The Indian SME IPO market continues to heat up, with three exciting IPOs launching today. Subam Papers Limited is leading the charge, seeking to raise a substantial ₹93.7 crores. Paramount Dye Tec Limited and NeoPolitan Pizza and Foods Limited are also on the list. Collectively, these companies aim to raise a total of ₹134.13 crores. Let’s explore in detail what each IPO has to offer.
SME IPOS
Subam Papers Limited IPO
| Offer Price | ₹144 – ₹152 per share |
| Face Value | ₹10 per share |
| Opening Date | 30 September 2024 |
| Closing Date | 3 October 2024 |
| Total Issue Size (in Shares) | 6,164,800 |
| Total Issue Size (in ₹) | ₹93.7 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 800 Shares |
| Listing at | BSE, SME |
Subam Papers Limited is offering a book-built issue of ₹93.70 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 4th and the listing tentatively set for October 8th. The minimum lot size is 800 shares, requiring a minimum investment of ₹121,600 for retail investors and ₹243,200 for HNIs.
Objectives of the Subam Papers Limited IPO
Subam Papers plans to use the IPO proceeds for:
- Investment in a subsidiary for financing its capital expenditure requirements
- General corporate purposes
GMP of Subam Papers Limited IPO
The current grey market premium (GMP) for Subam Papers is ₹55. This suggests that the company’s shares are trading at a premium of ₹55 in the grey market, indicating positive investor sentiment. Based on the IPO price band and the GMP, the estimated listing price is ₹207, 36.18% higher than the IPO price.
Company Overview
Subam Papers Limited manufactures Kraft Paper and paper products. It uses waste paper as a raw material and has a manufacturing capacity of 300 metric tons per day. The company’s products are used in various industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, and printing.
SWOT Analysis of Subam Papers Limited
| STRENGTHS | WEAKNESSES |
| The company’s use of waste paper as a raw material aligns with environmental sustainability trends. Subam Papers has a significant manufacturing capacity for Kraft Paper and paper products. The company offers a variety of paper products for different industries. | The company’s operations may be concentrated in a specific region, limiting its potential for growth. The availability and cost of waste paper can impact the company’s operations. The paper and packaging industry is competitive, with numerous players. |
| OPPORTUNITIES | THREATS |
| The increasing demand for packaging materials in various industries can drive growth for Subam Papers. Government initiatives promoting recycling and sustainable practices can benefit the company. Subam Papers can explore opportunities to expand its product range or enter new markets. | Changes in the cost of waste paper can affect profitability. A slowdown in the economy can impact demand for packaging materials. New packaging materials or production technologies could impact the market. |
Financial Strength
Subam Papers has shown mixed financial performance, with revenue decreasing by 3% and profit after tax (PAT) rising by 12590% between FY23 and FY24. This indicates a significant improvement in profitability despite a slight revenue decline.
Paramount Dye Tec Limited IPO
| Offer Price | ₹111 – ₹117 per share |
| Face Value | ₹10 per share |
| Opening Date | 30 September 2024 |
| Closing Date | 3 October 2024 |
| Total Issue Size (in Shares) | 2,430,000 |
| Total Issue Size (in ₹) | ₹28.43 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 1200 Shares |
| Listing at | NSE, SME |
Paramount Dye Tec Limited offers a book-built issue of ₹28.43 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 4th and the listing tentatively set for October 8th. The minimum lot size is 1200 shares, requiring a minimum investment of ₹140,400 for retail investors and ₹280,800 for HNIs.
Objectives of the Paramount Dye Tec Limited IPO
Paramount Dye Tec Limited intends to utilize the net proceeds from the IPO for the following purposes:
- Setting up a new manufacturing unit: This expansion will enable the company to increase its production capacity and cater to a more extensive customer base.
- Repayment of debt: By prepaying or repaying a portion of its outstanding borrowings, Paramount Dye Tec can reduce its interest expenses and improve its financial health.
- Registration of land: This will ensure legal ownership of the land acquired for the new manufacturing unit.
- General corporate purposes: The remaining funds can be used for various corporate activities, such as working capital management, research and development, or strategic acquisitions.
GMP of Paramount Dye Tec Limited IPO
The company’s shares did not have a grey market premium (GMP) before the issue opened.
Company Overview
Paramount Dye Tec Limited is a leading manufacturer of recycled synthetic fiber yarns, catering to the B2B segment of the textile industry. The company’s key strengths include:
- Sustainable Practices: Their focus on recycling waste synthetic fiber aligns with environmental sustainability trends.
