Introduction
The Three M Paper Boards IPO is generating significant buzz in the market. With a book-built issue size of Rs 39.83 crores, it offers a fresh issue of 57.72 lakh shares. This guide provides a comprehensive overview of the IPO, key dates, financial information, and investment details to help you make an informed decision.
IPO Details
IPO Dates
- Opening Date: July 12, 2024
- Closing Date: July 16, 2024
- Allotment Date: July 18, 2024
- Listing Date: July 22, 2024
Price and Lot Size
- Price Band: ₹67 to ₹69 per share
- Minimum Lot Size: 2000 Shares
- Minimum Investment (Retail): ₹138,000
- Minimum Investment (HNI): ₹276,000
Total Issue Size
- Total Shares: 5,772,000 shares
- Aggregating up to: ₹39.83 Cr
Issue Type
- Type: Book Built Issue IPO
- Listing At: BSE SME
Shareholding Details
- Pre-Issue Shareholding: 13,465,360 shares
- Post-Issue Shareholding: 19,237,360 shares
Market Maker Portion
- Shares Offered: 290,000 shares
IPO Reservation
Shares Allocation
- Anchor Investor: 1,642,000 shares (28.45%)
- Market Maker: 290,000 shares (5.02%)
- QIB: 1,096,000 shares (18.99%)
- NII (HNI): 824,000 shares (14.28%)
- Retail Investors: 1,920,000 shares (33.26%)
Financial Information
Three M Paper Boards Limited Financials
Restated Consolidated
- Assets: ₹19,519.88 Lakhs (as of March 31, 2024)
- Revenue: ₹27,601.56 Lakhs (FY 2023-24)
- Profit After Tax: ₹1,134.72 Lakhs (FY 2023-24)
- Net Worth: ₹6,110.39 Lakhs (FY 2023-24)
- Total Borrowing: ₹7,264.08 Lakhs (FY 2023-24)
Key Performance Indicators
- Market Capitalization: ₹132.74 Cr
- ROE: 18.57%
- ROCE: 19.71%
- Debt/Equity: 1.19
- RoNW: 18.51%
- P/BV: 1.52
- PAT Margin: 4.11%
Earnings Per Share (EPS)
- Pre-IPO EPS: ₹8.43
- Post-IPO EPS: ₹5.9
- P/E Ratio: 8.19 (Pre-IPO), 11.7 (Post-IPO)
Promoter Holding
- Promoters: Mr. Hitendra Dhanji Shah, Mrs. Prafulla Hitendra Shah, Mr. Rushabh Hitendra Shah
- Pre-Issue Holding: 100%
- Post-Issue Holding: 70%
About Three M Paper Boards Limited
Founded in July 1989, Three M Paper Boards Limited specializes in manufacturing high-quality recycled paper-based Duplex Board products for various packaging applications. These applications span across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods. The company operates both domestically and internationally, showcasing a strong presence in the Asia-Pacific, Middle East, Mediterranean, and African regions.
Company Highlights
- Headquarters: Mumbai, Maharashtra
- Manufacturing Facility: Chiplun, Dist. Ratnagiri, Maharashtra
- Manufacturing Capacity: 72,000 TPA
- Dealers: About 25 across India
- Employees: 231 (as of February 2024)
Products and Market
- Specializes in: Recycled paper-based Duplex Board products
- Market: Domestic and international (over 15 countries)
- Industry Applications: Packaging for food, beverage, pharmaceuticals, cosmetics, and consumer goods
IPO Objectives
The proceeds from the Three M Paper Boards IPO will be utilized for:
- Capital Expenditure: Installation of new machinery, modernization of existing processes, and installation of a plastic-fired low-pressure boiler.
- Working Capital: Funding long-term working capital requirements.
- Debt Repayment: Prepayment or repayment of a portion of outstanding borrowings.
- General Corporate Purposes: Covering other corporate expenses.
IPO Timeline (Tentative Schedule)
- IPO Open Date: July 12, 2024
- IPO Close Date: July 16, 2024
- Basis of Allotment: July 18, 2024
- Initiation of Refunds: July 19, 2024
- Credit of Shares to Demat: July 19, 2024
- Listing Date: July 22, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on July 16, 2024
Lot Size Calculator
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹138,000 |
| Retail (Max) | 1 | 2000 | ₹138,000 |
| HNI (Min) | 2 | 4000 | ₹276,000 |
Anchor Investors
Three M Paper Boards IPO raises Rs 11.33 crore from anchor investors. The anchor bid date is July 11, 2024, offering 1,642,000 shares. The anchor lock-in period ends on August 17, 2024 (50% shares) and October 16, 2024 (remaining shares).
Review and Recommendations
Pros
- Sustainable Practices: Uses 100% recycled waste paper.
- Strong Financial Performance: Significant growth in profit margins.
- Wide Market Reach: Domestic and international presence.
Cons
- Highly Competitive Market: Faces stiff competition in the paper industry.
- Profit Sustainability: Recent high profits raise questions about long-term sustainability.
Expert Opinions
Dilip Davda: The company operates in a competitive and fragmented segment. It has shown growth in revenue and profit, but the sustainability of its recent high profits is uncertain. Based on FY24 earnings, the issue appears fully priced. Well-informed investors may consider moderate funds for medium-term investment.
Subscription Status
The Three M Paper Boards IPO is subscribed 3.61 times on July 12, 2024 (Day 1), with retail category subscribing 6.12 times, QIB category 0.00 times, and NII category 2.55 times.
Subscription Details
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 0.00 | 1,096,000 | 0 |
| NII* | 2.55 | 824,000 | 21,04,000 |
| Retail | 6.12 | 1,920,000 | 1,17,58,000 |
| Total | 3.61 | 38,40,000 | 1,38,62,000 |
*Market Maker portion not included in NII/HNI.
Contact Information
Three M Paper Boards Limited
- Address: A33 & 34, Floor -2, Royal Industrial Estate, 5-B Naigaon Cross Road, Wadala, Mumbai- 400031
- Phone: +91 22 6812 5757
- Email: compliance@threempaper.com
- Website: Three M Paper
Registrar
Bigshare Services Pvt Ltd
- Phone: +91-22-6263 8200
- Email: investor@bigshareonline.com
- Website: Bigshare Services
Conclusion
Three M Paper Boards IPO presents an intriguing investment opportunity with its strong financial performance and wide market reach. However, potential investors should consider the competitive nature of the industry and the sustainability of recent profits. It is advisable to stay informed and consider moderate investments for medium-term gains.
FAQs
- What is the price band for the Three M Paper Boards IPO?
- The price band is set at ₹67 to ₹69 per share.
- When will the Three M Paper Boards IPO open for subscription?
- The IPO opens on July 12, 2024, and closes on July 16, 2024.
- What is the minimum investment required for retail investors?
- The minimum investment required by retail investors is ₹138,000 for 2000 shares.
- Who are the promoters of Three M Paper Boards Limited?
- The promoters are Mr. Hitendra Dhanji Shah, Mrs. Prafulla Hitendra Shah, and Mr. Rushabh Hitendra Shah.
- How will the funds raised from the IPO be utilized?
- The funds will be used for capital expenditure, working capital, debt repayment, and general corporate purposes.
- What is the price band for the Three M Paper Boards IPO?
