Subam Papers IPO Overview
The highly anticipated Subam Papers IPO is set to open for subscription on September 30, 2024, allowing investors to participate until October 3, 2024. With the company aiming to raise ₹93.70 crore through this public offering, this presents a significant investment opportunity. The price range for the IPO is established at ₹144 to ₹152 per share, and it is noteworthy that all proceeds will solely benefit the company as only fresh equity shares are being issued—there will be no Offer for Sale (OFS).
Key Information about Subam Papers IPO
- Fresh equity shares: 61.65 lakh shares will be released.
- Listing platform: BSE SME with a tentative listing date of October 8, 2024.
- Share allotment: Expected to occur on October 4, 2024.
- Promoters: T Balkumar and Ms. Sudha Alagarsamy.
- Anchor investor raise: The company secured ₹26.70 crore from anchor investors.
Investment Details
The minimum lot size for this IPO is set at 800 shares, which means retail investors will need to commit a minimum investment of ₹121,600. Greatex Corporate Services Ltd will serve as the book-running lead manager, while BigShare Services Pvt Ltd functions as the registrar for the issue. Additionally, Greatex Share Broking is appointed as the market maker for this IPO.
Gray Market Trend
As of September 29, 2024, the Subam Papers IPO is trading at a premium of ₹48 in the gray market. If this trend continues, potential listing price estimates suggest shares could debut at ₹200, offering investors a potential profit of 31.58%. It’s important to note that gray market conditions can be volatile and are subject to rapid changes.
About Subam Papers
Founded in October 2006, Subam Papers specializes in the manufacture of kraft paper and related paper products, utilizing waste paper as a primary raw material. As of March 31, 2024, the company boasts an installed capacity of 300 metric tonnes per day (MTPD), translating to an impressive annual output capacity of 93,600 tonnes. Subam Papers is known for its versatile kraft paper and duplex board, available in a variety of colors.
Financial Performance
In terms of financials, Subam Papers reported a revenue of ₹496.97 crore for the financial year 2024, a slight decrease from ₹510.62 crore in 2023. However, the company made notable strides toward profitability, projecting a profit of ₹33.42 crore in 2024, a significant turnaround from the loss of ₹0.27 crore reported in the previous year.
Conclusion
Investing in the Subam Papers IPO could be a lucrative opportunity for retail and institutional investors alike. However, as always, it is crucial for investors to conduct thorough research and consult with financial advisors before committing funds to the market. Please note that investing in stocks carries inherent risks, and prospective investors should acknowledge these risks when considering an investment.
