Shreenath Paper IPO booked 15% on Day 1: Check issue size, price band & more

Shreenath Paper Products launched its initial public offering on Tuesday to raise ₹23.36 crore from the primary market. Incorporated in 2011, the company offers supply chain solutions to paper industries. The IPO subscription period is from February 25 to February 28.

The BSE SME issue opened to weak demand. The IPO was booked only 15% till 5 pm on Day 1. According to BSE data, the fixed-price public offer received applications for 7.41 lakh shares against the 50.28 lakh shares offered.

The IPO received bids for 6.99 lakh shares from retail investors against the allocated quota of 25.14 lakh shares. The retail portion was booked 28%. The Non-Institutional Investors (NIIs) applied for only 42,000 shares against 25.14 lakh shares set aside for them, leading to a subscription of only 2%.

Shreenath Paper Products IPO offer size, price and other key details

Shreenath Paper Products' IPO comprises only a fresh issuance of 53.1 lakh shares. The company has fixed the price at ₹44 per share.

The lot size is 3,000 shares, requiring a minimum investment of ₹1,32,000 for retail investors. High-net-worth individuals (HNIs) can apply for at least two lots of 6,000 shares, amounting to an investment of ₹2,64,000.

Galactico Corporate Services Ltd is the book-running lead manager, while Bigshare Services Pvt Ltd is the IPO registrar.

Shreenath Paper Products IPO key dates

• Shreenath Paper Products IPO bidding will close on February 28
• The company is likely to announce the IPO share allotment status on Monday, March 3.
• Refunds will be processed on March 4 and the successful bidders will also receive the shares in their Demat account the same day.
• The tentative listing date for the Shreenath Paper Products IPO has been fixed as March 5.
• Shares of Shreenath Paper Products Ltd will be listed on the BSE SME platform.

About Shreenath Paper Products and IPO objects

Shreenath Paper Products is a supplier of paper products such as sublimation base paper, straw paper, thermal base paper, cup stock paper, paper for cone sleeves, poster paper, transcode PSA sheets, filmic and digital PSA sheets, and security PSA sheets.

The company supplies materials to industries that use coating-based paper, machine-glazed paper, food-grade paper, pressure pressure-sensitive adhesive paper as their raw materials. The company sources paper from manufacturers and supplies it to paper mills.

The paper products manufactured by its customers have a variety of end-use applications in FMCG, heat-sensitive printers like ATM and POS Paper, textiles, the food and beverages industry, restaurants, automobiles, pharmaceuticals, e-commerce, white goods packaging industry, security labels and other sectors.

It sells products mainly in Maharashtra, Gujarat and Madhya Pradesh.

The company has proposed to use ₹18 crore of IPO proceeds for meeting incremental working capital requirements and ₹2.87 crore for general corporate purposes.

Shreenath Paper Products IPO: Key financials

The company reported revenue from operations of ₹77.04 crore in the April-December period of the current financial year.

Its revenue stood at ₹185.84 crore in FY 2024 against ₹204.43 crore in FY 2023. The company reported a profit after tax of ₹2.4 crore for the April-December 2024 period. The PAT was ₹4.39 crore in FY 2024 against ₹4.38 crore in FY 2023.