Bls Polymers Limited IPO

01At a glance

What the company does — manufactures custom-formulated polymer compounds used for sheathing, jacketing and insulating wires and cables in power, telecom and railways, and for coating underground oil, gas and water pipelines (DRHP p.29). Its manufacturing facility is in Goa, on about 24,220 sq. m. of land (DRHP p.217).

Who pays it — cable and pipe makers; the top ten customers, who include Advance Cable Technologies, Mantram Industries, Ratnamani Metals & Tubes and Tirupati Plastomatics, were 64.44% of FY25 revenue, and the largest one 22.98% (DRHP p.38, DRHP p.39). Exports were 8.43% of FY25 revenue, 82.64% of them to Saudi Arabia (DRHP p.46, DRHP p.51).

Why it is raising money — ₹750.00 million for working capital, ₹698.43 million to expand the Goa facility's capacity for existing products, and the rest for general purposes (DRHP p.29). Converted from ₹ lakh.

How fast it has grown — revenue of ₹3,146 million in FY23, ₹2,964 million in FY24 and ₹3,284 million in FY25 (DRHP p.31). Converted from ₹ lakh.

The one thing to understand — a sharp profit jump on flat revenue, driven by a few customers. FY25 EBITDA rose 88% and profit 181% while revenue grew 11%; revenue from the largest customer rose from ₹275.74 million to ₹754.81 million and exports to Saudi Arabia from ₹12.73 million to ₹228.73 million (DRHP p.39, DRHP p.51, DRHP p.138).

02The business, in plain words

A polymer compounder mixes base polymers with additives into grades tailored to each customer's specification and sells them as granules to cable and pipe makers, who extrude them as insulation, sheathing or coatings.

A cable maker wins a telecom-cable order → it orders a specific sheathing compound from BLS Polymers → BLS formulates and makes the batch in Goa and ships it → the cable maker pays on agreed terms.

Earnings equation: Profit ≈ tonnes sold × (price − polymer and additive cost) − overheads − interest. EBITDA margin was 12.08% in FY25 against 5.70% in FY23 (DRHP p.138).

03Where the money comes from

Source: DRHP p.39, DRHP p.46, DRHP p.51.

04The growth record

Source: DRHP p.31, DRHP p.52, DRHP p.138. Converted from ₹ lakh.

05What the growth is made of

Margin, from a changed customer mix. Revenue grew 10.8% in FY25, but the largest customer's revenue nearly tripled and exports more than doubled (our arithmetic, DRHP p.39, DRHP p.46). The pages read do not explain the margin rise.

06Earnings quality

Operating cash flow was ₹186.21 million over FY23 to FY25 against profit of ₹349.08 million, with an outflow in FY23 (our arithmetic, DRHP p.31, DRHP p.52). FY25's inflow was helped by a ₹74.91 million rise in trade payables (DRHP p.89). Interest received was ₹25.66 million in FY25 (DRHP p.89).

07The balance sheet

Source: DRHP p.31, DRHP p.138. Converted from ₹ lakh.

08What the money is for

Source: DRHP p.29. Converted from ₹ lakh. No pre-IPO placement is contemplated (DRHP p.36).

09Who is selling

Nobody. The issue is a fresh issue only, of up to 17,000,000 shares (DRHP p.29).

10Promoters

The promoters are Vinod Aggarwal, Sushil Aggarwal, Madhukar Aggarwal, Diwakar Aggarwal and Karan Aggarwal (DRHP p.29). No proceedings are listed against the promoters or directors (DRHP p.32). The weighted average cost of shares acquired in the past three years was ₹2.90 (DRHP p.36).

11Who already owns it

Source: DRHP p.30. The last three rows are our arithmetic.

12What changed just before the IPO

• Largest customer — share up from 9% to 23% of revenue in FY25 (DRHP p.39).
• Saudi Arabia — exports there rose eighteen-fold (our arithmetic, DRHP p.51).
• Debt — borrowings down ₹198 million in FY25 (DRHP p.31).

13Capacity and expansion

One facility in Goa (DRHP p.217). The proceeds fund ₹698.43 million of added capacity for existing products (DRHP p.29).

14Market size and industry structure

The CRISIL report cited in the offer document puts India's polymer compounding market at USD 8,330 million in 2023 and projects about 8.2% annual growth to USD 13,415 million by 2029 (DRHP p.29). Those projections are CRISIL's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Custom formulations for critical infrastructure uses (DRHP p.29).
• Diversification into newer products, rising to 18.41% of FY25 revenue (DRHP p.38).

Against that: rising customer concentration, dependence on the domestic cable industry, one plant, and debt (DRHP p.38, DRHP p.46).

16Peers the company named

Source: DRHP p.136, DRHP p.139. Converted from ₹ lakh. The peers' average P/E is 18.81 (DRHP p.135).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customers. Ten customers were 64% of FY25 revenue, one of them 23% (DRHP p.39).
• Exports. One country took 83% of FY25 exports (DRHP p.51).
• One plant. All production in Goa (DRHP p.217).
• Expansion. New capacity may run late or over budget (DRHP p.52).
• Narrow base. Newer products were 18.41% of FY25 revenue (DRHP p.38).

18Litigation and regulatory matters

Source: DRHP p.32. Converted from ₹ lakh.

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Who the largest customer is among those named, in the pages read.
• Why EBITDA margin doubled in FY25, in the pages read.
• Whether the Saudi Arabian exports are one order or recurring, in the pages read.
• What the 13 criminal cases filed by the company concern, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Which customer provided ₹755 million in FY25, and will that continue?
2. What drove the jump in Saudi Arabian exports?
3. Why did EBITDA margin double on 11% revenue growth?
4. How much capacity will the Goa expansion add?
5. Why do promoter-group investment companies hold a fifth of the shares?

1Sources and cited facts

This study was read from 1 document the company filed. The 25 figures it cites are listed under the document each came from, with the page and the sentence as printed.