Selzer Polymers Limited IPO

01At a glance

What the company does: makes High-Density Polyethylene (HDPE) water tanks, septic and underground tanks, industrial packaging drums for exporters and chemical makers, and floats for floating solar plants, by blow moulding at one plant in Thrissur, Kerala, and also trades raw material and some finished goods (DRHP p.126, DRHP p.127).

Who pays it: households through more than 2,000 dealers in South India, and industrial customers such as exporters of spice oils and oleoresins, chemical, rubber, plantation and mineral companies (DRHP p.27, DRHP p.136). No customer is named. Kerala and Tamil Nadu brought 83.88% of FY26 revenue (DRHP p.23).

Why it is raising money: ₹13.1 crore of the fresh issue to repay loans, ₹9.7 crore towards a new plant at SIPCOT Industrial Park, Bargur, Tamil Nadu, and ₹6.0 crore for working capital (DRHP p.75). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹63.9 crore in FY24 to ₹100.0 crore in FY26, about 25.1% a year, and profit after tax from ₹2.2 crore to ₹8.5 crore, about 99.1% a year (our arithmetic, DRHP p.49).

The one thing to understand: most of the profit record is one year old. Profit after tax was 3.37% of revenue in FY24 and 8.55% in FY26 (DRHP p.128), and FY26 operating cash flow was ₹1.8 crore against ₹8.5 crore of profit, as stock, money owed by customers and advances to suppliers grew (DRHP p.50).

02The business, in plain words

What Selzer Polymers does

Selzer Polymers is a polymer processing company with three product lines and a trading line (DRHP p.126):

• Water tanks: auto-clean tanks, premium, capsule and square tanks, octagonal underground and rainwater tanks of 1,500 to 2,000 litres, septic tanks and soak pits (DRHP p.129, DRHP p.131).
• Industrial packaging: HDPE drums from 8 litres to 260 litres, round, square, open-head, gherkin, wide-mouth and narrow-mouth, several sized to fit the most units into an export container (DRHP p.131, DRHP p.132).
• Solar floats and floaters: floats that carry solar panels on dams and reservoirs, and pontoons for docks and aquaculture; sales began in FY26 (DRHP p.132, DRHP p.133).
• Trading: surplus imported raw material, LLDPE tanks, handles, lids, clamps and gaskets (DRHP p.133).

A household or factory needs a tank or drum → a dealer or the customer orders it → the company melts virgin HDPE, blows it into a mould, trims and checks it → it delivers in its own vehicles and is paid on the order (DRHP p.133, DRHP p.140, DRHP p.25).

The business began as the partnership firm Selzer Polymers under a deed of November 28, 2011, became Selzer Polymers Private Limited on July 8, 2024 and a public company with a certificate dated May 11, 2026 (DRHP p.2). Production of blow-moulded tanks and containers began in 2013 (DRHP p.155). The registered office and the only plant are at Mundur, Kaiparamba, Thrissur, on 0.99 acres (DRHP p.75).

It has branch offices in Ernakulam and Chennai (DRHP p.127). It holds ISO 9001:2015 for HDPE barrels and water tanks, ZED Bronze certification, a registered design for its "Auto Clean Water Tank" and UN certificates for two drum types (DRHP p.127, DRHP p.146, DRHP p.256). It had 236 permanent employees and 62 contract workers at March 31, 2026 (DRHP p.142, DRHP p.143). It runs its own delivery fleet (DRHP p.25).

Earnings equation: Revenue = tonnes of HDPE moulded × price per kilogram + traded goods. Production was 3,751 tonnes in FY26 (DRHP p.142), and manufacturing revenue was ₹87.0 crore (DRHP p.27), which works out to about ₹232 per kilogram produced (our arithmetic, DRHP p.27, DRHP p.142). The document does not give tonnes sold or prices by product.

03Where the money comes from

By product (₹ crore):

Source: DRHP p.127, converted from ₹ lakh; FY25 is the two periods added (our arithmetic, DRHP p.127). Trading rose from 6.38% of FY24 revenue to 12.95% in FY26 (DRHP p.27). The company reports a single business segment, so no product margin is given (DRHP p.190).

By place: Kerala 60.74% and Tamil Nadu 23.14% of FY26 revenue, against 73.58% and 15.28% in FY24 (DRHP p.23). Southern India was 97.26% of FY26 revenue (DRHP p.139). Gujarat appears for the first time in FY26 at 2.60% (DRHP p.139). Government and public sector buyers were 1.30% of FY26 revenue (DRHP p.139). All sales are domestic; earnings in foreign exchange are nil (DRHP p.200, DRHP p.216).

By channel: the risk factors give revenue "through dealers" of ₹52.3 crore, 52.28% of FY26 revenue, which is the same figure as water tank revenue (DRHP p.27, DRHP p.127).

