About the Company:
Subam Papers Ltd is engaged in the manufacturing of Kraft Paper and Paper Products.
Company started its journey in the year 2004 with manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio.
Company is not like the traditional paper manufactures, we do not manufacture our products from wood pulp but instead we use waste paper as our raw material.
Company leverages wastepaper as the primary raw material in the production of Kraft Paper and Duplex Board.
Company is dedicated to sustainability, using recycled paper and cardboard in the production of Kraft Paper and Duplex Board.
Products Manufactured by the Company:
- Duplex Board.
- Kraft Paper.
- Corrugated Boxes.
- Paper Cones.
- Paper Tubes and Cores.
Company’s Product Wise Revenue Breakup: (in Lakhs)
Company’s Renewable energy:
Company harness renewable energy through our own wind and solar power installations. Company’s wind energy infrastructure includes two windmills: with a capacity of 850 KW each totalling approximately 1.7 MW.
Additionally, Company operates a solar plant with a capacity of 14 MW. These renewable energy sources enable our manufacturing facilities to significantly reduce their carbon footprint, aligning with our goal of sustainable and eco-friendly operations.
Company’s Installed Capacity & Utilization:
In the financial year ending on March 31, 2024, the installed capacity for Kraft Paper was 300 metric tons per day (MTPD), resulting in a total annual capacity of 93,600 tons. During this period, the utilization of Kraft Paper capacity was 93,081 tons.
Comparatively, in the financial years ending on March 31, 2023, and March 31, 2022, the utilization was 83,691 tons and 82,371 tons, respectively.
For Duplex Board, the installed capacity was 140 MTPD, translating to an annual capacity of 47,200 tons. The utilization of Duplex Board capacity for the financial year ending on March 31, 2024, was 43,963 tons.
This represents a significant increase from the previous years, with utilization figures of 30,393 tons and 3,336 tons for the financial years ending on March 31, 2023, and March 31, 2022, respectively.
Over the years, the consolidated production capacity has grown substantially and is expected to reach more than 1,000 Metric tons per day by fourth quarter of FY 2024-2025 after our current capacity expansion is completed.
Company has the capability to manufacture and supply Kraft Papers and Duplex Boards in different shades and sizes as per the client specifications thus serving the diverse industrial packaging needs.
Company’s Installed Capacity and Capacity Utilization:
Three elements are extremely essential for manufacturing of kraft paper and paper products.
• Land,
• Water
• Electricity
Company has a land bank of 400 acres. We have also received permission from Government of Tamil Nadu to withdraw 2.7 million liters of water daily and for the electricity we have internal generation and rest is taken from the Government. With such huge land bank and with all permission of utilities and large capacity, we have an edge in whole of India for kraft paper and paper products manufacturing.
End users of Company’s Products:
The products we manufacture are used in various industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, printing and more, where packaging is indispensable.
Paper products play a pivotal role in packaging across sectors, from biscuit wrappers to marriage invitations, showcasing the versatility and significance of our offerings across diverse industries.
Company has successfully started supplying to major corporations such as Britannia and United Breweries Companies, targeting direct engagement with key players rather than intermediaries like middle-level corrugators.
By supplying directly to these corporate giants, we ensure reliability, cost efficiency, and larger volume transactions, positioning ourselves as preferred suppliers over smaller vendors.
Management Team:
- Mr. T Balakumar (Designation: Managing Director)
- Mr. Mr. Ramasubbu Venkatesh (Designation: Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs.93.70 cr)
- Investment in Subsidiary for Financing its Capital Expenditure requirements.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Investment in Subsidiary for Financing its Capital Expenditure requirements | 75 cr |
Proposed Schedule of Implementation:
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 332.6 | 510.62 | 496.97 |
| Net Profit | 26.0 | (-0.26) | 33.41 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Subam Papers Ltd | 10 | 20.53 | 7.4 | 16.79% | 122.29 |
| Pakka Limited | 10 | 11.21 | 22.36 | 17.25% | 64.36 |
| Shree Ajit Pulp And Paper Ltd | 10 | 14.18 | 16.35 | 3.35% | 302.68 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 30th September 2024 |
| Issue Closes on | 3rd October 2024 |
| Issue Price | Rs.144-152 |
| Face Value | Rs.10 |
| Minimum Lot | 800 Shares |
| Minimum Investment | Rs.1,21,600 |
| Issue Constitutes | 26.52% |
| Issue Size | Rs.93.70 cr |
| Market Cap | Rs. 353 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 61,64,800 (Rs.93.70 cr) |
| Equity Shares Prior to the Issue | 1,70,80,070 |
| Equity Shares after the Issue | 2,32,44,870 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 20.53 | 7.4 | 16.79% | 122.29 | 0.92 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Subam Papers Ltd is a forward-thinking company engaged in the manufacturing of Kraft Paper and Paper Products, founded in 2004. Initially focused on paper cones, the company expanded its product range to include Duplex Board and Kraft Paper.
Unlike traditional paper manufacturers, Subam Papers uses wastepaper as the primary raw material, eliminating the need for wood pulp and promoting sustainability in the industry. The company operates with a significant land bank of 400 acres and has secured government permission to withdraw 2.7 million liters of water daily. It generates its own electricity and supplements the remainder from the Tamil Nadu government, providing a competitive advantage in utilities and production capacity. Subam Papers serves major corporations like Britannia and United Breweries, bypassing intermediaries to engage directly with key players. This direct engagement allows for greater reliability, cost efficiency, and larger volume transactions, positioning the company as a preferred supplier over smaller vendors. With its strong focus on sustainability, large-scale operations, and established partnerships, Subam Papers offers a promising opportunity for long-term investors. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 4th October 2024 |
| Initiation of Refunds | on or Before 7th October 2024 |
| Credit of Equity Shares: | on or Before 7th October 2024 |
| Listing Date: | on or Before 8th October 2024 |
| Company Contact Info: |
|---|
| Subam Papers Ltd S.F.No.143-146 Vaduganpatti Village,Tirunelveli, Tirunelveli Taluk- 627010, Tamil Nadu, India. Tel No: +91-9486303300 Email Id: info@subampapers.com Website: www.subampapers.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED S6-2, 6th Pinnacle Business Park, Mahakali Caves Road, next to Ahura Centre, Andheri East, Mumbai- 400093, Maharashtra, India Tel No.: +91 – 22 – 6263 8200; E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment
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