Shreenath Paper Products Limited is set to launch its Initial Public Offering (IPO) from February 25 to February 28, 2025. The IPO will consist of 5,310,000 equity shares priced at ₹44 each, aiming to raise approximately ₹23.36 crore. Established in 2011, Shreenath specializes in supply chain solutions for various industries reliant on paper products, including FMCG, textiles, and pharmaceuticals. The company’s diverse product range includes sublimation base paper and thermal base paper, produced using recycled materials and virgin pulp.
₹00
₹44
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Expert Opinions
The market sentiment for Shreenath Paper IPO is cautiously optimistic, driven by a growing interest in sustainable packaging solutions as environmental awareness rises. Company Strengths for the Shreenath Paper Products has built a strong reputation in the eco-friendly paper products sector, serving industries like FMCG and textiles. Its robust supplier network and customer relationships strengthen its competitive position. Risks and Challenges for the Shreenath Paper Products faces risks such as raw material price fluctuations, intense competition, and the impact of economic downturns on packaging demand, which could affect revenue.
Valuation Analysis For the nine months ending December 2024, Shreenath Paper Products Ltd reported a 23.19% ROE, 23.19% RoNW, and a 19.32% ROCE. From a long-term investment perspective, Shreenath Paper Products Ltd offers potential due to rising demand for sustainable packaging. Its focus on market share and efficiency could drive growth, though investors should consider industry risks and the company’s ability to manage them.
Investor Considerations
Company Performance and Fundamentals for the Shreenath Paper Products IPO, produces paper and packaging products for various industries across Maharashtra, Gujarat, and Madhya Pradesh. In FY 2022, its revenues ranged from ₹100 crore to ₹500 crore. By December 2024, its assets totaled ₹62.25 crore, with a net worth of ₹21.34 crore. The sector outlook for The paper and packaging industry is set for growth, driven by rising demand for sustainable packaging, benefiting companies like Shreenath Paper Products.
IPO Valuation for The IPO is priced at ₹44 per share, with a face value of ₹10, and a price-to-book value of 3.33. The PAT margin is 2.36%, and the debt-to-equity ratio is 1.47. Growth Prospects for Shreenath Paper Products aims to use the IPO to meet working capital needs and support expansion, boosting market share. Potential risks include fluctuations in raw material prices, competition from established players, and economic downturns that could impact demand. For investors with a long-term perspective, Shreenath Paper Products presents an opportunity to capitalize on the growing demand for sustainable packaging solutions. Short-term investors should consider market volatility and the company’s performance post-listing.
| Date | GMP | Trend |
|---|---|---|
| 04 Mar 2025 16.11 | ₹00 | --- |
| 03 Mar 2025 10.58 | ₹00 | --- |
| 23 Feb 2025 13.13 | ₹00 | --- |
| 22 Feb 2025 11.52 | ₹00 | --- |
| 21 Feb 2025 18.33 | ₹00 | --- |
| 20 Feb 2025 19.20 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Shreenath Paper Products’ 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 20%. With a prediction error of 20%, 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.
Shreenath Paper IPO Current GMP is ₹00.
Shreenath Paper IPO Expected Returns is 0.00%.
Shreenath Paper IPO estimated listing price is ₹44.