Shreenath Paper IPO: A Comprehensive Analysis
Investing in the stock market can be exciting, and Initial Public Offerings (IPOs) offer a chance to get in on the ground floor of potentially successful companies. The Shreenath Paper IPO was one such opportunity, opening a window for investors to participate in the growth of a company specializing in supply chain solutions for the paper industry. Let's dive into the details of the Shreenath Paper IPO, analyzing its strengths, weaknesses, and overall investment potential.
About Shreenath Paper Products Limited
Shreenath Paper Products Limited, established in 2011, provides supply chain solutions to industries that rely on various paper materials. They offer a wide range of papers, including coated, food-grade, machine-glazed, and adhesive papers, catering to sectors like FMCG, textiles, pharmaceuticals, and packaging.
IPO Details
Here's a quick overview of the Shreenath Paper IPO:
- IPO Date: February 25, 2025 to February 28, 2025
- Listing Date: March 5, 2025
- Face Value: ₹10 per share
- Issue Price: ₹44 per share
- Lot Size: 3,000 Shares
- Total Issue Size: 53,10,000 shares (aggregating up to ₹23.36 Cr)
- Issue Type: Fixed Price Issue IPO
- Listing At: BSE SME
Progress: Calculating...
Subscription Details
The IPO allocated shares to different investor categories as follows:
- NII (Non-Institutional Investors): 47.34%
- RII (Retail Individual Investors): 47.34%
- Market Maker: 5.31%
Lot Size and Investment
Investing in the Shreenath Paper IPO required a minimum investment. Here’s a breakdown:
| Investor Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min/Max) | 1 | 3,000 | ₹1,32,000 |
| HNI (Min) | 2 | 6,000 | ₹2,64,000 |
Company Financials (Restated)
Understanding a company's financials is crucial before investing. Here's a summary of Shreenath Paper Products Limited's financial performance:
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Crore) | 62.25 | 60.34 | 50.95 | 30.82 |
| Revenue (₹ Crore) | 78.62 | 189.67 | 206.71 | 41.75 |
| Profit After Tax (₹ Crore) | 2.41 | 4.39 | 4.38 | 1.34 |
| Net Worth (₹ Crore) | 21.34 | 18.93 | 10.54 | 5.65 |
| Total Borrowing (₹ Crore) | 31.37 | 28.89 | 25.01 | 16.73 |
Key Performance Indicators (KPI)
Here are some key performance indicators as of March 31, 2024:
| KPI | Value |
|---|---|
| ROE | 23.19% |
| ROCE | 19.32% |
| PAT Margin | 2.36% |
| Price to Book Value | 3.33 |
Promoter Holding
The promoters of the company include Alok Parekh, Ronak Parekh, and others. Here's the shareholding structure:
- Share Holding Pre Issue: 100.00%
- Share Holding Post Issue: 72.98%
Objects of the Issue
The company intended to use the IPO proceeds for:
- Meeting incremental working capital requirements
- General corporate purposes
Company Contact Details
Shreenath Paper Products Limited
Shop no. 5, Plot no.136, N-1,
Masco Corner API Road,
Cidco, Aurangabad, 431003
Phone: +91 0240-2489888
Email: info@shreenathpaper.com
Website: https://shreenathpaper.com/
IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
Conclusion
The Shreenath Paper IPO presented an opportunity to invest in a company providing essential supply chain solutions to the paper industry. Analyzing the company's financials, objectives, and other key details is crucial for making informed investment decisions. Remember to consult with a financial advisor before making any investment.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.