Subam Papers is scheduled to hit the market on September 30, 2024 and close on October 3, 2024.
Subam Papers plans to raise around ₹93.70 Cr through an IPO with a sale of up to 6,164,800 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Subam Papers Limited, established in October 2006, manufactures Kraft Paper and related products using recycled waste paper as raw material. By March 31, 2024, the company had an installed capacity of 300 metric tons per day, which translates to an annual capacity of 93,600 tons. They produce Kraft Paper and Duplex Boards in various colors, with GSM ranging from 120 to 300, Busting Factor between 16 and 35, and Deckle sizes from 2,000 MM to 4,400 MM. The company also has a large storage facility for raw materials, ensuring a steady supply for high-quality production aimed at the packaging industry.
The products are used in diverse sectors like automobiles, textiles, FMCG, food, pharmaceuticals, and printing, where packaging plays a crucial role. Subam Papers has earned the EN ISO 9001:2015 certificate for its manufacturing and marketing processes in 2023. Some of the company's competitive strengths include recycling paper waste for sustainable packaging solutions, investing in water pumping stations for efficient water distribution, and employing ERP technology to manage inventory effectively. Their fully automated manufacturing process boosts productivity, and as of September 2024, they have 500 permanent employees.
Subam Papers IPO Details
Subam Papers IPO opens on September 30, 2024, and closes on October 03, 2024. The Listing date for Subam Papers IPO is on October 08, 2024. The price band for IPO is ₹144 to ₹152 per share and lot size of 800 Shares.
| IPO Date | September 30, 2024 to October 03, 2024 |
| Listing Date | October 08, 2024 |
| Price | ₹144 to ₹152 per share |
| Lot Size | 800 Shares |
| Issue Size | ₹93.70 Cr |
| Face Value | ₹10 per share |
Subam Papers IPO Tentative Timetable
Subam Papers opening date is September 30, 2024 and close date is October 03, 2024. The IPO allotment date is October 04, 2024. Therefund initiation of IPO is on October 07, 2024. The credit of shares in demat account is on October 07, 2024. The listing date is on October 08, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 30, 2024 |
| IPO Closing | October 03, 2024 |
| IPO Allotment Date | October 04, 2024 |
| Refund Initiation | October 07, 2024 |
| Shares Credit to Demat | October 07, 2024 |
| Lisiting Date | October 08, 2024 |
Subam Papers IPO Lot Size
Lot Size of this IPO is 800 shares. A retail-individual investor can apply for up to 1 lots (800 shares or ₹121,600).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 800 | ₹121,600 |
| Retail(Maximum) | 1 | 800 | ₹121,600 |
| HNI (Minimum) | 2 | 1600 | ₹243,200 |
Subam Papers IPO Promoter Holding
| Pre Issue Share Holding | 94.81% |
| Post Issue Share Holding | 69.67% |
Subam Papers IPO Review
The company is launching its first IPO (Initial Public Offering) using the book building method. They plan to offer 6,164,800 equity shares at a price of Rs. 10 each to raise Rs. 93.70 crore (at the highest price).
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. 24.97 cr. (FY22), Rs. 510.62 cr. / Rs. – (0.68) cr. (FY23), and Rs. 496.97 cr. / Rs. 33.03 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 an average EPS of Rs. 12.87 and an average RoNW of 10.95%. The issue is priced at a P/BV of 1.29 based on its NAV of Rs. 122.29 as of March 31, 2024, but the offer document and the IPO price band ad is missing its post-IPO NAV data.
If we attribute FY24 earnings on post-IPO fully diluted equity capital, then the asking price is at a P/E of 10.99, and based on FY23 earnings, the P/E stands at Negative. The issue relatively appears fully priced.
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.
The company makes Kraft paper and other paper products. It has seen ups and downs in its sales and profits during the reported periods. Based on the earnings for FY24, it seems that these issues are already reflected in its stock price. The company is in a very competitive market with many players. Given the good outlook for the packaging industry, investors might consider investing for the medium to long term.
Subam Papers IPO Subscription Status (Bidding Details)
Table not foundSubam Papers IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Subam Papers IPO FAQs
What is Subam Papers IPO?
Subam Papers is issuing 6,164,800 equity shares with a face value of ₹10 each, totaling up to ₹93.70 Cr. The shares are being offered at a price of ₹144 to ₹152 each, with a minimum order quantity of 800 shares.
Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Subam Papers will open?
Subam Papers will open on September 30, 2024 for QIB, NII, and Retail Investors.
When Subam Papers IPO will end?
Subam Papers will end on October 03, 2024.
What is Subam Papers IPO Size?
Subam Papers IPO size is ₹93.70 Cr.
What is Subam Papers IPO Price Band?
Subam Papers price band is ₹144 to ₹152 per share.
What is Subam Papers IPO Allotment Date?
Subam Papers allotment date is October 04, 2024.
What is Subam Papers IPO Listing Date?
Subam Papers listing date is October 08, 2024. The IPO is to be listed on BSE and NSE.
How to Subam Papers IPO through Zerodha?
To apply for the IPO “Subam Papers” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Subam Papers IPO through Upstox?
To apply for the IPO “Subam Papers” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Subam Papers IPO Allotment Status?
For Subam Papers IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Subam Papers IPO GMP?
You can check out here: Subam Papers IPO GMP. Check all IPO GMP here.