Selzer Polymers customers: how concentrated the revenue is

Source: DRHP p.141. For April 1 to July 7, 2024 the figures were 5.30%, 21.16% and 31.57% (DRHP p.141). Revenue is spread: the top ten brought ₹28.9 crore of FY26 revenue (DRHP p.141). The company counted 2,677 customers in FY26, of whom 66.64% had bought before (DRHP p.141). There are no long-term or exclusive customer agreements (DRHP p.27).

Read from the filing: FY26 sales to KTK Polymers Private Limited, a group company 99.12% owned by the promoter Kuriokkose Francis Kannanayakal, were ₹8.4 crore (DRHP p.176), more than the ₹8.2 crore shown for the largest customer (DRHP p.141). The document does not explain the difference.

On the supply side, the largest supplier was 28.21% of FY26 purchases, the top five 43.29% and the top ten 50.00% (DRHP p.141). Imports were 56.47% of FY26 purchases, mainly HDPE and PP granules from Saudi Arabia, Qatar and Kuwait (DRHP p.23).

04The growth record

Selzer Polymers financials: revenue, profit and margins

Source: DRHP p.48, DRHP p.49, DRHP p.50, DRHP p.128, converted from ₹ lakh. FY25 adds the firm's period to July 7, 2024 and the company's period from July 8, 2024 (our arithmetic, DRHP p.49, DRHP p.50); the document gives ratios only for each part, for example EBITDA margins of 11.11% and 7.66% (DRHP p.128). The company works out EBITDA margin on total income, not on revenue (DRHP p.128).

Revenue went from ₹63.9 crore in FY24 to ₹100.0 crore in FY26 and profit after tax from ₹2.2 crore to ₹8.5 crore (DRHP p.49). Our arithmetic over FY24 to FY26: revenue grew about 25.1% a year and profit after tax about 99.1% a year (our arithmetic, DRHP p.49); EBITDA grew about 60.5% a year (our arithmetic, DRHP p.128).

EBITDA margin moved from 8.73% to 14.29%, up 556 basis points, so from 8.7% to 14.3% rounded (DRHP p.128). The document gives FY25 revenue growth of 27.15% and FY26 growth of 22.98% on the added-up FY25 (DRHP p.246, DRHP p.245); its KPI table shows 63.95% for FY26 because it compares with the nine-month company period alone (DRHP p.128).

The restatement changed profit: FY26 ₹8.9 crore audited and ₹8.5 crore restated; FY24 ₹1.7 crore audited and ₹2.2 crore restated, mainly from moving depreciation to the Companies Act method (DRHP p.191). The auditor reports no qualification requiring adjustment (DRHP p.181).

What sits around the record:

• Cash: operating cash flow was ₹1.8 crore in FY26 after ₹6.3 crore in FY24 (DRHP p.50). In FY26 inventory absorbed ₹4.1 crore, receivables ₹2.6 crore and short-term advances ₹2.3 crore, and tax paid was ₹2.4 crore (DRHP p.50). Over FY24 to FY26 operating cash flow of ₹13.6 crore roughly matched profit after tax of ₹13.6 crore (our arithmetic, DRHP p.49, DRHP p.50).
• Other income was ₹1.5 crore in FY26, 12.88% of profit before tax, so 12.9% rounded; it is mostly supplier discounts of ₹0.73 crore and foreign exchange gains of ₹0.54 crore (DRHP p.209).
• Debt: borrowings were ₹24.5 crore at March 31, 2026 (DRHP p.224), debt to equity 1.31 times, about 1.3× (DRHP p.128), and net of ₹2.4 crore of cash and bank balances about 1.5× FY26 EBITDA (our arithmetic, DRHP p.183, DRHP p.128). Return on capital employed was 29.45%, so 29.5% rounded (DRHP p.128). Loans from directors were ₹4.8 crore of the total (DRHP p.225).
• Customers and suppliers: the largest customer was 8.15% of FY26 revenue, so 8.2% rounded, the top five 21.89%, so 21.9%, and the top ten 28.93%, so 28.9% (DRHP p.141); the top ten suppliers were 50.00% of FY26 purchases, so 50.0% (DRHP p.141); imports were 56.47% of purchases, so 56.5% (DRHP p.23).
• Related-party sales: sales to group entities of the key managers were ₹13.3 crore in FY26 (DRHP p.210).
• Receivables: 42 days of sales at March 2026, against 46 at March 2024 (DRHP p.34).
• Contingent liabilities: none, and no capital commitments (DRHP p.216).
• Capacity: utilisation was 80.24% in FY26, so 80.2% rounded (DRHP p.142).
• Use of the issue: ₹13.1 crore of the fresh issue is for debt repayment, ₹9.7 crore for the Tamil Nadu plant and ₹6.0 crore for working capital (DRHP p.75).
• Cases: the only case involving a promoter is an income tax demand of ₹21 (DRHP p.253).

