3B Films Limited, a manufacturer and supplier of CPP (Cast Polypropylene) and CPE (Cast Polyethylene) films, has launched its Fixed Price IPO for ₹33.75 Crores, slated to open for subscription on May 30, 2025, and close on June 3, 2025. This IPO comprises a fresh issue of 35.52 lakh shares worth ₹17.76 Crores and an Offer for Sale (OFS) of 31.98 lakh shares aggregating ₹15.99 Crores. The shares will be listed on the BSE SME platform tentatively on June 6, 2025, after allotment on June 4, 2025.

IPO Pricing and Investment Details

The IPO price is fixed at ₹50 per equity share. The market capitalization at issue price will be approximately ₹123.86 Crores. The IPO lot size is set at 3,000 shares, implying a minimum investment of ₹1,50,000 for retail investors, while High Net Worth Individuals (HNIs) need to apply for a minimum of 2 lots (6,000 shares) amounting to ₹3,00,000.

Book Running Lead Manager and Registrar

• Book Running Lead Manager: NIRBHAY CAPITAL SERVICES PRIVATE LIMITED

• Registrar to the Issue: MAASHITLA SECURITIES PRIVATE LIMITED

• Market Maker: Giriraj Stock Broking Private Limited

Business Overview

3B Films caters primarily to the flexible packaging industry and high-end thermoforming applications by supplying specialized films. Their product range focuses on CPP and CPE films, tailored for diverse industries including food and beverage, clothing, flowers, and other consumer goods. These films are critical in offering innovative, durable, and efficient packaging solutions.

Promoters and Management

The company was founded and is led by the Babariya family—Mr. Ashokbhai Babariya, the Managing Director, along with his brothers Mr. Mukeshbhai and Mr. Nitinbhai Babariya. Mr. Ashokbhai brings over 30 years of entrepreneurial and engineering expertise, particularly in specialty packaging.

Financial Performance

3B Films has shown steady financial progress over the past three years:

• Revenue from operations: ₹57.18 Cr (2024), ₹76.39 Cr (2023), ₹72.82 Cr (2022)

• EBITDA: ₹12.35 Cr (2024), ₹15.64 Cr (2023), ₹10.93 Cr (2022)

• Profit After Tax (PAT): ₹4.20 Cr (2024), ₹4.29 Cr (2023), ₹0.92 Cr (2022)

The company moved from a loss in 2022 to consistent profitability, indicating growing operational efficiency.

Key Financial Ratios

• Pre-issue EPS: ₹2.02 (FY24)

• Post-issue EPS: ₹1.73 (FY24)

• Pre-issue P/E: 24.75x

• Post-issue P/E: 28.86x

• Return on Capital Employed (ROCE): 8.64%

• Return on Equity (ROE): 14.91%

• Return on Net Worth (RoNW): 13.88%

• Annualized EPS: ₹2.64

• Annualized P/E Ratio: 18.93x

These metrics suggest the IPO is fairly priced, but with modest growth indicators compared to industry standards.

Use of Proceeds

3B Films intends to utilize the net proceeds from the IPO as follows:

1. ₹4.43 Crores for capital expenditure to expand manufacturing capabilities.

2. ₹7.15 Crores for working capital requirements.

3. ₹4.44 Crores towards general corporate purposes.

4. ₹1.74 Crores to meet IPO-related expenses.

Grey Market Premium (GMP)

As of the latest update on May 26, 2025, the Grey Market Premium for 3B Films IPO stands at ₹0, indicating no listing gains are currently expected. This zero GMP reflects moderate investor enthusiasm or market caution, often tied to the company’s SME status and financial performance.

IPO Allotment and Listing Guide

• Allotment Date: June 4, 2025 (Wednesday)

• Investors can check allotment status via the registrar’s website by selecting the IPO name and entering application details such as PAN or DP Client ID.

Expert IPO Review and Recommendation

3B Films is positioned in a niche packaging segment with moderate financial growth and stable promoter background. However, the lack of Grey Market Premium and modest profitability ratios suggest limited upside on listing day. The IPO is targeted more at investors with a strategic interest in the packaging sector or those seeking long-term exposure rather than quick listing gains.

Recommendation: Given the zero GMP and SME platform listing, we advise investors to avoid the 3B Films IPO for listing gains, especially retail investors looking for short-term returns.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning..

The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.