Three M Paper Boards Limited is launching an IPO with a fresh issue of 57,72,000 shares worth INR 39.83 crores. The company aims to modernize machinery, fund working capital, repay borrowings, and support general corporate purposes.
Three M Paper Boards IPO – Important Dates
| Three M Paper Boards Limited IPO Date | July 12, 2024 to July 16, 2024 |
| Three M Paper Boards Limited IPO Listing Date | July 22, 2024 |
| Three M Paper Boards Limited IPO Price | INR 67-69 per share |
| Three M Paper Boards Limited IPO Lot Size | 2000 shares |
| Three M Paper Boards Limited IPO Total Issue Size | INR 39.83 crores |
| Three M Paper Boards Limited IPO Basis of Allotment | July 18, 2024 |
| Three M Paper Boards Limited IPO Initiation of Refunds | July 19, 2024 |
| Three M Paper Boards Limited IPO Credit of Shares to Demat | July 19, 2024 |
| Three M Paper Boards Limited IPO Issue Type | Book Built Issue IPO |
| Three M Paper Boards Limited IPO Listing At | BSE SME |
Three M Paper Boards Limited IPO – Company Profile
Three M Paper Boards Limited manufactures biodegradable, recycled paper-based Duplex Board products for diverse industries. With a 72,000 TPA capacity in Chiplun, Maharashtra, the company consistently innovates in product development and manufacturing processes.
With rising e-commerce, literacy, and FMCG growth, the company sees substantial opportunities in India’s paper industry, expecting double-digit growth and positive impacts from changes in Chinese raw material import policies.
The company’s performance stems from its strategic focus on being a low-cost paper manufacturer, continually integrating new technologies and processes to enhance efficiency and maintain competitive advantage.
Three M Paper Boards IPO Fundamental Analysis
Three M Paper Boards Limited Technologies’ financial analysis reveals a mixed performance. Revenue increased, equity and profitability improved, EPS and RoNW rose, and total assets grew, but the Inventory Turnover Ratio decreased, indicating slower sales or inventory management issues.
- Revenue Trend: The revenue increased from ₹31,290.04 lakhs in March 2022 to ₹32,725.21 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 27,223.48 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹327.56 lakhs in March 2022 to ₹1,134.72 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.50 in March 2022 to ₹8.60 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 8.06% to 18.51%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Three M Paper Boards IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 31,290.04 | 32,725.21 | 27,223.48 |
| Equity (₹ in lakhs) | 4,064.14 | 4,725.67 | 6,110.39 |
| Expenses (₹ in lakhs) | 31,141.11 | 32,377.35 | 26,303.03 |
| Profit and Loss After Tax (₹ in lakhs) | 327.56 | 661.53 | 1,134.72 |
| Diluted EPS only (₹) | 2.50 | 5.05 | 8.60 |
| Return on Net Worth (%) | 8.06 | 14.00 | 18.51 |
| NAV per Equity Share (₹) | 31.02 | 36.07 | 45.38 |
| Total Assets (in lakhs) | 18,150.44 | 18,942.55 | 19,519.88 |
| Total Liabilities (in lakhs) | 14,086.3 | 14,216.88 | 13,409.49 |
| Debt Equity Ratio | 1.92 | 1.73 | 1.19 |
| Current Ratio (in times) | 1.21 | 1.22 | 1.26 |
| Inventory Turnover Ratio | 7.75 | 7.30 | 5.23 |
Three M Paper Boards Limited IPO Peer Comparison
Three M Paper Boards Limited shows strong growth and profitability metrics. In comparison, N R Agarwal Industries Ltd and Kuantum Papers Ltd have higher market capitalizations, while Shree Ajit Pulp and Paper Ltd has impressive EPS and financial ratios.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Three M Paper Boards Limited | 27,601.56 | 10 | – | 8.60 | 18.57 | 45.38 |
| N R Agarwal Industries Ltd | 1,29,312.86 | 10 | 6.84 | 73.72 | 16.50 | 446.73 |
| Kuantum Papers Ltd | 1,21,693.66 | 1 | 7.64 | 21.07 | 12.07 | 128.79 |
| Shree Ajit Pulp and Paper Ltd | 30,114.23 | 10 | 15.86 | 14.18 | 3.51 | 302.68 |
Three M Paper Boards IPO Objective
The main objective of Three M Paper Boards Limited is to install new machinery, modernize processes, install a plastic-fired low-pressure boiler, fund working capital needs, and repay or prepay outstanding borrowings.