- Product Diversity: Paramount Dye Tec offers many products, including acrylic, polyester, nylon, wool, and blended yarns.
- Manufacturing Expertise: The company’s two manufacturing facilities have modern machinery and adhere to strict quality standards.
- Customer-Centric Approach: Paramount Dye Tec provides custom yarn solutions to meet the specific requirements of its customers.
SWOT Analysis of Paramount Dye Tec Limited
| STRENGTHS | WEAKNESSES |
| The company’s operations may be concentrated in a specific region, limiting its growth potential. The availability and cost of waste synthetic fiber can impact the company’s operations. The textile industry is competitive, with numerous players offering similar products. | The company’s operations may be concentrated in a specific region, limiting its growth potential. The availability and cost of waste synthetic fiber can impact the company’s operations. The textile industry is competitive, with numerous players offering similar products. |
| OPPORTUNITIES | THREATS |
| Increasing awareness of environmental sustainability can drive demand for recycled products. Paramount Dye Tec can explore opportunities to expand its exports to new regions. Developing new and innovative yarn products can differentiate the company from competitors. | A slowdown in the global economy can impact demand for textiles. Changes in the cost of waste synthetic fiber can affect profitability. Changes in environmental regulations or trade policies can impact the company’s operations. |
Financial Strength
Paramount Dye Tec has shown steady financial growth, with revenue increasing to ₹23.67 crore and profit after tax (PAT) rising to ₹3.54 crore in FY24.
NeoPolitan Pizza and Foods Limited IPO
| Offer Price | ₹20 per share |
| Face Value | ₹10 per share |
| Opening Date | 30 September 2024 |
| Closing Date | 4 October 2024 |
| Total Issue Size (in Shares) | 6,000,000 |
| Total Issue Size (in ₹) | ₹12 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 6000 Shares |
| Listing at | BSE, SME |
NeoPolitan Pizza and Foods Limited is offering a fixed price issue of ₹12.00 crores. The IPO is scheduled to be listed on NSE SME, with the allotment expected on October 7th and the listing tentatively set for October 9th. The minimum lot size is 6000 shares, requiring a minimum investment of ₹120,000 for retail investors and ₹240,000 for HNIs.
Objectives of the NeoPolitan Pizza and Foods Limited IPO
NeoPolitan Pizza and Foods plans to use the IPO proceeds for:
- Expansion of the retail network by launching 16 new Quick Service Restaurants
- Security deposit and advance rent
- Brokerage charges
- Working capital requirements
- General corporate expenses
GMP of NeoPolitan Pizza and Foods Limited IPO
Before the issue opened, the company’s shares had no grey market premium (GMP).
Company Overview
NeoPolitan Pizza and Foods Limited operate in the restaurant and agricultural commodity trading segments. It specializes in Neapolitan-style pizza and offers a variety of other food items. The company owns and operates restaurants and also operates through a franchise model. It is ISO 22000:2018 certified and sources high-quality agricultural commodities for its restaurant operations.
SWOT Analysis of NeoPolitan Pizza and Foods Limited
| STRENGTHS | WEAKNESSES |
| NeoPolitan Pizza may have established a brand name and reputation in the local market. Offering a variety of food items, including pizza, soups, salads, and desserts, can attract a broader customer base. The franchise model can enable rapid expansion and reduce operational costs. | The company’s operations may be concentrated in a specific region, limiting its growth potential. The food and beverage industry is highly competitive, with numerous players offering similar products. Reliance on the local market can make the company vulnerable to fluctuations in local demand. |
| OPPORTUNITIES | THREATS |
| The company can explore opportunities to expand its restaurant chain and reach a larger customer base. Offering online ordering and delivery services can enhance convenience and attract new customers. NeoPolitan Pizza can consider introducing new products or expanding into complementary food segments. | The company can explore opportunities to expand its restaurant chain and reach a larger customer base. Offering online ordering and delivery services can enhance convenience and attract new customers. NeoPolitan Pizza can consider introducing new products or expanding into complementary food segments. |
Financial Strength
NeoPolitan Pizza and Foods has shown strong financial growth, with revenue increasing by 120% and profit after tax (PAT) rising by 80% between FY23 and FY24. This indicates the company’s ability to generate revenue and manage its costs effectively.
Conclusion:
As these IPOs unfold, investors will be closely watching their performance. The market’s response to these offerings will provide valuable insights into the current investor sentiment and the overall health of the SME market.
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IPO | Current IPO | Upcoming IPO | Listed IPO
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
