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Silkflex Polymers (India) Limited IPO Review

Updated: May 9

Silkflex Polymers Limited IPO Review

Silkflex Polymers (India) Limited, a company known for its specialization in trading textile printing inks and water-based wood coating polymers, has made a significant mark in the industry. The company's roots can be traced back to Howrah, West Bengal, where it was incorporated on May 13, 2016. This strategic location has played a pivotal role in the company's distribution network across India.

The company is spearheaded by a group of promoters with a vision for innovation and quality. The promoter family includes Mr. Tushar Lalit Kumar Sanghavi, and Ms. Urmi Raj Mehta, M/s. Tushar Lalitkumar Sanghavi HUF, and M/s. Lalitbhai H Sanghvi HUF. Their collective leadership has steered the company towards a path of growth and expansion.

Silkflex Polymers (India) Limited was founded to import and distribute Silkflex products in India, which are manufactured by its Malaysian group company, Silkflex Polymers SDN BHD. The decision to start the business was driven by the opportunity to provide high-quality textile printing inks and wood coating polymers to the Indian market, catering to the growing demand for eco-friendly and sustainable products.

Silkflex Polymers (India) Limited stands as a testament to entrepreneurial spirit and commitment to quality. From its city of origin to its promoter family's vision, the company has navigated the business landscape with precision and strategic planning. As it continues to grow, Silkflex Polymers (India) Limited is poised to make even more significant contributions to the industry and the environment.

Competitive Strengths

Silkflex Polymers (India) Limited, incorporated in 2016, has emerged as a significant player in the Indian market for textile printing inks and water-based wood coating polymers. The company's competitive strengths are multifaceted, reflecting its strategic business decisions, product quality, and market positioning.

Revenue, Sales, and Profit

Silkflex Polymers (India) Limited has shown consistent growth in its financial performance over the past few years. For the fiscal year 2021, the company reported a revenue from operations of Rs. 20.75 crore. This figure saw an increase in the subsequent years, with revenues of Rs. 27.82 crore in FY 2022 and Rs. 34.21 crore in FY 2023. In terms of profit after tax (PAT), Silkflex Polymers recorded Rs. 0.61 crore in FY 2021, which grew to Rs. 0.92 crore in FY 2022 and further to Rs. 1.08 crore in FY 2023. These figures reflect the company's upward trajectory in both sales and profitability.

Distribution Network and Geographical Reach

Silkflex Polymers (India) Limited, formerly known as Silkflex Polymers (India) Private Limited, operates as a key player in the garment printing ink market. Originating from Malaysia, the company has established a robust distribution network in India, with its registered office in West Bengal and additional branch offices and warehouses in Gujarat, Maharashtra, Tamil Nadu, Rajasthan, and Punjab. This strategic placement of offices and warehouses facilitates efficient distribution and accessibility across various regions, enhancing the company's reach within the Indian market. Silkflex Polymers manufactures its products in Malaysia and distributes them globally, including in India, through authorized agents, ensuring a wide geographical reach. The company's products are used by major apparel brands worldwide, indicating a strong international presence. Furthermore, Silkflex Polymers has expanded into European countries like Portugal, Turkey, and Spain, showcasing its growing global footprint.

Unique Features

layer in the textile and wood coating industry. The company stands out for its in-house manufacturing and formulation of inks, starting from the polymer/resin to the final product. This vertical integration allows them to tailor-make polymers and inks for specific applications and effects, ensuring high performance that is largely dependent on the quality of the polymers/resin used. Silkflex Polymers Sdn. Bhd., their Malaysian counterpart, is a leading garment printing ink manufacturer with a significant capacity of 1000 MT per month, facilitated by a state-of-the-art thermal reactor. They are also a nominated supplier for global brands like PUMA, C&A, and H&M, and their products are used by major apparel brands worldwide. Expanding into the European market, they have established a presence in countries like Portugal, Turkey, and Spain. Additionally, Silkflex has introduced a fully water-based wood coating product line under the brand name Silkflex Wood Coating. This product is a leader in water-based wood coating technology, offering eco-friendly solutions with low VOC formulations that do not compromise on achieving extremely hard finishes rapidly. With over 100 variants of textile printing inks and 50 types of wood coating polymers, Silkflex Polymers (India) Limited brings innovation and quality to the Indian market, while also being part of a global supply chain that includes India, Thailand, Turkey, and beyond.

