Nikita Papers Limited is a leading manufacturer of recycled kraft paper, focused on sustainability and innovation. Using 100% recycled waste paper, the company manufactures high-quality kraft paper catering to both domestic and international markets. Their commitment to preserving the environment and adopting cutting-edge technology makes them a significant player in the paper industry.

The company is launching an Initial Public Offering (IPO) as a Book Built Issue amounting to ₹67.53 crore, consisting entirely of a fresh issue of 64.94 lakh equity shares. The subscription period opens on May 27, 2025, and closes on May 29, 2025. The allotment of shares is expected around May 30, 2025, with shares to be listed on the NSE SME platform tentatively on June 3, 2025.

The IPO price band is fixed between ₹95 and ₹104 per equity share. At the upper price band of ₹104, the company's market capitalisation will be approximately ₹256.54 crore post-IPO. The lot size is 1200 shares, requiring a minimum retail investment of ₹1,24,800. High Net Worth Individuals (HNIs) must invest in multiples of 2 lots (2400 shares), amounting to ₹2,49,600 minimum.

FAST TRACK FINSEC PRIVATE LIMITED is the book running lead manager for the IPO, SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar, and Rikhav Securities Limited acts as the Market Maker.

Financial Performance and Growth

Nikita Papers has shown steady growth in financial performance over the years. Revenues from operations were ₹35,848.57 lakh in 2022, ₹40,130.91 lakh in 2023, ₹34,678.28 lakh in 2024, and ₹27,238.28 lakh for the nine months ended December 31, 2024. EBITDA grew from ₹2,962.20 lakh in 2022 to ₹3,055.80 lakh in 2023, ₹4,840.04 lakh in 2024, and ₹4,380.46 lakh for the nine months ended December 2024. Profit after tax increased from ₹695.21 lakh in 2022 to ₹864.52 lakh in 2023, ₹1,659.53 lakh in 2024, and ₹1,568.11 lakh for the nine months ended December 2024.

Key financial ratios include a pre-issue Earnings Per Share (EPS) of ₹9.81 and a post-issue EPS of ₹6.73 for FY24. The pre-issue Price to Earnings (P/E) ratio is 10.60 times, rising to 15.46 times post-issue, both below the industry average P/E of 22 times. The company reports a Return on Capital Employed (ROCE) of 28.71%, Return on Equity (ROE) of 21.45%, and Return on Net Worth (RoNW) of 21.45% for FY24. The annualised EPS based on the latest financial data is ₹11.50, with a P/E ratio of 9.03 times, indicating a fairly priced IPO.

Grey Market Premium and Listing Outlook

The Grey Market Premium (GMP) is ₹8, suggesting potential listing gains of approximately 8.32%. GMP reflects unofficial trading demand and supply, so it should be considered for informational purposes only and is not guaranteed.

Given the company’s solid financial performance, attractive valuation, and environmental focus, the IPO may appeal to risk-tolerant investors seeking listing gains. However, investors should consider all factors carefully before investing.

About the Promoter

Mr Ashok Kumar Bansal, with over 35 years of experience including more than 25 years in the paper industry, is the Chairman of Nikita Papers. His leadership and industry expertise have been key to the company's growth and innovation.

For further details, contact
FAST TRACK FINSEC PRIVATE LIMITED (Book Running Lead Manager)
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED (Registrar)
Rikhav Securities Limited (Market Maker)

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