Ecoline Exim IPO opens for subscription today. Check GMP, price band and other details

Ecoline Exim will launch its IPO for subscription on Tuesday. The Rs 76.42 crore issue, which comprises a fresh issue of Rs 61.19 crore and an offer-for-sale of Rs 15.23 crore, will close on September 25. Shares of the sustainable packaging products maker will be listed on the NSE SME platform on September 30.

The company has set the price band at Rs 134–141 per share. Investors can bid for a minimum of 2,000 shares.

GMP signals

Analysts said the IPO is trading at a grey market premium (GMP) of about 7% over the upper price band. While GMP is an unofficial indicator and subject to change, it reflects modest listing-day expectations.

IPO structure

Out of the total 54.2 lakh shares on offer, 25.7 lakh shares are reserved for qualified institutional buyers (QIBs), 7.7 lakh shares for non-institutional investors (NIIs), and 18.0 lakh shares for retail investors.

Company overview

Ecoline Exim manufactures a wide range of sustainable cotton and jute packaging and promotional bags. Its eco-friendly products are supplied to global retailers, supermarkets, and wholesalers. The company has a strong export footprint, selling to more than 27 countries including the US, EU nations, Japan, and Mexico.

Ecoline Exim currently operates three manufacturing units — one in Ahmedabad, Gujarat, and two in West Bengal. Its product portfolio includes conventional and organic cotton bags, Fairtrade cotton bags, and jute shopping bags.

Financials

The company reported total income of Rs 273 crore in FY25, compared with Rs 281 crore in FY24. Profit after tax fell to Rs 18.8 crore in FY25, from Rs 22.6 crore the previous year.

Use of proceeds

The company plans to use Rs 50 crore from the fresh issue to set up a new manufacturing facility in Ahmedabad. The rest will go towards general corporate purposes.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)