Spinaroo Commercial Limited is a Kolkata-based manufacturer specializing in products like aluminum foil containers, aluminum home foil, paper cups, and raw materials for paper cups. Established in 2012, the company is a prominent player in the disposable product manufacturing industry. Along with manufacturing, Spinaroo also deals in a wide range of paper cup machinery, including the High-Speed Paper Cup Making Machine, Flexo Printing Machine, and Automatic Roll Die Cutting Machine. The company provides full end-to-end support, ensuring quality and consistency in its offerings.

IPO Details

The Spinaroo Commercial IPO is a Fixed Price Issue of ₹ 10.17 Crores, consisting entirely of a fresh issue of 19.94 lakh shares. The IPO is open for subscription from March 28, 2025, to April 03, 2025. The allotment date is April 04, 2025, and the shares are expected to be listed on the BSE SME with a tentative listing date of April 08, 2025. The issue price is set at ₹ 51 per equity share. With this, the market capitalization of Spinaroo Commercial at the IPO price will be ₹ 35.67 Crores.

Lot Size and Minimum Investment

• Lot Size: 2,000 shares

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

• Minimum Investment for HNIs: ₹ 2,04,000 (for 4,000 shares, 2 lots)

Subscription Status

As of 7:00 PM on March 28, 2025, the Spinaroo Commercial IPO has been subscribed 0.15 times on the first day of the subscription period. Investors can check the live subscription status on the BSE website.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) of Spinaroo Commercial IPO is currently ₹ 0, indicating no significant premium or expected gains on listing. This suggests that no real trading is occurring in the grey market, and the price discovery is difficult to gauge until the shares are listed on the exchange. The GMP fluctuates based on the demand and supply of shares in the unorganized market, which is generally not recommended for investment decisions. The GMP is mentioned here for educational purposes.

Financial Performance and Key Metrics

• Revenue from Operations (FY24): ₹ 2,101.65 Lakh

• EBITDA (FY24): ₹ 132.92 Lakh

• Profit After Tax (FY24): ₹ 61.48 Lakh

• EPS (FY24): Pre-issue ₹ 2.8, Post-issue ₹ 2.0

The pre-issue P/E ratio stands at 18.21x, and the post-issue P/E ratio is 25.47x, indicating that the IPO is priced fairly. Additionally, the Return on Capital Employed (ROCE) is 37.58%, and the Return on Equity (ROE) is 23.23% for FY24, which shows healthy profitability and efficient use of capital.

IPO Use of Proceeds

Spinaroo Commercial proposes to use the net proceeds from the IPO for the following purposes:

• ₹ 712.84 Lakhs for Working Capital Requirements

• ₹ 500.00 Lakhs for General Corporate Purposes

Spinaroo Commercial IPO Review

The financial performance of Spinaroo Commercial shows steady growth, with the company’s revenues and profit after tax increasing steadily over the years. However, the Grey Market Premium (GMP) of ₹ 0 and fairly priced valuation suggest that investors should exercise caution when considering this IPO for listing gains or long-term investment.

While the company has a strong presence in the manufacturing sector, particularly in the disposable products industry, the low GMP and fair valuation indicate that there may be limited listing gains for investors. The high retail investment requirement may also pose a challenge for smaller investors.

Conclusion

In light of the current market conditions and Spinaroo Commercial’s financials, we recommend avoiding the IPO for short-term listing gains or long-term investment. Investors should proceed with caution and consider other opportunities that may offer better returns.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited.

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