Shreenath Paper Products Limited IPO

Shreenath Paper Products Limited, a supplier of specialized paper products for industries like FMCG, textiles, and packaging, is set to launch its IPO on the BSE SME platform. Here’s a concise overview of the key details and highlights for investors and readers:

IPO Snapshot

• IPO Dates: February 25, 2025, to February 28, 2025
• Listing Date: Tentatively on March 5, 2025 (BSE SME)
• Issue Type: Fixed Price IPO
• Price per Share: ₹44
• Face Value: ₹10 per share
• Total Issue Size: 53.10 lakh shares (₹23.36 crores)
• Lot Size: 3,000 shares (Minimum investment: ₹1,32,000 for retail investors)

Key Dates

• Allotment Finalization: March 3, 2025
• Refunds Initiation: March 4, 2025
• Demat Credit: March 4, 2025
• Listing: March 5, 2025

Company Overview

Incorporated in 2011, Shreenath Paper Products Limited specializes in supplying paper materials such as coated, food-grade, machine-glazed, and adhesive papers. The company serves industries like FMCG, textiles, pharmaceuticals, and packaging, primarily in Maharashtra, Gujarat, and Madhya Pradesh.

Product Portfolio:

• Sublimation Base Paper
• Thermal Base Paper
• Straw Paper
• Coated Paper and Board
• Specialty Papers (e.g., parchment, ledger, cup stock)
• Cream Wove Paper

Financial Highlights (Restated)

Restated financials ensure accuracy and compliance with accounting standards. Here’s a snapshot of the company’s financial performance:

Period Ended	31 Dec 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Crore)	62.25	60.34	50.95	30.82
Revenue (₹ Crore)	78.62	189.67	206.70	141.75
Profit After Tax (₹ Crore)	2.41	4.39	4.38	1.34
Reserves and Surplus (₹ Crore)	6.99	4.59	9.80	4.97
Total Borrowings (₹ Crore)	31.37	28.89	25.01	16.73

 

IPO Objectives

The net proceeds from the IPO will be utilized for:

1. Meeting incremental working capital requirements.
2. General corporate purposes.

Final Thoughts

Highly Competitive Industry: Fragmented market with low margins and intense competition.

Supply Chain Risk: Heavy reliance on third-party suppliers; disruptions can impact operations

Inconsistent Financial Performance: Revenue and profitability have fluctuated over the years.

High Debt Levels: Debt burden could impact financial stability.

Short-Term (Listing Gains): Moderate potential, but high risk due to aggressive pricing.

Investors should wait for post-listing performance and improvement in financial metrics before considering it for long-term investment

Not recommended unless the company demonstrates consistent revenue growth, improved profitability, and reduced debt levels.

Stay tuned for more updates and analysis on this IPO!

Disclaimer: This blog post is for informational purposes only. Please consult your financial advisor before making any investment decisions.

                                                                                                    Chandan Pathak                                                                                                                

                                                                                                Equity Research Analyst