Nikita Greentech Recycling Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹104
Per ShareLot Size
1200 Shares
Minimum Investment
₹1,24,800
Issue Size
₹67.54 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Nikita Greentech Recycling Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
80.38%
Promoter Holding (Post-Issue)
59.22%
Issue Type
Book Building - SME
ISIN
INE0FLF01015
About the Company
Nikita Papers Ltd. is a NIKITA GROUP company engaged in manufacturing of Kraft Paper since 1992 to cater to the Specialty Paper Market in India. The Directors of company are educated and have long experience of more than 25 years of Paper manufacturing and Distribution apart from experience in other industries.
Industry Overview
An Overview of Indian Paper Industry: According to Indian Paper Manufacturers Association (IPMA), the country ranks among the top 15 major paper producers globally and accounts for about 5% of the world's paper production. The estimated turnover of the industry is INR 80,000 crore and its contribution to the exchequer is around INR 5,000 crore. Paper is a labour-intensive industry in India. The industry provides direct employment to 0.5 million persons, and indirectly to around 1.5 million. In FY 2023, boasting an annual capacity of 30.73 million Tonnes Per Annum (TTPA), India manufactured 23.67 million tonnes of paper and paperboard in FY 2023. This translates to approximately 88% of the capacity utilisation by the industry. Major Challenges faced by Indian Paper Industry: The major challenges faced by Indian paper industry is availability of raw materials. Inadequate raw material availability domestically is a major constraint for the paper industry. As per IPMA, over 90% of wood demand met through industry driven agro/farm forestry (1.2 million hectares); rest through Government sources and other sources. Current demand for pulpable wood by paper industry is estimated at 14 million tonnes per annum (TPA) while domestic availability is 9 - 10 million TPA. In addition to this, rising prices of raw materials and power sources are also creating challenges in the industry. Prices of Coal, one of the major sources of energy for paper mills, have also been on the rise, with a large hike in September 2023, of nearly 27%. Similarly, PPI for wood pulp has also experienced several increases in prices, leading to increased cost and low margins for the paper mills in India.
Company History
Our Company was originally incorporated as a Private Limited Company with the name "Nikita Papers Private Limited" pursuant to a certificate of incorporation dated August 18, 1989 issued by the RoC in accordance with provisions of the Companies Act, 1956. Thereafter upon conversion into a public company, pursuant to a shareholders' resolution dated May 26, 2003, the name of the company finally changed to `Nikita Papers Limited" and fresh certificate of incorporation was issued by the RoC dated June 12, 2003, As on date of this Draft Red Herring Prospectus, the Corporate Identification Number of our Company is U74899DL1989PLC129066.
Products & Services
- The Company is engaged in manufacture of kraft paper.
Customer Base
wholesaler and retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public issue of up to 64,94,400 equity shares of face value of Rs. 10/- each of Nikita Papers Limited ("Nikita", "NPL" or the "Company" or the "Issuer") for cash at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share (the "Issue Price") aggregating to Rs. 67.54 crores ("the Issue"), of which 3,26,400 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share aggregating to Rs. 3.39 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 61,68,000 equity shares of face value of Rs. 10/- each at a price of Rs. 104.00/- per equity share including a share premium of Rs. 94.00/- per equity share aggregating to Rs. 64.15 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 26.33% and 25.00%, respectively, of the post issue paid up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Experienced Promoters and Senior Management with extensive domain knowledge.
- Quality assurance and control.
- Expansion into Fluting Media Multi-liner Kraft Paper.
- Market Potential.
- Investment in latest technology and maintain our edge in the market.
- Raw material cost fluctuations impact the profitability and stability of businesses across various industries, necessitating adaptive strategies for procurement and pricing.
- The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
- The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
- Its production operations are geographically located in one area i.e., Shamli, Uttar Pradesh and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.
- The company is primarily dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.