The Spinaroo Commercial IPO 2025 is a significant offering by the company based in Kolkata, India, known for its manufacturing of aluminum foil containers, home foil, paper cups, and raw materials for paper cup production. Spinaroo is also a key player in paper cup-related machinery, including high-speed cup-making machines and flexo printing machines, offering end-to-end support.

This Fixed Price Issue of ₹ 10.17 Crores involves a fresh issue of 19.94 Lakh shares with the share price set at ₹ 51 per equity share. The subscription period will open on March 28, 2025, and close on April 03, 2025. Allotment is expected to be finalized on or about April 04, 2025, and shares will be listed on the BSE SME with a tentative listing date on April 08, 2025.

IPO Key Details:

• Market Capitalization: At the IPO price of ₹ 51, the market capitalization stands at ₹ 35.67 Crores.

• Lot Size: 2,000 shares, with a minimum investment of ₹ 1,02,000 for retail investors.

• HNIs need to invest in 2 lots (4,000 shares), amounting to ₹ 2,04,000.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for Spinaroo Commercial is expected to be ₹ 0, indicating no significant price discovery before the listing on the stock exchange. This is based on the financial performance of the company and the current demand-supply in the grey market. The GMP remains an informal metric and is not considered reliable for actual price prediction.

IPO Allotment Status:

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

Objectives of the IPO:

The company plans to utilize the net proceeds of the IPO towards:

1. ₹ 712.84 Lakhs for meeting working capital requirements.

2. ₹ 500 Lakhs for general corporate purposes.

Financial Performance & Metrics:

Spinaroo Commercial has shown a steady financial performance with the following figures for the last few years:

• Revenue (Sep 30, 2024): ₹ 2,101.65 Lakh

• EBITDA (Sep 30, 2024): ₹ 132.92 Lakh

• Profit After Tax (PAT) (Sep 30, 2024): ₹ 61.48 Lakh

The company’s pre-issue EPS stands at ₹ 2.8 and post-issue EPS at ₹ 2.0 for FY24. The pre-issue P/E ratio is 18.21x, and the post-issue P/E ratio is 25.47x. The Return on Capital Employed (ROCE) for FY24 is 37.58%, and Return on Equity (ROE) stands at 23.23%, which indicates strong profitability metrics.

IPO Valuation:

Based on the company’s performance and its IPO pricing, the valuation appears to be reasonable. The pre-issue P/E ratio of 18.21x is in line with the industry standards, though the post-issue P/E ratio of 25.47x suggests the stock might be on the higher end for short-term gains.

Recommendation:

Given the steady financials, Spinaroo Commercial IPO is priced reasonably, but the Grey Market Premium of 0 and the company's financial performance do not indicate significant listing gains. Investors are advised to exercise caution, especially if looking for quick listing gains or long-term investments. This IPO may be more suitable for investors with a long-term horizon, but it’s crucial to evaluate the market conditions closely before subscribing.

Investors interested in Spinaroo Commercial should consider the IPO subscription carefully, factoring in the current financial metrics and their investment goals.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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