05What the growth is made of

Revenue rose ₹36.0 crore from FY24 to FY26 (our arithmetic, DRHP p.49). By product the change was (our arithmetic, DRHP p.127):

• Water tanks: up ₹13.3 crore, from ₹39.0 crore to ₹52.3 crore.
• Industrial packaging: up ₹10.5 crore, from ₹20.9 crore to ₹31.4 crore.
• Trading: up ₹8.9 crore, from ₹4.1 crore to ₹13.0 crore. These are goods bought and resold, not made (DRHP p.133).
• Solar floats and floaters: ₹3.4 crore in FY26, none before (DRHP p.132).

Volume: production rose from 2,521 tonnes in FY24 to 3,751 tonnes in FY26, about 48.8% (our arithmetic, DRHP p.142), on the same installed capacity of 4,675 tonnes (DRHP p.142).

Price: manufacturing revenue per kilogram produced was about ₹237 in FY24 and about ₹232 in FY26 (our arithmetic, DRHP p.27, DRHP p.142). Read from the filing: on these figures the rise in manufacturing revenue came from volume rather than price, though production is not the same as tonnes sold.

The company puts FY26 growth down to higher volumes of tanks and packaging, a larger share of its self-cleaning "Selfresh" tanks and new revenue from solar floater "processing charges"; it puts lower material cost down to reusing its own reground scrap (DRHP p.245, DRHP p.246). Revenue from services rose from ₹0.03 crore in FY24 to ₹2.7 crore in FY26 (DRHP p.200).

06Earnings quality

The item that needs explaining is FY26 cash. Inventory went from ₹5.9 crore at March 2025 to ₹10.0 crore at March 2026 and vendor advances from ₹3.0 crore to ₹5.1 crore (DRHP p.196, DRHP p.197). The company says it built stock and paid its foreign raw material supplier in advance "foreseeing the war conditions" (DRHP p.248). Payable days fell because it began paying key import suppliers in advance (DRHP p.86).

Margin: revenue less materials, traded goods and the change in stock was about 39.8% of revenue in FY24 and about 44.5% in FY26 (our arithmetic, DRHP p.49). Interest on late payment of statutory dues was ₹0.25 crore in FY26 (DRHP p.201). Of ₹12.8 crore of receivables at March 2026, ₹0.29 crore was older than six months (DRHP p.208).

07The balance sheet

At March 31, 2026 total assets were ₹53.8 crore: property, plant and equipment ₹21.1 crore, trade receivables ₹12.8 crore, inventories ₹10.0 crore, short-term loans and advances ₹5.3 crore, cash and bank balances ₹2.4 crore and other non-current assets ₹1.6 crore (DRHP p.183). Against them: short-term borrowings ₹17.1 crore, long-term borrowings ₹7.4 crore, trade payables ₹2.8 crore, other liabilities and provisions ₹6.7 crore, deferred tax ₹1.2 crore and net worth ₹18.7 crore (DRHP p.183).

Borrowings of ₹24.5 crore were ₹19.6 crore secured and ₹4.8 crore unsecured from directors (DRHP p.225). The secured loans are an HDFC Bank working capital limit of ₹8.6 crore at 8.10%, SIDBI machinery term loans and HDFC Bank vehicle loans (DRHP p.226, DRHP p.83, DRHP p.84). Vehicles bought for ₹4.8 crore in FY26 took long-term borrowings from ₹3.6 crore to ₹7.4 crore (DRHP p.198, DRHP p.247). The promoters have given personal guarantees of ₹14.0 crore (DRHP p.34). Charges for some HDFC Bank facilities had not been registered with the Registrar of Companies at the date of the DRHP (DRHP p.33).

Source: DRHP p.224, DRHP p.75. The capitalisation statement leaves the post-issue column blank (DRHP p.224). ₹13.1 crore is about 53.3% of March 2026 borrowings (our arithmetic, DRHP p.75, DRHP p.224). The loans picked add up to ₹13.1 crore outstanding at August 31, 2026, mostly the HDFC Bank working capital loan of ₹8.4 crore and a SIDBI term loan of ₹2.2 crore (DRHP p.83, DRHP p.84). Prepayment charges are to be paid from internal funds or general corporate purposes (DRHP p.81).

08What the money is for

Selzer Polymers IPO objects: what the money is for

Source: DRHP p.75, DRHP p.87. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.75).

New plant, ₹9.7 crore: the project costs ₹17.2 crore in all: land ₹6.9 crore, already paid; civil works ₹1.7 crore, of which ₹0.64 crore is spent; electrical ₹0.98 crore; and plant and machinery ₹7.7 crore (DRHP p.77). The land is 2.00 acres on a 99-year lease, with M/s. PR Enterprises named as lessor (DRHP p.78).

