiscal 2026, 2025, and 2024, respectively. If these customers stop or reduce buying from it, the company may not have any recourse against them and it may have an adverse effect on its business, financial condition, cash flows and results of operations.

Outlook

Manika Plastech is engaged in the manufacturing of rigid polymer packaging products, including battery casings, pails and thinwall containers. The company manufactures battery casings, pails and thinwall containers, which cater to various industrial and consumer applications. The company operates 6 manufacturing facilities and 1 painting facility across India. Its manufacturing units produce battery casings, pails, thinwall containers and automotive components, while the painting facility is used for painting automotive components. On the concern side, while the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term supply agreements. If these customers stop or reduce buying from it, the company may not have any recourse against them and it may have an adverse effect on its business, financial condition, cash flows and results of operations.

The issue has been offering 3,07,99,418 shares in a price band of Rs 40-43 per equity share. The aggregate size of the offer is around Rs 123.20 crore to Rs 132.44 crore based on lower and upper price band respectively. Minimum application is to be made for 348 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operation increased by Rs 294.80 million i.e. 7.25% to Rs 4,359.82 million in Fiscal 2026 from Rs 4,065.02 million in Fiscal 2025. The increase was primarily attributable to volume growth in Pail, Thinwall and Paint business. Moreover, the company recorded a profit of Rs 224.02 million in Fiscal 2026 compared to profit of Rs 193.31 million in Fiscal 2025.

Meanwhile, the company focuses on delivering precision-crafted RPP solutions that meet the specific requirements of customers engaged in industries such as automotive, fertilizer, railways, renewable energy, food, paint, lubricants, construction chemicals amongst others. It presently caters to select sectors in the FMCG industry, with ISBM products it shall foray into new industry segments such as, personal care, cosmetic, beverage and pharmaceutical applications, among others. ISBM is used for producing high-quality PET bottles, jars for water, juices, edible oils, dairy products, personal care & cosmetics containers like shampoo bottles, lotions, and creams etc. with superior strength and clarity. It intends to leverage the proposed technology to widen its products and end use applications.

SS Retail

• SS Retail is coming out with a 100% book building; initial public offering (IPO) of 1,24,26,638 shares of face value Rs 10 each in a price band Rs 403-424 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 16, 2026 and will close on September 18, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 40.30 times of its face value on the lower side and 42.40 times on the higher side.
• Book running lead managers to the issue are Anand Rathi Advisors and Emkay Global Financial Services.
• Compliance officer for the issue is Kishor Babaso Hupare. 

Profile of the company

SS Retail is a multi-brand retail chain for mobile phones, accessories and other electronic items, with operations in 5 states i.e., Maharashtra, Karnataka, Madhya Pradesh, Goa, and Gujarat (commenced in Fiscal 2027). It deals in multiple product categories across different types of cities such as metro cities, mini metro cities, tier I cities, tier II cities and tier III and beyond cities. However, its focus has been on retailing mobile phones and accessories in tier II and tier III and beyond cities. As of March 31, 2026, it operated 503 stores in India, and 458 stores in Maharashtra, positioned it as the largest mobile phone retail chain in West India (i.e., Gujarat, Maharashtra, Goa, Madhya Pradesh, Dadra & Nagar Haveli and Daman & Diu) and in Maharashtra and the 3rd largest in India, amongst its peers.

Its store operations are structured around 3 different business models: i) Company owned and company operated model (COCO Model) wherein the stores are leased / owned by it and also operated by it; ii) Company owned and franchisee operated model (COFO Model) wherein the stores are leased by it and operated by its franchisee partners; and iii) Franchisee owned and franchisee operated model (FOFO Model) wherein the stores are both, leased as well as operated by the franchisee partners. The ownership of the inventory at all these stores remains with it. The stores under each of these models are designed by the company and set up through selected interior designers to ensure that the ‘look and feel’ of each store is uniform to ensure consistent brand identity and store experience. It operates its stores under the brand ‘SS Mobile’ and ‘Mobile Exchange Wala’ through a combination of COCO Model and COFO Model, and its stores under the brand ‘The Mobile Space’ through the FOFO Model. 

