Ecoline Exim Limited IPO: Ecoline Exim IPO: Dates, Price, GMP, and A Comprehensive Analysis
Ecoline Exim Limited, a manufacturer of eco-friendly bags, is set to launch its SME IPO. This analysis provides a detailed breakdown of the company, its financials, and the IPO’s key aspects to help potential investors make an informed decision Ecoline Exim Limited IPO opens on Sept 23, 2025. Get a detailed review of the IPO, including its price band (₹134-141), financials, and listing gain expectations for this eco-friendly company.
Company Background
Founded in 2008, Ecoline Exim Limited is an India-based company that manufactures and exports a wide range of sustainable and eco-friendly packaging and promotional bags. The company’s products, made primarily from cotton and jute, are positioned as a green alternative to single-use plastics. Ecoline Exim caters to a global market, with a strong presence in the European Union, the USA, Japan, and other countries. The company operates multiple manufacturing units in Kolkata and Ahmedabad and has a robust business-to-business (B2B) model, serving supermarkets, retail chains, wholesalers, and promotional companies. As a testament to its quality and ethical practices, the company holds various certifications, including BSCI and ISO, and has been recognized as a “3-Star Export House” by the Indian government.
IPO Details & Financials
IPO Details
- IPO Dates: The IPO is scheduled to open for subscription from September 23, 2025, to September 25, 2025.
- Listing Date: The shares are proposed to be listed on the NSE Emerge platform on September 30, 2025.
- Price Band: The company has set the price band at ₹134 to ₹141 per equity share.
- Lot Size: The minimum application size for retail investors is 1,000 shares, requiring an investment of ₹141,000 at the upper price band.
- Issue Size: The total IPO size is ₹76.42 crore, comprising a fresh issue of 43,40,000 shares (₹61.19 crore) and an offer for sale (OFS) of 10,80,000 shares (₹15.23 crore).
- Objects of the Issue: The net proceeds from the fresh issue will be primarily used for establishing a new manufacturing unit in Ahmedabad, which will involve construction, and the procurement of new plant and machinery. A portion of the funds will also be used for general corporate purposes.
Financial Performance
Ecoline Exim has demonstrated a mixed financial performance, with some volatility in recent years.
| Particulars (in ₹ crore) | FY25 | FY24 | FY23 |
| Total Income | 269.29 | 280.59 | 310.67 |
| Profit After Tax (PAT) | 18.82 | 22.59 | 18.86 |
| EBITDA | 29.99 | 33.94 | 30.57 |
| Net Worth | 88.45 | 71.70 | 49.11 |
| ROE | 21.28% | 31.5% | 38.4% |
| Debt/Equity | 0.45 | 0.62 | 0.86 |
| EPS (in ₹) | 11.64 | 13.97 | 11.66 |
| P/E (at upper price band) | 12.12x | – | – |
Comparison with Peers
As the company primarily operates in the SME segment with a niche product line, a direct peer comparison is challenging. However, its valuation can be compared with other listed players in the packaging and textiles sectors.
- The company’s P/E ratio of 12.12x at the upper price band is competitive and appears reasonable when compared to some larger, more diversified players in the packaging space.
- Its Return on Equity (ROE), while showing a decline from previous years, remains healthy at 21.28%, reflecting efficient capital management.
- The company’s debt-to-equity ratio has consistently been low, a positive sign of a strong balance sheet.
Pros & Cons Summary
Pros
- Eco-Friendly Business Model: The company is well-positioned to benefit from the global shift towards sustainable and eco-friendly packaging.
- Export-Oriented: A significant portion of revenue comes from exports to developed countries, providing stability and access to a large market.
- Healthy Order Book: The company’s order book of ₹88.10 crore as of June 30, 2025, provides good revenue visibility for the near term.
- Clear Use of Proceeds: Funds from the fresh issue are strategically allocated for capacity expansion, which could fuel future growth.
Cons
- Fluctuating Financials: The company’s revenue and profitability have shown some volatility over the last three years, which may be a concern for some investors.
- High Competition: The packaging and textile industries are highly competitive, with both organized and unorganized players.
- Small-Cap & SME Risk: As an SME IPO, it carries higher risks due to lower liquidity and a potential lack of research coverage.
- Raw Material Price Volatility: Profitability is exposed to fluctuations in the prices of cotton and jute.
Listing Gain Expectation
The grey market premium (GMP) for Ecoline Exim IPO has been reported at around ₹5 per share. Based on the upper price band of ₹141, this suggests a potential listing gain of approximately 3.55%. While the GMP is a positive sign, it is an unofficial indicator. Given the company’s reasonable valuation and the positive sentiment around eco-friendly businesses, a positive listing is likely, though a significant premium is not expected.
Conclusion
Ecoline Exim Limited’s IPO offers an opportunity to invest in a company with a strong foundation in the rapidly growing sustainable packaging industry. Its focus on exports, coupled with a healthy order book and a clear plan for expansion, makes it an attractive proposition. While the financials show some recent volatility and the SME nature of the IPO brings a higher risk, the company’s valuation appears reasonable. Investors with a medium to long-term horizon and a belief in the sustainable business model may consider subscribing to this issue, anticipating modest listing gains and long-term value creation.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
