3B Films Limited, a manufacturer and supplier of CPP (Cast Polypropylene) and CPE (Cast Polyethylene) films, primarily caters to the flexible packaging industry and high-end thermoforming applications. The company’s products serve a broad spectrum of industries, including food and beverage, clothing, flowers, and other consumer goods. By delivering innovative packaging solutions, 3B Films plays a significant role in enhancing product protection and appeal.

IPO Overview

The company has launched a Fixed Price Issue IPO aggregating to ₹33.75 Crores, which consists of a fresh issue of 35.52 lakh shares valued at ₹17.76 Crores and an Offer for Sale of 31.98 lakh shares aggregating ₹15.99 Crores. The IPO opens on May 30, 2025, and closes on June 3, 2025. The shares are expected to be allotted by June 4, 2025, and listed on the BSE SME platform on or about June 6, 2025.

• The price per equity share is fixed at ₹50.

• The company’s market capitalization at the IPO price is approximately ₹123.86 Crores.

• The minimum lot size for investors is 3,000 shares, amounting to ₹1,50,000.

• High Net Worth Individuals (HNIs) must apply for a minimum of 2 lots (6,000 shares) amounting to ₹3,00,000.

Promoters and Management

3B Films is promoted by Mr. Ashokbhai Babariya, the Managing Director, along with his brothers Mr. Mukeshbhai Babariya and Mr. Nitinbhai Babariya. Mr. Ashokbhai brings over three decades of entrepreneurial experience and over ten years of expertise in specialty packaging solutions, driving the company’s growth and innovation.

Financial Performance

The company has shown consistent financial growth over recent years:

This reflects a steady improvement in profitability and operational efficiency. Key financial ratios include a pre-issue EPS of ₹2.02, post-issue EPS of ₹1.73, and a pre-issue P/E ratio of 24.75x. Return metrics for FY24 show a ROCE of 8.64%, ROE of 14.91%, and RoNW of 13.88%, indicating moderate returns relative to equity and capital employed.

IPO Objectives

The net proceeds from the IPO will be utilized for:

1. Capital Expenditure – ₹443.20 Lakh

2. Working Capital Requirements – ₹715.00 Lakh

3. General Corporate Purposes – ₹443.50 Lakh

4. Fresh Offer Expenses – ₹174.30 Lakh

These investments aim to bolster the company’s production capacity, meet operational needs, and support corporate growth initiatives.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium for 3B Films IPO currently stands at ₹0, suggesting no expected listing gain based on current market sentiments and the company’s financial performance. The subscription status on the first day, as of 5 PM on May 30, 2025, shows the IPO was subscribed 0.82 times, indicating moderate investor interest.

How to Check IPO Allotment Status

Investors can check the allotment status on the registrar’s website from June 4, 2025, by following these steps:

• Visit the IPO allotment status portal.

• Select 3B Films Limited IPO from the IPO list.

• Enter your application number, PAN, or DP Client ID.

• Submit details to view allotment results.

Expert IPO Review and Recommendation

3B Films IPO is priced at ₹50 with a market capitalization of about ₹123.86 Crores. The company’s financials demonstrate steady revenue and profit growth, backed by experienced promoters and a diversified product portfolio catering to essential industries.

However, the lack of expected listing gains reflected by a ₹0 GMP and a moderate P/E valuation suggest limited upside for short-term investors. The IPO appears fairly valued but may not offer immediate listing profits.

Recommendation: Investors looking for stable long-term growth in the flexible packaging sector may consider subscribing with caution. Those seeking quick listing gains might choose to avoid this IPO.

Disclaimer:
This IPO review is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Market conditions and company performance may change, affecting investment outcomes.

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

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