Spinaroo Commercial Limited, established in 2012 and based out of Kolkata, is a leading manufacturer of aluminum foil containers, aluminum home foils, paper cups, and raw materials for paper cups like paper coating, printing, and blanking. The company also deals in a range of high-quality machinery for paper cup manufacturing, including high-speed paper cup making machines, flexo printing machines, and automatic roll die cutting machines, providing end-to-end support for their customers.

The Spinaroo Commercial IPO is a Fixed Price Issue amounting to ₹ 10.17 crores, consisting entirely of a fresh issue of 19.94 lakh shares. Here are the key details of the IPO:

IPO Subscription Dates and Key Timelines:

• Subscription Opening Date: March 28, 2025

• Subscription Closing Date: April 03, 2025

• Allotment Finalization Date: April 04, 2025

• Listing Date on BSE SME: April 08, 2025

IPO Pricing Details:

• Issue Price: ₹ 51 per equity share

• Lot Size: 2,000 shares

• Retail Investor Minimum Investment: ₹ 1,02,000 (2,000 shares)

• HNI Minimum Investment: ₹ 2,04,000 (4,000 shares)

Market Capitalization at IPO Price:

The market capitalization of Spinaroo Commercial Limited at an issue price of ₹51 per share is ₹93.59 crores.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) of Spinaroo Commercial is currently expected to be ₹ 0. The lack of significant trading in the grey market suggests no real price discovery has occurred as of now. GMP is based purely on demand and supply in the unorganized market and should be viewed cautiously.

IPO Allotment Process:

The IPO allotment date is set for April 04, 2025. Investors can check the allotment status online by visiting the registrar’s website and entering details like application number, PAN, or DP Client ID.

Objectives of the IPO:

Spinaroo Commercial intends to utilize the net proceeds of the IPO for the following purposes:

• ₹712.84 Lakhs for working capital requirements.

• ₹500.00 Lakhs for general corporate purposes.

Financial Performance and Metrics:

The company's financial performance shows steady growth, with revenues from operations of ₹ 2,101.65 lakhs (for the period ending Sept 30, 2024). The EBITDA for the same period was ₹ 132.92 lakhs and the Profit After Tax (PAT) was ₹ 61.48 lakhs.

The company’s earnings per share (EPS) stands at ₹ 2.8 pre-issue and ₹ 2.0 post-issue for FY24. The Price-to-Earnings (P/E) ratio is 18.21x pre-issue and 25.47x post-issue, suggesting the IPO is priced fairly based on the company’s financials. Other important financial metrics include:

• Return on Capital Employed (ROCE) for FY24: 37.58%.

• Return on Equity (ROE) for FY24: 23.23%.

• Return on Net Worth (RoNW) for FY24: 23.23%.

Company Leadership:

Spinaroo Commercial is led by Mr. Amit Sultania, with over 16 years of experience in the manufacturing sector, and Mr. Aditya Todi, with over 10 years of experience. Mrs. Mridula Todi also plays an integral role in the company’s management.

IPO Review:

Given the steady growth in financial performance, fair pricing, and the company’s promising leadership, the Spinaroo Commercial IPO might be worth considering for long-term investors. However, with zero GMP at present and the lack of significant grey market movement, investors may avoid this IPO if looking solely for short-term listing gains.

Conclusion:

The Spinaroo Commercial IPO offers a chance to invest in a reputed manufacturer of paper and aluminum products with solid industry experience. However, based on the current GMP and pricing, investors are advised to be cautious when considering this IPO for listing gains but could consider it for long-term investment opportunities based on the company’s growth potential.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Identixweb Limited,Retaggio Industries Limited,Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited,Desco Infratech Limited,Rapid Fleet Management Services, Active Infrastructures Limited.

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