Three M Paper Boards Limited (TMP), a manufacturer of recycled paper-based Duplex Boards, is set to debut on the BSE SME platform through an IPO. This blog dives into the details of the offering, explores the company's profile, and analyses the potential benefits and risks to help you decide if this aligns with your investment goals.
Three M Paper Boards IPO fundamentals
- Issue Type: Book Built Issue (entirely fresh issue)
- Issue Size: Rs 39.83 crores
- Face Value: Rs 10 per share
- Price Band: ₹67 to ₹69 per share
- Open Date: July 12, 2024
- Close Date: July 16, 2024
- Listing Date (Tentative): July 22, 2024 on BSE SME
Minimum investment for the Three M Paper Boards IPO
- Retail Investors: ₹138,000 (minimum lot of 2000 shares)
- HNI (High Net Worth Individuals): ₹276,000 (minimum lot of 4,000 shares)
About Three M Paper Boards
- Established in 1989, TMP manufactures high-quality Duplex Boards from recycled paper.
- These boards cater to the packaging needs of various industries, including food & beverage, pharmaceuticals, cosmetics, and consumer goods.
- TMP operates a manufacturing facility in Maharashtra with a capacity of 72,000 TPA (tonnes per annum) as of FY 2022-23.
- The company boasts a strong domestic and international presence, supplying its products to over 15 countries across Asia-Pacific, the Middle East, and Africa.
Three M Paper Boards financials
- It's important to note that Three M Paper Boards' revenue experienced a decrease of 16.3% in FY 2024 compared to FY 2023. However, the company's profit after tax (PAT) witnessed a significant rise of 71.53% during the same period.
- Further investigation into the reasons behind the revenue decline and the sustainability of the profit margin increase is essential.
Three M Paper Boards IPO investment highlights
- Recycled Paper Focus: Three M Paper Boards caters to the growing demand for sustainable packaging solutions, which aligns with environmental concerns.
- Global Presence: The company's established presence in both domestic and international markets offers diversification and potential for growth.
- Experienced Player: With over three decades of experience, TMP has a proven track record in the paperboard manufacturing industry.
Investment considerations for the Three M Paper Boards IPO
- SME Listing: This is an SME IPO investment, which generally carries higher risks compared to listings on the main BSE board. Lower liquidity and higher volatility are common features of SME stocks.
- Revenue Decline: The recent decrease in revenue requires careful analysis to understand the underlying reasons and future growth prospects.
- Competition: The paperboard packaging industry is competitive. TMP will need to maintain its product quality and cost-effectiveness to compete effectively.
Conclusion
The Three M Paper Boards IPO offers an opportunity to invest in a company with a focus on sustainable packaging solutions and a global market reach. However, the recent revenue decline, SME listing characteristics, and competitive landscape present certain risks. Carefully weigh the pros and cons and ensure this aligns with your investment strategy before making a decision.
Disclaimer
This blog is for informational purposes only and should not be considered financial advice. Before investing in any IPO, conduct thorough research, consult a qualified financial advisor, and carefully consider your risk tolerance and investment goals.
