Nikita Papers Limited is a leading Indian manufacturer of recycled kraft paper known for embracing innovation through cutting edge technology. The company caters to both domestic and international markets with a strong commitment to sustainability by manufacturing kraft paper from 100 percent recycled waste paper. Their process innovation aims to preserve the environment while delivering high quality kraft paper products.

The company plans to raise ₹67.53 crore through a Book Built Issue consisting entirely of a fresh issue of 64.94 lakh equity shares. The IPO subscription opens on May 27 2025 and closes on May 29 2025. The shares are expected to be allotted on or about May 30 2025. Listing is planned on the NSE SME platform with a tentative date of June 3 2025. The price band is fixed between ₹95 and ₹104 per equity share. The lot size is 1,200 shares requiring retail investors to invest a minimum of ₹1,24,800. High Net Worth Individuals must invest at least 2 lots or 2,400 shares amounting to ₹2,49,600.

Management and Promoters
Nikita Papers is led by Mr Ashok Kumar Bansal who serves as Chairman. He brings over 35 years of experience including more than 25 years in the paper industry. His leadership and expertise provide strong guidance for the company’s strategic and operational growth.

Financial Performance
The company’s revenues show a fluctuating but steady performance with ₹358.49 crore in fiscal 2022 ₹401.31 crore in 2023 ₹346.78 crore in 2024 and ₹272.38 crore for the nine months ended December 31 2024. EBITDA increased from ₹29.62 crore in 2022 to ₹30.56 crore in 2023 ₹48.40 crore in 2024 and ₹43.80 crore in the recent nine months. Profit after tax grew from ₹6.95 crore in 2022 to ₹8.65 crore in 2023 ₹16.60 crore in 2024 and ₹15.68 crore for the latest period.

Key ratios show a healthy operational efficiency. The pre issue Earnings Per Share EPS for FY24 is ₹9.81 and post issue EPS is ₹6.73. The pre issue Price to Earnings PE ratio stands at 10.60 times and post issue PE rises to 15.46 times against an industry PE ratio of 22 times. Return on Capital Employed ROCE is 28.71 percent Return on Equity ROE and Return on Net Worth RoNW both stand at 21.45 percent. The annualised EPS based on recent financials is ₹11.50 with a PE ratio of 9.03 times. These figures indicate the IPO is fairly priced relative to earnings.

IPO Details and Market Outlook
FAST TRACK FINSEC PRIVATE LIMITED is the book running lead manager and SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar for the issue. Rikhav Securities Limited acts as the Market Maker ensuring liquidity for the shares. The market capitalisation post IPO at the upper price band ₹104 is estimated at ₹256.54 crore.

The Grey Market Premium GMP is zero suggesting no premium or discount on listing. As GMP depends on unregulated demand and supply it should not be solely relied on for price prediction. Investors should focus on fundamentals and long term prospects rather than short term listing gains.

Conclusion
Nikita Papers offers exposure to the growing recycled kraft paper market with strong sustainability focus and experienced leadership. Although the financials show steady growth the IPO is fairly priced with no expected listing gains. Investors seeking quick profits should be cautious while long term investors may consider the fundamentals and industry outlook before subscribing.

The Upcoming IPOs in this week and coming weeks are Scoda Tubes,Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions.

The Closed IPOs are Borana Weaves, Dar Credit and Capital, Belrise Industries.