Big move in the packaging sector! 760 crore IPO of ‘Bharat PET’ to come; Documents filed with SEBI

Bharat PET Limited, an integrated packaging solutions provider, has filed for an initial public offering of Rs 760 crore with market regulator Securities and Exchange Board of India (SEBI).IPO) has filed a Draft Red Herring Prospectus (DRHP). The issue includes a fresh issue of Rs 120 crore with a face value of Rs 10 and an offer for sale (OFS) of Rs 640 crore. OFS will be done by promoter group Deepak Gupta, Ankur Gupta, Rahul Gupta and other shareholders.

The company is also looking to raise up to Rs 24 crore through a pre-IPO placement. The funds from the fresh issue will be used for debt repayment (Rs 50 crore), capital expenditure for purchase of machinery (Rs 35.8 crore) and general corporate needs.

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Founded in 1998, Bharat PET has evolved from a regional manufacturer to a supplier of holistic packaging solutions. The company manufactures a diverse portfolio of products such as PET bottles, jars, preforms, multi-layer co-extruded bottles, caps, closures and tin containers. According to the CARE report, the company has about 11 percent market share in the Indian agrochemical packaging sector.

The company has a strong base of in-house design, tooling and manufacturing capabilities with the ability to manufacture molds within 48 hours as per customer requirements. A portfolio of over 500 molds is available with the company. India PET serves more than 1,500 customers, of which 91 percent of revenue comes from repeat customers.

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Major customers of the company include Tata Consumer Products Limited, PI Industries Limited and India Pesticides Limited. The company operates four manufacturing plants at Delhi, Sonepat, Ankleshwar and Jammu.

Looking at the financial performance, in FY25 the company reported a revenue of Rs 411.82 crore and an EBITDA of Rs 87.93 crore. PAT stands at Rs 50.99 crores with ROE of 53.33% and ROCE of 32.51% recorded.

The Indian packaging industry is growing rapidly with FMCG, pharma and e-commerce sectors driving the demand. A huge growth is expected in this sector till 2030.

Equirus Capital Private Limited and Ambit Private Limited are the book running lead managers for this IPO.