3B Films Limited is a manufacturer and supplier of CPP (Cast Polypropylene) and CPE (Cast Polyethylene) films that cater primarily to the flexible packaging industry and high-end thermoforming applications. Their products serve a diverse set of industries including food and beverage, clothing, flowers, and other consumer goods by delivering innovative packaging solutions.

The company is launching a Fixed Price IPO to raise ₹ 33.75 Crores, which includes a fresh issue of 35.52 lakh shares aggregating ₹ 17.76 Crores and an Offer for Sale of 31.98 lakh shares aggregating ₹ 15.99 Crores. The IPO subscription will open on May 30, 2025, and close on June 3, 2025. The allotment is expected on or about June 4, 2025, and shares are likely to be listed on the BSE SME platform on June 6, 2025.

The IPO price is fixed at ₹ 50 per equity share. With this pricing, the company’s market capitalization will be approximately ₹ 123.86 Crores. The minimum lot size is 3,000 shares, requiring retail investors to invest at least ₹ 1,50,000, while High-Net-Worth Individuals (HNIs) must invest in multiples of 2 lots or more, amounting to a minimum of ₹ 3,00,000.

Lead Manager and Registrar:
NIRBHAY CAPITAL SERVICES PRIVATE LIMITED is the book running lead manager for the issue. The registrar is MAASHITLA SECURITIES PRIVATE LIMITED, and the market maker is Giriraj Stock Broking Private Limited.

Grey Market Premium (GMP):
Currently, the GMP for 3B Films IPO stands at ₹ 0, indicating no premium or discount in unofficial grey market trading. This suggests limited expected listing gains. Investors should note that GMP reflects unofficial market demand and supply and is not a guaranteed indicator.

Financial Performance:
The company has posted the following key financial figures:

• Revenue from operations for FY 2024: ₹ 5,718.28 Lakh (down from ₹ 7,639.79 Lakh in FY 2023)

• EBITDA for FY 2024: ₹ 1,234.71 Lakh (FY 2023: ₹ 1,563.90 Lakh)

• Profit After Tax (PAT) for FY 2024: ₹ 420.19 Lakh (FY 2023: ₹ 429.17 Lakh)

Though there was some decline in revenue and EBITDA, the company shows a steady profitability turnaround compared to losses in FY 2022.

The pre-issue EPS for FY24 is ₹ 2.02, while post-issue EPS is ₹ 1.73. The pre-issue P/E ratio is 24.75x and post-issue P/E ratio stands at 28.86x. ROCE is 8.64%, ROE is 14.91%, and RoNW is 13.88%, indicating fair valuation of the IPO.

IPO Objectives:
The proceeds will be used primarily for:

• Capital expenditure: ₹ 4.43 Crores

• Working capital requirements: ₹ 7.15 Crores

• General corporate purposes: ₹ 4.44 Crores

• Fresh offer expenses: ₹ 1.74 Crores

Allotment Status and Listing:
The IPO allotment status will be available on June 4, 2025, on the registrar’s website. Investors can check their status using application number, PAN, or DP Client ID. Listing is expected on the BSE SME on or about June 6, 2025.

Recommendation:
Given the current financials and zero GMP, the IPO is fairly priced but does not show signs of listing gains. Investors seeking listing profits may prefer to avoid this issue.

Disclaimer:
This IPO review is for informational and educational purposes only and should not be construed as financial advice. Investors are advised to consult with financial professionals before making investment decisions.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems.

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