Dhaval Packaging’s US$4.36M IPO opens for subscription with US$1.16 price band, US$1.2M anchor support

INDIA – Dhaval Packaging has opened its ₹36.36 crore (US$4.36 million) SME IPO for public subscription, with a price band of ₹92 (US$1.10) to ₹97 (US$1.16) per share, after raising ₹9.99 crore (US$1.20 million) from anchor investors led by Vikas Khemani’s Carnelian Asset Management.

The Ahmedabad-based plastic packaging manufacturer’s IPO will close on August 3, with proceeds earmarked for capacity expansion at its Sanand-II facility (₹27.19 crore / US$3.26 million) and loan repayment (₹3.75 crore / US$449,000). 

The issue consists entirely of a fresh issue of 37,48,800 equity shares, with 49.95% allocated to QIBs, 15% to HNIs, and 35% to retail investors.

Anchor Investor Backing and Market Positioning

The company secured ₹9.99 crore (US$1.20 million) from five anchor investors on July 29 at ₹97 (US$1.16) per share, the upper end of the price band. 

Carnelian AIF Category I Trust – Scheme 1, led by Vikas Khemani, invested ₹5 crore (US$599,000), purchasing 5.16 lakh shares and accounting for approximately 50% of the anchor book. 

Other participants included Saint Capital Fund, VVD Equity Fund, Jalan Chemical Industries, and Blue Aster Capital Fund. At the upper price band of ₹97 (US$1.16), the IPO values the company at approximately ₹133 crore (US$15.9 million).

Two Core Business Verticals and Customer Base

Established in 2015, Dhaval Packaging operates across two verticals: In-Mould Labelled food-grade packaging containers and SAW pipe protection plastic caps for industrial applications. 

The company serves clients including Amul, Haldiram, and Vadilal, with 50% of its ₹50 crore (US$5.99 million) revenue coming from repeat customers. 

Its three manufacturing facilities at Sanand span over 60,000 sq. ft. with 21 injection moulding machines and a daily production capacity of approximately 8,400 kg. 

The company’s product portfolio includes food-grade containers, jars, cups, and containers for ice cream, dairy, confectionery, namkeen, and bakery applications.

Financial Performance and Growth Trajectory

For FY26, the company reported revenue of ₹65 crore (US$7.78 million), up 24.4% year-on-year, with profit after tax rising 33% to ₹8 crore (US$958,000). EBITDA increased 36.2% to ₹13.9 crore (US$1.67 million). 

The company expanded its export footprint by entering the Australian market and introduced a stackable tin-plastic hybrid packaging solution for premium food applications. 

With a P/E ratio of approximately 17, the company appears attractively valued compared to industry peer Mold-Tek Packaging at 33x.

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