VMPL
New Delhi [India], September 30: Subam Papers Limited has announced its plan to go public with an Initial Public Offering (IPO) on September 30, 2024, aiming to raise up to Rs.93.70 Cr with shares to be listed on the BSE SME platform. The issue is Up To 61,64,800 Lakh Shares equity shares at a face value of Rs. 10 each. Total Issue Size (Fresh Issue): 61,64,800 Lakh Shares Equity Shares (aggregating up to 93.70 Cr) Shares. Subam Papers Ltd. (SPL) is engaged in the manufacturing of Kraft Paper and Paper Products. Subam started its journey in the year 2004 with the manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio.
* Market Maker Quota: 3,08,800 Shares
* QIB Quota (Including Anchor Reservation): Not more than 50.00% of the offer
* Retail Quota: Not less than 35.00% of the Net Issue
* NII9 (HNI) Quota: Not less than 15.00% of the Offer
* Price Band: Rs.144 to Rs 152
* Lot Size: 800 Shares
* IPO Size (at cap price): Rs. 61,64,800 shares (aggregating up to Rs. 93.70 Cr)
* Pre-Issue No. of Shares: 1,70,80,070 shares
* Post Issue No. of Shares: Upto 23,244,870 Shares
* Anchor day on: Friday Sept 27, 2024
* Issue Opens on: September 30, 2024
* Issue Closes on: October 3, 2024
* Tentative Listing Date: October 8, 2024
The shares, post allotment will be listed on BSE SME. The issue constitutes 26.52% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, the company will utilize Rs. 75.00 cr. for investment in subsidiary for capex requirements, and the rest for general corporate purposes.
Gretex Corporate Services Limited is the book running lead manager, while Bigshare Services Pvt. Ltd is the registrar for the issue. The market maker for Subam Paper Limited is Gretex Share Broking Limited.
T.Balakumar, CMD, Subam Papers Limited said "We are delighted to announce Our upcoming IPO on BSE Emerge Platform. The company is having many paper products Under one roof and is thus enjoying the preference of customers. We look forward to a Great future of the company".
About Subam Papers Limited:
Subam Papers Ltd. (SPL) is engaged in the manufacturing of Kraft Paper and Paper Products. Subam started its journey in the year 2004 with manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio. The company uses waste paper as raw material as it aims to preserve Mother Nature and tend to drive company on the principle of recycling. SPL is dedicated to sustainability, using recycled paper and cardboard in the production of Kraft Paper and Duplex Board. This not only reduces waste but also underscores its commitment to environmental responsibility. To further minimize environmental impact, it harnesses renewable energy through own wind and solar power installations. Its wind energy infrastructure includes two windmills: with a capacity of 850 KW each totalling approximately 1.7 MW. Additionally, the company operates a solar plant with a capacity of 14 MW. These renewable energy sources enable its manufacturing facilities to significantly reduce their carbon footprint, aligning with its goal of sustainable and eco-friendly operations.
The products it manufactures are used in various industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, printing and more, where packaging is indispensable. Paper products play a pivotal role in packaging across sectors, from biscuit wrappers to marriage invitations, showcasing the versatility and significance of its offerings across diverse industries. The company is having many paper products under one roof and is thus enjoying the preference of customers since they get all their needs on kraft paper and paper products at a competitive price from SPL.
Financials
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit/ - (loss) of Rs. 332.60 cr. / Rs. 26.00 cr. (FY22), Rs. 510.62 cr. / Rs. - (26.79) cr. (FY23), and Rs. 496.97 cr. / Rs. 33.41 cr. (FY24). The fluctuating top and bottom lines has surprised one and all. As per management, following highly volatile pricing of raw materials globally due to geo-political and Ukraine-Russia tussle, it had to suffer a setback for FY23. As the things improved, it got reflected in FY24 performance.
For the last three fiscals, the company has reported a weighted average EPS of Rs. 12.87 and a weighted average RONW of 10.95%. It's NAV is Rs. 122.29 as of March 31, 2024.
For the reported periods, the company has posted PAT margins of 7.90% (FY22), - (0.05) % (FY23), 6.77% (FY24), and RoCE margins of 12.82%, 5.88%, 20.84% respectively for the referred periods.
Disclaimer:
Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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