The machinery is blow moulding and injection moulding machines, moulds, a transformer, a generator, a crane and granulators, all from Indian vendors; the risk factors say orders for machinery of about ₹7.7 crore are yet to be placed (DRHP p.78, DRHP p.80, DRHP p.32). Commercial operation is scheduled for December 2026 (DRHP p.81). The proposed capacity is 362 tonnes a year (DRHP p.77).

Debt repayment, ₹13.1 crore: HDFC Bank and SIDBI loans, all scheduled for FY 2026-27 (DRHP p.76, DRHP p.84).

Working capital, ₹6.0 crore: in FY 2026-27 (DRHP p.85). The company estimates FY27 working capital at ₹27.4 crore, with bank loans of ₹3.0 crore, the issue ₹6.0 crore and internal accruals and net worth ₹18.4 crore (DRHP p.85).

The objects have not been appraised by any agency, and no monitoring agency is appointed because the issue is not expected to exceed ₹50 crore (DRHP p.88, DRHP p.57). The company had spent ₹7.5 crore on the objects by September 15, 2026 (DRHP p.88).

Into the business the fresh issue of up to 34,00,000 shares, at a price not yet set (DRHP p.1). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Selzer Polymers IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 34,00,000 shares of ₹10, and the offer for sale is marked "NIL" (DRHP p.1). Up to 60,000 of the shares are reserved for employees (DRHP p.45). The promoters and promoter group will not take part in the issue (DRHP p.74).

10Promoters

The promoters are Tony Pellissery Lonappan, Sunny Thannikkot Poulose, Kuriokkose Francis Kannanayakal, Subin Sunny and Snehal Tony (DRHP p.1). The document states that Snehal Tony is the daughter of Tony Pellissery Lonappan and Subin Sunny the son of Sunny Thannikkot Poulose (DRHP p.168).

• Tony Pellissery Lonappan, 62, Managing Director, holds a master's in marketing management from Jamnalal Bajaj Institute and has 31 years in polymers and plastics, earlier as Deputy General Manager at Balmer Lawrie-Van Leer Limited (DRHP p.157, DRHP p.158).
• Kuriokkose Francis Kannanayakal, 73, Chairman and Whole-Time Director, has 21 years in biodiesel and polymers and has been promoter and director of KTK Polymers Private Limited since 2005 (DRHP p.157, DRHP p.159).
• Sunny Thannikkot Poulose, 64, Whole-Time Director, has 40 years across polymers and food processing (DRHP p.157, DRHP p.159).
• Subin Sunny, 36, Chief Executive Officer, 13 years in sales and marketing in polymers (DRHP p.168).
• Snehal Tony, 30, Chief Financial Officer from August 6, 2026, a chartered accountant who worked at Wells Fargo International Solutions until July 2026 (DRHP p.167).

Pay: director and partner remuneration was ₹0.58 crore in FY24 and ₹2.0 crore in FY26 (DRHP p.201). In FY26 Tony Pellissery Lonappan was paid ₹0.98 crore and the two whole-time directors ₹0.50 crore each (DRHP p.160). From August 6, 2026 each of the three is to be paid ₹1.25 crore a year, with increments of up to 40% a year (DRHP p.160).

Loans: directors lent the company ₹2.3 crore and were repaid ₹5.2 crore in FY26; ₹4.8 crore was owed to them at March 31, 2026, repayable on demand (DRHP p.210, DRHP p.211, DRHP p.34).

Other businesses: Kuriokkose Francis Kannanayakal owns 99.12% of KTK Polymers Private Limited, which may make polymer goods, water tanks, drums and pipes, and the company has signed a non-compete agreement with it dated June 30, 2026 (DRHP p.175, DRHP p.176). The promoters are also partners or proprietors in Selzer Engineering, Stolz, Innovationz, KTK Polymers (proprietorship) and National Drugs, and Sunny Thannikkot Poulose and Subin Sunny are directors of Ecospice Ingredients Private Limited (DRHP p.171, DRHP p.172). The company rents a branch office from Sunny TP and storage land from Subin Sunny (DRHP p.146).

Guarantees and pledges: the promoters guarantee loans of ₹14.0 crore, and no promoter shares are pledged (DRHP p.34, DRHP p.71).

Cases: the only matter is an income tax demand of ₹21 against Tony Pellissery Lonappan for assessment year 2018 (DRHP p.253). No criminal or regulatory case is pending against any promoter (DRHP p.252).

