GSM Foils shares list at IPO price on NSE SME platform

The shares of GSM Foils listed on the NSE SME platform at the IPO price of Rs 32 apiece.

Ahead of the listing, the company's shares traded with a premium of Rs 5 in the unlisted market.

The IPO, which was completely a fresh equity issue of 34.4 lakh shares, witnessed healthy response from investors with an overall subscription of 250 times at close.

The net proceeds from the public offer will be used for the purchase of plant and machinery for existing manufacturing facilities, funding working capital requirements and other general corporate purposes.

GSM Foils is engaged in the business of manufacturing Blister Foils and Aluminium Pharma Foils, which are used in packing of pharmaceutical medicines such as capsules and tablets.

This is a primary packaging material which comes in direct contact with the medicine, hence, utmost care is taken with regards to its quality. Over the past few years, the company has acquired definite know-how in different types of foils used in pharmaceutical companies.

It offers Aluminium foils in different sizes, shapes and thickness to meet the diverse needs of the clients. The range of its products includes plain and printed aluminium foils and strip foils along with alu base foils and it ranges from 0.020/ 0.025/ 0.030/ 0.040 micron for coated /poly laminated/ blister/ strip printed foils.

Aluminium Foil or Strip Foils are one of the packaging options for highly sensitive pharmaceutical products that protects the medicines from oxygen, moisture, and other environmental influences.

These foils are used in packaging of capsules which requires more bursting strength as they are bigger in size and are used to create a push-through closure with lid film where tablets and capsules are protected perfectly and hygienically.

Blister Foils are commonly used as unit-dose packaging for pharmaceutical tablets. Blister foils are suitable for hard packing of medical and pharmaceutical products.

India's pharmaceutical industry leads globally, is renowned for affordable generic drugs and vaccines. With a 9.43% CAGR over nine years, it ranks third in production volume.

For the period ended December 2023, the company clocked revenues of Rs 27.17 crore and net profit of Rs 1.24 crore.