Shreenath Paper Products Limited, a manufacturer of paper products, is set to debut in the market with its Initial Public Offering (IPO) worth ₹23.36 crores. This entirely fresh issue comprises 53.10 lakh shares, with the subscription period running from February 25 to February 28, 2025. Investors can track the company's journey as it prepares to list on the BSE SME platform on March 5, 2025.
The IPO offers equity shares with a face value of ₹10 at an issue price of ₹44 per share, with a lot size of 3,000 shares. Retail investors can enter with a minimum investment of ₹1,32,000 (1 lot), while High Net-worth Individuals (HNIs) can participate with at least ₹2,64,000 (2 lots). The post-subscription process is streamlined, with share allotments expected by March 3, 2025, ahead of its BSE SME listing. As Shreenath Paper Products Limited steps into the public market, it presents a new investment opportunity in India's paper manufacturing sector.
Shreenath Paper Products Limited IPO is a fundraise worth ₹23.36 crores comprising purely of a fresh issue with 2,82,000 shares reserved for the market maker Pure Broking Private Limited. The IPO will be available for subscription from February 25, 2025, to February 28, 2025, providing an opportunity for investors looking to gain a stake in the paper manufacturing sector.
| Shreenath Paper Products IPO date | February 25, 2025 - February 28, 2025 |
| Fixed price | ₹44 per share |
| Face value | ₹10 per share |
| Lot size | 3000 shares |
| Issue type | Fixed Price IPO |
| Fresh issue size | 53,10,000 shares amounting to ₹23.36 crores |
| Total issue size | 53,10,000 shares amounting to ₹23.36 crores |
| Listing at | BSE SME |
| Market maker portion | 2,82,000 - Pure Broking Pvt Ltd |
| Shareholding post-issue | 1,96,54,200 shares |
| Shareholding pre-issue | 1,43,44,200 shares |
The Shreenath Paper Products Limited IPO opens for subscription on February 25, 2025, and closes on February 28, 2025, with allotment scheduled for March 3, 2025.
| IPO open date | February 25, 2025 (Tuesday) |
| IPO close date | February 28, 2025 (Friday) |
| Basis of allotment | March 3, 2025 (Monday) |
| Initiation of refunds | March 4, 2025 (Tuesday) |
| Credit of shares to Demat account | March 4, 2025 (Tuesday) |
| Listing date on BSE SME | March 5, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 28, 2025 (Friday) |
Established in 2011, Shreenath Paper Products Products Limited specializes in supply chain solutions for industries that utilize paper materials. The company provides a wide range of papers, including coated, food-grade, machine-glazed, and adhesive papers, catering to various manufacturing needs. Its product portfolio features sublimation base paper, thermal base paper, straw paper, cup stock paper, security PSA sheets, high-strength paper, and C2S and C1S papers.
With a deep understanding of client requirements, the company defines specifications, sources specialized manufacturers, tests samples, and procures materials in the desired quantities. It supplies paper in various grades made from recycled paper, bagasse, and virgin pulp. Serving industries such as FMCG, textiles, pharmaceuticals, packaging, food & beverages, and e-commerce, Shreenath Paper Products primarily operates across Maharashtra, Gujarat, and Madhya Pradesh.
The company intends to use the net proceeds from the issue to meet its growing working capital needs and for general corporate purposes.
As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 23.19%, Return on Capital Employed (ROCE) at 19.32%. The Return on Net-Worth (RoNW) stands at 23.19%, and the PAT Margin was 2.36%. The Price to Book Value was 3.33. The company’s market capitalisation is ₹86.48 Cr crore.
| Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 78.62 | 189.67 | 206.70 | 141.75 |
| Assets | 62.25 | 60.34 | 50.95 | 30.82 |
| Net Worth | 21.34 | 18.93 | 10.54 | 5.65 |
| Profit After Tax | 2.41 | 4.39 | 4.38 | 1.34 |
| Reserves & Surplus | 6.99 | 4.59 | 9.80 | 4.97 |
| Total Borrowing | 31.37 | 28.89 | 25.01 | 16.73 |
Amount in ₹ crores
The pre-IPO EPS is at ₹3.06 while the post-IPO EPS will be ₹1.63. Similarly, the pre-IPO Price to Earnings ratio is 14.37 and will become 26.97 post-IPO.
Shreenath Paper Products Products Limited operates with an extensible business model, allowing it to adapt to market demands efficiently. With a strong supplier network, the company ensures a seamless supply of various paper products. Its diverse product portfolio enables it to cater to multiple industries, and its ability to identify customer requirements strengthens its market positioning. Additionally, long-standing relationships with key customers contribute to consistent demand and revenue growth.
The company benefits from an experienced management team with a proven track record, which enhances operational efficiency and strategic decision-making. Moreover, its consistent financial performance reflects stability and growth potential, making it a strong contender in the paper supply industry.
Shreenath Paper Products relies on third-party manufacturers, as it does not own a production facility, making it vulnerable to supply chain disruptions. A high dependency on its top five suppliers could pose risks if there are any delays or shortages. Similarly, the company’s reliance on a few key customers means that losing even one could significantly impact revenue and profitability.
Legal and financial challenges also pose risks, as the company and its promoters are involved in ongoing litigation, which could lead to penalties or reputational damage. Additionally, high trade receivables and past negative cash flows may impact liquidity. Existing financial agreements with lenders impose restrictive covenants, limiting operational flexibility, while competition from a Promoter Group entity in the same industry could lead to conflicts of interest. Discrepancies in corporate records also pose regulatory risks.
Investing early in Shreenath Paper Products Limited’s IPO offers an opportunity to be part of its growth in the paper manufacturing sector. However, investors should carefully evaluate key aspects such as the company’s operational history, financial stability, industry trends, and expansion plans. It’s essential to align this investment with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance can help make a well-informed investment decision.
What is the Shreenath Paper Products Limited IPO?
The Shreenath Paper Products Limited IPO is an BSE SME offering consisting of 53.10 equity shares with a face value of ₹10, aiming to raise ₹23.36 crore. The issue price is ₹44 per share, with a minimum order quantity of 3,000 shares. This IPO will be open for subscription from February 25, 2025, to February 28, 2025. Galactico Corporate Services Limited is the book-running lead manager, Bigshare Services Pvt Ltd is the registrar while Pure Broking Private Limited is the market maker.
When will the Shreenath Paper Products IPO open?
The Shreenath Paper Products Limited IPO will open for subscription on February 25, 2025, and will close on February 28, 2025.
When is the Shreenath Paper Products IPO listing date?
The tentative listing date for the Shreenath Paper Products Limited IPO is Wednesday, March 5, 2025.
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