- Capital expenditure for installation of new machinery, modernization of specific processes under existing manufacturing facility, and installation of plastic-fired low-pressure boiler: The company intends to utilize INR 3.16 crores for new machinery and modifications to improve quality, reduce costs, and increase capacity. Any surplus will address other needs or general corporate purposes, up to 25%.
- The company’s funding working capital requirements: The company plans to utilize INR 37.03 crores in outstanding working capital facilities and will fund new business initiatives through net proceeds for general corporate purposes, internal accruals, or debt financing.
- Prepayment or repayment of all or a portion of outstanding borrowing availed by the company: The company plans to utilize up to INR 7 crores from net proceeds to prepay a portion of secured loans. Outstanding borrowings as of March 31, 2024, total INR 72.64 crores.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting ongoing contingencies and business requirements, funding growth opportunities, strategic initiatives, capital expenditures, and paying commissions or fees to consultants.
Three M Paper Boards IPO Risks And Challenges
Three M Paper Boards Limited’s risk includes potential future penalties for past statutory delays and challenges from geographic sales concentration in Maharashtra, Karnataka, Goa, and Delhi, which could affect expansion and performance in new markets.
- Past delays and non-filings with statutory authorities, including EPF, GST, and TDS, were rectified with additional fees. While no penalties have been imposed, future penalties or punitive actions could negatively impact the business and financial condition.
- Their sales are concentrated in Maharashtra, Karnataka, Goa, and Delhi, contributing 76% of revenue. Expanding beyond these regions and into international markets poses risks from competition and local market challenges, impacting future performance.
- Sales are primarily concentrated in Maharashtra, Karnataka, Goa, and Delhi, making up 76% of revenue. Expanding into new regions or international markets poses risks from competition and local market challenges, impacting future performance.
Three M Paper Boards IPO – Industry & Market Potential
The Indian paper industry contributes 5% to global production and has a turnover of INR 80,000 crore. It employs 2 million people and has a capacity of 30.73 million tonnes. It features diverse technologies and raw materials.
Since the establishment of the first mill in 1812, India’s paper industry has significantly expanded in recent years. It now ranks among the top 15 global producers. In FY 2023, it achieved 88% capacity utilization, producing 23.67 million tonnes.
Packaging, crucial for product presentation, uses paper for its environmental benefits. The Indian packaging industry, divided into rigid and flexible segments, is increasing, projected to reach USD 204.81 billion by 2025, driven by various sectors.
Three M Paper Boards Limited IPO – Type of Offer
Three M Paper Boards Limited is launching an IPO with a fresh issue of 57,72,000 shares worth INR 39.83 crores. The company aims to modernize machinery, fund working capital, repay borrowings, and support general corporate purposes.
Three M Paper Boards IPO Offer Size
The offer size of Three M Paper Boards Limited is INR 39.83 crores, consisting of a fresh issue of 57,72,000 shares. The company seeks funds to modernize machinery, fund working capital, repay borrowings, and support general corporate purposes.
Three M Paper Boards Limited IPO Allotment Structure
Three M Paper Boards Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 290,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 290,000 shares, are reserved for marker makers.
How to apply for a Three M Paper Boards Limited IPO?
To apply for the Three M Paper Boards Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Three M Paper Boards Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Three M Paper Boards Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Three M Paper Boards Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Three M Paper Boards Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Three M Paper Boards Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Three M Paper Boards Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Three M Paper Boards Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Three M Paper Boards Limited Ltd IPO Offer Registrar
The registrar for the Three M Paper Boards Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Address: S6-2, 6th Floor,
Pinnacle Business Park, Andheri (East),
Mumbai – 400093, Maharashtra, India
Telephone Number: 022 6263 8200
Email Id: [email protected]
Website: www.bigshareonline.com
Three M Paper Boards Limited Limited IPO – FAQs
The allotment date of the Three M Paper Boards Limited IPO is July 18, 2024.
The price band of the issue is INR 67- 69 per share.
The offer size of Three M Paper Boards Limited is INR 39.83 crores, consisting of a fresh issue of 57,72,000 shares. The company seeks funds to modernize machinery, fund working capital, repay borrowings, and support general corporate purposes.
The listing date of Three M Paper Boards Limited’s IPO is July 22, 2024.