It operates the COFO and FOFO Model stores based on its approach of identifying local franchisee partners who are selected based on certain criteria such as i) the franchisee partner must be a resident of the area where the store is located, ensuring local community connections; ii) the franchisee partner’s income is primarily driven by the store’s performance, which in turn motivates them to earn and to succeed; and iii) a preference is given to people with experience in the retailing industry which helps in effective sales performance (Local Partners Approach). The local affinity of customers towards such franchisee partners accelerates new customer acquisition while reducing the customer acquisition costs. This approach also helps it capitalise on the understanding of its franchisee partners of the ethos of the area in which such store operates. 

Proceed is being used for: 

• Funding capital expenditure for Fit Outs towards setting up of new stores in Fiscal 2027 and Fiscal 2028.
• Part funding of the incremental working capital requirements of the company.
• General corporate purposes. 

Industry overview

India’s mobile phone and accessories market grew from Rs 2,286 billion in FY2019 to Rs 3,729 billion in FY2024 at a CAGR of 10.3% and was estimated at Rs 3,915 billion in FY2025. The market further grew y-o-y at a rate of 8.4% in FY2026 and was valued at Rs 4,242 billion. Mobile phone (including feature and smart phones) and mobile accessories formed a high base market, accounting for 60% of the total Indian consumer electronics market in FY2026. Mobile phones accounted for the larger share of 86.2% of the total mobile phone and accessories market in FY2026, and mobile accessories market including charger cables, earphones, power banks, etc. accounted for 13.8% of the total market in FY2026. The market is projected to grow at CAGR of 9.8% in the next four years to reach a value of Rs 6,166 billion by FY2030. This growth is being driven by the rising premiumization and increase in value due to rising ASPs for smartphones and consumer upgrading to these premium models with better features at higher prices, not just in urban areas, but also in tier II and beyond cities. 

Feature phone shipments declined from 61 million units in FY2024 to 54 million units in FY2025 and further declined to 43 million units in FY2026 and are projected to dip further to 35 million units in FY2030. Correspondingly, their market value dropped from Rs 54 billion in FY2025 to Rs 43 billion by FY2026 at a rate of 20.4%. This decline is attributed to limited feature innovation, poor compatibility with digital-first services (UPI, OTT apps), and rising affordability of entry-level smartphones. In contrast, smartphones have grown steadily from 146 million units in FY2024 to 151 million units in FY2025 and maintained a flat volume growth to 152 million units in FY2026 and are further projected to reach 161 million units by FY2030. The value contribution of smartphones surged to Rs 3,614 billion in FY2026 compared to Rs 3,324 billion in FY2025, at a growth rate of 8.7%. This growth is driven by increasing 4G/5G adoption, the popularity of AI-powered and camera-focused devices and growing digitization in tier II and beyond cities.

Government initiatives like Digital India, improved rural connectivity, and the proliferation of financing options like BNPL and no-cost EMIs have further accelerated smartphone adoption, positioning it as the core driver of India’s mobile market evolution. In urban areas, there is an increasing trend of premiumization. During the 2025 festive season, there was a surge in demand for premium and ultra-premium smartphones (Rs 51,000 and above), with sales reaching approximately two million units for the first time. The smartphone market is further projected to reach Rs 5,146 billion in FY2030, at a CAGR of 9.2% from FY2026 to FY2030.

