Shreenath Paper Products IPO has opened for subscription at a fixed price of ₹44 per share, with a total issue size of ₹23.36 crore. The IPO comprises an entirely Fresh Issue of 53.10 lakh shares, with a lot size of 3,000 shares per application. The company operates in the paper-based raw material supply chain sector, catering to industries requiring coating-based paper, food-grade paper, machine-glazed paper, and pressure-sensitive adhesive paper.

IPO Subscription and Listing Details

The subscription period for Shreenath Paper Products IPO began on February 25, 2025, and will close on February 28, 2025. Investors who have applied for the IPO can check the allotment status on March 3, 2025, through the registrar, Bigshare Services Private Limited. The shares are set to be listed on BSE SME on March 5, 2025.

The market capitalization of Shreenath Paper Products Limited at the IPO price of ₹44 per share will be ₹86.48 crore. The IPO lot size is 3,000 shares, requiring a minimum investment of ₹1,32,000 for retail investors. High-Net-Worth Individuals (HNIs) must apply for at least two lots, which equals 6,000 shares, amounting to ₹2,64,000.

Grey Market Premium (GMP) and Market Sentiment

Currently, the Grey Market Premium (GMP) for Shreenath Paper Products IPO stands at ₹0. This indicates no expected premium or discount on the listing day. The GMP reflects demand and supply in the unregulated market, and since no significant trading activity is recorded, no accurate price discovery is possible before listing.

Company Overview and Financial Performance

Shreenath Paper Products specializes in supply chain solutions for paper-based raw materials. The company manages client requirements, curates technical specifications, sources manufacturers, tests samples, procures materials, and ensures seamless delivery.

The company is promoted by Alok Parekh (Chairman & MD), Ronak Parekh (Whole-time Director & CEO), Navneetdas Parekh, Hasumati Navneetdas Parekh, Harish Parekh, Hasumati Harish Parekh, Neha Parekh, and Sayali Parekh.

Financially, the company has shown steady growth over the years. The revenue from operations stood at ₹7,861.95 lakh for the period ending December 31, 2024. Previous fiscal years reported the following revenues:

• ₹18,966.98 lakh in FY24
• ₹20,669.91 lakh in FY23
• ₹14,175.16 lakh in FY22

The EBITDA for the same period stood at ₹434.34 lakh, with previous years reporting:

• ₹577.36 lakh in FY24
• ₹664.26 lakh in FY23
• ₹-195.34 lakh in FY22

The Profit After Tax (PAT) for the period ending December 31, 2024, was ₹240.51 lakh, while past financials show:

• ₹439.06 lakh in FY24
• ₹438.47 lakh in FY23
• ₹133.76 lakh in FY22

These figures indicate consistent profitability and financial stability over the years.

Key Performance Metrics and Valuation

The pre-issue Earnings Per Share (EPS) for FY24 stands at ₹3.07, while the post-issue EPS is ₹2.23. The pre-issue Price-to-Earnings (P/E) ratio is 14.33x, and the post-issue P/E ratio is 19.70x. Key performance indicators include:

• Return on Capital Employed (ROCE) for FY24: 19.32%
• Return on Equity (ROE) for FY24: 23.19%
• Return on Net Worth (RoNW) for FY24: 23.19%
• Annualized EPS: ₹2.24 with a PE ratio of 19.64x

IPO Objectives and Fund Utilization

The proceeds from the IPO will be utilized as follows:

• ₹1,800.00 lakh for incremental working capital requirements.
• ₹287.16 lakh for general corporate purposes.

IPO Subscription Status and Market Sentiment

As of 7:00 PM on February 28, 2025, the IPO was subscribed 1.81 times on its final day of the subscription period. Investors can check the live IPO subscription status at BSE for real-time updates.

The allotment status for Shreenath Paper Products IPO will be available on March 3, 2025. Investors can check their allotment by following these steps:

1. Visit the IPO allotment status page.
2. Select "Shreenath Paper Products Limited IPO" from the dropdown.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check allotment status.

Shreenath Paper Products IPO Review: Should You Invest?

Based on financial performance and valuation, the IPO is considered fully priced. The absence of a positive Grey Market Premium (GMP) suggests that no listing gains are expected. Investors looking for short-term profits may find this IPO unattractive.

However, for those considering long-term investment, factors like financial stability, revenue growth, and operational efficiency must be analyzed. Given the current market conditions and IPO valuation, experts recommend avoiding this IPO for listing gains or long-term investment.

Conclusion

Shreenath Paper Products IPO offers investors a chance to invest in a paper-based supply chain solutions company with a stable financial track record. However, the lack of a Grey Market Premium (GMP) and fully priced valuation suggest limited short-term gains. Investors should carefully assess financials, market conditions, and risk factors before making a decision.

The Upcoming IPOs in this week and coming weeks are  NAPS Global.

The Current active IPO are Balaji Phosphates, Shreenath Paper.

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