Spinaroo Commercial Limited, a Kolkata-based manufacturer, is set to launch its Initial Public Offering (IPO), offering 19.94 lakh shares at a price of ₹51 per share. The company, established in 2012, is known for its high-quality aluminum foil containers, paper cups, and machinery related to paper cup production. The IPO aims to raise ₹10.17 crores and is part of Spinaroo’s strategy to strengthen its market position in the disposable products and machinery sector.

IPO Details and Key Dates

• Issue Size: ₹10.17 crores, consisting entirely of a fresh issue of 19.94 lakh shares.

• Price Band: ₹51 per share

• Subscription Period:

  • Opens on: March 28, 2025

  • Closes on: April 03, 2025

• Allotment Date: April 04, 2025 (Friday)

• Listing Date: April 08, 2025 (Tuesday) on the BSE SME

• Lot Size: 2,000 shares (₹1,02,000 for retail investors and ₹2,04,000 for HNIs)

Company Overview and Business Model

Spinaroo Commercial has emerged as a prominent player in the manufacturing of disposable products, including aluminum foil containers, aluminum home foil, and raw materials for paper cups. The company also offers a range of machinery including high-speed paper cup making machines, flexo printing machines, and automatic roll die cutting machines. Their product offerings serve various industries, including food packaging and hospitality, where disposable products are in high demand.

Led by experienced promoters, including Mr. Amit Sultania (with over 16 years of experience) and Mr. Aditya Todi (over 10 years in the industry), Spinaroo has seen steady growth in its financial performance, making its IPO an attractive proposition for potential investors.

Financial Performance Analysis

Spinaroo Commercial has demonstrated consistent revenue growth over the last few years:

• FY 2024 Revenue: ₹2,101.65 Lakh

• FY 2023 Revenue: ₹4,121.31 Lakh

• FY 2022 Revenue: ₹5,319.30 Lakh

In terms of profitability, the company has shown positive trends in its EBITDA and Profit After Tax (PAT):

• FY 2024 EBITDA: ₹132.92 Lakh

• FY 2024 PAT: ₹61.48 Lakh

The pre-issue earnings per share (EPS) stands at ₹2.8, while the post-issue EPS is projected at ₹2.0. The P/E ratio before the issue is 18.21x, while after the issue, it stands at 25.47x.

Grey Market Premium (GMP) and Subscription Status

As of April 03, 2025, the Grey Market Premium (GMP) for Spinaroo Commercial IPO is ₹0, indicating no expected price increase upon listing. This can be attributed to the financial performance of the company and the prevailing market conditions. The Grey Market Premium (GMP) typically reflects unofficial trading before the IPO’s listing date, and it’s not an accurate reflection of the final listing price.

The IPO subscription status is also an important indicator for investors:

• As of 11:25 AM on April 03, 2025, the IPO had been subscribed 0.56 times on its final day of subscription.

Objectives of the IPO

The funds raised through the IPO will be used for the following purposes:

• Working Capital Requirements: ₹712.84 Lakhs

• General Corporate Purposes: ₹500.00 Lakhs

Investment Evaluation and Recommendation

Given the steady growth in Spinaroo’s financials, the fair pricing of the IPO, and the current lack of demand in the Grey Market, it is important for investors to carefully evaluate the risks involved. The IPO’s financials show stable revenue growth and profitability, but the GMP of ₹0 suggests no immediate price gain expectations post-listing.

While Spinaroo Commercial is a well-established company with a good track record, the listing gains might not be significant. Based on the current financials, valuation, and GMP trends, it’s advisable for investors to avoid this IPO for short-term listing gains or as a long-term investment.

Conclusion

Spinaroo Commercial’s IPO represents a chance for investors to participate in a company with a solid business model and a track record of steady growth. However, with the absence of Grey Market Premium and modest subscription figures, it might not offer substantial listing gains. The IPO may be more suitable for long-term investors who believe in the company’s future growth within the disposable products and machinery sectors.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited.

The Closed IPOs are  Retaggio Industries Limited.

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