3B Films Limited is a specialised manufacturer and supplier of CPP (Cast Polypropylene) and CPE (Cast Polyethylene) films designed to serve the flexible packaging industry and high-end thermoforming applications. The company plays a crucial role in delivering innovative packaging solutions across a diverse set of industries, including food and beverage, clothing, flowers and other consumer goods. Their product portfolio includes a wide range of CPP films tailored to meet industry-specific packaging requirements, ensuring quality and reliability.

The company is promoted by Mr. Ashokbhai Babariya, Managing Director, along with his brothers Mr. Mukeshbhai Babariya and Mr. Nitinbhai Babariya. Mr. Ashokbhai Babariya has an engineering background with over 30 years of entrepreneurial experience and 10 years focused on specialty packaging solutions. The promoters have been associated with the company since its inception, bringing stability and domain expertise to the business.

The company is launching a Fixed Price IPO amounting to ₹33.75 crore. The issue comprises a fresh issue of 35.52 lakh shares aggregating to ₹17.76 crore and an Offer for Sale (OFS) of 31.98 lakh shares aggregating to ₹15.99 crore. The IPO subscription period opens on May 30, 2025, and closes on June 3, 2025. The allotment is expected to be finalised on or about June 4, 2025, with the shares set to list on the BSE SME platform tentatively on June 6, 2025.

The IPO price is fixed at ₹50 per equity share. At this price, the company’s market capitalisation will be ₹123.86 crore. The lot size is 3,000 shares, requiring retail investors to invest a minimum of ₹1,50,000. High Net Worth Individuals (HNIs) need to apply for at least two lots (6,000 shares), amounting to ₹3,00,000.

Nirbhay Capital Services Private Limited is the Book Running Lead Manager of the IPO, Maashitla Securities Private Limited is the registrar, and Giriraj Stock Broking Private Limited acts as the Market Maker for the issue.

Financial Performance and Valuation

The financial performance of 3B Films shows moderate growth and stability. Revenue from operations was ₹5,718.28 lakh for the period ended December 31, 2024, compared to ₹7,639.79 lakh in FY24, ₹7,281.93 lakh in FY23, and ₹6,807.20 lakh in FY22. EBITDA stood at ₹1,234.71 lakh for the period ended December 2024, ₹1,563.90 lakh in FY24, ₹1,092.66 lakh in FY23, and ₹866.90 lakh in FY22. Profit after tax recorded ₹420.19 lakh for the period ended December 2024, ₹429.17 lakh in FY24, ₹91.76 lakh in FY23, and a loss of ₹34.46 lakh in FY22.

Key metrics include a pre-issue EPS of ₹2.02 and post-issue EPS of ₹1.73 for FY24. The pre-issue Price to Earnings (P/E) ratio is 24.75x, increasing to 28.86x post-issue. Return on Capital Employed (ROCE) for FY24 is 8.64%, Return on Equity (ROE) is 14.91%, and Return on Net Worth (RoNW) is 13.88%. The annualised EPS based on recent financials is ₹2.64, with a P/E ratio of 18.93x. These figures suggest that the IPO is fairly priced relative to the company’s earnings and growth prospects.

Grey Market Premium and Listing Advice

The Grey Market Premium (GMP) for the 3B Films IPO is currently ₹0, indicating no expected listing gains at the time of writing. GMP reflects unofficial demand and supply in unregulated markets and is not a guarantee of actual market performance. Investors should exercise caution and not rely solely on GMP for investment decisions.

Given the company’s modest growth and valuation, coupled with the zero GMP, the IPO may not offer immediate listing gains. Therefore, conservative and risk-averse investors are advised to avoid applying to the 3B Films IPO if their primary aim is to benefit from listing profits.

For detailed queries and further assistance, investors can contact:
Nirbhay Capital Services Private Limited (Book Running Lead Manager)
Maashitla Securities Private Limited (Registrar)

The Upcoming IPOs in this week and coming weeks are Ganga Bath Fittings, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films, N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals.

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