Subam Papers Limited IPO Overview

The Subam Papers IPO is a book-built issue valued at ₹93.70 crores, consisting entirely of a fresh issue of 61.65 lakh shares. This IPO opens for subscription on September 30, 2024, and closes on October 3, 2024. The allotment is expected to be finalized on October 4, 2024, with a tentative listing on BSE SME set for October 8, 2024. The price band is fixed at ₹144 to ₹152 per share, with a minimum application lot size of 800 shares (totaling ₹121,600 for retail investors) and 1,600 shares (totaling ₹243,200 for HNI investors).

Gretex Corporate Services Limited serves as the book-running lead manager  for the IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. Additionally, Gretex Share Broking acts as the market maker, ensuring liquidity and facilitating a smooth trading experience for investors.

Refer to Subam Papers IPO RHP for detailed information.

Subam Papers Limited IPO Important dates

Subam Papers IPO opens on September 30, 2024, and closes on October 3, 2024.

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 Financial Performance

Subam Papers Limited’s revenue decreased by -3% and profit after tax (PAT) rose by 12574% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 31 Mar 2024 (₹ Crores) 31 Mar 2023 (₹ Crores) 31 Mar 2022 (₹ Crores)
Assets 460.46 Crore 414.35 Crore 394.18 Crore
Revenue 496.97 Crore 510.62 Crore 332.60 Crore
Profit After Tax 33.42 Crore -0.27 Crore 26.00 Crore
Net Worth 199.04 Crore 165.62 Crore 165.89 Crore
Reserves and Surplus 197.41 Crore 164.00 Crore 164.26 Crore
Total Borrowing 183.41 Crore 162.83 Crore 155.73 Crore

Subam Papers Limited IPO Key Performance Indicator

The market capitalization of Subam Papers IPO is Rs 353.32 Cr. KPI as of March 31, 2024.

KPI Values
ROE 16.79%
ROCE 20.84%
Debt/Equity 0.92
RoNW 16.79%
P/BV 1.24
PAT Margin (%) 6.77
Pre IPO Post IPO
EPS (Rs)  19.57 14.38
P/E (x)  7.77 10.57

Subam Papers Limited IPO Objectives

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects.

  1. Investment in a Subsidiary for Financing its Capital Expenditure requirements
  2. General Corporate Purposes

Subam Papers Limited IPO Lot Size

Investors can bid for a minimum of 800 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

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 Details

IPO Date September 30, 2024 to October 3, 2024
Listing Date [October 8, 2024]
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 Company Overview and Services

Incorporated in October 2006, Subam Papers Limited specializes in the production of high-quality Kraft paper and paper products, utilizing waste paper as a primary raw material. As of March 31, 2024, the company boasts an impressive installed capacity of 300 metric tons per day (MTPD), translating to an annual capacity of 93,600 tons.

Subam Papers is equipped to manufacture and supply Kraft paper and duplex boards in a variety of shades, with products that offer a GSM range of 120 to 300, a Busting Factor of 16 to 35, and Deckle sizes from 2,000 MM to 4,400 MM, with reel diameters reaching up to 1,400 MM. The company also maintains a substantial raw material storage facility, ensuring consistent production and the delivery of high-quality packaging solutions across multiple industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, and printing.

In 2023, Subam Papers received the EN ISO 9001:2015 certification, underscoring its commitment to quality in manufacturing and marketing packaging paper.

Competitive Strengths

  • Recycling and Sustainability: The company excels in recycling paper waste and providing sustainable packaging solutions, contributing to a greener environment.
  • Efficient Resource Management: Investment in water pumping stations and connecting pipelines ensures optimal water distribution throughout the facility, leveraging its strategic location near the Thamirabarani River, just 6 km away.
  • Advanced Technology: The use of ERP technology allows for effective inventory tracking and control, enhancing operational efficiency.
  • Automation for Productivity: With a fully automated manufacturing process, Subam Papers boosts productivity while maintaining high standards of quality.
  • Strong Workforce: As of September 2024, the company employs 500 permanent staff, reflecting its commitment to job creation and community engagement.

