Shreenath Paper IPO
Shreenath Paper Products Limited Company Details
Shreenath Paper Products Limited is a key player in the Indian paper industry, offering a wide range of supply chain solutions for industries that heavily rely on paper-based raw materials. Established in 2011, the company has grown significantly over the years, positioning itself as a bridge between paper manufacturers and end-users.
This article explores its history, business operations, financial performance, industry positioning, risk factors, and details about its Initial Public Offering (IPO). Shreenath Paper Products Limited was originally incorporated as “Shreenath Paper Products Private Limited” under the Companies Act of 1956. The company transitioned into a public limited entity in 2023, reflecting its ambition for expansion and greater market participation. Over the years, it has successfully curated technical specifications for various paper products and connected manufacturers with end-user industries.
Shreenath Paper IPO (Initial Public Offering) Details
Shreenath Paper Products Limited is entering the capital markets through an IPO, aiming to raise INR 2,336.40 Lakhs. The IPO will offer 53,10,000 equity shares at INR 44 per share, including a securities premium of INR 34. The proceeds will be used for business expansion, working capital, and general corporate purposes. The company plans to list its shares on the SME Platform of BSE Limited (BSE SME).
Shreenath Paper IPO Timeline( Tentative)
- IPO Date: 25 February to 28 February
- Allotment: 3 March
- Initiation of Refund/ Credit of Share : 4 March
- Listing Date: 5 March
Shreenath Paper IPO Details
- Issue Type: 100% Fixed Price Issue
- Fresh Issue: 53,10,000 Equity Shares
- Issue Price: ₹44 per share (Face Value ₹10 + Securities Premium ₹34)
- Total IPO Size: ₹2,336.40 Lakhs (₹23.36 Crores)
- Market Maker Reservation: 2,82,000 Equity Shares (₹124.08 Lakhs)
- Net Issue: 50,28,000 Equity Shares (₹2,212.32 Lakhs)
- Percentage of Post-Issue Capital: The issue constitutes 27.02% of the post-issue paid-up equity share capital.
Shreenath Paper IPO Listing Details
- Stock Exchange: SME Platform of BSE Limited (BSE SME)
- Face Value: ₹10 per share
- Market Lot: 3,000 shares and in multiples thereafter
Shreenath Paper IPO Eligibility & Process
The IPO is made under Regulation 229(2), Chapter IX of SEBI (ICDR) Regulations, 2018.
- The company’s post-issue paid-up capital will be between ₹10 Cr to ₹25 Cr.
- The minimum 50% of the Net Issue is reserved for Retail Investors, and the rest is for Non-Institutional & Institutional Investors.
- Application Mode: ASBA (Applications Supported by Blocked Amount) and UPI for Retail Investors.
Shreenath Paper IPO Lead Manager & Registrar
- Lead Manager: Fedex Securities Private Limited
- Registrar to the Issue: Bigshare Services Private Limited
- Market Maker: Pure Broking Private Limited
The IPO of Shreenath Paper Products Limited includes a total issue of up to 53,10,000 equity shares at a face value of ₹10 per share, with an issue price of ₹44 per share (including a securities premium of ₹34 per share), aggregating to ₹2,336.40 lakhs.
Shreenath Paper IPO Reservation Details:
- Market Maker Reservation Portion: 2,82,000 equity shares aggregating to ₹124.08 lakhs.
- Net Issue (Remaining Shares): 50,28,000 equity shares aggregating to ₹2,212.32 lakhs.
- Retail Individual Investors: At least 50% of the Net Issue.
- Non-Retail Investors (QIBs, NIIs, and others): The remaining shares.
- If the demand from retail investors is less than 50%, the balance shares will be added to the non-retail portion, and vice versa, ensuring full subscription.
Shreenath Paper Products limited Financial Performance
Shreenath Paper Products Limited has showcased consistent growth in revenue and profitability:
- FY 2023 Revenue: INR 20,443.77 Lakhs
- FY 2022 Revenue: INR 13,597.83 Lakhs
- FY 2021 Revenue: INR 8,537.82 Lakhs
- Net Profit (FY 2023): INR 438.47 Lakhs
The company’s profitability has improved due to better cost management and expanding its customer base.
Shreenath Paper Products Limited Business Overview
The company operates primarily in the paper supply chain domain, sourcing and distributing a variety of paper products, including:
- Sublimation Base Paper
- Thermal Base Paper
- Straw Paper
- Cup Stock Paper
- Security PSA Sheet
- High-Strength Paper
- Coating-Based and Food-Grade Papers
These products cater to multiple industries such as FMCG, textiles, e-commerce, pharmaceuticals, security labeling, advertising, and packaging sectors.
Promoters of Shreenath Paper Products Limited
- Promoters: Alok Parekh, Ronak Parekh, Navneetdas Parekh, Hasumati Navneetdas Parekh, Harish Parekh, Hasumati Harish Parekh, Neha Parekh & Sayali Parekh
Key Business Functions of Shreenath Paper Products Limited
- Understanding Client Requirements: The company evaluates the specific needs of its customers before sourcing the required paper material.
- Supplier Identification: It collaborates with specialized manufacturers to obtain high-quality paper products.
- Quality Assurance: Samples are tested before procurement to ensure they meet industry standards.
- Logistics and Distribution: The company efficiently manages the supply chain to deliver products to customers in Maharashtra, Gujarat, and Madhya Pradesh.
Industry Landscape
India’s paper industry has experienced steady growth, fueled by increasing demand for sustainable packaging and high-quality printing materials. While the industry faces competition from digital alternatives, the demand for paper products in packaging and specialty applications remains strong. India has also emerged as a net exporter of paper products, with key markets including UAE, China, Bangladesh, and Sri Lanka.
Risk Factors
Despite its strong market positioning, the company faces several risks:
- Raw Material Dependence: Paper supply relies on factors such as availability of recycled materials and imported pulp.
- Competitive Pressure: The market sees competition from both domestic manufacturers and international suppliers.
- Regulatory Challenges: Changes in environmental regulations may impact business operations.
- Market Volatility: Demand fluctuations in end-user industries can affect sales and revenue stability.
Shreenath Paper Products Limited Future Outlook
With a strong supply chain model and growing demand for eco-friendly paper solutions, Shreenath Paper Products Limited is well-positioned for future growth. Expansion into new geographic markets, investment in technology, and strategic partnerships with global suppliers can further strengthen its market presence.
Shreenath Paper Products Limited Contact Details
- Name: Shreenath Paper Products Limited
- CIN: U21098MH2011PLC222833
- Registered Office: Shop no. 5, Plot no.136, N-1, Masco Corner Api Road, Cidco, Aurangabad, Maharashtra, India, 431003
- Website: www.shreenathpaper.com
Here are the complete IPO details for Shreenath Paper Products Limited as per the draft prospectus dated April 30, 2024:
Disclaimer:
This blog is written only for educational and news purposes, investing in SME IPO is very risky take the independent advice from your financial advisor before investing. Here we are giving the information only about the company’s performance. Please verify the current details before Investing.