Promoter economics: the three founders each subscribed 10,000 shares at ₹10 on incorporation, and each was allotted 27,69,431 shares on March 31, 2025 against partnership account balances and loans, with no cash paid (DRHP p.65, DRHP p.66). The document gives their average cost as ₹10.00 a share (DRHP p.34). On April 16, 2026 they gifted shares to family members: 2,77,943 each to Reena Tony, Snehal Tony, Seethal Tony, Beena Sunny, Subin Sunny and Sunin Sunny, and 8,33,829 to Prince Francis (DRHP p.66). Subin Sunny and Snehal Tony hold their shares at nil cost (DRHP p.34).

11Who already owns it

Selzer Polymers promoter holding before and after the IPO

Source: DRHP p.70. There are 83,38,293 shares before the issue and ten shareholders, none of them public (DRHP p.65, DRHP p.70). If all 34,00,000 new shares are issued the total becomes 1,17,38,293 shares (our arithmetic, DRHP p.65), and the promoters' 76.67% becomes about 54.5%, so 76.7% → 54.5% (our arithmetic, DRHP p.70). Promoters and promoter group together go from 100% to about 71.0% (our arithmetic, DRHP p.70). The document leaves the after-issue percentages blank (DRHP p.70).

No fund, company or investor outside the promoter group holds shares (DRHP p.70). Up to 7,83,000 shares of each founder are to be locked in for three years as the minimum promoters' contribution (DRHP p.72).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹63.9 crore in FY24 to ₹100.0 crore in FY26 and profit after tax from ₹2.2 crore to ₹8.5 crore (DRHP p.49).
• Receivables: receivable days went from 46 in FY24 to 42 in FY26 (DRHP p.34).
• Promoter pay: director and partner remuneration went from ₹0.58 crore in FY24 to ₹2.0 crore in FY26 (DRHP p.201), and a new scale of ₹1.25 crore a year each for three directors starts from August 6, 2026 (DRHP p.160).
• Conversion: the partnership firm became Selzer Polymers Private Limited on July 8, 2024 and a public company with a certificate dated May 11, 2026 (DRHP p.2).
• Shares: the only allotment after the initial 30,000 shares was 83,08,293 shares on March 31, 2025, against partnership balances and loans, with no cash price (DRHP p.65).
• Bonus issue: none; no bonus shares have been issued (DRHP p.193).
• Share split: none; all shares have had a face value of ₹10 since incorporation (DRHP p.65).
• Pre-IPO placement: none; the share capital history shows no other allotment (DRHP p.65).
• Gifts: the founders gifted 25,01,487 shares to seven family members on April 16, 2026 (DRHP p.66).
• Auditor: no change of statutory auditor since incorporation; Ramdas & Venugopal is statutory and peer review auditor (DRHP p.59, DRHP p.57).
• Related parties: KTK Polymers Private Limited started business in FY26 and bought ₹8.4 crore of goods from the company that year; the non-compete agreement is dated June 30, 2026 (DRHP p.210, DRHP p.176).
• Debt and vehicles: borrowings went from ₹18.2 crore at March 2025 to ₹24.5 crore at March 2026, and ₹4.8 crore of vehicles were added (DRHP p.48, DRHP p.224, DRHP p.198).
• Board and officers: three independent directors, a chief financial officer and a company secretary were appointed on August 6, 2026 (DRHP p.162, DRHP p.169).
• Land: the Tamil Nadu plot was leased in 2026 and paid for in full, ₹6.9 crore (DRHP p.78).
• Dividend: none declared since incorporation (DRHP p.178).

13Capacity and expansion

Source: DRHP p.142, DRHP p.77, DRHP p.81. Utilisation at Thrissur was 53.93% in FY24 and 66.97% in each part of FY25 (DRHP p.142). The figures rest on a chartered engineer's certificate, and the company warns they rest on assumptions (DRHP p.142, DRHP p.38). The company says it is also expanding the Thrissur plant with new machines, without a figure (DRHP p.76).

It owns vacant land at Karore, Thrissur, meant for a pipes and fittings plant, and holds consent to establish for a pipes factory and for steel tanks (DRHP p.147, DRHP p.255). The new Tamil Nadu plant is to make tanks, drums, pail buckets, sewage tanks and underground tanks (DRHP p.76). Its consents to establish from the pollution board were applied for on September 9, 2026 (DRHP p.256).

The document gives tonnes but no prices for the new plant, so the step from capacity to revenue cannot be made here.

14Market size and industry structure

Selzer Polymers industry: market size and growth

As claimed: the chapter is taken from "Water Storage, Industrial Packaging & Emerging Applications Industry", a report dated September 28, 2026 by Infomerics Analytics & Research Pvt Ltd, commissioned and paid for by the company for the issue under an engagement letter of July 3, 2026; neither the company nor the lead manager has verified it (DRHP p.101, DRHP p.22).

The commissioned report puts the Indian market for plastic tanks and containers at ₹9,513.3 crore in FY 2025 and projects ₹18,098.2 crore by FY 2030, at 13.73% a year (DRHP p.110). It puts plastic tubes, pipes and fittings at ₹63,440.0 crore in FY 2025, projected at ₹1,07,401.2 crore by FY 2030, at 11.10% a year (DRHP p.108).

