Subam Papers Limited is launching its Initial Public Offering (IPO) as a book-built issue, providing investors with an opportunity to participate in a growing company within the paper manufacturing sector. The IPO consists entirely of fresh shares and aims to raise substantial capital for business expansion and operational growth.
For those considering IPO investment, this offering presents a chance to explore a promising company with solid financial performance and growth potential. With its strategic listing on the SME exchange, Subam Papers Limited is drawing attention from various investor segments, including retail investors, QIBs, and HNIs.
Subam Papers Limited seeks to raise approximately ₹93.70 crores through its forthcoming Book Built Issue IPO. The IPO comprises a fresh issue of 61.65 lakh shares. The price band for the Subam Papers Limited IPO is set between ₹144 to ₹152 per share, with the issue opening on September 30, 2024, and closing on October 3, 2024. Retail investors can join with a minimum purchase of 800 shares, requiring an investment of ₹121,600. High Net-worth Individuals (HNIs) must invest in at least two lots (1,600 shares), totalling ₹243,200. The IPO is scheduled to list on the BSE SME on October 8, 2024.
With a retail quota of 35%, QIBs at 50%, and HNIs at 15%, Subam Papers IPO has attracted significant interest from investors. The company, which reported revenues of ₹496.97 crores in 2024, is viewed as a promising long-term investment option, making it a notable entry among upcoming IPOs.
Investors should familiarise themselves with the IPO timeline to effectively manage their applications and set realistic expectations. The following table outlines the key dates for the Subam Papers Limited IPO:
| Subam Papers Limited IPO open date | Monday, September 30, 2024 |
| Subam Papers Limited IPO close date | Thursday, October 3, 2024 |
| UPI mandate confirmation | 5 PM on October 3, 2024 |
| Allotment finalisation basis | Friday, October 4, 2024 |
| Refund initiation | Monday, October 7, 2024 |
| Transfer of shares to the demat account | Monday, October 7, 2024 |
| Subam Papers Limited IPO Listing date | Tuesday, October 8, 2024 |
Subam Papers Limited, incorporated in October 2006, is a leading manufacturer of Kraft Paper and paper products. It uses waste paper as its primary raw material. The company has grown significantly, with an installed capacity of 300 metric tons per day as of March 31, 2024, and a total group capacity exceeding 1,000 metric tons per day across multiple locations.
Subam Papers manufactures Kraft Paper and Duplex Boards in various shades, with GSM ranging from 120 to 300, a Busting Factor from 16 to 35, and Deckle sizes between 2,000 mm and 4,400 mm. Their products cater to industries like FMCG, pharmaceuticals, automobiles, textiles, and more, emphasising sustainability and ERP-powered inventory management.
Over the years, Subam Papers Limited has experienced significant changes in its financial performance, marked by considerable increases in assets and revenue, even as profit after tax (PAT) slightly declined between 2022 and 2024.
| Financial information (Restated standalone) | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
| Assets (₹ in Lakhs) | 39,418.33 | 41,434.65 | 46,046.1 |
| Revenue (₹ in Lakhs) | 33,259.87 | 51,062.36 | 49,697.31 |
| Profit after tax (₹ in Lakhs) | 2,600.23 | -26.79 | 3,341.8 |
| Net worth (₹ in Lakhs) | 16,589.11 | 16,562.32 | 19,904.12 |
| Reserves and surplus | 16,426.34 | 16,399.55 | 19,741.35 |
| Total borrowing (₹ in Lakhs) | 15,573.37 | 16,282.61 | 18,340.77 |
Subam Papers Limited presents a strong investment opportunity due to its focus on sustainability, automated manufacturing, and efficient water management. Its established presence across South India and competitive cost structure offer growth potential. However, investors should consider challenges like raw material price fluctuations, limited technological advancements, and regional dependency before making a decision. Weighing both the strengths and challenges can help determine if this SME IPO aligns with your investment goals.
Subam Papers Limited's IPO presents an intriguing opportunity for investors looking to invest in the paper manufacturing sector, especially given its focus on sustainability and automated production processes. The company has shown consistent growth, with a strong distribution network and competitive cost structure. However, challenges such as fluctuating raw material prices and regional dependence should be carefully considered. As with any investment, it's essential to evaluate both the potential rewards and risks before making a decision. The Subam Papers Limited IPO details and reviews can provide valuable insights for those looking to invest in this promising offering.
The Subam Papers Limited IPO GMP indicates the premium at which the shares are expected to trade in the grey market. Investors should check current market conditions for accurate figures.
The Subam Papers Limited IPO SME represents a significant opportunity for retail investors and institutions looking to invest in a growing company within the SME exchange.
Subam Papers Limited IPO reviews highlight the company’s strong financial performance and growth potential, making it a noteworthy investment option among upcoming IPOs.
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