Nikita Papers Limited, a leading manufacturer of writing and printing paper, is set to launch its IPO on May 27, 2025. Established in Gujarat, the company has a production capacity of over 100,000 metric tons per year and caters to both domestic and international markets. The IPO aims to raise funds for capacity expansion, modernization, and working capital requirements. Nikita Papers IPO has shown steady financial growth, reporting FY2024 revenue of ₹346.78 crore and net profit of ₹16.60 crore. The company’s strengths include a well-integrated manufacturing facility, a diversified product portfolio, and a strong distribution network.
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Expert Opinions
Nikita Papers IPO is attracting steady market interest, supported by the company’s established presence in the paper industry and consistent financial performance. Its strengths include a well-integrated manufacturing facility, diversified product range, and an expanding domestic and export client base. For FY2024, Nikita Papers reported a Return on Equity (ROE) of 21.45%, Return on Capital Employed (ROCE) of 28.71%, and a Net Asset Value (NAV) of ₹42.57, reflecting efficient capital use and strong fundamentals.
However, the company faces sector-specific risks such as raw material price volatility, environmental regulations, and the long-term impact of digitalization on paper demand. From a long-term perspective, Nikita Papers IPO proceeds aimed at capacity expansion and modernization could enhance competitiveness, but investors should monitor industry trends and operational execution as the company scales.
Investor Considerations
Nikita Papers IPO has shown improving fundamentals, with FY2024 revenue at ₹346.78 crore and net profit rising to ₹16.60 crore, indicating operational efficiency and profitability. The paper sector faces long-term headwinds from digitalization but continues to benefit from packaging and export demand, offering selective growth opportunities. The Nikita Papers IPO valuation appears reasonable, with a price to book value of 2.44, PAT margin of 4.79%, and a conservative debt/equity ratio of 0.45, reflecting financial discipline and manageable leverage.
Growth prospects hinge on capacity expansion and modernization funded by IPO proceeds, which could boost competitiveness. However, risks include raw material price volatility, environmental regulations, and evolving industry trends. Short-term investors may encounter volatility, while long-term investors could benefit if the company sustains its growth trajectory and adapts to sector shifts.
| Date | GMP | Trend |
|---|---|---|
| 02 Jun 2025 11.00 | ₹00 | --- |
| 31 May 2025 11.41 | ₹00 | --- |
| 30 May 2025 11.48 | ₹00 | --- |
| 29 May 2025 18.50 | ₹00 | Down |
| 28 May 2025 12.52 | ₹5 | Up |
| 27 May 2025 12.40 | ₹2 | Up |
| 26 May 2025 11.33 | ₹00 | --- |
| 25 May 2025 11.36 | ₹00 | --- |
| 24 May 2025 11.07 | ₹00 | --- |
| 23 May 2025 10.53 | ₹00 | --- |
| 22 May 2025 10.51 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Nikita Papers IPO’s listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a significant discount of 13.46%. With a prediction error of 13.46%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
Nikita Papers IPO Current GMP is ₹00.
Nikita Papers IPO Expected Returns is 0.00%.
Nikita Papers IPO estimated listing price is ₹104.