Both pages label the growth rate as over a forecast period of 2025 to 2035 while giving end figures for 2030 (DRHP p.108, DRHP p.110).

The part that is addressable: the company sells HDPE water and septic tanks, HDPE drums and solar floats, almost all in South India (DRHP p.126, DRHP p.139). The commissioned report sizes tanks and containers for all of India, but does not size the South Indian market, industrial drums or floating solar floats in money. For packaging it gives only Indian production of plastic components for packaged products, ₹1,970.8 crore in 2021-22 and ₹2,538.1 crore in 2025-26, a 6.5% yearly rate (DRHP p.110).

What the company is today: FY26 revenue of ₹100.0 crore, of which water tanks were ₹52.3 crore (DRHP p.49, DRHP p.127). Against the report's FY 2025 tanks and containers figure, the company's FY25 tank revenue of ₹45.5 crore is about 0.5% (our arithmetic, DRHP p.110, DRHP p.127). The report's own peer table calls the company "comparatively smaller scale" (DRHP p.123).

Size over time: India's polymer production went from 12,144 thousand tonnes in 2021-22 to 13,367 thousand tonnes in 2025-26, about 2.4% a year, with a dip to 11,487 thousand tonnes in 2023-24 (DRHP p.107). Production of plastic and PVC pipes, tubes and conduits rose from 4,90,538 tonnes in 2020-21 to a peak of 7,45,098 tonnes in 2023-24 and was 6,81,424 tonnes in 2025-26 (DRHP p.109). PVC fittings rose from 54,077.50 tonnes to 77,569.90 tonnes over 2020-21 to 2025-26 (DRHP p.110). The report projects the plastic water tank industry to grow 13.73% a year between 2025 and 2035; that projection is the report's own (DRHP p.125).

Segments: the report divides the market by polymer (polyethylene, polypropylene, PVC, CPVC, ABS, polystyrene, PET and specialty polymers), by process (blow, injection and rotational moulding) and by end use: pipes and fittings, packaging, plastic water tanks and containers, and floating solar systems (DRHP p.105, DRHP p.106). The company works in HDPE blow moulding, in the water tanks and containers, packaging and floating solar segments (DRHP p.126).

What drives demand: urban growth, housing and sanitation, with schemes such as the Jal Jeevan Mission, PMAY, AMRUT and Smart Cities (DRHP p.109, DRHP p.116); HDPE packaging for food, pharmaceutical and chemical makers (DRHP p.114); farm irrigation and rainwater storage (DRHP p.111); and solar power, with installed solar capacity of 164.59 GW, 54 sanctioned solar parks of 39,188 MW and a floating solar potential put at about 102.18 GWp (DRHP p.111, DRHP p.112). The report rates the floating solar driver moderate for the next one to two years (DRHP p.114).

Structure: the report describes a market of large integrated makers and regional organised processors, with price competition from organised and unorganised makers in water tanks and packaging (DRHP p.118, DRHP p.115). It lists capital cost, BIS and FSSAI standards, raw material supply, environmental rules and customer approval as barriers to entry (DRHP p.119, DRHP p.120). It names Dutron Polymers Limited, Prince Pipes and Fittings Limited and Time Technoplast Limited as key players; Prince Pipes has eight plants with 397,559 tonnes a year of installed capacity (DRHP p.120, DRHP p.121).

Inputs and trade: the inputs are HDPE, PP and other resins made from crude oil and gas (DRHP p.115). Wholesale price indices in 2025-26 were about 132 for PP, 134 for PE and 117 for PVC, down from 2021-22 peaks near 142, 143 and 153 (DRHP p.108). India's exports of plastics and articles were US$7,597.39 million in FY2026 and imports US$22,234.48 million, China supplying 30.19% of imports (DRHP p.113). The company imported 56.47% of its FY26 purchases (DRHP p.23).

Rules: the business needs factory licences, pollution board consents under the Water and Air Acts, compliance with the Plastic Waste Management Rules and Extended Producer Responsibility, BIS standards for tanks and packaging and FSSAI rules for food-grade products (DRHP p.148, DRHP p.150, DRHP p.117, DRHP p.118). Its factory licence runs to December 31, 2026 and its consent to operate to December 31, 2029 (DRHP p.255).

What the chapter says can go wrong: resin prices that follow crude oil, tighter plastic waste and EPR rules, price competition, rising energy and freight costs for bulky goods, and higher quality demands (DRHP p.115). The SWOT adds dependence on Kerala and South India (DRHP p.124). The chapter's general section notes slower industrial output growth and retail inflation rising each month from April to August 2026 (DRHP p.103, DRHP p.104). The company itself calls its business seasonal (DRHP p.250).

