Nikita Papers IPO is a book-built issue worth ₹67.54 crore. The IPO consists entirely of a fresh issue of 64.94 lakh equity shares. The IPO opened for subscription on May 27, 2025, and will close on May 29, 2025. The allotment is expected to be finalised on May 30, 2025, with a tentative listing on NSE SME scheduled for June 3, 2025.
The IPO is priced in a band of ₹95 – ₹104 per share. Retail investors must apply for a minimum of 1 lot comprising 1,200 shares, requiring an investment of ₹1,24,800 at the cutoff price. HNI investors must apply for at least 2 lots (2400 shares), amounting to ₹2,49,600.
Fast Track Finsec Pvt Ltd is the book-running lead manager to the issue. Skyline Financial Services Private Ltd is the registrar. Rikhav Securities Limited is the designated market maker for the IPO.
For detailed financials, company background, and risk factors, investors are advised to refer to the Nikita Papers IPO RHP.
Industry Outlook
- India’s paper and paperboard industry stands as a vital contributor to the nation’s manufacturing landscape, ranking among the top 15 global producers and accounting for approximately 5% of global paper output. With an estimated turnover of ₹80,000 crore and direct employment to over half a million individuals, the sector plays a significant socio-economic role.
- The industry is undergoing a structural transformation, driven by increasing demand for sustainable packaging solutions and the growing emphasis on circular economy practices. Notably, around 75% of India’s paper production is now derived from recycled or wastepaper sources, reflecting a shift towards environmentally responsible manufacturing.
- Despite a robust installed capacity of 30.73 million tonnes per annum (TPA), the sector faces persistent challenges, particularly in securing a consistent raw material supply. Over 90% of wood demand is met through agro/farm forestry, with limited access to government forest resources. This constraint, coupled with rising input costs and energy prices, continues to pressure margins.
- The industry remains fragmented, comprising nearly 900 mills, of which only 43 are large-scale units. The remainder are small to medium-sized enterprises, often operating with limited economies of scale. Consolidation efforts have been minimal, although modernisation and capacity expansion are gradually gaining momentum.
Nikita Papers IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Allocate ₹5,000 lakhs towards capital expenditure for the establishment of a 9.0 MW captive power plant using Refuse Derived Fuel (RDF), aimed at enhancing energy efficiency and reducing long-term operational costs.
- Utilise ₹500 lakhs to meet the company’s working capital requirements, supporting the procurement of raw materials and sustaining day-to-day operations amidst growing demand for kraft paper products.
- Deploy a portion of the proceeds, not exceeding 25% of the gross issue size, for general corporate purposes including business development, brand enhancement, and operational improvements.
- Apply the remaining funds towards issue-related expenses, ensuring regulatory compliance and successful listing on the NSE Emerge platform.
About Nikita Papers Limited
Nikita Papers Limited, originally incorporated as a private limited company on 18 August 1989, transitioned into a public limited company on 12 June 2003. Headquartered in New Delhi, with its manufacturing operations based in Shamli, Uttar Pradesh, the company has established itself as a prominent manufacturer of kraft paper in India.
With over three decades of operational experience, Nikita Papers has steadily expanded its production capabilities, evolving from an initial capacity of 30 tonnes per day to an installed capacity of approximately 1,33,000 metric tonnes per annum. The company specialises in the manufacture of kraft paper ranging from 80 to 200 GSM across various burst factor (B.F.) grades, catering to the corrugation, fluting, and carry bag segments.
The company’s leadership, spearheaded by Chairman Mr. Sudhir Kumar Bansal, brings over 35 years of industry expertise. The management team collectively holds extensive experience in paper manufacturing, distribution, and allied sectors, enabling the company to maintain consistent quality and meet evolving market demands.
Nikita Papers operates with a strong focus on innovation and sustainability. Its in-house laboratory and technical team are actively engaged in developing advanced paper grades, including water-repellent and food-grade kraft paper. Collaborations with organisations such as the United Nations Industrial Development Organization (UNIDO) further support its commitment to hygiene and eco-friendly packaging solutions.
How To Check the Allotment Status of the Nikita Papers IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Nikita Papers IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Nikita Papers IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Nikita Papers IPO
Registered office: A-10, First Floor, Landmark Near Deepali Chowk, Saraswati Vihar, Pitampura, North West Delhi – 110034, India.
