Subam Papers IPO is a book-built issue worth ₹93.70 crores, consisting entirely of a fresh issue of 61.65 lakh shares.
The IPO opened for subscription on September 30, 2024, and will close on October 3, 2024. The allotment is expected to be finalized on October 4, 2024, with the shares expected to list on the BSE SME on October 8, 2024.
The price band for Subam Papers IPO is set between ₹144 and ₹152 per share. The minimum application size is 800 shares, requiring a minimum investment of ₹121,600 for retail investors, and ₹243,200 for HNI investors (2 lots of 1,600 shares).
Gretex Corporate Services Limited is the book-running lead manager, Bigshare Services Pvt Ltd is the registrar, and Gretex Share Broking is the market maker for the IPO.
Below are the details of Subam Papers Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Subam Papers Limited IPO Details
| IPO Date | September 30, 2024 to October 3, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹144 to ₹152 per share |
| Lot Size | 800 Shares |
| Total Issue Size | 6,164,800 shares (aggregating up to ₹93.70 Cr) |
| Fresh Issue | 6,164,800 shares (aggregating up to ₹93.70 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 17,080,070 |
| Share holding post issue | 23,244,870 |
| Market Maker portion | 308,800 shares |
Subam Papers Limited IPO Timeline
| IPO Open Date | Monday, September 30, 2024 |
| IPO Close Date | Thursday, October 3, 2024 |
| Basis of Allotment | Friday, October 4, 2024 |
| Initiation of Refunds | Monday, October 7, 2024 |
| Credit of Shares to Demat | Monday, October 7, 2024 |
| Listing Date | Tuesday, October 8, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 3, 2024 |
Subam Papers Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 800 | ₹121,600 |
| Retail (Max) | 1 | 800 | ₹121,600 |
| HNI (Min) | 2 | 1,600 | ₹243,200 |
Subam Papers Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 17,56,800 (28.5%) |
| Market Maker Shares Offered | 3,08,800 (5.01%) |
| QIB Shares Offered | 11,71,200 (19%) |
| NII (HNI) Shares Offered | 8,78,400 (14.25%) |
| Retail Shares Offered | 20,49,600 (33.25%) |
| Total Shares Offered | 61,64,800 (100%) |
Subam Papers Limited IPO Anchor Investors
| Bid Date | September 27, 2024 |
| Shares Offered | 1,756,800 |
| Anchor Portion Size (In Cr.) | 26.70 |
| Anchor lock-in period end date for 50% shares (30 Days) | November 3, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | January 2, 2025 |
Subam Papers Limited IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 46,046.1 | 41,434.65 | 39,418.33 | |||||||||||||||||||||||||||
| Revenue | 49,697.31 | 51,062.36 | 33,259.87 | |||||||||||||||||||||||||||
| Profit After Tax | 3,341.8 | -26.79 | 2,600.23 | |||||||||||||||||||||||||||
| Net Worth | 19,904.12 | 16,562.32 | 16,589.11 | |||||||||||||||||||||||||||
| Reserves and Surplus | 19,741.35 | 16,399.55 | 16,426.34 | |||||||||||||||||||||||||||
| Total Borrowing | 18,340.77 | 16,282.61 | 15,573.37 | |||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||
Subam Papers Limited IPO Review
Subam Papers Ltd. (SPL) manufactures Kraft Paper and Paper Products using waste paper as the primary raw material, emphasizing sustainability and recycling. The company, founded in 2004, produces paper cones, Duplex boards, and Kraft paper. SPL is committed to environmental responsibility, utilizing renewable energy sources, including windmills (1.7 MW) and a solar plant (14 MW), to minimize its carbon footprint. SPL serves industries like automotive, FMCG, pharmaceuticals, and more.
The company is launching an IPO of 61.65 lakh equity shares to raise ₹93.70 crores, with a price band of ₹144-₹152 per share. The IPO, open from September 30 to October 3, 2024, represents 26.52% of the post-IPO paid-up capital. Proceeds will primarily fund capex for a subsidiary, with the remainder for corporate purposes. Gretex Corporate Services Ltd. is the lead manager.
SPL’s financial performance has been inconsistent due to global pricing volatility but improved in FY24, with a total income of ₹496.97 crores and a net profit of ₹33.03 crores. The P/E ratio for FY24 is 10.99, and the issue appears fully priced. The company has not declared dividends and operates in a competitive packaging sector.
While SPL’s market peers are Pakka Ltd. and Shree Ajit Pulp, the companies are not directly comparable. Investors may consider this IPO for medium to long-term potential given the growing packaging industry.