Subam Papers IPO 2024: Everything You Need to Know

Subam Papers IPO Date, Price, GMP, Review, Details: All You Need to Know

Subam Papers Limited is gearing up for its much-awaited IPO, and it’s generating a lot of buzz in the market. With a plan to raise ₹93.70 crores, this book-built issue opens up exciting opportunities for investors. Here’s everything you need to know about the Subam Papers IPO, including key dates, details, and reasons to consider investing in this fast-growing company.

Subam Papers IPO Schedule

Mark your calendar! The Subam Papers IPO opens on September 30, 2024, and closes on October 3, 2024. Here’s a quick look at the timeline:

Subam Papers IPO Details

The Subam Papers IPO is offering a total of 61.65 lakh shares through a fresh issue. Here are the key details:

• Price Band: ₹144 to ₹152 per share
• Lot Size: 800 shares
• Minimum Investment (Retail): ₹121,600 (for 1 lot)
• Minimum Investment (HNI): ₹243,200 (for 2 lots)
• Issue Size: ₹93.70 crores
• Listing at: BSE SME

Promoters and Shareholding

The promoters of Subam Papers Limited are Mr. T Balakumar and Ms. Sudha Alagarsamy. After the IPO, their shareholding will decrease from 94.81% pre-issue to 69.67% post-issue.

Company Overview: Subam Papers Limited

Founded in October 2006, Subam Papers Limited specializes in the manufacturing of Kraft Paper and other paper products. The company uses recycled waste paper as its primary raw material, making it a sustainable and environmentally friendly business.

• Manufacturing Capacity: As of March 2024, the company boasts an installed capacity of 300 metric tons per day (MTPD), resulting in an annual capacity of 93,600 tons.
• Product Range: They produce Kraft Paper and Duplex Boards with GSM ranging from 120 to 300, and Busting Factor of 16 to 35.
• Industry Applications: Subam Papers caters to industries such as FMCG, automobiles, pharmaceuticals, and more, providing essential packaging materials.

Financial Performance

Subam Papers has shown significant financial growth, particularly in FY 2024 where their profit after tax (PAT) surged by an impressive 12,574% compared to the previous year.

Key Performance Indicators (KPI)

• ROE: 16.79%
• ROCE: 20.84%
• Debt/Equity Ratio: 0.92

Competitive Strengths

• Sustainable Practices: Subam Papers uses recycled waste paper, positioning itself as a leader in sustainable packaging solutions.
• Automated Manufacturing: The fully automated process enhances productivity and ensures high-quality products.
• ERP Technology: The use of ERP technology helps in tracking and controlling inventory efficiently.

Risks to Consider

• Dependency on Raw Material: The company heavily relies on waste paper as raw material. Any shortage or price fluctuation can impact profitability.
• Single Business Segment: Revenue is derived from a single business segment, increasing the risk related to market competition and demand.

Also Read: Paramount Dye Tec IPO 2024: Everything You Need to Know

FAQs: Subam Papers IPO

With its commitment to sustainability and automation, Subam Papers IPO presents an exciting investment opportunity. Whether you’re a retail or HNI investor, the IPO offers a promising entry point into a growing industry. Don’t miss the opportunity to be part of this green initiative!