Subam Papers IPO: SME Issue Opens September 30; Check Price Band and GMP Details
Subam Papers Limited is set to launch its ₹93.70 crore SME IPO on September 30, 2024, at a price band of ₹144 to ₹152 per share. The company, which specializes in recycled Kraft paper and paper products, aims to use the proceeds for debt repayment and capital expenditure.
Key takeaways
- Subam Papers IPO opens for subscription from September 30 to October 3, 2024.
- The price band is set at ₹144-₹152 per share with a minimum investment of ₹1.21 lakh for retail investors.
- The company plans to list on the BSE SME platform on October 8, 2024.
- Proceeds will be used for debt repayment and capacity expansion via its subsidiary.
Subam Papers Limited is set to launch its ₹93.70 crore SME IPO on September 30, 2024, at a price band of ₹144 to ₹152 per share. The company, which specializes in recycled Kraft paper and paper products, aims to use the proceeds for debt repayment and capital expenditure.
Subam Papers Limited, a Tamil Nadu-based manufacturer of recycled Kraft paper and paperboard, is entering the primary market with its Initial Public Offering (IPO) on September 30, 2024. The company aims to raise approximately ₹93.70 crore through a fresh issue of 61.65 lakh shares. Retail investors can bid for the issue until October 3, 2024.
IPO Price Band and Lot Size
The company has fixed the price band for the IPO at ₹144 to ₹152 per equity share. For retail investors, the minimum lot size is 800 shares, requiring a minimum investment of ₹1,21,600. High Net-Worth Individuals (HNIs) are required to bid for at least two lots (1,600 shares), amounting to ₹2,43,200.
Key Dates and Listing Details
The subscription window opens on Monday, September 30, and closes on Thursday, October 3. The basis of allotment is expected to be finalized on Friday, October 4, with the initiation of refunds and credit of shares to demat accounts scheduled for October 7. Subam Papers is slated to list on the BSE SME platform on Tuesday, October 8, 2024.
Utilization of Proceeds
The net proceeds from the fresh issue are earmarked for strategic financial moves. Subam Papers plans to utilize the funds for the repayment or prepayment of certain outstanding loans availed by the company. Additionally, a portion of the capital will be invested in its subsidiary for setting up new machinery and for general corporate purposes. This move is expected to strengthen the company's balance sheet and support its expansion in the sustainable packaging sector.
Grey Market Premium (GMP) and Outlook
Market observers note that the Grey Market Premium (GMP) for Subam Papers is currently showing positive momentum, reflecting investor interest in the sustainable paper manufacturing segment. The company operates a significant facility in Tirunelveli with an installed capacity of 300 metric tonnes per day, focusing on 100% recycled waste paper. Gretex Corporate Services is acting as the book-running lead manager for the issue, while Bigshare Services is the registrar.
This report is for informational purposes only and does not constitute financial advice. IPO investments are subject to market risks.
Frequently asked questions
What is the lot size for Subam Papers IPO?
The minimum lot size is 800 shares, which translates to an investment of ₹1,21,600 at the upper price band.
When will the Subam Papers IPO be listed?
The tentative listing date for Subam Papers on the BSE SME platform is October 8, 2024.
What does Subam Papers Limited do?
The company manufactures Kraft paper and paperboards using 100% recycled waste paper, catering to the sustainable packaging industry.