Shreenath Paper Products IPO has opened for subscription from February 25, 2025, to February 28, 2025, offering an issue price of ₹ 44 per equity share. The company is aiming to raise ₹ 23.36 crores through a fresh issue of 53.10 lakh shares, with no offer for sale component. The IPO is being managed by Galactico Corporate Services Limited, with Bigshare Services Private Limited as the registrar and Pure Broking Private Limited as the market maker.

Company Overview and Business Model

Shreenath Paper Products Limited specializes in supply chain solutions for industries dependent on paper-based raw materials, including coating-based paper, food-grade paper, machine-glazed paper, and pressure-sensitive adhesive paper. The company's operations include identifying client requirements, sourcing specialized manufacturers, testing samples, procuring materials, and ensuring timely supply.

The company is led by experienced promoters, including Alok Parekh (Chairman & Managing Director) and Ronak Parekh (Whole-time Director & CEO). Alok Parekh holds a B.E. (IT) degree and has over a decade of experience in supply chain management, overseeing vendor relations, finance, and accounting. Ronak Parekh, a management graduate, has been with the company since 2011, leading marketing and product innovation.

IPO Subscription and Listing Details

The subscription window for the Shreenath Paper Products IPO is open from February 25, 2025, to February 28, 2025. The allotment of shares is expected to be finalized on March 3, 2025, and the listing on the BSE SME exchange is set for March 5, 2025.

IPO Lot Size and Investment Requirement:

• Lot Size: 3,000 shares
• Retail Investors Minimum Investment: ₹ 1,32,000
• High-Net-Worth Individuals (HNI) Minimum Investment: 2 lots (6,000 shares) at ₹ 2,64,000

Financial Performance and Growth Analysis

Shreenath Paper Products Limited has demonstrated consistent revenue growth over the past financial years:

• Revenue from Operations:

  • FY22: ₹ 14,175.16 lakh
  • FY23: ₹ 20,669.91 lakh
  • FY24: ₹ 18,966.98 lakh
  • Dec 31, 2024 (YTD): ₹ 7,861.95 lakh

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

  • FY22: ₹ -195.34 lakh
  • FY23: ₹ 664.26 lakh
  • FY24: ₹ 577.36 lakh
  • Dec 31, 2024 (YTD): ₹ 434.34 lakh

• Profit After Tax (PAT):

  • FY22: ₹ 133.76 lakh
  • FY23: ₹ 438.47 lakh
  • FY24: ₹ 439.06 lakh
  • Dec 31, 2024 (YTD): ₹ 240.51 lakh

The company has reported an EPS (Earnings Per Share) of ₹ 3.07 (pre-issue) and ₹ 2.23 (post-issue) for FY24. The P/E ratio (Price-to-Earnings) stands at 14.33x pre-issue and 19.70x post-issue, indicating that the IPO is fully priced.

Objectives of the IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹ 18.00 Crores for incremental working capital requirements
2. ₹ 2.87 Crores for general corporate purposes

Grey Market Premium (GMP) and IPO Review

As of February 25, 2025, the Grey Market Premium (GMP) for the IPO is ₹ 0, indicating no expected listing gains. The GMP is an informal indicator of potential demand for the shares before they are officially listed.

How to Check IPO Allotment Status Online

Investors who have applied for the Shreenath Paper Products IPO can check their IPO allotment status online on March 3, 2025, by following these steps:

1. Visit the IPO allotment status page on the registrar's website.
2. Select Shreenath Paper Products IPO from the dropdown list.
3. Enter Application Number, PAN, or DP Client ID.
4. Submit the details to view the allotment status.

Should You Invest?

Considering the valuation, financial performance, and zero GMP, Shreenath Paper Products IPO does not offer significant listing gains. While the company has strong revenue and profit growth, the IPO is fully priced and may not be ideal for short-term investors looking for quick gains. Long-term investors should evaluate the company's ability to sustain growth before making an investment decision.

Conclusion

The Shreenath Paper Products IPO offers investors an opportunity to participate in the paper-based supply chain sector. The subscription window runs from February 25 to February 28, 2025, with shares expected to be listed on the BSE SME exchange on March 5, 2025. However, the lack of GMP and fully priced valuation indicate that cautious investing is advised. Investors should assess their risk appetite before applying for the IPO.

The Upcoming IPOs in this week and coming weeks are Balaji Phosphates.

The Current active IPO are Shreenath Paper, Nukleus Office, Beezaasan Explotech.

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