Subam Papers Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Subam Papers Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹152
Per ShareLot Size
800 Shares
Minimum Investment
₹1,21,600
Issue Size
₹93.7 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
Subam Papers Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
94.81%
Promoter Holding (Post-Issue)
69.67%
Issue Type
Book Building - SME
ISIN
INE0U6201010
About the Company
We are a company engaged in the manufacturing of Kraft Paper and Paper Products. We proudly call ourselves as a packaging solution providing company. Subam started its journey in the year 2004 with manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio. Our company is not like the traditional paper manufactures, we do not manufacture our products from wood pulp but instead we use waste paper as our raw material. We aim to preserve mother nature and tend to drive our company on the principle of recycling. Our company leverages wastepaper as the primary raw material in the production of Kraft Paper and Duplex Board.
Industry Overview
The paper and packaging sector in India is growing rapidly and has significant potential for future expansion. The industry was valued at $50.5 billion in 2019 and is anticipated to reach $204.81 billion by 2025, registering a CAGR of 26.7% from 2020 to 2025. The growth in the sector is being driven by a surge in e-commerce, food processing, pharmaceuticals, FMCG, manufacturing industry and healthcare sector. Additionally, numerous government initiatives including 'Make in India' had positive impact on the packaging industry. The paper and packaging industry is currently the fifth largest sector in the Indian economy and has the potential to achieve pricing levels that are about 40% cheaper compared to European regions.
Company History
Our Company was originally incorporated on October 06, 2004, as a Private Limited Company in the name of "Subam Papers Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Tamil Nadu. Subsequently pursuant to a Special Resolution of our Shareholders passed in the Extra-Ordinary General Meeting held on March 08, 2024, our Company was converted from a Private Limited Company to Public Limited Company and consequently, the name of our Company was changed to `Subam Papers Limited' and a Fresh Certificate of Incorporation consequent to Conversion was issued on May 15, 2024 by the Registrar of Companies, Central Processing Centre.
Growth Strategy
- Anaerobic Reactor for odorless paper manufacturing.
- Import of wastepaper from western countries.
- Strategic advantage due to our proximity to the upcoming Vizhinjam and Tuticorin Ports by reshaping our import and export operations.
- Establishing Support for a Wholly-Owned Subsidiary's New Unit.
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 consolidated 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 offer of upto 61,64,800 equity shares of face value of Rs. 10.00 each ("Equity Shares") of Subam Papers Limited (the "Company" or the "Issuer") for cash at a price of Rs. 152 per equity share including a share premium of Rs. 142 per equity share (the "Issue Price") aggregating to Rs. 93.70 crores ("The Issue"). The issue includes a reservation of upto 3,08,800 equity share of face calue of Rs. 10 each at an issue price of Rs. 152 per equity share cash aggregating to Rs. 4.69 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 upto 58,56,000 equity shares of face value of Rs. 10 each at an issue price of Rs. 152 per equity share for cash aggregating to Rs. 89.01 crores (the "Net Issue"). will constitute 26.52% and 25.19% respectively of the post issue paid up equity share capital of the issue of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Paper waste recycle and Sustainable packaging solutions.
- Significant Advantage Due to Proximity of Subam's Factory Location.
- Efficient Inventory Management.
- Fully Integrated Manufacturing Facility.
- Consistent Financial Performance.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
- The availability of raw material, i.e. waste paper is very crucial for its business activities.
- The company has received certain notices from the GST Department indicating huge discrepancies which may translate into Demand against it and potentially harming its business, reputation, and financial performance.
- The company highly depends on its major raw materials and a few key suppliers who help it procure the same. The Company has not entered into long-term agreements with its suppliers for the supply of raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
- The company conduct its business activities on a purchase order basis and therefore have not entered into long-term agreements with its customers.