15Competitive position

Selzer Polymers competitors

Source: DRHP p.94, DRHP p.95, DRHP p.96, converted from ₹ lakh. Time Technoplast's revenue is about 61 times the company's, Prince Pipes' about 26 times; Dutron is a little smaller and its revenue fell in each of the last three years (our arithmetic, DRHP p.94, DRHP p.95, DRHP p.96).

What the company puts forward: a registered design for its auto-clean tank and claims, sourced to the commissioned report, to be first in India with auto-clean tanks, HDPE septic tanks and octagonal underground sump tanks; virgin food-grade HDPE; ISO and ZED certification; more than 2,000 dealers; and its own fleet (DRHP p.135, DRHP p.136, DRHP p.147).

The commissioned report also mentions floating solar projects for NTPC, L&T, JSW Energy and MCFL and a partnership with Sungrow (DRHP p.124). Against that: one plant, 97.26% of sales in South India, more than half of purchases imported, no long-term customer or supply contracts, and a promoter-owned company in the same trade (DRHP p.25, DRHP p.139, DRHP p.23, DRHP p.27, DRHP p.24).

16Peers the company named

Peers named in the offer document: Time Technoplast Limited, Prince Pipes and Fittings Limited and Dutron Polymers Limited (DRHP p.91).

Time Technoplast and Prince Pipes are many times the company's size, and Prince Pipes and Dutron are mainly pipe makers, a line the company plans to add (DRHP p.120, DRHP p.94, DRHP p.95, DRHP p.138). The document gives their P/E as 17.97, 39.27 and 23.78 on September 25, 2026, an average of 27.01 (DRHP p.91). The company's FY26 EPS is ₹10.25 on ₹10 shares (DRHP p.91). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Selzer Polymers IPO risks

Business: one jump year: profit after tax was 3.37% of revenue in FY24 and 8.55% in FY26 (DRHP p.128) → most of the profit record rests on one year → FY26 profit of ₹8.5 crore was nearly four times FY24's ₹2.2 crore (DRHP p.49).

Customers: place: Kerala and Tamil Nadu were 83.88% of FY26 revenue (DRHP p.23) → a slowdown, flood or policy change in those states hits most of the sales → Southern India was 97.26% (DRHP p.139).

Suppliers: imports: imports were 56.47% of FY26 purchases, mainly from Saudi Arabia, Qatar and Kuwait (DRHP p.23) → resin prices, freight and the rupee move costs, and the company may not pass them on → the largest supplier was 28.21% of purchases (DRHP p.141).

Promoters: related company: KTK Polymers Private Limited, owned by the Chairman, is in the same trade and bought ₹8.4 crore from the company in FY26 (DRHP p.24, DRHP p.176) → prices and business between the two are set between related parties → group entity sales were ₹13.3 crore in FY26 (DRHP p.210).

Financial: cash and debt: FY26 operating cash flow was ₹1.8 crore against ₹8.5 crore of profit (DRHP p.50) → growth used cash, and borrowings rose to ₹24.5 crore → ₹4.8 crore of that is directors' loans repayable on demand (DRHP p.224, DRHP p.34).

Financial: pay: the three executive directors are to be paid ₹1.25 crore a year each from August 2026, with increments of up to 40% a year (DRHP p.160) → a higher fixed cost → FY26 director remuneration was ₹2.0 crore in all (DRHP p.201).

Regulation: late filings: GST returns in Kerala were filed late in most months from April 2023 to March 2026, and EPF returns up to 151 days late (DRHP p.29, DRHP p.30) → penalties and interest → interest on late statutory payments was ₹0.25 crore in FY26 (DRHP p.201).

Legal: company law records: the March 2025 allotment was reported to the Registrar as a private placement although it was a loan conversion, some HDFC Bank charges were not registered, and some filings were late (DRHP p.33) → the Registrar may levy penalties → no proceeding has been started (DRHP p.33).

Issue-specific: the new plant: orders for about ₹7.7 crore of machinery are yet to be placed and the project is to start in December 2026 (DRHP p.32, DRHP p.81) → delays or higher costs fall on internal funds → the planned capacity is 362 tonnes a year against 4,675 tonnes at Thrissur (DRHP p.77, DRHP p.142).

18Litigation and regulatory matters

Cases against Selzer Polymers and its promoters

Criminal: none by or against the company, directors, promoters or key managers (DRHP p.251, DRHP p.252, DRHP p.253). Regulatory: no actions by statutory or regulatory authorities against the company, directors or promoters (DRHP p.251, DRHP p.252). Civil: no material civil cases, on a threshold of ₹0.37 crore (DRHP p.251). Directors other than promoters: none (DRHP p.252). Group company: no pending litigation with a material effect (DRHP p.176). Creditors:

seven material creditors were owed ₹1.3 crore at March 31, 2026 (DRHP p.253). Corporate law and labour: the late GST, EPF and ESIC filings and the company law reporting errors are disclosed as risks, with no show cause notice received (DRHP p.30, DRHP p.33).

