Nikita Papers Limited, a prominent name in the recycled kraft paper industry, has concluded its initial public offering (IPO) with an overall subscription of 1.40 times on the final day, May 29, 2025. The IPO, entirely a fresh issue of 64.94 lakh equity shares, amounts to ₹67.53 crore and is slated for listing on the NSE SME platform on June 3, 2025.

With an innovative outlook toward environmental sustainability, Nikita Papers manufactures kraft paper using 100% recycled waste paper, positioning itself at the forefront of eco-conscious industrial production. The company’s vision is rooted in technological advancement and responsible resource management.

IPO Details and Timeline

The price band for the IPO was set between ₹95 to ₹104 per share, and the lot size is 1,200 shares. Accordingly, the minimum investment for retail investors is ₹1,24,800, while HNIs are required to apply for a minimum of 2 lots (2,400 shares), translating to ₹2,49,600.

The IPO opened for subscription on May 27, 2025, and closed on May 29, 2025. The allotment date is expected to be May 30, 2025, and the company aims to debut on the NSE SME platform by June 3, 2025.

FAST TRACK FINSEC PRIVATE LIMITED is acting as the Book Running Lead Manager, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED as the Registrar to the Issue. Rikhav Securities Limited has been appointed as the Market Maker for this IPO.

IPO Subscription Status

As of 7:00 PM on May 29, 2025, the IPO was subscribed 1.40 times overall, indicating a fair amount of investor interest despite relatively moderate oversubscription.

Breakdown of subscriptions by category is yet to be officially published, but the cumulative response shows optimism, especially among retail and HNI categories.

Anchor Investor Allocation

Prior to the public offering, Nikita Papers raised ₹19.24 crore through its Anchor Investor segment by allocating 18,50,400 shares at ₹104 apiece. This allocation was done in consultation with the book running lead managers and indicates strong institutional interest.

As per regulatory norms, shares allotted to anchor investors are adjusted from the QIB reservation quota.

Grey Market Premium (GMP)

As of May 21, 2025, the Grey Market Premium (GMP) for Nikita Papers IPO stood at ₹8, implying an 8.32% listing gain potential, with the expected listing price around ₹112 per share. However, it's important to note that GMP is unofficial, derived from unregulated sources, and not an accurate predictor of listing day performance.

The GMP is shared only for educational purposes and should not be the sole basis for investment decisions.

Company Overview

Founded with a mission to make paper manufacturing more sustainable, Nikita Papers Limited specializes in the production of high-quality recycled kraft paper. With cutting-edge technology and a vision for environmental stewardship, the company has a strong presence in both domestic and international markets.

Under the leadership of Mr. Ashok Kumar Bansal, the Chairman with over 35 years of experience, the company has cemented its position as a key player in the Indian kraft paper segment.

Financial Performance

The financial trajectory of Nikita Papers reveals consistent growth:

Other key metrics include:

• Pre-issue EPS: ₹9.81

• Post-issue EPS: ₹6.73

• Pre-issue P/E Ratio: 10.60x

• Post-issue P/E Ratio: 15.46x

• Industry P/E Ratio: 22x

• ROCE for FY24: 28.71%

• ROE for FY24: 21.45%

• RoNW: 21.45%

• Annualised EPS: ₹11.50

• Annualised P/E: 9.03x

These statistics highlight efficient operations, sound margins, and a competitive valuation in comparison with industry standards.

Use of IPO Proceeds

Nikita Papers intends to deploy the net proceeds from the IPO as follows:

1. ₹50 crore toward capital expenditure for setting up a power plant.

2. ₹5 crore to meet working capital requirements.

3. General corporate purposes.

4. Issue-related expenses.

This capital structure reflects the company’s commitment to expansion and operational efficiency.

Nikita Papers IPO Allotment – How to Check

The allotment will be live on May 30, 2025, on the registrar's website. Here's how investors can check:

• Visit the official allotment status page of Skyline Financial Services Pvt. Ltd.

• Select Nikita Papers Limited IPO from the dropdown.

• Enter either Application Number, PAN, or DP/Client ID.

• Submit the details to view status.

This simple process enables applicants to verify the number of shares allotted and plan post-allotment actions.

IPO Review and Investment Recommendation

Nikita Papers Limited brings to the table a green business model, solid financials, and a vision-driven leadership. Its strong return ratios, growth in profitability, and reasonable valuation make it a potentially attractive proposition.

The IPO is fairly priced, with moderate listing gains projected based on GMP trends. The risk factor is medium, largely because the IPO isn’t significantly oversubscribed, and SME listings can be volatile.

Thus, risk-appetite investors looking for listing gains may consider applying, while conservative investors might wait to assess post-listing performance

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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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