Spinaroo Commercial Limited IPO: A Detailed Overview

Introduction to Spinaroo Commercial

Established in 2012, Spinaroo Commercial Limited is a Kolkata-based manufacturer specializing in aluminum foil containers, home foil, paper cups, and raw materials for paper cup production (such as paper coating, printing, and blanking). The company also offers a range of paper cup manufacturing machinery, including:

• High-Speed Paper Cup Making Machines

• Flexo Printing Machines

• Automatic Roll Die Cutting Machines

With over a decade of experience, Spinaroo Commercial provides end-to-end manufacturing solutions for disposable product makers.

Spinaroo Commercial IPO Details

Spinaroo Commercial is launching an SME Fixed Price IPO worth ₹10.17 crores. The IPO comprises a fresh issue of 19.94 lakh shares.

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

• Allotment Date: April 04, 2025 (tentative)

• Listing Exchange: BSE SME

• Listing Date: April 08, 2025 (tentative)

• IPO Price: ₹51 per share

• Market Capitalization (at IPO price): ₹35.67 crores

• Lot Size: 2,000 shares

• Minimum Investment:

  • Retail Investors: ₹1,02,000 (1 lot)

  • HNIs: ₹2,04,000 (2 lots)

Key Players Involved:

• Book Running Lead Manager: Finshore Management Services Limited

• Registrar: Cameo Corporate Services Limited

• Market Maker: Black Fox Financial Private Limited

Objectives of the IPO

The IPO proceeds will be allocated as follows:

1. Working Capital Requirements: ₹712.84 Lakhs

2. General Corporate Purposes: ₹500.00 Lakhs

Industry Outlook & Growth Potential

The Indian disposable packaging industry is witnessing rapid growth due to rising demand for eco-friendly and cost-effective packaging solutions.

Key Market Trends:
✅ Increased demand for paper cups & aluminum packaging due to plastic bans.
✅ E-commerce & food delivery growth boosting demand for disposable packaging.
✅ Government support for sustainable packaging solutions.

Despite fluctuations in raw material prices, the growth of the FMCG, food delivery, and beverage sectors supports the industry’s expansion.

Financial Performance of Spinaroo Commercial

Spinaroo Commercial has demonstrated moderate financial performance, with revenues fluctuating over recent years.

Key Ratios:

• Pre-Issue EPS: ₹2.8

• Post-Issue EPS: ₹2.0

• Pre-Issue P/E Ratio: 18.21x

• Post-Issue P/E Ratio: 25.47x

• Return on Capital Employed (ROCE): 37.58%

• Return on Equity (ROE): 23.23%

• Return on Net Worth (RoNW): 23.23%

At an annualized EPS of ₹2.46, the P/E ratio stands at 20.73x, suggesting that the IPO is fairly valued but not undervalued.

Business Strengths of Spinaroo Commercial

✅ Strong Market Position: A recognized name in paper cup & aluminum packaging manufacturing.
✅ Diverse Product Portfolio: Supplies paper cups, aluminum foils, raw materials & machinery.
✅ Experienced Leadership: Promoters with over 16 years of experience in disposable packaging.
✅ Steady Business Model: Growing demand for eco-friendly packaging solutions ensures long-term relevance.

Business Risks & Challenges

❌ Revenue Volatility: Sales have been inconsistent, declining in FY24 compared to FY23.
❌ Competitive Industry: Faces stiff competition from larger players in the aluminum & paper packaging sector.
❌ Raw Material Dependency: Relies on imported and local raw materials, making costs volatile.
❌ IPO Valuation Concerns: The post-issue P/E ratio (25.47x) is on the higher side, indicating limited listing gains.

Spinaroo Commercial IPO GMP & Subscription Status

• Current Grey Market Premium (GMP): ₹0 (No premium)

• Expected Listing Price: ₹51 (No gain anticipated)

• Subscription Status (Day 1): 0.15x subscribed as of March 28, 2025, 07:00 PM

The absence of GMP activity suggests no strong listing gains expected.

Spinaroo Commercial IPO Investment Verdict

Given the company’s financials, industry positioning, and IPO valuation, investors should AVOID Spinaroo Commercial IPO for listing gains or long-term investment.

✅ Pros:

• Established brand in packaging manufacturing

• Eco-friendly product focus

• Growing industry demand

❌ Cons:

• IPO valuation is not attractive

• Fluctuating financial performance

• No listing gains expected (0% GMP)

Final Recommendation:

⚠️ Investors should look for better IPO opportunities with stronger financials and growth potential before investing in Spinaroo Commercial IPO.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.