Pros and strengths 

Largest mobile phone retail chain in West India and in Maharashtra: It is a multi-brand retail chain dealing in a wide variety of mobile phones, accessories and other electronic items of various brands in India. As of March 31, 2026, it operated 503 stores in India, and 458 stores in Maharashtra, positioned it as the largest mobile phone retail chain in West India and in Maharashtra and the 3rd largest in India, amongst its peers. Since March 31, 2024, it has significantly increased its store count from 236 stores as of March 31, 2024 across 109 cities to 503 stores across 215 cities as of March 31, 2026 at a CAGR of 45.99%, which positioned it as one of the fastest growing retail chains of mobile phones. Further, this growth rate was not only the 2nd highest amongst its peers but also around 2.4x the peer average of 19.29% during Fiscal 2024 to Fiscal 2026. It has continued the expansion of its retail network this Fiscal as well, and as of March 31, 2026, it had 503 stores spread across 2,41,365 square feet, and as of July 31, 2026, it had 536 stores spread across 2,60,597 square feet. 

Differentiated COFO and FOFO models with local partners approach: It primarily focuses on its franchisee-led COFO and FOFO models which have helped it scale its operations, both in terms of number of stores and revenue from operations. The COFO Model accounts for 62.82% and the FOFO Model accounts for 20.48% of its total store count as at March 31, 2026, respectively. Its revenue from operations from COFO Model, has grown significantly at a CAGR of 32.01% between Fiscal 2024 to Fiscal 2026, whereas its revenue from operations from the FOFO model, albeit on a smaller base, has grown at a CAGR of 110.49% between Fiscal 2024 to Fiscal 2026. Under the COFO Model, the stores are leased by it and operated by its franchisee partners, whereas in the FOFO Model the stores are both, leased and operated by the franchisee partners. The ownership of the inventory at all these stores remains with it. In the COFO and FOFO model the franchisee partner incurs the partial capital expenditure of setting up the stores. While, in the COFO model, the company bears all the operational costs for the store, in the FOFO model the entire operational costs for the store are borne by the franchisee partner. It sets monthly revenue and profitability targets for its franchisee partners in the COFO Model. Upon achieving these targets, they become eligible for a pre-determined commission from the company, which serves as an incentive to drive higher performance.

Broad product mix with focus on mobile phones: It is a multi-brand retail chain for mobile phones, accessories and other electronic items with a broad product mix. While it deals in multiple product categories, its focus has been on mobile phones and accessories. It retails mobile phones of various brands across multiple price ranges, and it derives a significant portion of its revenue from operations from sale of mobile phones. It also retails accessories across audio categories, wearables, and others. In addition, it retails televisions, laptops and tablets of various brands. 

Consistent track record of financial performance and growth: It operates a scalable, asset light model. Its consistent track record of financial performance and growth have been achieved due to factors such as: It has focussed on adding Medium Format Stores and Small Format Stores to its network as these are relatively less capital intensive to open and help it scale up operations faster. It has focussed on the COFO and FOFO models. In the COFO and FOFO model the franchisee partner incurs the partial capital expenditure of setting up the stores. While, in the COFO model, it bears all the operational costs for the store, in the FOFO model the entire operational costs for the store are borne by the franchisee partner. Accordingly, since certain costs are borne by the franchisee partners, these models help reduce its overall costs. Its Local Partners Approach in operating its COFO and FOFO model stores help it capitalise on the local affinity of customers towards franchisee partners which accelerate new customer acquisition, while reducing customer acquisition costs. Its focus on expansion of its stores network in tier II and tier III and beyond cities assist it in lower rent expenses as compared to stores in metro, mini metro and tier I cities. Its ‘shop in shop’ format increases the productivity of the store as it leverages the same store space and infrastructure without material incremental operating costs.

Risks and concerns

Significant revenue reliance on mobile phones retailing: It derives a significant portion of its revenue from operations from retailing mobile phones. During Fiscals 2026, 2025 and 2024 it derived 86.18%, 87.58% and 88.31% of its revenue from operations, respectively, from retailing mobile phones. Any economic slowdown or other factors that affect the mobile phone industry, and accessories and electronic items industries including those that impact or reduce consumers’ ability to purchase its products, could adversely impact its business, financial condition, and operating results.

