Subam Papers Limited IPO

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Subam Paper and Boards is a leading manufacturer of Kraft Paper and Duplex Boards, specializing in offering sustainable packaging solutions. Established in 2004, the company began with the production of paper cones and has since expanded to include Kraft paper and Duplex board, utilizing wastepaper as the primary raw material. Unlike traditional paper manufacturers that rely on wood pulp, Subam focuses on recycling, aligning its operations with eco-friendly principles.

Production Capacity

As of March 31, 2024, the company had an installed capacity of 300 metric tons per day (MTPD) for Kraft Paper, with a utilization of 93,081 tons for the year. For Duplex Board, the installed capacity was 140 MTPD, with utilization reaching 43,963 tons. Production is expected to surpass 1,000 MTPD by the fourth quarter of FY 2024-2025, following ongoing capacity expansion. The company customizes its products to meet diverse industrial packaging needs, offering a wide range of shades and sizes.

Resources and Infrastructure

Subam benefits from a strong resource base, with 400 acres of land, permission to withdraw 2.7 million liters of water daily from the Government of Tamil Nadu, and internal power generation through its renewable energy sources. These advantages give the company a competitive edge in the Indian market.

Through innovation, sustainability, and expansion, Subam Paper and Boards continues to strengthen its market presence as a leading wastepaper manufacturer, poised for future growth.

Objects of the Subam Papers Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects (“Objects of the Issue”): i. Investment in a Subsidiary for Financing its Capital Expenditure requirements ii. General Corporate Purposes.
DRHP of Subam Papers Limited IPO
RHP of Subam Papers Limited IPO

Subam Papers Limited IPO Details:

Open Date: Sep 30 2024
Close Date: Oct 03 2024
Total Shares: 6,164,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 93.70 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 144 - 152 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 08 2024

Promoters And Management:

Mr. T Balakumar, 57, is the Promoter, Managing Director, and Chairman of the Company. Appointed as Managing Director since the Company's incorporation, he briefly stepped down in 2017 before being reappointed in 2018 for a five-year term, and again in 2023, extending his role until 2028. He holds a Bachelor's degree in Mechanical Engineering from P.S.G College of Technology, Coimbatore (1989) and has over 19 years of experience in the paper industry. A visionary entrepreneur, he has been instrumental in establishing and growing the Company, overseeing operations, and mentoring employees with his extensive industry knowledge. Mr. Ramasubbu Venkatesh, 57, is the Executive Director of the Company. Initially appointed as Additional Director on January 6, 2016, he became a Non-Executive Director in September 2016 and was later promoted to Executive Director on March 8, 2024. He holds a Bachelor's degree in Textile Technology from P.S.G College of Technology (1997), a Master of Business Management from Madurai Kamaraj University (2001), and a post-diploma in Quality Management (1995). With over 8 years of experience in the paper industry, Mr. Venkatesh oversees day-to-day operations and leads the company's sales and marketing efforts, consistently delivering value to customers. Ms. Sudha Alagarsamy, 55, is the Promoter and Non-Executive Director of the Company. She was initially appointed as Whole-Time Director at incorporation, stepped down in 2017, and later re-appointed for two consecutive terms, ending in 2028. As of March 8, 2024, her role changed to Non-Executive Director. With a B.Sc. in Mathematics (1989) and an M.A. (1991) from Madurai Kamaraj University, she has over 19 years of experience in the paper industry. As a Whole-Time Director, she oversaw strategic business policies and long-term planning. Currently, she provides strategic advice and ensures compliance with industry regulations.

Financials of Subam Papers Limited IPO:

Particular (In lakh) Mar-24 Mar-23 Mar-22
Revenue from Operations 49,386 50,830 32,927
Cost of Material Consumed 37282 43152 26803
Change in Inventories 184 -298 -1217
Employee Cost 2121 2142 1397
Other Expenses 2466 2560 1835
EBITDA 7333 3274 4109
EBIDTA Margin 14.85% 6.44% 12.48%
Other income 311 232 332
Depreciation 1297 1596 667
Interest 1767 1414 307
Exceptional Items 61 126 38
Profit before tax 4519 370 3429
Tax 1216 438 933
Net profit 3303 -68 2496
NPM (%) 6.65% -0.13% 7.50%
EPS 14.21 -0.29 10.74

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP Mcap (cr)
Subam Papers Limited 494 33 14.21 10.6 152 353
Pakka Limited 405 49 12.43 29.1 325 1283
Shree Ajit Pulp And Paper Limited 295 8 9.27 25 220 195
All the data is as per FY24

Lead Manager of Subam Papers Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Subam Papers Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Subam Papers Limited S.F.No.143-146 Vaduganpatti Village Nadukallur to Tirunelveli, Tirunelveli, Tirunelveli Taluk- 627010, Phone: +91-9486303300 Email: info@subampapers.com Website: http://www.subampapers.com/

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