Shreenath Paper IPO: Review, Allotment Details, Price, & GMP

Shreenath Paper IPO - Complete Overview

Shreenath Paper IPO under the SME IPO category is a fixed issue of Rs.23.36 Cr (53.10 lac Shares) by Shreenath Paper Limited, which was incorporated in 2011. The organization provides supply chain solutions for industries using paper materials like coated, food-grade, machine-glazed, and adhesive papers for manufacturing processes.

Those papers are sublimation base paper, thermal base paper, straw paper, cup stock paper, security PSA sheets, high-strength paper, C2S and C1S papers, and many more.

The company understands client needs, defines specifications to suit such needs, sources specialized manufacturers, tests samples, procures quantities the customers want, and supplies paper of various grades made out of recycled paper, bagasse, and virgin pulp.

The paper products supplied by the company are other paper products that enter knowledgeable industries such as FMCG, textiles, pharmaceuticals, packaging, food & beverages, e-commerce, etc. The main areas of supply are Maharashtra, Gujarat, and M.P. 

Product Portfolio:

Sublimation base paper, thermal base paper, straw paper, cone sleeve, cup stock, ARSR, etc.

Coated Paper and Board: The company supplies coated paper that is then printed for annual reports, magazines, posters, and brochures also for the manufacturing of labels, stickers, and sachets that enhance the print quality and serve the intended purposes of durability.

Coating Base: The company supplies sublimation, thermal, and NCR base papers for various applications including textile printing, thermal printing, and carbonless copy paper, ensuring good prints and process efficiency to diverse industries.

Specialty Paper: The company supplies specialty papers used for parchment, ledger, rail bond, cup stock, MG posters, carry bags, and natural shade paper, each serving a unique purpose within their respective industries such as baking, transportation, and packaging.

Cream wove paper: The company supplies premium cream wove papers like Optima, Kappa-G, and Fine Print, which provide a smooth texture and high printability for brochures, invitations, packaging, and luxury promotional materials across industries.

 

 

Shreenath Paper Limited IPO - Overview

This new SME IPO comprises a wholly fresh issue of 53.10 lac Shares (Rs.23.36 Cr). The Shreenath Paper Limited IPO date is from 25 Feb to 28 Feb 2025.

This upcoming IPO i.e. the Shreenath Paper IPO Price is Rs.44 per Share. The listing date is 05 Mar 2025 at BSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

Click to open a Demat account and apply for the IPO.

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Geography-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

The Objective of The Issue

• Fulfilling additional working capital needs.

• General corporate purposes.

 

Peers of Shreenath Paper Ltd.

 

Evaluation

The IPO price is Rs.44 for each Share.

 

Evaluation of the P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.07 from the last year, the resulting P/E ratio is 14.33x.

Considering the weighted EPS of Rs.2.71 for the last three years, the P/E ratio is 16.23x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available in the RHP of the company.

 

IPO's Strengths

• Extensible competitive model.

• A capable network of suppliers.

• A miscellaneous Product Portfolio lined with identifying and satisfying the specific needs of customers.

• Strong Walk-ins of diverse key customers.

 

IPO’s Weaknesses

• Due to the lack of internal production units, the company depends on external sources to acquire paper. This heavy reliance on third-party manufacturers for sourcing paper leads to many risks including supply chain disruptions, price variability, and loss of quality control.

• Most of the competitors’ raw materials are procured from the company’s five top vendors. It’s worth noting that these vendors possess a margin of 20% for any potential disruption. Any of the adverse supply chain disruptions from these vendors can have a negative impact both on the operations and performance of the company subsequently.

• The company has to operate in an omnipresent shifting regulatory environment. In these difficult scenarios, there are various types of business operational blunders such as non-compliance matters, litigations, not having the required permits to carry out business, and so on.

• Working with such a large debt exposes the company to substantial financial risk, while servicing the debt requires substantial cash liquidity which doesn’t seem to be consistent for the company. Strains in finances could limit growth opportunities and operational flexibility.

 

Shreenath Paper IPO GMP

Shreenath Paper IPO GMP has not started yet as of 20 Feb 2025.

 

IPO Timetable (Tentative)

The Shreenath Paper IPO date is 25 Feb with tentative allotment on Mar 03, refund initiation on 04 Mar, and listing on 05 Mar 2025.

 

Shreenath Paper IPO Details

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 53,10,000 Shares (Rs.23.36 Cr).

 

Shreenath Paper IPO Lot Details 

The Shreenath Paper IPO allows retail investors to invest in a min and max of 1 Lot (3000 Shares) for Rs.1,32,000 and in multiples thereof, while for HNI investors, the min Lot is 2 (6000 Shares) for Rs.2,64,000.

 

IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Shreenath Paper Ltd.

• Alok Parekh.

• Ronak Parekh.

• Navneetdas Parekh.

• Hasumati Navneetdas Parekh.

• Harish Parekh.

• Hasumati Harish Parekh.

• Neha Parekh.

• Sayali Parekh.

 

IPO Lead Managers

• Galactico Corporate Services Limited.

 

Dividend Policy

The company has not paid a dividend since incorporation.

 

Conclusion

Shreenath Paper Limited IPO is a fresh issue of Rs.23.36 Cr. The company has a product diversification strategy with a large network of supplier relationships but faces the challenges of being reliant on third-party manufacturers and key suppliers.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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