Polysil Irrigation Systems is a fully integrated player within the Drip and Sprinkler Irrigation sectors, with a significant presence in the Micro Irrigation segment. They offer a comprehensive range of HDPE pipes, fittings, and irrigation equipment including disc filters, screen filters, hydro-cyclone filters, sand (gravel) filters, compression fittings, valves (electrical and mechanical), fertilizer tanks, digital controllers, and pressure gauges. Their products are marketed under the brand ‘Polysil’ and sold through wholesalers and dealers to end-customers, who are farmers. The company’s pan-India reach allows it to leverage business associations with marquee clients, which include various state governments, agriculture NGOs, and large corporations.
The company is backed by strong financials and a robust business model. They are also known for providing quality products that meet Bureau of Indian Standards (BIS) standards and are tailored to the needs of farmers. This makes them an attractive investment option for investors with a medium-to-long-term perspective.
As of July 31, 2023, the company marketed its products through 8 distributors and 425 dealers in Gujarat, Tamil Nadu, Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, Rajasthan and Haryana. The IPO is expected to raise to Rs. 32,29,000 from the sale of shares at a price band of Rs. 54 per share.
Despite the decline in revenue from 2022 to 2023, the company has managed to maintain positive profitability. In addition, the diluted EPS has improved over the years, indicating that there is potential for growth in earnings.
Investors can participate in the IPO of Polysil Irrigation Systems Limited by subscribing to a minimum lot size of 2000 shares. The minimum investment amount for the retail category is Rs. 108,000 (2000 x Rs. 54/share). The shares will be allotted based on the application ratio and the final allocation shall be confirmed by the Registrar and Transfer Agent.
Interested investors can apply to the IPO through the ASBA system. Applicants can use their PAN, Application Number, or DP Client ID to check the status of their application. Once the allotment is complete, the IPO subscription will get credited to the investor’s Demat account.