Mumbai (Maharashtra) [India], July 10: Three M Paper Boards Ltd, a Mumbai based company engaged in the business of manufacturing Recycled Paper-based Coated Duplex Board products since over 3 decades, is planning to raise up to Rs. 39.83 crores through its SME IPO. Shares of the company will be listed on the SME platform of BSE Ltd (BSE SME). The public issue open for subscription on July 12 and closes on July 16. Funds raised through the issue will be used for business expansion including purchasing machinery, factory building extension, repayment of loans, working capital infusion and general corporate purposes. Comfort Securities Limited is the Book Running Lead Manager to the issue.
Company is offering 57.72 lakh Equity shares of Rs. 10 each in the price band of Rs. 67-69 per share; Company to list on SME Platform of BSE Ltd (BSE SME)
| IPO Highlights:- – Fresh Public issue of 57.72 lakh equity shares opens for subscription from July 12 to July 16 – Minimum lot size for application is 2,000 shares; Minimum IPO application amount Rs. 1.38 lakh – The Company is a leading manufacturer of Coated duplex paper boards, utilizing 100% recycled wastepaper to produce biodegradable finished products – Funds raised through the issue will be used for business expansion including purchasing machinery, factory building extension, repayment of loans, working capital infusion and general corporate purposes – The company’s manufacturing facility in Chiplun, Maharashtra is spread over an area of over 30 acres – For FY23-24 company reported total income of Rs. 276.02 crore and Net Profit of Rs. 11.35 crore – Comfort Securities Limited is the Book Running Lead Manager of the issue. |
| IPO Highlights – Three M Paper Boards Limited | |
| IPO Opens on | July 12, 2024 |
| IPO Closes on | July 16, 2024 |
| Issue Price Band | Rs. 67-69 Per Share |
| Issue Size | 57.72 lakh shares – up to Rs. 39.83 crore |
| Lot Size | 2000 Shares |
| Listing on | SME Platform of BSE Ltd (BSE SME) |
The initial public offering of Rs. 39.83 crores consist of a fresh issue of 57,72,000 equity shares of Rs. 10 each in the price band of Rs. 67-69 per share. Company plans to utilize Rs. 14 crores towards capital expenditure, including the purchase of a Plastic-Fired Low-Pressured Boiler, which will use waste plastic for power generation and significantly lower power costs. The funds will also support a factory building extension to increase storage capacity and the acquisition of a sheet cutter to enhance production speed. Rs. 10 crores will be allocated for working capital and Rs. 7 crores for term loan repayment, which will smoothen operations, improve cash flow management, and lower interest costs. The remaining funds will be used for general corporate purposes and issue expenses.
Minimum lot size for the application is 2,000 shares which translates in to investment of Rs. 1.38 lakh per application. Retail investor quota for the IPO is kept at not less than 35% of the net offer, HNI quota is kept at not less than 15% of the offer and QIB portion is kept at not more than 50% of the offer.
Established in 1989, Three M Paper Boards Ltdis one of the ISO-9001 certified companies engaged in the business of manufacturing recycled paper-based Duplex Board products ranging from 200 to 500 GSM 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 markets. The Coated Duplex Boards produced by the company are made from 100% recycled wastepaper and are fully biodegradable, making them an eco-friendly choice for packaging various FMCG and pharmaceutical goods.
The company’s manufacturing facility in Chiplun, Maharashtra is spread over an area of more than 30 acres has an installed capacity of 72,000 tons per annum (TPA) along with 4 MW captive power plant and is equipped with state-of-the-art technology for manufacturing paper boards of the global quality standard suitable for high-quality print jobs in the packaging sectors across the globe. With a vast network of over 25 dealers nationwide and export operations in more than 15 countries, Three M Paper Boards maintains a broad market reach and a strong industry presence.
For the financial year ended on March 31, 2024, Company reported revenue from operations at Rs. 272.23 crore, EBIDTA of Rs. 27.07 crore and net profit of Rs. 11.35 crore. The EBITDA was up by 25% as compared to 21.66 crores of previous financial year. The net profit was up by 170% as compared to 6.62 crores of previous financial year. The Company reported an increase in EBITDA Margin from 6.57% in previous year to 9.94% in current year. Also, the PAT margin increased from 2.01% in previous year to 4.11% in current year.
The Indian paper and packaging industry are experiencing robust growth, poised for significant expansion in the coming years. Valued at USD 50.5 billion in 2019, the industry is projected to reach USD 204.81 billion by 2025, demonstrating an impressive CAGR of 26.28% from 2020 to 2025. This remarkable growth is attributed to several factors, including the flourishing e-commerce, food processing, pharmaceuticals, FMCG, manufacturing, and healthcare sectors.
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