Subam Papers Limited is poised for growth in the packaging industry, driven by its sustainable practices and innovative approach to manufacturing.

Subam Papers Limited IPO SWOT Analysis

Strengths:

  1. Strong Market Position:
    • Established brand recognition in the paper manufacturing industry, which can attract investors.
  2. Diverse Product Range:
    • Offers a wide variety of paper products, catering to different market segments, enhancing customer reach.
  3. Sustainable Practices:
    • Commitment to environmentally friendly practices can appeal to eco-conscious investors and customers.
  4. Experienced Management:
    • A seasoned management team with industry expertise that can navigate market challenges effectively.
  5. Growth Potential:
    • Increasing demand for paper products in sectors like education, packaging, and publishing offers significant growth opportunities.

Weaknesses:

  1. High Capital Expenditure:
    • Initial investments for manufacturing facilities and technology upgrades may strain financial resources.
  2. Dependency on Raw Materials:
    • Vulnerability to fluctuations in the prices of raw materials like wood pulp and chemicals can affect profitability.
  3. Limited Market Diversification:
    • Primarily focused on specific geographical markets, which could limit growth potential compared to competitors with a broader reach.
  4. Regulatory Challenges:
    • Compliance with environmental and manufacturing regulations may increase operational costs.

Opportunities:

  1. Expansion into New Markets:
    • Potential to explore untapped markets domestically and internationally, enhancing revenue streams.
  2. E-commerce Growth:
    • The rise of e-commerce and digital marketing can lead to increased demand for packaging materials.
  3. Product Innovation:
    • Opportunity to develop and introduce innovative and specialized paper products to meet changing consumer preferences.
  4. Government Initiatives:
    • Supportive government policies for manufacturing and export promotion could provide a favorable business environment.

Threats:

  1. Intense Competition:
    • The paper industry is highly competitive, with many players vying for market share, which can lead to price wars.
  2. Digital Transformation:
    • Increasing digitalization and the shift toward paperless solutions can negatively impact demand for traditional paper products.
  3. Economic Downturns:
    • Economic fluctuations and downturns can lead to reduced spending on paper products, affecting sales.
  4. Environmental Concerns:
    • Growing awareness of environmental issues may lead to stricter regulations and consumer preferences shifting away from paper products.

Subam Papers Limited IPO GMP Details

Subam Papers  SME IPO last GMP is ₹60, last updated Sep 30th 2024. With the price band of 152.00, Subam Papers SME IPO’s estimated listing price is ₹212 (cap price + today’s GMP).The expected percentage gain/loss per share is 39.47%.

Stay with us to know the daily price trend of Subam Papers SME IPO GMP with expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
30-09-2024 Open 152.00 ₹60   36500 ₹212 (39.47%) 30-Sep-2024
29-09-2024 152.00 ₹55   33400 ₹207 (36.18%) 29-Sep-2024
28-09-2024 152.00 ₹40   24300 ₹192 (26.32%) 28-Sep-2024
27-09-2024 152.00 ₹15   9100 ₹167 (9.87%) 27-Sep-2024
26-09-2024 152.00 ₹0  — ₹152 (0%) 26-Sep-2024

Subam Papers Limited IPO subscription status 

Subam Papers IPO subscribed 0.39 times. The public issue subscribed 0.61 times in the retail category, 0.00 times in QIB, and 0.40 times in the NII category by September 30, 2024 4:09:12 PM.

Subam Papers Limited IPO Allotment status 

The allotment status of Subam Papers IPO is expected to be available on October 4, 2024.

Subam Papers IPO allotment status is not available at this time. Subam Papers IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Subam Papers Limited IPO allotment status.

To check Subam Papers IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Bigshare Services Pvt Ltd either by phone or email. Investors can call on +91-22-6263 8200 or send an email with all relevant details to investor@bigshareonline.com.

Subam Papers Limited Contact Details

Subam Papers Limited
S.F.No.143-146 Vaduganpatti
Village Nadukallur to Tirunelveli,
Tirunelveli, Tirunelveli Taluk- 627010,
Phone: +91-9486303300
Email: info@subampapers.com
Website: http://www.subampapers.com/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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