Subam Papers Limited is a notable player in the manufacturing of Kraft Paper and Paper Products, positioning itself as a packaging solution provider. Established in 2004, Subam initially focused on producing paper cones and has since diversified its product offerings by including Duplex board and Kraft paper in its portfolio. This evolution highlights the company's commitment to innovation and market responsiveness.

The upcoming Subam Papers IPO consists entirely of a Fresh Issue amounting to ₹93.70 Crores, offering 61.64 lakh shares for subscription. The subscription period opened on September 30, 2024, and will close on October 03, 2024. Investors can expect the allotment to be finalized around October 04, 2024, with shares listed on the BSE SME on or about October 08, 2024.

The share price band for the Subam Papers IPO is set between ₹144 to ₹152 per equity share. Retail investors will need to invest a minimum of ₹1,21,600 for one lot, which consists of 800 shares. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,43,200, covering 2 lots (1,600 shares).

The book-running lead manager for this IPO is GRETEX CORPORATE SERVICES LIMITED, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. Additionally, Gretex Share Broking Limited is the sole market maker for this issue.

Live Subscription Status

As of 11:40 AM on October 01, 2024, the live subscription status for the Subam Papers IPO indicates that it has been subscribed 1.02 times on its second day. Interested investors can check the real-time status on the BSE website.

Allotment Date and Procedure

The allotment date for the Subam Papers IPO is scheduled for October 04, 2024. Investors can check their allotment status through the following steps:

Visit 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 information to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated towards specific objectives:

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

Remaining funds will be directed towards general corporate purposes.

Financial Performance Overview

Subam Papers has demonstrated substantial financial growth over the years. In Fiscal 2024, the company's revenue was ₹49,697.31 Lakhs, compared to ₹51,062.36 Lakhs in Fiscal 2023 and ₹33,259.87 Lakhs in Fiscal 2022. The EBITDA for these years was ₹7,272.10 Lakhs, ₹3,148.87 Lakhs, and ₹4,071.90 Lakhs, respectively. The Profit After Tax figures were ₹3,341.80 Lakhs, ₹-26.79 Lakhs, and ₹2,600.23 Lakhs, indicating a strong rebound in profitability for FY24.

The company is issuing shares at a pre-issue EPS of ₹20.53 and a post-issue EPS of ₹14.37. The pre-issue P/E ratio is 7.40x, while the post-issue P/E ratio stands at 10.57x, compared to the industry average of 9.59x. The company's Return on Capital Employed (ROCE) for FY24 is 20.84%, and the Return on Equity (ROE) is 16.79%, suggesting a competitive standing in the market.

Investment Recommendation

Despite Subam Papers' impressive financial trajectory, the Grey Market Premium (GMP) indicates potential listing gains of 0%. Given the current valuation metrics and the company's financial performance, investors are advised to avoid the Subam Papers Limited IPO for both short-term gains and long-term investment considerations.

In summary, investors should conduct thorough research and consider market conditions before engaging with the Subam Papers Limited IPO. 

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