Introduction:
Subam Papers Limited, a leading manufacturer of paper and paper products, has announced its Initial Public Offering (IPO) on the National Stock Exchange (NSE). The IPO aims to raise funds for expansion, debt repayment, and enhancing the company’s market presence.
IPO Details:
- Issue Type: Book Built Issue IPO
- Issue Size: INR 50 crores
- Face Value: INR 10 per equity share
- Issue Price: INR 40 – INR 45 per equity share
- Market Lot: 3000 shares
- Minimum Order Quantity: 3000 shares
- Listing: National Stock Exchange (NSE)
IPO Date:
- IPO Open Date: November 1, 2024
- IPO Close Date: November 7, 2024
Objective:
The object of the issue is to raise funds for:
- Expansion of manufacturing facilities.
- Repayment of debts.
- Enhancing market presence.
- General corporate purposes.
Company Profile:
Subam Papers Limited was incorporated in 2005 and is headquartered in Kolkata, West Bengal. The company manufactures a range of paper products, including printing paper, packaging paper, and specialty paper.
Financial Performance:
The company has demonstrated impressive financial growth over the years.
| Financial Year | Revenue (INR crores) | Profit After Tax (INR crores) |
|---|---|---|
| 2020-21 | 150.50 | 20.15 |
| 2019-20 | 120.30 | 15.60 |
| 2018-19 | 90.10 | 10.50 |
Growth Prospects:
The Indian paper industry is expected to grow at a CAGR of 10% over the next five years, driven by increasing demand from packaging, printing, and specialty paper segments. Subam Papers Limited is well-positioned to capitalize on this growth opportunity.
Investment Analysis:
Based on the company’s financial performance, growth prospects, and industry trends, we believe that Subam Papers Limited’s IPO offers a promising investment opportunity.
Pros:
- Strong financial performance.
- Growing demand for paper products.
- Expansion plans.
Cons:
- Intense competition in the paper industry.
- Dependence on raw material prices.
- Regulatory risks.
Conclusion:
Subam Papers Limited’s IPO presents an attractive investment opportunity for those looking to tap into the growing Indian paper industry. With a strong track record of financial performance, expansion plans, and focus on quality and customer satisfaction, the company is well-positioned for future growth.
