IPO Details
Bidding Dates
30 Sep '24 - 03 Oct '24
Minimum Investment
₹1,21,600/ 1 Lot (800 Shares)
Price Range
₹144 - ₹152
Maximum Investment
₹1,21,600/ 1 Lot (800 Shares)
Retail Discount
Not Applicable
Issue Size
₹93.70 crore
Investor category and sub category
Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | eligible employees |Subam Papers IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Sep 30, 2024
IPO Closing Date
Oct 3, 2024
Basis of Allotment
Oct 4, 2024
Initiation of Refunds
Oct 7, 2024
Listing Date
Oct 8, 2024
About Subam Papers IPO
Subam Papers Limited, a manufacturer of Kraft paper and paper products, is launching its IPO to raise ₹93.70 crores. The IPO will be a book-built issue with a fresh offering of 61.65 lakh shares. Subam Papers uses waste paper as its primary raw material, reflecting a sustainable approach to its manufacturing process.
The IPO opens for subscription on September 30, 2024, and will close on October 3, 2024. The price band is set between ₹144 and ₹152 per share, with a minimum application size of 800 shares. For retail investors, the minimum investment amount is ₹1,21,600, while for High Net-Worth Individuals (HNIs), the minimum is 2 lots (1,600 shares), totalling ₹2,43,200.
The allotment is expected to be finalised on October 4, 2024, and the shares will list on BSE SME, with a tentative listing date of October 8, 2024. Gretex Corporate Services Limited is the book-running lead manager, and Bigshare Services Pvt Ltd is the registrar for the issue. Gretex Share Broking is acting as the market maker.
Industry Outlook:
- The packaging sector is one of the fastest-growing in India, expanding at an annual rate of 22-25%. With over 900 paper units and an installed capacity of nearly 4,990 thousand tons, the industry shows immense potential.
- The government’s policies, including 100% Foreign Direct Investment (FDI), have attracted US$1.7 billion in the Paper and Pulp industry. This influx of investment enables technological innovations, improving production efficiency and sustainability.
Subam Papers IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Utilise the funds for investing in its subsidiary, focusing on financing capital expenditure requirements.
- The remaining funds will be allocated towards general corporate purposes.
About Subam Papers Limited
Subam Papers Limited, established in 2004, specialises in manufacturing Kraft Paper and Duplex Board. Unlike traditional paper manufacturers, the company uses waste paper as its primary raw material, promoting recycling and sustainability. Initially focused on producing paper cones, Subam Papers expanded its product range to include Kraft paper and Duplex board, offering diverse packaging solutions.
The company harnesses renewable energy through two windmills and a solar plant, with a combined capacity of 15.7 MW. This renewable energy infrastructure helps minimise its carbon footprint, aligning with Subam’s environmentally conscious business model. As of March 31, 2024, the company achieved a daily installed capacity of 300 metric tons for Kraft paper and 140 metric tons for Duplex board.
Located in Tirunelveli, Tamil Nadu, Subam Papers is well-positioned to serve both domestic and international markets, given its proximity to Tuticorin Harbor. The company also boasts a significant land bank, water supply permissions, and both internal and government-provided electricity, giving it a competitive edge in the Indian packaging industry.
Peer Details
According to RHP, the following are the listed peers of Subam Papers Limited:
- Pakka Limited
- Shree Ajit Pulp And Paper Limited
How To Check the Allotment Status of the Subam Papers Limited IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Subam Papers IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Subam Papers IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Subam Papers IPO
Registered office: S.F.No.143-146 Vaduganpatti Village Nadukallur to Tirunelveli, Tirunelveli, Tirunelveli Taluk- 627010, Tamil Nadu, India.
Phone: +91-9486303300
E-mail: info@subampapers.com
Financial Performance of Subam Papers Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh) | 49,386.46 | 50,829.89 | 32,927.45 |
| Profit After Tax (PAT) (in ₹ lakh) | 3,341.80 | (26.79) | 2,600.23 |
| Current Ratio (x) | 1.21 | 1.23 | 1.51 |
| Net Worth (in ₹ lakh) | 19,904.12 | 16,562.32 | 16,589.11 |
| EBITDA (in ₹ lakh) | 7,272.10 | 3,148.87 | 4,071.90 |
| Return on Equity (%) | 16.79 | (0.16) | 15.67 |
| Return on Capital Employed (RoCE) (%) | 20.84 | 5.88 | 12.82 |
| Earnings Per Share (in ₹) | 202.63 | 5.80 | 148.81 |
Know before investing
Strengths
6-
Subam Papers Limited uses 100% recycled paper, ensuring sustainable production.
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Proximity to Tamirabarani River ensures consistent, high-quality water supply.
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ERP technology streamlines inventory management for efficient operations.
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Fully integrated manufacturing facility ensures precision and high-quality output.
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Captive renewable power sources, like solar and wind, reduce carbon footprint.
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Expanding demand for odor-free paper boosts opportunities in food packaging.
Risks
6-
Ongoing litigations may harm Subam Papers Limited's business and reputation.
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Dependence on a few key suppliers may disrupt raw material procurement.
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Failure to obtain or renew permits could affect business operations.
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Related party transactions may result in conflicts of interest issues.
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Delays or non-receipt of payments may hurt financial performance.
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Contingent liabilities could negatively impact Subam Papers' financial condition.
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Subam Papers IPO FAQs
Subam Papers IPO is a book built issue IPO. The IPO will be open from September 30, 2024, to October 3, 2024.
The Basis of Allotment will happen on Friday, October 4, 2024.
The IPO subscription window will open on September 30, 2024.
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 800 shares.
The listing date for Subam Papers is Tuesday, October 8, 2024.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
- Multiple Submissions: Use different Demat accounts to make multiple applications.
- Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
- Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
To read Subam Papers’s financial statements, download the IPO’s RHP document.
