Success of IPO; PLY- HPL Segment is Better Organized than Plywood

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The recent successful subscription of IPO of two decorative laminates manufacturing companies shows the firmness in belief of this sector among investors. The high over subscription has boosted the confidence of many mid-segment brands that there working is now on the verge of gaining acknowledgment by financial sector too in time to come. Though HPL segment is better organized than plywood category but there are various brands who are producing every product category of this segment.

It is a fact that India’s decorative laminates sector poses transparent and organized working system compared to plywood, timber and furniture. This sector is mainly driven/ruled by organized companies, who have posted considerable growth in last 10 years. Experts say that the investors are bullish on building material segment, especially interior decorative sector irrespective of whether you are a Plywood manufacturer or MDF or a laminate company.

If we see the stock performance of Century Ply, Greenlam, Greenply, Stylam, Rushil décor, Ambition Mica, Uniply then you may get a peek into the investors’ faith. The recent successful subscription of IPO of Airolam Laminate and Milton Laminate (although both are small IPO for working capital purpose) is showing the opportunity for many new IPO’s from wood panel industries.

There is a bigger possibility of success of even small IPO now a days but if books, working and financial fundamentals are in order then only the company can think of walking on IPO route. Experts advise that if a promoter has a successful and honest track record with his company financials and having a clear road map to the journey ahead then this is the time for such players. It is an appropriate time to arrange capital through IPO because wood panel and furniture demand will grow further for organized category because Reforms are taking place and building materials are the basic need of human being.

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