Subam Papers IPO - AstroIPO

Subam Papers IPO


September 26, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Subam Papers Ltd., a company with roots dating back to 2004, is entering the public market with its Initial Public Offering (IPO) from September 30 to October 3, 2024. This established player in the paper industry is offering shares at a price band of ₹144 to ₹152 per share.

The company aims to raise up to ₹93.70 crore through this book-built IPO, offering 6,164,800 fresh shares. Investors can apply for a minimum lot of 800 shares, requiring an investment of ₹121,600 at the upper price band. The shares will be listed on the BSE SME platform, catering to small and medium enterprises.

Subam Papers’ market capitalization is estimated at ₹353.32 crore, positioning it as a mid-sized player in the paper sector. The IPO will increase the company’s outstanding shares from 17,080,070 to 23,244,870, representing a 36% expansion in the equity base.

Led by Managing Director T Balakumar, Subam Papers has two decades of experience in the industry. Gretex Corporate Services Limited is managing the IPO process, while Bigshare Services Pvt Ltd serves as the registrar.

Subam Papers IPO Details

IPO Size ₹93.70 Cr
Price Range ₹144 - ₹152
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount --
Listing at BSE
Minimum Quantity 800
Investment (cut-off price) ₹121,600
Pre IPO Promotor Holding 94.81%
Post IPO Promotor Holding 69.67%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Subam Papers IPO Timelines

30/09/2024
Start Date
03/10/2024
End Date
04/10/2024
Allotment Date View Status
07/10/2024
Refund Initiation
07/10/2024
Credit of Shares to Demat Ac
08/10/2024
Listing Date

Subam Papers IPO Lot Size

Application Lot Size Shares Amount
Retail Minimum 1 800 ₹121,600
Retail Maximum 1 800 ₹121,600
HNI Minimum 2 1600 ₹243,200

Subam Papers IPO Subscription Status

QIB NII Retail EMP Total
57.18x 243.16x 48.97x -- 92.93x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹142 ₹149.10 ₹149.10 ₹134.90

Subam Papers IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹332.60 ₹297.92 ₹26.00
FY 2023 ₹510.62 ₹505.66 ₹0.27
FY 2024 ₹496.97 ₹451.17 ₹33.42

About Company

Founded in October 2006, Subam Papers Limited manufactures Kraft Paper and paper products using waste paper as raw material. With an installed capacity of 300 metric tons per day, the company can produce 93,600 tons annually. Their product range includes Kraft Paper and Duplex Boards in various shades, with GSM values from 120 to 300.

The company serves industries such as automobiles, textiles, FMCG, and pharmaceuticals, ensuring high-quality packaging solutions. In 2023, Subam Papers received the EN ISO 9001:2015 certification, highlighting its commitment to quality and efficient manufacturing processes in the packaging sector.

Incorporation Date Sector Managing Director
2004 Paper T Balakumar

Know Before Investing

Subam Papers IPO Strengths

  • Manufactures duplex and kraft paper to meet diverse market needs.
  • Achieves cost reduction and enhanced competitiveness through economies of scale.
  • Maintains a strong distribution network across South India for improved availability.
  • Adheres to high production standards, fostering trust and customer loyalty.
  • Utilizes eco-friendly manufacturing practices to strengthen market positioning.

Subam Papers IPO Risks

  • Vulnerability to fluctuations in raw material prices may impact profitability.
  • Limited advanced technology reduces operational efficiency and competitiveness.
  • Insufficient new product development could hinder market differentiation.
  • Regional focus exposes the company to local market risks.
  • Weak marketing efforts restrict expansion and competition with established firms.

Swot Analysis for Subam Papers IPO

Strengths

Weaknesses

Opportunities

Threats

Company Details

Subam Papers Limited

S.F.No.143-146 Vaduganpatti
Village Nadukallur to Tirunelveli,
Tirunelveli, Tirunelveli Taluk- 627010,

Phone: +91-9486303300

Email: [email protected]

Website: http://www.subampapers.com/

IPO Registar Details

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200

Email: [email protected]

Website: https://ipo.bigshareonline.com/ipo_status.html

FAQs

The key objectives of Subam Papers IPO are:

  • Investment in a Subsidiary for Financing its Capital Expenditure requirements
  • General Corporate Purposes

Gretex Corporate Services Limited is the book-running lead managers for the Subam Papers IPO.

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