Phone: +91 73007 12189
E-mail: info@nikitapapers.com
Nikita Papers IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Issue |
|
Retail Shares Offered |
Not less than 35% of the Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Issue |
Nikita Papers IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1200 |
₹1,24,800 |
|
Retail (Max) |
1 |
1200 |
₹1,24,800 |
|
HNI (Min) |
2 |
2400 |
₹2,49,600 |
Nikita Papers IPO Promoter Holding
The promoters of the company are Mr. Ashok Kumar Bansal, Mr. Sudhir Kumar Bansal, Mr. Ayush Bansal, Mr. Abhinav Bansal, Mr. Anuj Bansal, Ashok Kumar Bansal & Sons HUF, Naresh Chand Bansal & Sons HUF, Sudhir Kumar Bansal & Sons HUF, Ayush Bansal & Sons HUF, Abhinav Bansal & Sons HUF, and Anuj Bansal & Sons HUF.
|
Share Holding Pre-Issue |
80.38% |
|
Share Holding Post Issue |
59.21% |
Key Performance Indicators for Nikita Papers IPO
As of March 31, 2024, the market capitalisation of Nikita Papers is ₹618.18
crore. Here are the KPIs of Nikita Papers:
|
KPI |
Value |
|
Debt/Equity |
0.45 |
|
Price to Book Value |
2.44 |
|
ROE |
21.45% |
|
ROCE |
28.71% |
Nikita Papers IPO Prospectus
Nikita Papers IPO Registrar and Lead Managers
Nikita Papers IPO Lead Managers
- Fast Track Finsec Private Limited
Registrar for Nikita Papers IPO
Skyline Financial Services Private Limited
- Contact Number: 02228511022
- Email Address: ipo@skylinerta.com
Nikita Papers IPO Registrar
Financial Performance of Nikita Papers Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operations (₹ in Lakh) | 33,860.08 | 39,833.21 |
| EBITDA (₹ in Lakh) | 4,840.04 | 3,055.80 |
| EBITDA Margin (%) | 14.29 | 7.67 |
| RoE (%) | 21.45 | 15.79 |
| RoCE (%) | 28.71 | 15.55 |
| PAT Margin (%) | 4.79 | 2.15 |
Know before investing
Strengths
8Over 30 years of experience in kraft paper manufacturing with a strong reputation in northern India.
Installed capacity of approximately 1,33,000 MTPA, enabling scale and operational efficiency.
Manufactures kraft paper in various GSM and B.F. grades, catering to packaging, carry bags, and corrugation sectors.
Promoters and directors with decades of industry expertise, ensuring strategic direction and stability.
Uses recycled waste paper as a primary raw material, aligning with eco-conscious market trends.
Growing international presence with exports to Bangladesh, UAE, and Egypt, offering revenue diversification.
IPO proceeds to fund a 9.0 MW RDF-based power plant, reducing energy costs and enhancing margins.
Rising demand for sustainable packaging and government push for recycling supports long-term growth.
Risks
8A significant portion of revenue comes from a few key customers, posing a risk if any major client is lost.
Dependence on waste paper exposes the company to price fluctuations and supply disruptions.
Substantial borrowings increase financial risk and interest burden.
Operations are primarily based in Uttar Pradesh, making the business vulnerable to regional disruptions.
Delays or lapses in obtaining or renewing statutory approvals may impact operations.
Historical negative cash flows from operating and investing activities may affect liquidity.
Rising energy costs and environmental regulations could impact profitability.
Focus on kraft paper limits exposure to other high-growth paper segments.
Nikita Papers Limited Peer Comparison
| Company Name | Face Value (₹) | EPS (₹) | NAV (₹) | PAT (₹ in Lakh) |
|---|---|---|---|---|
| Nikita Papers Limited | 10.00 | 8.63 | 51.2 | 1,568.11 |
| Magnum Ventures Limited | 10.00 | 5.04 | 115.64 | 2,470.26 |
| Tamilnadu Newsprint and Papers Limited | 10.00 | 30.08 | 301.94 | 20,816.00 |
| Ruchira Papers Limited | 10.00 | 16.48 | 138.81 | 4,919.49 |
| Pakka Limited | 10.00 | 12.57 | 67.58 | 4,866.93 |
