Spinaroo Commercial IPO booked 15% so far on day 1: Strengths, risks and key things to know

Spinaroo Commercial IPO: Aluminium foil container manufacturer Spinaroo Commercial's initial public offer has been subscribed 15% until 3:51 pm on Friday, the first day of bidding.

Spinaroo Commercial IPO: 10 key things to know

• Spinaroo Commercial IPO subscription period: The initial share sale, which opened on Friday, March 28, will conclude on Thursday, April 3.
• IPO offer structure: The issue is exclusively a fresh issuance of nearly 20 lakh shares amounting to ₹10.17 crore.
• Spinaroo Commercial IPO price band: It is a fixed price issue at ₹51 per share.
• Objective: The funds generated will be used to meet working capital needs and corporate general purposes.
• Spinaroo Commercial IPO lot size: A lot, consisting of 2,000 shares, will cost ₹1,02,000 for retail investors. For high-net-worth investors, the least investment is ₹2,04,000.
• Financials: Revenue from operations declined 22.5% to ₹41.21 crore for the financial year 2023-24 as against ₹53.19 crore in the previous fiscal. Net profit surged 50.5% to ₹1.4 crore in FY24, compared to ₹93 lakh in FY23.
• Book-running lead manager: Finshore Management Services Ltd
• Registrar: Cameo Corporate Services Ltd
• Allotment date: The basis of allotment will be finalised on April 4.
• Listing date: The listing on BSE SME will take place on April 8.

Spinaroo Commercial IPO: Strengths

• The company has a dedicated research and development (R&D) team.
• It has an experienced workforce, supported by senior management and key managerial personnel.
• Spinaroo Commercial operates two manufacturing facilities within the same industrial complex, giving it a strategic advantage in terms of logistics and production capacity.

Spinaroo Commercial IPO: Risks

• The company has experienced negative cash flow in recent fiscals. Sustained negative cash flow could affect business and financial conditions.
• If Spinaroo Commercial is unable to source business opportunities effectively, it may not be able to achieve financial objectives.
• Any increase in the cost of raw material could affect pricing, which could have a negative effect on business and financial condition.

Spinaroo Commercial manufactures aluminum home foil, aluminum foil containers, paper cups, paper plates, and paper bowls.