Captain Polyplast announces Rs 34.56cr preferential issue to drive growth

Captain Polyplast Limited (CPL), a prominent provider of advanced irrigation solutions, has unveiled plans to raise ₹34.56 crore through a preferential issue of 48,00,000 convertible warrants priced at ₹72 each. The initiative, announced on December 6, 2024, aims to bolster the company’s growth trajectory and operational expansion. Of the total amount, promoters have committed ₹20.88 crore through the purchase of 29,00,000 warrants, showcasing strong internal confidence in the company’s strategic direction.

A spokesperson for Captain Polyplast emphasized that this capital infusion aligns with the company’s commitment to operational efficiency and innovation, particularly in sustainable agriculture. By leveraging these funds, the company intends to optimize its resources, enhance infrastructure, and reinforce its position in the micro irrigation market.

Established in 1997, Captain Polyplast has carved a niche in manufacturing and exporting micro irrigation systems, a critical tool for water conservation and agricultural productivity. With manufacturing facilities in Rajkot, Gujarat, and Kurnool, Andhra Pradesh, the company boasts a robust distribution network spanning 16 Indian states and multiple international markets, including Africa, Latin America, and the Middle East.

Recent ventures have further diversified CPL’s offerings. These include a foray into the solar EPC sector and a partnership with Indian Oil Corporation Limited (IOCL) for marketing polymer products in Gujarat. These initiatives underline the company’s focus on innovation and sustainability, reflecting its vision to cater to the evolving needs of the agriculture and renewable energy sectors.

The company’s strategic outlook remains optimistic, with plans to launch a state-of-the-art facility in Ahmedabad by Q1 FY26. This 70,000-square-foot plant is expected to specialize in critical components for micro irrigation, increasing production capacity while driving efficiency and profitability. Furthermore, CPL is working to diversify its revenue streams by focusing on non-subsidy micro irrigation sales, PVC pipes, exports, and solar EPC projects, ensuring long-term financial stability and reduced reliance on government incentives.

Captain Polyplast’s financial health underscores its growth potential. In the first half of FY25, the company reported consolidated revenues of ₹119.59 crore, an EBITDA of ₹13.51 crore, and a net profit of ₹19.48 crore.

While the preferential issue represents a bold step forward, industry observers note that it also signals CPL’s confidence in the micro irrigation and solar EPC sectors’ growth prospects. The company’s ability to maintain its leadership in sustainable agriculture solutions and expand its global footprint will likely determine the success of this latest funding initiative.