The SME IPO of Three M Paper Boards opened for subscription earlier today and will close on July 16. The company aims to raise about Rs 40 crore through the SME IPO and list the shares on BSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.
Read More: Sahaj Solar IPO Receives 47.63x Subscription On Day 2 So Far, Check GMP Today
1) Three M Paper Boards IPO size
The IPO is entirely a fresh equity issue of 57.72 lakh shares and through the issue, the company plans to raise Rs 40 crore.
2) Three M Paper Boards IPO price band
The company is offering its shares at Rs 67-69 apiece, and investors can bid for 2,000 shares in 1 lot.
3) Three M Paper Boards GMP
In the unlisted market, the company’s shares are trading with a GMP of Rs 32, which translates to a listing gain of around 46% if the trends sustain.
Read More: IREDA share price rises 6% to fresh record high ahead of Q1 results
4) About Three M Paper Boards
The company is engaged in the business of manufacturing recycled paper-based coated Duplex Board products used in various packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods and supplies its high-quality duplex board paper products in both the domestic and international market.
5) Industry overview
The Indian paper industry plays a noteworthy role on the global stage, contributing approximately 5% to the world’s paper production. The industry’s economic impact is substantial, with an estimated turnover exceeding Rs 80,000 crore, contributing to approximately Rs 5,000 crore to the national exchequer.
6) Three M Paper Boards financial performance
For the year ended March 2024, the company clocked total revenues of Rs 276 crore and net profit of Rs 11.3 crore.
Read More: Stock market today: Axis Bank share price hits lifetime high as stock trades ex-dividend today
7) Objects of the offer
The net proceeds from the public offer will be used for capital expenditure for installation of new machinery, modernisation of certain processes under existing manufacturing facility and installation of plastic fired low pressure boiler, working capital requirements, repayment of debt and general corporate purposes.
8) Lead managers and Registrar
Comfort Securities is acting as the lead manager to the issue and Bigshare Services is the registrar.
9) Issue structure
About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
10) Important dates
The IPO opened on July 12 and will close on July 16. The final allotment will likely be made on July 18. The company’s shares will likely get listed on July 22.
