Subam Papers Limited is a prominent player in the manufacturing of Kraft Paper and Paper Products, proudly positioning itself as a comprehensive packaging solution provider. Established in 2004 with the production of paper cones, the company has expanded its portfolio to include Duplex Board and Kraft Paper, all while adhering to sustainable practices by utilizing waste paper as raw material instead of wood pulp.

About Subam Papers Limited

Subam Papers is launching a Book Built Issue amounting to ₹93.70 Crores, comprised entirely of a Fresh Issue of 61.64 lakh shares. The subscription period for the Subam Papers IPO opens on September 30, 2024, and will close on October 3, 2024. The allotment is anticipated to be finalized on or about October 4, 2024, with shares expected to list on the BSE SME on or around October 8, 2024.

The share price band for the Subam Papers IPO is set at ₹144 to ₹152 per equity share, with a minimum lot size of 800 shares. This means that retail investors will need to invest a minimum of ₹1,21,600, while the minimum investment for High-Net-Worth Individuals (HNIs) will be ₹2,43,200 for 2 lots (1,600 shares).

Objectives of the Subam Papers Limited IPO

Proceeds from the Fresh Issue will be directed towards the following objectives:

₹7,500.00 Lakhs will be allocated for investment in the subsidiary to finance its capital expenditure requirements.

General Corporate Purposes will also be covered through the proceeds.

Subam Papers Limited IPO GMP Today

The Grey Market Premium (GMP) of Subam Papers Limited IPO is currently expected to be ₹0, reflecting the company's financial performance. It’s important to note that no substantial trading occurs based on the Grey Market Premium, and thus no real price discovery can be achieved prior to listing on the stock exchange. The GMP is primarily dependent on the demand and supply dynamics in an unorganized manner and is included here solely for educational and informational purposes.

Subam Papers Limited IPO Live Subscription Status

Investors can track the live subscription status of Subam Papers IPO starting September 30, 2024.

How to Check Allotment Status Online

The allotment date for Subam Papers IPO is set for October 4, 2024. The allotment status can be checked online via the registrar's website. Here’s how to check the allotment status:

Navigate to the IPO allotment status page.

Select Subam Papers Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Competitive Landscape and Industry Insights

Subam Papers is not just any traditional paper manufacturer. The company leverages waste paper as its primary raw material, aligning its operations with environmental sustainability. This strategic decision supports recycling initiatives and helps reduce pollution.

The packaging industry in India, where Subam operates, is recognized as the fifth largest sector in the economy. With a remarkable annual growth rate of 22-25%, the sector is rapidly evolving, driven by increasing demand across various industries, including automobiles, textiles, FMCG, and pharmaceuticals.

Risk Factors & Concerns

However, Subam Papers faces several challenges, including:

The availability of raw material (waste paper) is crucial for business continuity.

Potential conflicts of interest may arise due to similar operations of group companies.

Significant reliance on a limited product range—Kraft Paper and Duplex Paper—poses a revenue risk.

Conclusion

The Subam Papers IPO presents a noteworthy opportunity for investors looking to engage with a company that is innovatively navigating the sustainable packaging landscape while also capitalizing on the burgeoning demand within the Indian paper and packaging industry. With robust strategies in place for future growth and a commitment to recycling, Subam Papers is well-positioned to capture a significant share of this rapidly evolving market.

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