The Three M Paper Boards IPO starts on Friday, July 12, and will be open until Tuesday, July 16. The price range for the shares is set between ₹67 and ₹69, with a face value of ₹10. Investors can bid for a minimum of 2,000 shares.
Allocation Breakdown
- 35% for retail investors
- 50% for Qualified Institutional Buyers (QIB)
- 15% for Non-Institutional Investors (NII)
- 5% for market makers
Company Background
Three M Paper Boards produces high-quality recycled paper-based duplex board products for various industries, including food and beverage, pharmaceuticals, cosmetics, and consumer goods. Their products are biodegradable and made from 100% recycled waste paper. The company’s manufacturing facility is in Chiplun, Maharashtra, and it has a production capacity of 72,000 tons per annum (TPA).
Financial Performance
From March 31, 2023, to March 31, 2024, the company’s profit after tax (PAT) increased by 71.53%, although its revenue declined by 16.3%.
IPO Details
The IPO aims to raise ₹39.83 crore through the sale of up to 5,772,000 equity shares. The funds will be used for:
- Long-term working capital
- New machinery installation
- Modernizing current manufacturing processes
- Installing a plastic-fired low-pressure boiler
- Paying off debt
- General corporate purposes
Market Comparison
The company’s listed peers are:
- N R Agarwal Industries Ltd (P/E of 6.84)
- Kuantum Papers Ltd (P/E of 7.64)
- Shree Ajit Pulp and Paper Ltd (P/E of 15.86)
IPO Grey Market Premium (GMP)
The current grey market premium (GMP) for Three M Paper Boards is +₹30, indicating that shares are trading at a premium of ₹30 in the grey market. Considering the upper end of the price band, the estimated listing price is ₹99 per share, which is 43.48% higher than the IPO price of ₹69.
Key Players
The IPO’s registrar is Bigshare Services Pvt Ltd, and Comfort Securities Limited is the book running lead manager and market maker for the IPO.
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