Shreenath Paper Products IPO is a fixed price issue valued at ₹23.36 crore. It is a 100% fresh issue of 53.10 lakh shares. It opened for subscription today and is closing soon on February 28, 2025. The allotment is expected to be finalised on March 3, 2025, with a tentative listing date of March 5, 2025, on the BSE SME platform.
The IPO price is set at a price of ₹44 per share. Retail investors need a minimum investment of ₹1,32,000 for one lot of 3000 Shares, while HNI investors must invest in at least 2 lots, amounting to ₹2,64,000.
Galactico Corporate Services Limited is the book-running lead manager for this issue, while Bigshare Services Private Limited serves as the registrar. The market maker for Shreenath Paper IPO is Pure Broking Private Limited.
For detailed financial and operational information, investors can refer to the Shreenath Paper Products IPO RHP. This IPO presents an opportunity to invest in a growing enterprise listed on the SME platform.
Industry Outlook
- The Indian paper and packaging industry is witnessing robust growth, driven by increasing demand from sectors such as e-commerce, food processing, pharmaceuticals, FMCG, manufacturing, and healthcare. The industry, valued at $50.5 billion in 2019, is projected to reach $204.81 billion by 2025, registering a CAGR of 26.7%.
- Government initiatives like 'Make in India' and infrastructure development programs are contributing to the sector's expansion, enhancing domestic manufacturing and streamlining supply chains. The paper industry in India has significantly advanced in sustainability, reducing water usage by 80% and investing $3.05 billion (₹25,000 crore) in eco-friendly production processes.
Shreenath Paper Products IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Allocate ₹1,800 lakhs for incremental working capital requirements for FY 2025 and 2026.
- Utilise ₹287.16 lakhs for general corporate purposes, maintaining financial flexibility.
- Fund issue-related expenses amounting to ₹249.24 lakhs from the IPO proceeds.
- Strengthen the balance sheet by reducing financial liabilities.
About Shreenath Paper Products Limited
Shreenath Paper Products Limited was originally incorporated as “Shreenath Paper Products Private Limited” on October 10, 2011, under the Companies Act, 1956, with the objective of acquiring and taking over the existing proprietorship business of M/s Shrinath Papers. The company transitioned into a public limited company on April 20, 2023, with a fresh certificate of incorporation issued by the Registrar of Companies, Mumbai.
The company primarily engages in providing supply chain solutions to industries where paper forms a significant part of their raw materials. Shreenath Paper Products specialises in various types of paper, including sublimation base paper, thermal base paper, straw paper, cup stock paper, poster paper, and high-strength paper. It also caters to industries such as FMCG, textiles, pharmaceuticals, e-commerce, and packaging.
With a focus on quality and sustainability, the company sources paper made from waste recycled papers, bagasse base (agricultural waste), and virgin pulp, offering a wide range of grades from 24-350 grams per square meter (GSM). The company operates on a B2B model, supplying products to domestic markets, particularly in Maharashtra, Gujarat, and Madhya Pradesh.
Through its IPO, Shreenath Paper Products aims to enhance working capital, support general corporate purposes, and strengthen its financial position for sustained growth and market competitiveness.
How To Check the Allotment Status of the Shreenath Paper Products 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 Shreenath Paper Products 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 Shreenath Paper Products 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 Shreenath Paper Products IPO
Registered office: Shop No. 5, Plot No. 136, N-1, Masco Corner API Road,
Cidco, Aurangabad, Maharashtra, India, 431003
Phone: +91 0240-2489888
E-mail: info@shreenathpaper.com
Shreenath Paper Products IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
3000 |
₹1,32,000 |
|
Retail (Max) |
1 |
3000 |
₹1,32,000 |
|
HNI (Min) |
2 |
6000 |
₹2,64,000 |
Shreenath Paper Products IPO Promoter Holding
Alok Parekh, Ronak Parekh, Navneetdas Parekh, Hasumati Navneetdas Parekh, Harish Parekh, Hasumati Harish Parekh, Neha Parekh and Sayali Parekh are the promoters of the company.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
72.98% |
Key Performance Indicators for Shreenath Paper Products IPO
As of March 31, 2024, the market capitalisation of Shreenath Paper Products's IPO is ₹86.48 crore. Here are the KPIs of Shreenath Paper Products:
|
KPI |
Value |
|
RoE (%) |
23.19 |
|
RoCE (%) |
19.32 |
|
EBITDA Margin (%) |
3.11 |
|
PAT Margin (%) |
2.36 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
3.06 |
1.63 |
|
P/E (x) |
14.37 |
26.97 |
Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.
The post-issue EPS is calculated based on the post-issue shareholding and annualised FY earnings of December 31, 2024, that are available in RHP.
Shreenath Paper Products IPO Prospectus
Shreenath Paper Products IPO Registrar and Lead Managers
Shreenath Paper Products IPO Lead Managers
- Galactico Corporate Services Limited
Registrar for Shreenath Paper Products IPO
Bigshare Services Private Limited
- Contact Number: +91-22-6263 8200
- Email Address: ipo@bigshareonline.com
Shreenath Paper Products IPO Registrar
Know before investing
Strengths
8Extensible business model catering to diverse industries, including FMCG, textiles, pharmaceuticals, e-commerce, food and beverages, and packaging sectors.
Strong network of suppliers and strategic partnerships with paper mills and distributors, ensuring consistent raw material availability and competitive pricing.
Multi-product portfolio, offering over 10 varieties of paper, including sublimation base paper, thermal base paper, straw paper, cup stock paper, and industrial-grade paper.
Asset-light and order-driven business model that optimises resource utilisation and enhances operational efficiency.
Strong relationships with key customers, contributing significantly to revenue and fostering repeat business.
Experienced management team with a proven track record of driving business growth and operational excellence.
Robust financial performance with sustained growth across key financial indicators, reflecting strong profitability and a solid balance sheet.
Strategic focus on increasing product range and moving up the value chain to capture higher-margin opportunities.
Risks
8Intense competition from existing players and new entrants, potentially impacting market share and pricing power.
Dependence on third-party manufacturers without formal agreements, leading to risks in supply chain continuity.
Exposure to fluctuations in raw material prices, including paper and pulp, which could affect profitability.
Cyclical nature of the paper industry, making revenues vulnerable to economic downturns and reduced demand.
Reliance on the performance of end-user industries such as FMCG, pharmaceuticals, e-commerce, and packaging.
Supply chain disruptions, including transportation strikes, weather-related issues, and logistics challenges.
Regulatory risks, including the requirement for multiple approvals and licenses, which could affect operations if not maintained.
Economic slowdowns and adverse events in key sectors could negatively impact demand for paper products.