Investment in Research and Development

Silkflex Polymers (India) Limited, formerly known as Silkflex Polymers (India) Private Limited, is a company that has shown a commitment to innovation and quality in its products. The company is a distributor of products from Silkflex Polymers Sdn. Bhd. Malaysia, which is a leading manufacturer of garment printing inks with a significant production capacity. The Malaysian counterpart is known for its state-of-the-art thermal reactor and its ability to manufacture and formulate inks in-house, from polymer/resin to the final product. This vertical integration allows for a high degree of customization and quality control, which is critical in the ink manufacturing process. The company's investment in research and development is not explicitly detailed in the available information. However, the emphasis on in-house formulation and the recent expansion into eco-friendly wood coatings suggest a strong focus on R&D to maintain a competitive edge in the market. Additionally, Silkflex Polymers (India) Limited's recent IPO, aiming to raise ₹18.11 crores through the issue of 34.82 lakh shares, indicates a strategic move to bolster its financial capacity for future investments, which could include further R&D initiatives. Investors and stakeholders are encouraged to consult the company's financial statements and IPO prospectus for detailed insights into their R&D investments and strategies.

Silkflex Polymers (India) Limited IPO Details

  • Issue Date: The Issue Date in an Initial Public Offering (IPO) refers to the specific day when a company's shares are first made available for public purchase on the stock market. This date is a critical milestone in the IPO process, marking the transition of a company from private to public status and allowing investors to buy shares directly from the company for the first time. (Issue Date: May 7, 2024 to May 10, 2024).

  • Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Wednesday, May 15, 2024).

  • Face Value of Shares: The face value of shares in an Initial Public Offering (IPO) refers to the original cost of the shares as determined by the company going public. It represents the nominal value and is often set at a lower figure, such as Rs. 10 or Rs. 100, which remains constant irrespective of the market price of the share after the company is listed on the stock exchange. When a company launches an IPO, the shares are typically offered at a price that includes this face value plus an additional premium, which reflects the current market valuation of the company. The premium over the face value is determined by the company's financial performance and future growth prospects as assessed by the investment bankers managing the IPO. (Face Value: ₹10 per share).

  • Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹52 per share).

  • Lot Size: In the context of an Initial Public Offering (IPO), the term "lot size" refers to a fixed number of shares that the issuing company sets as the minimum quantity that investors can apply for. This lot size is predetermined before the IPO and is mentioned in the application forms. The lot size varies from one company to another and is an important factor for investors to consider when applying for an IPO. (Lot Size: 2000 Shares).

  • Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 3,482,000 shares (aggregating up to ₹18.11 Cr)).

  • Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 3,482,000 shares (aggregating up to ₹18.11 Cr)).

  • Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Fixed Price Issue IPO).

  • Listing At: An integral part of the IPO process is the listing. This refers to the day the company's shares officially begin trading on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: NSE SME).

  • Retail Shares Offered: Retail shares offered in an IPO refer to the portion of shares that are specifically allocated for individual investors, as opposed to institutional investors. These shares are part of the public offering where companies going public aim to raise capital by selling shares. Retail investors are typically allocated a certain percentage of the total shares available for the IPO. The allotment process for retail investors is designed to be fair and transparent, ensuring that all investors have an equal chance of receiving shares based on their application and market conditions. (Retail Shares Offered: 1,652,000 (47.44%)).

  • Market Makers Shares Offered: Market Maker Shares in an IPO refer to the shares that are allocated to market makers, who are responsible for improving the liquidity and facilitating better price discovery of the stock post-IPO. Market makers are registered members of the stock exchange and provide two-way quotes, buying and selling shares at predetermined prices. This system is particularly important for SME (Small and Medium-sized Enterprises) IPOs, where market makers play a crucial role in ensuring that there is enough trading activity and stability in the stock's price. (Market Maker Shares Offered: 178,000 (5.11%)).

  • Other Shares Offered: 1,652,000 (47.44%).

