Three M Paper Boards Ltd IPO: Review, Valuation, Date & GMP

Three M Paper Boards Limited IPO - Complete Overview

Three M Paper Boards Limited IPO announced by Three M Paper Boards Limited was established in July 1989 and produces premium Duplex Board products made from recycled paper for use in packaging applications in a range of industries, including consumer goods, food and beverage, pharmaceutical, and cosmetics.

The business sells its goods in both home and foreign markets. With a production facility located in Chiplun, District Ratnagiri, Maharashtra, the company is headquartered in Mumbai. As of Fiscal Year 2022-2023, it can produce 72,000 TPA of paper.

With over 25 dealers spread out across India, the brand is well-represented throughout the country thanks to a robust distribution network. The company specializes in producing Duplex Board products made from recycled paper for use in packaging consumer goods, beverages, food, cosmetics, and pharmaceutical industries. It serves both domestic and foreign markets.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 12, 2024. Let's take a closer look at the IPO's offerings below.

Three M Paper Boards Limited IPO Overview

Three M Paper Boards IPO is an SME book-built issue of Rs.39.83 crore with a wholly Fresh Issue of 57.72 lac Shares (amounting to Rs.39.83 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional-investors. 

The IPO will be available to investors on July 12, 2024, and conclude on July 16, 2024. The anticipated listing date for the IPO is Monday, July 22, 2024, and will be held on the BSE and SME. The price band of each Share is Rs.67 to Rs.69.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

The company's revenue decreased by 16.3%, while profit after tax (PAT) increased by 71.53% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the 6 months ending 30 September 2023.

• The net worth of the company is Rs.5327.57 lac.

• The company's EBITDA is Rs.1,174.86 lac.

• The total assets of the company are Rs.17,293.0 lac.
  
  

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	19,519.88	18,942.55	18,150.44
Total Revenue	27,601.56	32,974.92	31,600.49
PAT	1,134.72	661.53	327.56
Net worth	6,110.39	4,725.67	4,064.14
Reserves and Surplus	4,763.85	4,070.65	3,409.12
Total Borrowings	7,264.08	8,182.40	7,802.06

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash flow in multiple Activities	For the 6 months ended 30 Sep 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	567.84	2,353.22	-1,032.00
Net Cash Flow Investing Activities	223.09	-1,826.04	-565.69
Net Cash Flow Financing Activities	-790.29	-544.85	1,616.08

 

Product-wise Revenue Breakdown For September March 31, 2023

 

 

Geography-wise Revenue Breakdown

The Objective Of The Issue

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

• Capital expenditure for the setup of fresh machines, modernization of certain processes under the current manufacturing facility, and installation of a plastic-fired low-pressure boiler.

• Financing the company's long-term working capital needs.

• Prepayment or repayment of the entire or part of outstanding borrowing obtained by the company

• General corporate purposes.
  
  

Peers Of Three M Paper Boards Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
N R Agarwal Industries Ltd	10	46.05	6.84
Kuantum Papers Ltd	1	12.35	7.64
Shree Ajit Pulp And Paper Ltd	10	7.11	15.86

 

Evaluation

The price of this IPO is Rs.67 to Rs.69 for each Share.

Evaluation Of P/E Ratio

Considering the Financial Year that concluded on 31 March 202, with EPS of Rs.100.99 from the last year, the resulting P/E ratio is 0.68x.

Considering the weighted EPS of Rs.71.56 for the last three years, the P/E ratio is 0.86x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 11.15x.

Particulars	P/E Ratio
Highest	20.56
Lowest	5.74
Average	11.15

In simple words, the P/E ratio of Three M Paper Boards Limited-IPO (0.68x and 0.86x) has a much lower valuation as compared with its peer group.

 

IPO's Strengths

• A varied range of products

• Consistent financial results

• Bringing in raw materials and exporting completed goods

• Low procurement costs are the result of economies of scale

• Knowledgeable promoters with a track record of success
  
  

IPO’s Weaknesses

• A legal action is still pending against the company, its directors, and its promoters. Any unfavorable ruling in such a case could significantly harm the company's operations, financial situation, and business.

• In the past, there have been a few cases of incomplete, delayed, or inaccurate filings with specific statutory bodies. The imposition of monetary penalties or other punitive measures by the authorities concerning the Company may harm its operations, financial standing, and overall performance.

• As stated in the Objects of the Issue, the Company has not yet placed orders for 86% of its plant and machinery for its intended aim. Any delay in placing orders or acquiring the necessary plant and machinery could cause the implementation schedule to be delayed. It could also result in a rise in the cost of the plant and machinery, which would further reduce its revenue and profitability.

• The company mostly relies on imports to supply its primary raw material, waste paper.

 

 

IPO GMP Today

Three M Paper Boards Limited IPO’s latest GMP is Rs.30.

Three M Paper Boards Limited IPO timetable (Tentative)

The IPO is scheduled from July 12 to July 16, 2024, with allotment on July 18, refund initiation on July 19, and listing on July 22, 2024.

Events	Date
IPO Opening Date	July 12, 2024
IPO Closing Date	July 16, 2024
IPO Allotment Date	July 18, 2024
Refund initiation	July 19, 2024
IPO Listing Date	July 22, 2024

 

Three M Paper Boards Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 12, close on 16 July, and offer a total issue size of 5,772,000 Shares (aggregating up to Rs.39.83 Cr) comprising a wholly fresh issue size of 5,772,000 Shares of Rs.39.83 Cr.

IPO Opening & Closing Date	July 12, 2024 to July 16, 2024
Face Value	Rs.10 per Share
Issue Size	5,772,000 Shares of Rs.39.83 Cr.
Offer for Sale	-
Fresh Issue	5,772,000 Shares of Rs.39.83 Cr.
Listing at	BSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

Three M Paper Boards Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.138000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.276000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Three M Paper Boards Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters And Management Of Three M Paper Boards Limited IPO

• Mr. Hitendra Dhanji Shah

• Mrs. Prafulla Hitendra Shah

• Mr. Rushabh Hitendra Shah.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	70%

 

Three M Paper Boards Limited IPO Lead Managers

• Comfort Securities Limited

 

Dividend Policy

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

Conclusion

The company’s total assets and liabilities have increased and EBITDA also rose in the last but revenue decreased in the last financial years. The company desires to use the Net Proceeds from the Issue for Capital expenditure for the setup of fresh machines, modernization of certain processes under the current manufacturing facility, and installation of a plastic-fired low-pressure boiler, financing the company's long-term working capital needs, Prepayment or repayment of the entire or part of outstanding borrowing obtained by the company Corporate Goals in General. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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