Bhavik Enterprises IPO Opens Today: September 29 is the Last Day of Subscription

Mumbai, September 25, 2025: Bhavik Enterprises Limited IPO has opened for subscription today and will be available till September 29, 2025. The shares will get listed on October 3, 2025. Established in 2008, Bhavik Enterprises Limited deals in polymers utilized in packaging, infrastructure, agriculture, and consumer goods sectors. The company operates on a “Stock & Sale” business model and services small, medium, as well as large B2B clients. Through its established network of distributors, robust supplier base, and geographical reach, it has emerged as a significant player in the Indian polymer trading market.

Bhavik Enterprises IPO Details

The issue is priced at a fixed price of ₹140 per share with a lot size of 1,000 shares. The issue size is ₹77 crore, including a fresh issue of 45 lakh equity shares for ₹63 crore and an offer for sale of 10 lakh shares for ₹14 crore.

Smart Horizon Capital Advisors Pvt. Ltd. is the lead manager to the issue, and Bigshare Services Pvt. Ltd. is the registrar. Shreni Shares Limited is acting as the market maker.

Net proceeds from the new issue will go largely towards working capital needs of ₹47.50 crore and general corporate purposes of ₹7.10 crore.

Financial Performance of Bhavik Enterprises IPO

Bhavik Enterprises has posted consistent revenues but has reduced profitability for the past three financial years. Operational revenue went up marginally from ₹48,727 lakh in FY23 to ₹52,727 lakh in FY25. But profit after tax decreased from ₹1,556 lakh in FY23 to ₹568 lakh in FY25, leading to a reduction in earnings per share from ₹9.81 to ₹3.58 during the same period.

Even with reduced profitability, the net worth of the company increased from ₹8,444 lakh during FY23 to ₹9,802 lakh during FY25. What’s significant is that Bhavik has had a debt-free balance sheet with no borrowings for the past three fiscal years.

Key Strengths of Bhavik Enterprises IPO

Bhavik Enterprises has established a varied product range in the business of polymer trading, trading in Polyethylene (LLDPE, LDPE, HDPE, MLLDPE) and Polypropylene (Homo, Impact, and Random co-polymers). Bhavik Enterprises has strong supplier relationships, such as an authorised distributorship arrangement with Borouge Pte Ltd and long-standing relationships with Basell International Trading FZE.

To maintain effective supply chain management, Bhavik has 12 depots and 11 warehouses in Gujarat, Maharashtra, and the Daman-Silvassa belt. The company is debt-free and draws on the services of seasoned promoters with over 15 years of experience in polymer trading.

Key Risks of Bhavik Enterprises IPO

The dependence of the company on one vendor is a critical risk factor, with procurement from Borouge Pte Ltd making up almost 80 percent of FY25. The revenues of Bhavik are geographically concentrated, and most sales are made within Gujarat, Maharashtra, and Daman-Silvassa, exposing it to western India disruptions.

The promoters and the company are also saddled with pending litigations of over ₹700 lakh. Profitability stress continues to be a worry, with PAT margins declining to 1.08 percent in FY25 from 3.19 percent in FY23.

More than 99 percent of purchases are imports, subjecting the company to exchange rates and import restrictions. The company is also a working capital-intensive business, with great exposure to inventories and receivables. Furthermore, changing environmental regulations regarding plastics may affect long-term demand.

Market Outlook

Analysts point out that while Bhavik Enterprises has a debt-free balance sheet and consistent revenues, its eroding profitability, supplier concentration, and litigation risks could act as dampeners for investor sentiment. The success of Bhavik Enterprises IPO will also depend on investor demand for trading-oriented firms with thin margins, especially in the SME space.

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