Subam Papers has emerged as a prominent player in the Kraft paper and paper products manufacturing sector since its inception in 2004. Initially starting with the production of paper cones, the company has diversified its offerings by introducing Duplex board and Kraft paper into its portfolio. This journey reflects the company's commitment to providing comprehensive packaging solutions tailored to the evolving needs of the market.

As part of its growth strategy, Subam Papers has launched an IPO that is designed to raise ₹93.70 crores through the issuance of 61.64 lakh fresh shares. The subscription period for the Subam Papers IPO commenced on September 30, 2024, and will conclude on October 03, 2024. Following the subscription, the allotment of shares is expected to be finalized on October 04, 2024, with a tentative listing on the BSE SME set for October 08, 2024.

The share price band for the Subam Papers IPO is fixed at ₹144 to ₹152 per share, with a minimum lot size of 800 shares. This implies that retail investors need to invest at least ₹1,21,600 to participate in this offering. High-Net-Worth Individuals (HNIs) are required to apply for a minimum of two lots (1,600 shares), leading to a total investment of ₹2,43,200.

The book-running lead manager for this IPO is Gretex Corporate Services Limited, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. Moreover, Gretex Share Broking Limited has taken the role of the sole market maker for the Subam Papers IPO.

IPO Subscription Status

As of 10:30 AM on October 03, 2024, the Subam Papers IPO has demonstrated a remarkable subscription rate, with figures indicating that the IPO has been subscribed 6.71 times by the third day of the subscription period. This positive response underscores the investor confidence in the company's growth potential and operational efficiency.

Allotment Process

The allotment of shares for the Subam Papers IPO is scheduled for October 04, 2024. Investors can easily check their allotment status through the registrar's website by following these steps:

Navigate to the IPO allotment status page.

Select Subam Papers Limited IPO from the dropdown menu.

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

Submit the details to view your allotment status.

Financial Performance

Subam Papers' financial metrics indicate a robust trajectory of growth. For the fiscal year 2024, the company reported revenue of ₹49,697.31 lakhs, a significant increase from ₹51,062.36 lakhs in fiscal year 2023 and ₹33,259.87 lakhs in fiscal year 2022. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for fiscal 2024 stands at ₹7,272.10 lakhs, further solidifying the company's operational efficiency.

The Profit After Tax (PAT) for fiscal 2024 was ₹3,341.80 lakhs, showing a remarkable recovery from a loss of ₹26.79 lakhs in fiscal 2023. This financial turnaround signifies Subam Papers' strong operational capabilities and strategic market positioning.

Valuation Metrics

In assessing the IPO's valuation, the company presents a pre-issue EPS of ₹20.53 and a post-issue EPS of ₹14.37. The pre-issue P/E ratio stands at 7.40x, while the post-issue P/E ratio is 10.57x, in comparison to the industry P/E ratio of 9.59x. Additionally, Subam Papers boasts a Return on Capital Employed (ROCE) of 20.84% and a Return on Equity (ROE) of 16.79% for FY24. These metrics suggest that the IPO is fully priced and presents a balanced risk-reward scenario for potential investors.

Grey Market Premium

Currently, the Grey Market Premium (GMP) for the Subam Papers IPO is anticipated to be around ₹0. It's important to note that the grey market offers an informal way to gauge the potential listing price, but it does not serve as a reliable indicator of actual trading outcomes. The GMP fluctuates based on supply and demand dynamics in the unregulated market, which may not accurately reflect the true value of the shares post-listing.

Investment Recommendations

Given the financial performance, valuation metrics, and current market conditions, potential investors are advised to exercise caution regarding the Subam Papers IPO. The recommendation is to avoid this IPO for immediate listing gains or long-term investment strategies, especially in light of the GMP suggesting limited upside potential.

In conclusion, while Subam Papers is carving a niche for itself in the packaging solutions landscape, investors should weigh their options carefully. For those interested in stock market trends and upcoming IPOs, resources like Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi can provide further insights.

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This comprehensive review aims to keep investors informed and engaged, ensuring a better understanding of the Subam Papers IPO and the paper industry's future prospects.