Subam Papers Limited IPO

Incorporated in October 2006, Subam Papers Limited is a manufacturer of Kraft Paper and paper products. The company uses waste paper as a raw material.

As of March 31, 2024, the installed capacity for Kraft Paper was 300 metric tons per day (MTPD), resulting in a total annual capacity of 93,600 tons.

The company has the ability to manufacture and supply Kraft Paper and Duplex Boards in various shades. Their products offer GSM ranging from 120 to 300, Busting Factor of 16 to 35, and Deckle sizes from 2,000 MM to 4,400 MM, with reel diameters up to 1,400 MM. Additionally, they maintain a large raw material storage facility to ensure sufficient reserves, which enables consistent production of high-quality products for the packaging industry.

The products are used in various industries such as automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, and printing, where packaging is essential.

The company has received the EN ISO 9001:2015 certificate for the manufacturing and marketing of packaging paper in 2023

Competitive Strength

  • Paper waste recycle and Sustainable packaging solutions.
  • Investment in water pumping stations and connecting pipelines, ensuring efficient water distribution throughout the facility. The strategic location near the Thamirabarani River, just 6 km away, provides a distinct advantage.
  • Use of ERP Technology to track and control inventory
  • Fully automated manufacturing process enhancing productivity

As of September 2024, the company had 500 permanent employees.

Subam Papers Limited Financial Information (Restated Consolidated)

Subam Papers Limited’s revenue decreased by -3% and profit after tax (PAT) rose by 12574% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended31 Mar 202431 Mar 202331 Mar 2022
Assets46,046.141,434.6539,418.33
Revenue49,697.3151,062.3633,259.87
Profit After Tax3,341.8-26.792,600.23
Net Worth19,904.1216,562.3216,589.11
Reserves and Surplus19,741.3516,399.5516,426.34
Total Borrowing18,340.7716,282.6115,573.37
Amount in ₹ Lakhs

Key Performance Indicator

The market capitalization of Subam Papers IPO is Rs 353.32 Cr.

KPI as of March 31, 2024.

KPIValues
ROE16.79%
ROCE20.84%
Debt/Equity0.92
RoNW16.79%
P/BV1.24
PAT Margin (%)6.77
 Pre IPOPost IPO
EPS (Rs) 19.5714.38
P/E (x) 7.7710.57
Note:
  • The Pre IPO EPS is calculated based on Pre issue shareholding as on 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 annualized FY earnings of March 31, 2024 that is available in RHP.

Objects of the Issue (Subam Papers IPO Objectives)

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects (“Objects of the Issue”):

  1. Investment in a Subsidiary for Financing its Capital Expenditure requirements
  2. General Corporate Purposes

Subam Papers IPO Details

IPO DateSeptember 30, 2024 to October 3, 2024
Listing Date[.]
Face Value₹10 per share
Price Band₹144 to ₹152 per share
Lot Size800 Shares
Total Issue Size6,164,800 shares
(aggregating up to ₹93.70 Cr)
Fresh Issue6,164,800 shares
(aggregating up to ₹93.70 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE SME
Share holding pre issue17,080,070
Share holding post issue23,244,870
Market Maker portion308,800 shares

Subam Papers IPO Promoter Holding

The promoters of the Company are Mr. T Balakumar and Ms. Sudha Alagarsamy.

Share Holding Pre Issue94.81%
Share Holding Post Issue69.67%

SHARIAH SCREENING for - Subam Papers Limited IPO

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BUSINESS SCREEN

FINANCIAL RATIOS

As per our analysis and Based on the information we have, this is the output.
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