19Related-party transactions

Source: DRHP p.210, converted from ₹ lakh. For April 1 to July 7, 2024 group sales were ₹1.1 crore (DRHP p.210). Interest of ₹0.12 crore and rent of ₹0.07 crore were paid to directors in FY26 (DRHP p.210). Directors' loans outstanding were ₹4.8 crore at March 2026 against ₹7.7 crore at March 2024, and ₹1.7 crore was owed to group entities (DRHP p.211).

The related parties named are the three directors, Subin Sunny, Prince Francis, Sunin Sunny, Reena Tony, KTK Polymers Private Limited, the proprietorships KTK Polymers and KTK Impex and the firms Innovationz and Stolz (DRHP p.210). All related-party transactions together, including loans, were 26.32% of FY26 revenue (DRHP p.26).

What appeared or changed in the two years before filing: KTK Polymers Private Limited, which had no revenue in FY23 to FY25, started business in FY26 and bought ₹8.4 crore and sold ₹0.89 crore of goods in FY26 (DRHP p.175, DRHP p.210, DRHP p.176); a non-compete agreement with it is dated June 30, 2026 (DRHP p.176); and leases for a branch office from Sunny TP from July 1, 2026 and storage land from Subin Sunny from December 1, 2025 were signed (DRHP p.146). The company says its related-party transactions are at arm's length (DRHP p.26).

20What the offer document does not say

Customers are not named, and tonnes sold and prices by product are not given, so growth cannot be fully split into volume and price. Product or segment margins are not given, as the company reports one segment (DRHP p.190). The commissioned report does not size the South Indian tank market, industrial drums or floating solar floats in money. No order book is disclosed.

Why the new Tamil Nadu plant is planned at 362 tonnes a year for ₹17.2 crore is not explained (DRHP p.77). The cost of the stated Thrissur expansion is not given (DRHP p.76). The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.75, DRHP p.87). The after-issue shareholding is blank (DRHP p.70). The underwriter and market maker are not yet named (DRHP p.62, DRHP p.63).

Some inconsistencies are recorded as document matters, not business ones: FY26 sales to KTK Polymers Private Limited of ₹8.4 crore are larger than the ₹8.2 crore given for the largest customer (DRHP p.176, DRHP p.141); revenue "through dealers" equals water tank revenue to the rupee in every period (DRHP p.27, DRHP p.127); the history chapter says there was no conversion of loans into equity

while the capital structure records one in March 2025 (DRHP p.155, DRHP p.65); directors' loans are ₹2.3 crore in the risk factors and ₹4.8 crore outstanding in the accounts at the same date (DRHP p.34, DRHP p.195); the commissioned report gives FY26 EBITDA of ₹13.1 crore against ₹14.5 crore in the KPI table and Time Technoplast's revenue as ₹2,880.4 crore against ₹6,105.2 crore in the peer table (DRHP p.121, DRHP p.128, DRHP p.122, DRHP p.94);

the report calls Rajasthan's solar park capacity the highest while printing a larger figure for Gujarat (DRHP p.112); the Tamil Nadu lease is dated June 20, 2026 in one table and August 20, 2026 in the text (DRHP p.78, DRHP p.76); the deployment period is FY 2026 to FY 2027 in the risk factors and FY 2026-27 in the objects (DRHP p.35, DRHP p.76);

the audit committee chair is named "Manju John" while the director is Manju Sandeep (DRHP p.162, DRHP p.158); the MD&A says all receivables are within six months while the ageing shows ₹0.29 crore older (DRHP p.247, DRHP p.208); and KTK Polymers Private Limited's table shows a FY24 loss of ₹9.7 crore on nil revenue with reserves of minus ₹0.12 crore (DRHP p.175).

21Five questions for management

1. What were tonnes sold and average prices for water tanks, drums and floats in FY24, FY25 and FY26, so that growth can be split into volume and price?
2. On what terms does the company supply KTK Polymers Private Limited, what does that company do with the goods, and why is it not the largest customer in the concentration table?
3. How much of the FY26 rise in margin came from cheaper resin, reground scrap, the auto-clean tank mix and solar floats, and how much has held since March 2026?
4. Why is the Tamil Nadu plant planned at 362 tonnes a year, and what will it make and at what utilisation in its first full year?
5. How much of the ₹10.0 crore of inventory and ₹5.1 crore of vendor advances at March 31, 2026 has since turned into sales or stock, and what is the target holding?

1Sources and cited facts

This study was read from 1 document the company filed. The 198 figures it cites are listed under the document each came from, with the page and the sentence as printed.