Shares of Subam Papers made a weak start on its stock market debut at the bourses on October 7 after listing at Rs 142, a discount of 6.6 percent over the issue price of Rs 152 per share on the BSE SME platform.
The 93.7-crore public offer, which is a fresh issue of 61.6 lakh shares, received robust investor interest after the issue was subscribed 92 times over three days. Non-institutional investors led comfortably, buying 243 times the portion reserved for them.
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QIBs or qualified institutional buyers followed next, buying 58 times the allotted quota while retail investors mopped up 49 times the portion earmarked for them. Subam Papers IPO raised Rs 26.70 crore from anchor investors. The price band of the IPO was fixed at Rs 144-152.
Incorporated in 2006, Subam Papers Limited manufactures Kraft Paper and paper products using waste paper as raw material. The company has an installed capacity of 300 metric tons per day (MTPD), totaling 93,600 tons annually. Subam Papers can produce Kraft Paper and Duplex Boards in various shades, with GSM ranging from 120 to 300, a Busting Factor of 16 to 35, and Deckle sizes from 2,000 MM to 4,400 MM, along with reel diameters up to 1,400 MM.
The company plans to use the net fresh issue proceeds for investment in a subsidiary to finance capital expenditure and for general corporate purposes.
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