Welcome to this in-depth analysis of two mainboard IPOs: All Time Plastics IPO and JSW Cement IPO. This article will explore which of these two IPOs delivered a surprising listing gain and which performed in line with expectations. We will also delve into post-listing day strategies and the future outlook for both companies based on their financials and market conditions.
All Time Plastics IPO: A Surprising Listing Gain
The All Time Plastics IPO significantly outperformed expectations, delivering a much better listing gain than anticipated. While its Grey Market Premium (GMP) was trading around 7%, the company listed between 13-14% on both BSE and NSE. This strong performance, with the listing gain approximately double the GMP, was unexpected, as only a 5-10% listing gain was initially projected. This positive listing gain is a favorable development for the IPO market, potentially improving overall market sentiment.
However, All Time Plastics Limited closed with approximately a 10% decline from its listing price today. Shares were allocated at ₹275, opened at ₹314, reached a high of ₹322, and recorded a low of ₹308. The company has a 20% upper and lower circuit limit.
JSW Cement IPO: Meeting Expectations
In contrast, the JSW Cement IPO’s listing gain was consistent with Grey Market Premium expectations. It was anticipated to list with a 4-5% gain, and it delivered a 4.5% positive listing gain. However, the share price subsequently saw a decline, leading to a negative closing. Overall, JSW Cement IPO met its initial listing gain expectations.
The JSW Cement IPO closed approximately 4.5% down from its listing price. Shares were allocated at ₹147, opened at ₹153, hit a high of ₹155, and recorded a low of ₹145 today. Similar to All Time Plastics, it also has a 20% upper and lower circuit limit.
Post-Listing Day Strategy and Market Outlook
A clear post-listing day strategy is crucial for investors. The Nifty’s decline and its closing today directly impacted the listing performance and subsequent closing prices of these IPOs. For companies that list with a 4-5% gain, it is generally advisable to hold the shares with the cut-off price as a strict stop-loss.
The positive listings of both mainboard IPOs are viewed as a positive signal, indicating potential for improved sentiment in the IPO market if overall market conditions remain favorable. The market’s momentum, particularly on Monday, will be significantly influenced by upcoming global events. The Trump-Putin meeting in Alaska will be a key focus. A positive outcome, especially regarding a resolution to the Russia-Ukraine conflict, could alleviate existing fears in the Indian market. Such developments could lead to sustained positive momentum for mainboard IPOs following their listings.
Deep Dive: All Time Plastics Limited
All Time Plastics Limited, established in 1971, is an older company specializing in the design of plastic consumer ware products. It is categorized as a small-cap company with a current market cap of ₹1567 crore. The stock’s low was ₹281, and its high was ₹325.
With a Price-to-Earnings (P/E) ratio of 35, the company’s valuation appears slightly expensive compared to the industry average. However, this valuation could be justified if the company reports strong quarterly numbers, which will be a key focus for investors moving forward.
The company has demonstrated consistent growth in its financials:
- Revenue: Grew from ₹247 crore (2018) to ₹513 crore currently.
- Operating Profit Margin (OPM): Improved from 14% to 19%.
- Net Profit: Increased from approximately ₹15 crore to ₹45 crore.
- Profit Growth: Showed a 23% CAGR.
- Sales Growth: Recorded a 22% growth.
These parameters indicate a strong performance. Future positive movement in the stock can be expected if the company continues to report good quarterly numbers and market conditions improve, though investors should strictly adhere to a stop-loss.
Deep Dive: JSW Cement IPO
JSW Cement, part of the JSW Group, is a mid-cap company with a market cap of ₹1832 crore. Future positive momentum for JSW Cement will largely depend on strong quarterly numbers and favorable market conditions, as good market conditions can help sustain its momentum.
The company recently experienced a revenue decline from 2024 to 2025, which directly impacted its listing. Furthermore, the Qualified Institutional Buyer (QIB) category did not show significant oversubscription (not subscribing 40-50 times), which also contributed to the lack of stronger positive momentum, unlike the strong reception seen by the JSW Infrastructure IPO.
JSW Cement currently lacks a Price-to-Earnings (P/E) ratio as it is a loss-making entity, though the industry P/E is 18. If the company reports profitable quarterly numbers in the future, it could potentially see a positive reversal from its negative listing. The company has a face value of ₹10, suggesting a potential for future stock splits for its shareholders.
While revenue showed strong growth from ₹2800 crore (2020) to ₹5800 crore, there has been a recent decline this year. The Operating Profit Margin (OPM) decreased from 21-16% to around 11%. Additionally, other income also saw a reduction from triple digits (around ₹200 crore) to around ₹100 crore. Crucially, the company transitioned from being profitable to operating at a loss, which significantly affected its subscription levels and listing performance.
Further important updates regarding JSW Cement’s momentum will be observed based on Monday’s market performance.
