Vedant Poly Fabs IPO Opens at ₹88-94 Price Band, Check Issue Size, Financials and Key Details

Vedant Poly Fabs IPO Details

The company has fixed the price band at ₹88 to ₹94 per equity share, with a face value of ₹10 each. The IPO comprises a fresh issue of 54.26 lakh shares worth approximately ₹51.01 crore and an offer for sale (OFS) of 6.04 lakh shares worth ₹5.67 crore at the upper price band.

The OFS will be undertaken by promoter Sethsawaria Poly Fab LLP, and the company will not receive proceeds from this portion of the issue.

The issue allocation includes up to 50% for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs) and at least 35% for retail investors, excluding the market maker reservation. The IPO does not have an anchor investor portion.

About Vedant Poly Fabs Limited

Incorporated in December 2018, Vedant Poly Fabs Limited manufactures flexible packaging materials used across the food and beverage, dairy and consumer goods industries.

Its product portfolio includes multilayer films, shrink films, barrier films, printed laminates and packaging pouches for milk and edible oils.

The company operates through a business-to-business (B2B) model and manufactures packaging materials based on customer requirements, including size, thickness, composition and printing specifications.

Its manufacturing facility is located in Barasat, West Bengal, with operations covering multilayer extrusion, printing, lamination, slitting and pouch manufacturing. West Bengal remains its principal market, although the company supplies products to customers across India.

Vedant Poly Fabs Financial Performance

Vedant Poly Fabs reported revenue from operations of ₹115.14 crore in FY26, compared with ₹81.02 crore in FY25, registering a growth of 42.11% year-on-year (YoY).

The company's profit after Tax (PAT) increased to ₹10.97 crore in FY26 from ₹4.56 crore in FY25, reflecting a growth of approximately 140% YoY.

Operating EBITDA rose to ₹19 crore in FY26 from ₹7.74 crore in FY25. Consequently, the operating EBITDA margin improved from 9.56% to 16.50% during the same period.

For the quarter ended June 2026, the company reported revenue of ₹30.29 crore and net profit of ₹3.48 crore. Its operating EBITDA margin stood at 21.76%, while the PAT margin was 11.48%.

The company reported a return on equity (ROE) of 38.03% and return on capital employed (ROCE) of 30.65% in FY26.

Objectives of the IPO

Vedant Poly Fabs plans to utilise the proceeds from the fresh issue primarily to meet working capital requirements, repay borrowings and purchase additional machinery.

The proposed allocation includes ₹24.61 crore towards incremental working capital requirements, ₹8 crore towards repayment or prepayment of borrowings and ₹6.51 crore towards plant and machinery at its existing manufacturing facility.

The remaining proceeds will be used for general corporate purposes and offer-related expenses.

The company's installed production capacity stood at 88.5 lakh kg in FY26, with capacity utilisation of approximately 71.64%. The proposed machinery addition is expected to increase annual manufacturing capacity to 1.32 crore kg.

Key Risks Associated With the Business

Vedant Poly Fabs has significant customer concentration. Its top 10 customers contributed 69.64% of revenue in FY26, increasing to 79.33% during the quarter ended June 2026. This makes the company's revenue dependent on a relatively small group of customers.

Related-party transactions accounted for approximately 41% of revenue in FY26 and 26% during the June 2026 quarter. The company also depends on a limited supplier base for raw materials, exposing its operations to changes in input prices and supply availability.

Another factor is its Reliance on verbal orders instead of formal long-term contracts, which can affect revenue visibility. A significant portion of its business also comes from West Bengal, creating geographical concentration.

Additionally, the company's quick ratio remained below 1 during FY24 to FY26, indicating working capital requirements associated with its expanding operations.

As the shares are proposed to list on the NSE Emerge platform, trading liquidity and price volatility may also differ from those of larger companies listed on the main exchanges.

Vedant Poly Fabs IPO: Key Takeaways

Vedant Poly Fabs is entering the capital market following growth in revenue and profitability over the past three financial years. Its revenue increased from ₹49.53 crore in FY24 to ₹115.14 crore in FY26, while operating EBITDA margins expanded from 2.60% to 16.50%.

The fresh issue proceeds are intended to support working capital, reduce borrowings and expand production capacity. However, customer concentration, related-party transactions, working capital requirements and dependence on a limited number of suppliers remain important factors associated with the company's operations.

The ₹56.68 crore IPO closes on November 4, 2026, with the proposed listing scheduled for November 9, 2026, on NSE Emerge.

Disclaimer: The article is for informational purposes only and not investment advice.