Subam Papers IPO: Review, Valuation, Date & GMP

Subam Papers IPO-Complete Overview

Subam Papers IPO under the SME IPO category is a book built issue of Rs.93.70 crore by Subam Papers Limited. The company was established in October 2006. It began producing paper goods and Kraft Paper. Waste paper is used by the company as a raw resource.

Kraft Paper's installed capacity as of March 31, 2024, was 300 metric tons per day (MTPD), or 93,600 tons total yearly capacity. The business is able to produce and supply Duplex Boards and Kraft Paper in a range of colors.

Their goods have GSM values between 120 and 300, a busting factor between 16 and 35, and reel diameters up to 1,400 mm in deckle sizes ranging from 2,000 to 4,400 MM. They also keep a sizable raw material storage facility to guarantee enough supplies, allowing for the reliable manufacturing of superior goods for the packaging sector.

Packaging is crucial in several industries, including printing, FMCG, food, automotive, distilleries, pharmaceuticals, and electrical and electronics. The company was granted the EN ISO 9001:2015 certification in 2023 to produce and sell packaging paper.

This Subam Papers IPO will start on 30 September 2024, and its ‘initial public offering’ will end on 03 October 2024. 

Subam Papers IPO Overview

The Rs.93.70 crore new SME IPO comprises a wholly fresh issue of 61.65 lac Shares. 

This upcoming IPO date is from September 30-October 03, 2024. Subam Papers IPO price band is Rs.144 to Rs.152 for each Share. 

The expected IPO listing date is on Tuesday, 08 October 2024, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

How to get IPO refund?

If you have applied for the IPO but have not allotted the Shares and now looking for “ what to do if IPO refund not received ”, then we have covered the blog which clearly explains the steps to get your IPO refund. Click here to know the steps.

Company Financial

The company’s revenue fell by -3% and PAT grew by 12574% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation (Consolidated) for various activities is shown below:

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Product-wise Revenue Breakdown  (Finished Goods)

(Amount in lac)

 

Revenue Breakdown (Standalone) During The Last Three Fiscals

(Amount in lac)

 

Area-wise Revenue Breakdown (Finished Goods) During The Last Three Fiscals

(Amount in lac)

 

State-wise Revenue Breakdown (Finished Goods) During The Last Three Fiscals

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Country-wise Revenue Breakdown During The Last Three Fiscals

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The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Investing in a subsidiary to meet its capital expenditure needs.

• General corporate purposes.

 

Peers of Subam Papers Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

The P/E of the listed peers has been computed based on the CMP as of July 09, 2024.

Evaluation

The IPO price is Rs.144 to Rs.152 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.20.53 from the last year, the resulting P/E ratio is 7.40x.

Considering the weighted EPS of Rs.12.87 for the last three years, the P/E ratio is 11.81x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

  IPO's Strengths 

• Recycled paper waste and environmentally friendly packaging options.

• Major benefit resulting from Subam's factory's closed location.

• Effective inventory control.

• A manufacturing facility that is fully integrated.

• Stable financial outcomes.

• Benefits of making paper in all grades.

 

IPO’s Weaknesses

• Reliance on used paper as a source of raw materials.

• exposure to variations in raw material prices.

• Environmental regulations affect how paper is made.

• Fierce rivalry in the paper sector.

• Economic downturns affect demand across a range of industries.

 

Subam Papers IPO GMP Today

Subam Papers IPO GMP is Rs.15 as of 28 September 2024. With a price of Rs.152 per Share, the estimated IPO listing price is Rs.167 when writing this information.

IPO Timetable (Tentative)

The IPO date is from September 30 to October 03, 2024, with allotment on October 04, refund initiation on October 07, and listing on October 08, 2024.

 

Subam Papers IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 6,164,800 Shares (Rs.93.70 Cr).

Subam Papers IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.1,21,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.2,43,200.

 

Subam Papers IPO Reservation (% of Net Issue)

 

Promoters And Management of Subam Papers Ltd.

• Mr. T Balakumar.

• Ms. Sudha Alagarsamy.

 

IPO Lead Managers

• Gretex Corporate Services Limited

Dividend Policy

The company has not paid any dividends for the last three financial years.

Conclusion

The company is in the business of producing various paper goods, including Kraft paper. Both its top and bottom lines for the reporting periods showed notable inconsistencies. FY24 earnings suggest that the problem is priced fully. It is in a highly competitive and crowded market.

As of the date this article was written, Subam IPO's listing price on the gray market indicated a gain or loss of 9.87%. I hope the information you were looking for was provided by this blog.

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: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.

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