Shakti Polytarp Ltd. IPO

Shakti Polytarp

• Shakti Polytarp is coming out with an initial public offering (IPO) of 45,64,000 shares in a price band of Rs 56-59 per equity share.
• The issue will open for subscription on September 15, 2026 and will close on September 17, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 5.60 times of its face value on the lower side and 5.90 times on the higher side.
• Book running lead manager to the issue is NEXGEN Financial Solutions.
• Compliance officer for the issue is Jitendra Kumar Gupta.

Profile of the company

Shakti Polytarp is engaged in the production of tarpaulins, which are water-resistant materials designed to safeguard goods from rain, moisture, and other weather-related exposure. These tarpaulins are typically manufactured from raw materials such as polyethylene, polypropylene, and granules, and are available in various sizes and thicknesses depending on their specific application. Tarpaulins are widely used in industries such as construction, agriculture, and transportation. They are ideal for covering and protecting equipment, vehicles, building materials, and outdoor furniture from rain, wind, sun, and other environmental factors.

The company’s products are manufactured from various raw material which includes PP Granules, Linear Low-Density Polyethylene (LLDPE), Low-Density Polyethylene (LDPE) and High-Density Polyethylene (HDPE). Following production, its products undergo through examination, testing and evaluation to ensure compliance with customer specifications and industry standards. Its manufacturing unit is equipped with advanced machineries, such as highspeed extrusion tapeline, extra wide extrusion lamination, high speed wide width circular looms, high strength sealing machines, recycling machines, etc. that are fully integrated and feature an in-built software system, enhancing both accuracy and efficiency in routine operations.

The company is also engaged in the business of sale of granules. These granules serve as the raw material for producing tarpaulin through a process that includes melting, extrusion, weaving, and lamination. Its business primarily operates on a B2B (Business-to-Business) model, supplying tarpaulin and other products to various industries. A significant portion of its revenue is generated from bulk orders placed by businesses that require tarpaulins. Additionally, it caters to the B2C (Business-to-Consumer) segment as well, where it offers its products directly to end consumers. While its primary focus remains on B2B sales, the B2C segment contributes a smaller portion of its overall revenue.

Proceed is being used for:

• Capital Expenditure
• General corporate purposes

Industry overview

The tarpaulin industry is embedded within the broader petrochemicals–polymers–plastics value chain, which spans upstream feedstock processing (ethylene, propylene, benzene), polymer resin manufacturing (PE, PP, PVC), and downstream conversion into films, sheets, pipes, packaging, and woven materials. Tarpaulin manufacturing constitutes a key downstream application, converting polymer inputs into functional products for agriculture, construction, logistics, and disaster-management end-use markets. Commercial tarpaulins are predominantly manufactured from High-Density Polyethylene (HDPE) woven fabrics, laminated with Low-Density Polyethylene (LDPE) coatings and enhanced through UV stabilizers. These engineered sheets combine tensile strength, water resistance, and durability under varied climatic conditions, positioning them as essential materials for crop protection, warehousing, transportation, and emergency relief.

Looking ahead, sustained industry growth will require investments in advanced weaving and lamination machinery, digital quality-control systems, polymer recycling technologies, and brand-building for both domestic and international markets. Sustainability imperatives are driving innovation in eco-friendly polymer blends, circular-economy practices, and regulatory compliance, in alignment with global plastics and packaging trends. Positioned within the broader Chemicals & Petrochemicals - Plastics and Packaging Materials segment, tarpaulin manufacturing represents a vital downstream niche. Companies with integrated operations, strong research and development capabilities, and export orientation are best placed to scale and capture market leadership in this evolving industry.

India’s Tarpaulin Industry underpins a vast plastics ecosystem, with tarpaulin manufacturing emerging as a specialized yet rapidly scaling sub-segment. The industry is transitioning from fragmented, unorganized production to organized, technology-enabled facilities capable of serving agriculture, logistics, infrastructure, and disaster-management needs. The evolution is marked by increasing product customization, higher compliance with sustainability norms, and growing demand from both domestic and export markets.

Pros and strengths

Diverse usage of products: The company manufactures a wide range of tarpaulin such as Geotextile, Lumber Wrap, House Wraps, Pond Linners, Green Net etc. Its products find diverse applications across various industries including Agriculture, Construction, Automotive, Transportation & Logistics and Consumer goods. In order to expand the application of its products, the company is equipped with necessary facilities to develop products suitable as per the requirement of customers functioning in various industries.