Concentration of purchases among top 10 suppliers: The company is significantly reliant on its arrangements with top 10 suppliers for procuring mobile phones, accessories and other electronic items. The amount of purchase of traded goods from its top 10 suppliers was 79.09%, 89.42% and 88.38% of its purchase of traded goods during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Failure on the part of the suppliers to supply, or a delay in supply of traded goods from its top 10 Suppliers, could have an adverse impact on its reputation, business, financial condition, cash flows and results of operations.

High geographic revenue concentration in Maharashtra: It derives a significant portion of its revenue from operations from its stores in the state of Maharashtra. While it has been operating its stores in Maharashtra since incorporation, it has gradually expanded into other states, commencing operations in Goa in Fiscal 2019, Karnataka and Madhya Pradesh in Fiscal 2025 and Gujarat in Fiscal 2027. It has focussed on deepening its presence in Maharashtra and during the period March 31, 2024 to March 31, 2026, it has opened 227 stores in Maharashtra. As of March 31, 2026, it had 458 stores in Maharashtra (out of total 503 stores) constituting 91.05% of its total stores. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, it derived 89.09%, 92.32% and 94.07% of its revenue from operations from Maharashtra. Accordingly, it is subject to risks arising from changes in political, social and economic conditions of Maharashtra which could have an adverse effect on its business, financial condition, result of operation and cash flow.

Revenue reliance on franchisee-led COFO and FOFO models: It primarily focuses on its COFO Model and FOFO Model which have helped it scale its operations, both in terms of number of stores and revenue from operations. The COFO and FOFO Models cumulatively contributed 74.19%, 78.03% and 77.79% of its revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. If its franchisee-led COFO and FOFO models are not successful in the future, or do not grow at the same rate or at all, or the stores which it operates under COFO and FOFO models closes, then it may adversely impact its business growth and prospects, financial condition and results of operations.

Outlook

SS Retail is primarily engaged in the business of retail trading of consumer electronics and durable products through a chain of retail stores. Its product portfolio includes mobile phones, mobile accessories and other consumer electronic products. Its stores are designed to provide a consistent experience to its customers across all formats. Each store follows a defined layout, display, and placement of products which includes, the store interiors are brightly lit and spacious, with clear and organized display zones for mobile handsets, accessories, and other electronic items; Prominent branding, signage, and category boards (e.g., smartphones, smart watches, speakers, ear buds) ensure easy navigation for customers. On the concern side, its business is working capital intensive, primarily on account of inventory required to be stocked at its stores and warehouses. It proposes to utilize Rs 2,413.47 million out of the Net Proceeds towards its incremental net working capital requirements for Fiscal 2027 and Fiscal 2028. It may need to obtain additional financing in the normal course of business from time to time as it expands its operations and any failure on its part to effectively manage its working capital requirements may require it to raise additional financing and any inability to do that may result in an adverse effect on its business, revenue from operations and financial condition.

The issue has been offering 1,24,26,638 shares in a price band of Rs 403-424 per equity share. The aggregate size of the offer is around Rs 500.79 crore to Rs 526.89 crore based on lower and upper price band respectively. Minimum application is to be made for 35 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operation increased by Rs 7,531.00 million i.e. 47.13% to Rs 23,510.31 million in Fiscal 2026 from Rs 15,979.31 million in Fiscal 2025. Moreover, profit after tax of the company increased by 48.72% from Rs 398.61 million in Fiscal 2025 to Rs 592.82 million in Fiscal 2026.

Meanwhile, to further improve its inventory procurement model and reduce its operating costs, it intends to enter into tie ups with brands with whom it currently does not have a direct relationship (i.e., it procures products of such brands through authorised distributors / dealers). Such direct arrangement will enable it to further eliminate the intermediaries (i.e., authorised distributors / dealers for such brands) in the supply chain, reduce the associated costs and will also assist it in procure mobile phones, accessories and other electronic items at more competitive prices.