Three M Paper Boards IPO Fully Subscribed on Day One Thanks to Retail Investors; Check GMP, Subscription Status, and Share Price Details

The initial public offering (IPO) for Three M Paper Boards started on Friday, July 12, and will continue until Tuesday, July 16. The IPO is priced between ₹67 and ₹69 per share, with a minimum bid of 2,000 shares.

Subscription Breakdown

Retail investors have been allocated 35% of the offer, Qualified Institutional Buyers (QIB) 50%, and Non-Institutional Investors (NII) 15%. Additionally, 5% of the shares have been reserved for the market maker.

Company Profile

Three M Paper Boards manufactures premium duplex board paper products for both domestic and international markets. Their products, made from 100% recycled waste paper, are used in packaging for consumer goods, pharmaceuticals, food and beverages, and cosmetics. The company is focused on innovation in manufacturing techniques and product development to create fully biodegradable products.

Key Details

• Headquarters: Mumbai
• Production Plant: Chiplun, District Ratnagiri, Maharashtra
• Production Capacity: Up to 72,000 TPA of paper by the end of FY 2023–2024

The company’s competitors include Shree Ajit Pulp and Paper Ltd, Kuantum Papers Ltd, and N R Agarwal Industries Ltd.

Important Dates

• Allotment Finalization: Thursday, July 18
• Refunds Initiated: Thursday, July 18
• Shares Credited: Friday, July 19
• Listing Date: Monday, July 22 on NSE SME

Subscription Status

On the first day, the Three M Paper Boards IPO was subscribed 7.73 times. The retail portion was subscribed 12.54 times, and the NII portion was booked 6.81 times. The QIB portion has not yet been fully booked. A total of 2,96,92,000 shares were bid for, compared to the 38,40,000 shares on offer.

IPO Details

The IPO is an offer-for-sale of up to 5,772,000 equity shares, worth ₹39.83 crore. The proceeds will be used for long-term working capital, new equipment, updates to the current manufacturing site, and installing a low-pressure boiler powered by plastic. Funds will also go towards general corporate purposes and debt repayment.

Management

• Book Running Lead Manager: Comfort Securities Limited
• Registrar: Bigshare Services Pvt Ltd
• Market Maker: Comfort Securities

Grey Market Premium (GMP)

The grey market premium for Three M Paper Boards IPO is +37, indicating that the shares were trading at a ₹37 premium. Based on the upper IPO price band and the current grey market premium, the estimated listing price of Three M Paper Boards shares is ₹106 each, which is 53.62% higher than the IPO price of ₹69.

The grey market premium reflects the investors’ willingness to pay more than the issue price.