Subam Papers is a prominent player in the manufacturing of Kraft Paper and Paper Products, proudly positioning itself as a packaging solutions provider. Founded in 2004, Subam Papers initially focused on the production of paper cones and later expanded its portfolio to include Duplex board and Kraft paper.

The Subam Papers IPO is a book-built issue amounting to ₹93.70 crores, consisting entirely of a fresh issue of 61.64 lakh shares. The subscription period opened on September 30, 2024, and will close on October 03, 2024. The allotment date is set for October 04, 2024, with shares expected to be listed on the BSE SME by October 08, 2024.

The price band for the Subam Papers IPO is set between ₹144 and ₹152 per equity share, with a minimum lot size of 800 shares. Retail investors are required to make a minimum investment of ₹1,21,600, while High-Net-Worth Individuals (HNIs) must invest in 2 lots (1,600 shares), totaling ₹2,43,200.

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

As of 5:00 PM on October 03, 2024, the Subam Papers IPO live subscription status indicates a remarkable 86.49 times subscription on its third day. This strong demand underscores the growing interest in the company's offerings.

The Grey Market Premium (GMP) for Subam Papers is anticipated to be ₹0, indicating that no significant trading activity is currently occurring based on GMP. As such, investors should exercise caution, as the Grey Market Premium primarily reflects demand and supply in an unregulated market, which is not recommended for making investment decisions.

To check the IPO allotment status, investors can follow these simple steps:

Visit the IPO allotment status page.

Select Subam Papers Limited IPO from the dropdown list.

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

Submit your details to check your allotment status.

The proceeds from the Subam Papers IPO will be utilized for key objectives:

₹7,500.00 Lakhs will be directed towards investments in subsidiaries to finance capital expenditure requirements.

Remaining funds will be allocated for general corporate purposes.

The company is led by Mr. T. Balakumar, the Managing Director and Promoter, who possesses over 19 years of experience in the paper industry. His role extends to serving as the Chairman of the Development Council for Pulp, Paper, and Allied Industries under the Government of India, further solidifying his influence in the sector.

In terms of financial performance, Subam Papers has exhibited growth over recent fiscal years. The revenue for Fiscal 2024 was recorded at ₹49,697.31 Lakhs, compared to ₹51,062.36 Lakhs in Fiscal 2023 and ₹33,259.87 Lakhs in Fiscal 2022. The EBITDA figures demonstrate significant fluctuation: ₹7,272.10 Lakhs in FY2024, ₹3,148.87 Lakhs in FY2023, and ₹4,071.90 Lakhs in FY2022. Moreover, the Profit After Tax (PAT) for FY2024 was ₹3,341.80 Lakhs, a substantial recovery from -₹26.79 Lakhs in FY2023 and an increase from ₹2,600.23 Lakhs in FY2022.

For the Subam Papers IPO, the company presents a pre-issue EPS of ₹20.53 and a post-issue EPS of ₹14.37. The P/E ratios are 7.40x pre-issue and 10.57x post-issue, compared to the industry average of 9.59x. The company’s Return on Capital Employed (ROCE) for FY24 stands at 20.84%, and its Return on Equity (ROE) is 16.79%, suggesting a well-priced IPO.

Despite the company's stable growth metrics, the Grey Market Premium (GMP) indicating potential listing gains of 0% raises caution for investors. Based on the financial performance and valuation of the IPO, it is advisable for investors to avoid the Subam Papers Limited IPO for both listing gains and long-term investment purposes.

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