Bharat PET Files DRHP for Rs 760 Crore IPO: Fresh Issue & OFS Details

Packaging Major Bharat PET Approaches SEBI for Public Listing

In a significant development for the Indian primary markets, New Delhi-based integrated packaging solutions provider Bharat PET Limited has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise approximately Rs 760 crore through an Initial Public Offering (IPO). This move highlights the continued momentum in the Indian IPO space, as mid-sized manufacturing and industrial players tap into the capital markets to fund expansion, reduce debt, and provide exit opportunities for early stakeholders.

The proposed public issue will be conducted through the book-building process, with the equity shares having a face value of Rs 10 each. Upon successful clearance from the market regulator, the company plans to list its equity shares on both the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange).

Detailed Breakdown of the IPO Structure

According to the draft papers filed on Wednesday, March 25, 2026, the Rs 760 crore IPO is a combination of both a fresh issue of shares and an Offer for Sale (OFS).

Fresh Issue and Pre-IPO Placement

The company intends to raise up to Rs 120 crore through the issuance of fresh equity shares. This capital will flow directly into the company’s balance sheet to support its strategic corporate objectives. Furthermore, Bharat PET, in consultation with its Book Running Lead Managers (BRLMs), may consider raising up to Rs 24 crore via a pre-IPO placement round before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (ROC). If this pre-IPO placement is successfully executed, the size of the fresh issue will be reduced proportionately.

Offer for Sale (OFS) Component

The larger portion of the IPO consists of an Offer for Sale aggregating up to Rs 640 crore. Under the OFS route, existing promoters and shareholders will dilute their stakes, and the proceeds from this portion will go directly to the selling shareholders, not the company. The promoter selling shareholders participating in the OFS include Deepak Gupta, Ankur Gupta, Rahul Gupta, Sonu Gupta, Stuti Gupta, Ruchi Gupta, Mitali Gupta, and Santosh Devi Gupta.

Utilization of Fresh Issue Proceeds

Bharat PET has outlined a clear capital allocation strategy for the Rs 120 crore it aims to raise through the fresh issue. The management intends to deploy these funds to strengthen the balance sheet and enhance operational infrastructure. The designated objectives are as follows:

• Debt Repayment: The company plans to allocate Rs 50 crore towards the repayment or prepayment, either in full or in part, of certain outstanding borrowings. This reduction in debt is expected to lower finance costs and improve overall profitability margins.
• Capital Expenditure (CapEx): An amount of Rs 35.8 crore has been earmarked for funding capital expenditure requirements. This will specifically be used for purchasing advanced machinery and equipment to upgrade existing manufacturing facilities and expand production capabilities.
• General Corporate Purposes: The remaining balance of the net proceeds will be utilized for general corporate purposes, which typically include meeting working capital requirements, funding strategic initiatives, and covering routine operational expenses.

Business Overview: From Regional Player to Integrated Manufacturer

Founded in 1998 under the leadership of the late Subhash Gupta and the late Satya Narain Gupta, Bharat PET has evolved significantly over the past two and a half decades. The company has transitioned from a localized, regional manufacturer into a comprehensive, integrated packaging solutions provider.

Today, Bharat PET manufactures a highly diversified portfolio of rigid packaging products. Its core product range includes standard PET bottles and jars, preforms, multi-layer co-extruded bottles, specialised caps and closures, and tin containers. The company caters to multiple sectors, including food and beverages, pharmaceuticals, paints, industrial chemicals, and liquor.

Market Share and Marquee Clientele

Bharat PET has carved out a particularly strong niche in the agrochemical segment. According to a CARE industry report cited in the DRHP, the company currently holds an estimated market share of around 11% in India's agrochemical packaging sector.

The company boasts a robust B2B client base, serving more than 1,500 customers across various industries, with 841 active customers recorded as of September 30, 2025. Demonstrating strong client retention and product reliability, repeat customers accounted for nearly 91% of the company's total revenue. Its roster of marquee clients includes leading domestic brands such as Tata Consumer Products Limited, Dhanuka Agritech Limited, PI Industries Limited, India Pesticides Limited, and Safex Chemicals India Limited.

Manufacturing Capacity and Engineering Capabilities

A key differentiator for Bharat PET is its integrated manufacturing model combined with in-house design and tooling capabilities. The company’s engineering division is equipped for rapid prototyping, advanced tooling, and custom mould design. Impressively, the company claims the capability to deliver custom moulds within 48 hours of receiving client specifications. As of September 2025, Bharat PET had developed an extensive portfolio of over 500 moulds.

To cater to its pan-India client base, the company operates four strategically located manufacturing facilities in Delhi, Sonipat (Haryana), Ankleshwar (Gujarat), and Jammu. Together, these facilities command a total installed capacity of 18,110.53 Metric Tonnes Per Annum (MTPA) as of September 30, 2025.

Financial Performance and Growth Metrics

Bharat PET has demonstrated consistent financial growth, backed by scale and operational efficiency. Based on the pro forma consolidated financial data presented in the draft prospectus, the company reported strong top-line and bottom-line figures for the fiscal year ending March 31, 2025 (FY25).

• Revenue: The company recorded revenue from operations of Rs 411.82 crore in FY25.
• Profitability: Pro forma Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 87.93 crore in FY25, translating to a healthy EBITDA margin of 21.35%. Profit After Tax (PAT) for the same period was Rs 50.99 crore, with PAT margins improving to 16.90%.
• Half-Yearly Performance: The growth momentum continued into the current fiscal year. For the six months ended September 30, 2025, Bharat PET posted operating revenues of Rs 274.90 crore and a net profit of Rs 48.12 crore, alongside an improved EBITDA margin of 25.96%.
• Return Ratios: The company exhibits strong capital efficiency. In FY25, its pro forma Return on Equity (ROE) stood at an impressive 53.33%, while Return on Capital Employed (ROCE) was recorded at 32.51%.

Competitive Landscape

The Indian rigid plastic packaging industry is highly fragmented but features several large, established players. According to the regulatory filings, Bharat PET compares favorably against listed industry peers such as Mold-Tek Packaging, Shaily Engineering Plastics, and Time Technoplast. The DRHP notes that Bharat PET reported the second-highest fixed asset turnover ratio at 4.63, maintained the highest ROE among this peer group, and delivered the highest Compound Annual Growth Rate (CAGR) from FY23 to FY25.

Lead Managers and the Road Ahead

To manage the public offering, Bharat PET has appointed Equirus Capital Private Limited and Ambit Private Limited as the Book Running Lead Managers (BRLMs) for the issue. KFin Technologies Limited will serve as the official registrar.

The DRHP is currently under review by SEBI. Upon receiving the necessary observations and regulatory clearance from the market watchdog, the company will finalize its price band, lot size, and specific bidding dates before opening the issue to institutional, non-institutional, and retail investors.