Shreenath Paper Products is ready to tap capital markets next week as its maiden public issue will open for subscription on February 25. This will be the second IPO in the SME segment opening next week. The offer will close on February 28.
The IPO share allotment will be finalised by March 3, while investors can start trading in Shreenath Paper Products shares on the BSE SME effective March 5.
The company that offers supply chain solutions to industries that use paper as raw materials intends to raise Rs 23.36 crore via public issue of 53.1 lakh equity shares at a price of Rs 44 per share. It is a fixed price issue.
The IPO proceeds will be utilised mainly for company's incremental working capital requirements, and general corporate purposes.
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Shreenath Paper Products acts as a catalyst between the manufacturer of paper products and the paper mills. It offers paper in different grades ranging from 24-350 grams per square meter (GSM), which is manufactured from waste recycled papers, bagasse base (agricultural waste) and virgin pulp. These paper products are used in several industries such as ATM's & POS terminals vendors, heat sensitive printers, FMCG, food & beverage, firework, pharma, tobacco, and white goods packing.
The company, which is valued at around Rs 86 crore, recorded profit at Rs 4.39 crore in the year ended March 2024, compared to Rs 4.38 crore in the previous year. However, revenue during the same period dropped to Rs 185.8 crore, from Rs 204.4 crore.
Galactico Corporate Services will be acting as the merchant banker to the issue.
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