Spinaroo Commercial Ltd, based in Kolkata, is a manufacturer of aluminum foil containers, home foil, paper cups, and related machinery. Established in 2012, the company also provides paper cup raw materials and offers paper cup-related machinery like High-Speed Paper Cup Making Machines, Flexo Printing Machines, and Automatic Roll Die Cutting Machines.

The company is led by three key promoters:

• Amit Sultania – Over 16 years of experience in the industry

• Aditya Todi – Over 10 years of experience in disposable product manufacturing

• Mridula Todi

Spinaroo Commercial IPO Details

• IPO Issue Size: ₹ 10.17 crore

• Fresh Issue: 19.94 lakh shares

• IPO Price: ₹ 51 per share

• Market Capitalization (at ₹ 51 per share): ₹ 35.67 crore

• Lot Size: 2,000 shares

• Retail Investment Minimum: ₹ 1,02,000

• HNI Investment Minimum: ₹ 2,04,000 (2 lots)

• Subscription Period: March 28, 2025 – April 03, 2025

• Allotment Date: April 04, 2025

• Listing Date: April 08, 2025

• Stock Exchange: BSE SME

• Lead Manager: Finshore Management Services Limited

• Registrar: Cameo Corporate Services Limited

• Market Maker: Black Fox Financial Private Limited

Financial Performance of Spinaroo Commercial

Revenue & Profit Trends

The company's revenue declined in FY24, but profitability improved, indicating better cost efficiency.

Key Financial Ratios

The post-issue P/E ratio of 25.47x is moderate, but given the declining revenue, the valuation raises concerns.

IPO Subscription Status & Grey Market Premium (GMP)

Subscription Status (Final Day - April 03, 2025, 7:00 PM)

• Total Subscription: 1.49 times

• Retail Category: 1.35 times

• HNI Category: 1.78 times

The low subscription levels indicate weak investor confidence.

Grey Market Premium (GMP) & Expected Listing Price

• GMP: ₹ 0 (No premium)

• Expected Listing Price: ₹ 51 (At IPO price)

A zero GMP suggests that the stock may list at or near its issue price with no immediate gains expected.

Use of IPO Proceeds

• ₹ 712.84 lakh for working capital requirements

• ₹ 500.00 lakh for general corporate purposes

The primary use of funds for working capital indicates a focus on business operations, but lack of expansion plans is a concern.

Pros & Cons of Investing in Spinaroo Commercial IPO

Pros

✅ Established player in the disposable packaging & machinery sector
✅ Profitability improving despite revenue fluctuations
✅ Decent return ratios (ROCE 37.58%, ROE 23.23%)

Cons

❌ Declining revenue trend in FY24
❌ Low IPO subscription (1.49x) signals weak demand
❌ Zero Grey Market Premium (GMP ₹ 0) suggests no listing gains
❌ SME IPOs are less liquid and volatile

Investment Recommendation: Avoid for Listing Gains, Caution for Long-Term Investment

• For Short-Term Investors: Avoid this IPO as there is no GMP and low demand, making listing gains unlikely.

• For Long-Term Investors: Consider only if you believe in the growth potential of the disposable packaging sector and are comfortable with risks of revenue fluctuations.

Disclaimer

This IPO review is for educational and informational purposes only and should not be considered financial advice. Please consult a professional financial advisor before investing.

About the Author

CA Abhay Kumar (CA Abhay Varn) is a SEBI Registered Research Analyst (INH300008465) with 8+ years of stock market experience. He cleared CA at age 21 and has worked with top CA firms.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

 The Closed IPOs are  Infonative Solutions Limited, Spinaroo Commercial Limited,Retaggio Industries Limited.