Competitors of Silkflex Polymers (India) Limited

Silkflex Polymers (India) Limited operates in the competitive and dynamic market of textile printing inks and water-based wood coating polymer products. The company, which trades products from the Malaysian brand Silkflex produced by Silkflex Polymers SDN BHD, faces competition from various players in the industry.

One of the key competitors identified for Silkflex Polymers is BASF India, a subsidiary of BASF SE, which operates in the chemicals sector with a diverse portfolio that includes paints and coatings. BASF India's strong market presence and extensive product range make it a formidable competitor in the coatings and inks segment.

Another competitor is Heubach Colorants, which specializes in pigments and pigment preparations, serving various industries including coatings, plastics, and inks. Their expertise in color solutions positions them as a significant player in the market where Silkflex Polymers operates.

Berger Paints, also listed as a competitor, is one of the largest paint companies in India. With a comprehensive range of products including decorative paints, industrial coatings, and protective coatings, Berger Paints competes in the same space by offering solutions for surface treatments and coatings.

The competitive landscape for Silkflex Polymers is not limited to these companies. The market is characterized by a number of players, ranging from large multinational corporations to smaller specialized firms, all vying for market share in the coatings and inks industry. Factors such as product quality, innovation, pricing, and distribution networks play crucial roles in determining the success of these companies in the market.

For Silkflex Polymers, staying competitive would likely involve continuous research and development to improve product offerings, strategic partnerships, and expansion of their distribution channels. Understanding customer needs and adapting to market trends are also essential for maintaining a strong position in the market.


In conclusion, the IPO of Silkflex Polymers (India) Limited presents a unique opportunity for investors. With its recent expansion into trading Malaysian textile printing inks and water-based wood coating polymer products, the company has shown remarkable profit growth in the 9 months of FY24. However, the sustainability of these earnings is a point of concern for potential investors. The IPO, priced at Rs. 52 per share, seems fully valued against the backdrop of the company's super earnings for the year. While the issue may appear attractive based on the annualized earnings, investors are advised to exercise caution and consider the long-term sustainability of Silkflex Polymers' profits before investing. Those with sufficient knowledge and a surplus of funds may find this IPO a worthwhile consideration for medium to long-term investment rewards.

Please Read the Detailed Review Here.

Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.


Q: What is an IPO?

An Initial Public Offering (IPO) is a process through which a privately held company offers its shares to the public for the first time and becomes a publicly traded company.


Q: How can I apply for an IPO?

You can apply for an IPO through various methods:

ASBA (Application Supported by Blocked Amount): In this method, your application money remains in your bank account until the basis of allotment is finalized.

UPI (Unified Payment Interface): You can authorize the blocking of funds in your bank account using UPI while applying for an IPO.

Q: What is ASBA?

ASBA stands for Application Supported by Blocked Amount. It allows your application money to be blocked in your bank account during the IPO bidding process. You continue to receive interest on the blocked amount.

Q: What is the difference between book building and a normal public issue?

Book building is a process where demand for securities is elicited and the price is assessed based on investor bids. In a normal public issue, the price is fixed by the issuer.

Q: Can I make payments through UPI for IPOs?

Yes, you can use UPI as a payment method for IPOs. The UPI platform blocks the funds for IPO applications after you approve the fund block mandate request.

Q: What is the minimum order quantity for an IPO?

The minimum number of shares you can apply for in an IPO is known as the minimum order quantity. It varies for each IPO.

Q: What is the cut-off price in an IPO?

The cut-off price is the price at which you bid for shares without specifying a particular price. It allows you to participate in the IPO without specifying a specific bid price.

Q: Can I revise my bids during the IPO process?

Yes, you can revise your bids multiple times before the IPO bidding period ends.

Q: Which banks offer the ASBA facility for IPOs?

Several banks, known as Self Certified Syndicate Banks (SCSBs), offer the ASBA facility. Some examples include HDFC Bank, ICICI Bank, Axis Bank, and SBI.

Q: How do I find IPO mandates on UPI apps?

You can check the list of UPI handles supported for IPO payments on the National Payments Corporation of India (NPCI) website. These handles allow you to apply for IPOs using UPI.

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