In-house manufacturing facility: The company presently carries all its manufacturing operations at its manufacturing facility located in Plot No. 45-48, Industrial Area IIDC Nirmani, Dist. Khargone, Madhya Pradesh, which is equipped with capabilities to develop and manufacture its product portfolio. In addition, it employs a quality control mechanism during the manufacturing of its products that its finished product conforms with all the standard quality norms. The company’s in-house manufacturing operations enable it to streamline the inventory management and production process resulting into maintenance of production standards, minimizing production time and bringing cost effectiveness.

Established client relationship: The company has established client relationships in domestic markets from whom it gets orders on a regular basis. The company’s existing relationship with its clients represents a competitive advantage in gaining new clients and growing its business. The company is able to foster long-term relationships with its clients by understanding their needs and preferences. As it continues to strengthen these relationships, it is focused on improving its products and finding new ways to grow in both existing and emerging markets.

Risks and concerns

High customer concentration risk: The company is dependent on a limited number of customers for a significant portion of its revenues. The company has garnered 77.86%, 82.69% and 60.57% of its total revenue from top 10 customers in FY26, FY25 and FY24 respectively. The loss of a major customer or significant reduction in demand from any of its major customers may adversely affect its business, financial condition, results of operations and prospects. 

Significant dependence on top ten suppliers: The company’s top ten suppliers contribute a significant portion of its raw material. The company has procured 90.61%, 93.44% and 68.87% of its raw material from top ten suppliers in FY26, FY25 andFY24 respectively. Though the company has not faced any difficulties in procuring the raw material in the last three preceding financial years and there were no past instances where it has experienced any losses due to loss of any vendor/ supplier. However, it cannot assure that it will not face any such situations in the future, or the procurement of raw material will be on commercially viable terms. Furthermore, any dispute with any of the suppliers may damage its relationship with existing and potential suppliers, and in any such event its operations will be adversely affected. Further it will also affect its profitability and reputation in the market.

Geographical concentration of revenue: The company operates its business operations from its registered office and manufacturing facility. Although, the company’s business operations span various regions across India, State of Madhya Pradesh contributes to a substantial portion of its revenues i.e. 91.77%, 95.35% and 95.26% for year ended on March 31, 2026, 2025 & 2024 respectively. Any factors relating to political and geographical changes, growing competition, economic downturn, natural disasters and any change in demand may adversely affect its business. It cannot assure that it shall generate the same quantum of business, or any business at all, from this state, and loss of business from this state could adversely affect its revenues and profitability.

Outlook

Shakti Polytarp is engaged in the manufacturing of tarpaulins and other plastic-based products, including shade nets. Tarpaulins are water-resistant and durable sheets used to protect goods, equipment and other materials from rain, moisture, sunlight and other environmental conditions. It has in-house manufacturing facility with integrated machinery. On the concern side, the company’s business is substantially dependent on revenues from the manufacturing of tarpaulin and the trading of granules, and any inability to retain existing customers or attract new customers for these products may adversely affect its business. Moreover, majority of its revenues from operations are derived from the State of Madhya Pradesh. Any loss of business from this state may adversely affect its revenues and profitability.

The company is coming out with a maiden IPO of 45,64,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 56-59 per equity share. The aggregate size of the offer is around Rs 25.56 crore to Rs 26.93 crore based on lower and upper price band respectively. On performance front, the company’s total income for the FY26, stood at Rs 21,610.06 lakh whereas in FY25 it stood at Rs 16,649.52 lakh representing an increase of 29.79%. Moreover, the company’s profit after tax for the FY26 stood at Rs 1,005.61 lakh whereas in FY25 it stood at Rs 496.62 lakh representing an increase of 102.49%.

Meanwhile, the company is continuously engaged in improving its production capacity by modernization of machinery, adoption of new technology, skill development of its workers, improved utilization of resources and constant focus on improvement in overall efficiency. It analyses its existing processes on regular intervals and adopts new suitable steps in order to achieve higher efficiency. It identifies the areas of bottlenecks and takes corrective measure wherever possible. This helps it in improving efficiency and putting resources to optimal use.

Pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Lenskart Solutions has informed that the Company will be hosting an Earnings Call with Analysts/Investors on Wednesday, November 4, 2026 at 05:30 PM (IST) to discuss the Financial Results for the quarter and half-year ended on September 30, 2026. The company has enclosed the pre-registration link for joining the Earnings Call. The above intimation will be made available on the website of the Company at https://www.lenskart.com/corporate/investorrelations.

The above information is a part of company’s filings submitted to BSE.