Subam Papers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2024 – 03 Oct 2024
- Listing date
- 08 Oct 2024
- Face value
- ₹1 per share
- Issue price
- ₹152 per share
- Lot size
- 800 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹93.70 Cr
- Market cap at offer price
- ₹353 Cr
- Promoter holding
- 94.81% → 69.67% pre-issue → post-issue
- ISIN
- INE0U6201010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- S.F.No.143-146 Vaduganpatti, Village Nadukallur to Tirunelveli, Tirunelveli Taluk, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,56,800 | — | — |
| Market maker | 3,08,800 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹152
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,21,600 |
| S-HNI (min) | 2 | 1,600 | ₹2,43,200 |
| S-HNI (max) | 8 | 6,400 | ₹9,72,800 |
| B-HNI (min) | 9 | 7,200 | ₹10,94,400 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 19.57 | 14.38 |
| P/E (×) | 7.77 | 10.57 |
| Price to book (×) | 1.24 | — |
| Market cap | — | ₹353 Cr |
Key performance indicators
- Return on net worth
- 16.79%
- ROCE
- 20.84%
- Debt / equity
- 0.92
- PAT margin
- 6.77%
- NAV per share
- ₹122.29
- Price to book
- 1.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Subam Papers
Subam Papers Limited was incorporated on October 06, 2004 as a private limited company in Tamil Nadu and converted to a public limited company on May 15, 2024. It began in 2004 with manufacturing of paper cones and later added Duplex board and Kraft paper to its portfolio, positioning itself as a packaging solutions provider that uses waste paper — not wood pulp — as its primary raw material, driven by the principle of recycling. The company operates with an installed capacity of 300 MTPD for Kraft paper (utilization of 93,081 tons in FY2024) and 140 MTPD for Duplex Board (utilization of 43,963 tons in FY2024), supported by a 400-acre land bank, permission to withdraw 2.7 million liters of water daily, and captive renewable power from two windmills of 850 KW each (~1.7 MW) and a 14 MW solar plant. It is ISO 9001:2015 and FSC Recycled certified, sells primarily in Tamil Nadu and other southern states, and exports accounted for 6.22% of FY2024 sales. Expansion is being carried out through wholly-owned subsidiary Subam Paper & Boards Private Limited (incorporated July 19, 2020), with consolidated capacity expected to exceed 1,000 metric tonnes per day by Q4 FY2024-25. In FY2024 the company reported consolidated revenue from operations of ₹49,386.46 lakhs and profit after tax of ₹3,341.80 lakhs, with Kraft Paper contributing 55.50% and Duplex Paper 28.12% of total sales.
Company Analysis
from DRHPSubam Papers Limited is an India-based manufacturer of Kraft paper, duplex board and paper products such as paper cones and tubes, made from recycled waste paper rather than wood pulp, serving the paper and packaging industry.
Subam Papers Limited was incorporated on October 06, 2004 as a private limited company in Tamil Nadu and converted to a public limited company on May 15, 2024. It began in 2004 with manufacturing of paper cones and later added Duplex board and Kraft paper to its portfolio, positioning itself as a packaging solutions provider that uses waste paper — not wood pulp — as its primary raw material, driven by the principle of recycling. The company operates with an installed capacity of 300 MTPD for Kraft paper (utilization of 93,081 tons in FY2024) and 140 MTPD for Duplex Board (utilization of 43,963 tons in FY2024), supported by a 400-acre land bank, permission to withdraw 2.7 million liters of water daily, and captive renewable power from two windmills of 850 KW each (~1.7 MW) and a 14 MW solar plant. It is ISO 9001:2015 and FSC Recycled certified, sells primarily in Tamil Nadu and other southern states, and exports accounted for 6.22% of FY2024 sales. Expansion is being carried out through wholly-owned subsidiary Subam Paper & Boards Private Limited (incorporated July 19, 2020), with consolidated capacity expected to exceed 1,000 metric tonnes per day by Q4 FY2024-25. In FY2024 the company reported consolidated revenue from operations of ₹49,386.46 lakhs and profit after tax of ₹3,341.80 lakhs, with Kraft Paper contributing 55.50% and Duplex Paper 28.12% of total sales.
Objects of the Issue
- Investment in Subsidiary (Subam Paper & Boards Private Limited) for Financing its Capital Expenditure requirements — including setting up an additional paper plant manufacturing facility (deployment of ₹4,500.00 lakhs towards machinery) and a co-generation power plant (₹3,000.00 lakhs) ₹7,500.00 lakhs p.89
- General Corporate Purposes (shall not exceed 25% of the Net Issue Proceeds) p.89
Issue Structure
- Fresh Issue
- Upto 62,50,000 Equity Shares amounting up to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹10.00 each
Business Model
The company earns revenue by manufacturing and selling Kraft paper, Duplex board and paper products (cones, tubes and other paper products) produced from recycled waste paper to customers in the paper and packaging industry, operating on a purchase-order basis without long-term customer contracts, through direct sales and an extensive dealer network across India (concentrated in Tamil Nadu, with sales also in Andhra Pradesh, Karnataka, Kerala, Puducherry and Telangana) and through exports.
Business Segments
SWOT Analysis
- • Recycling-based manufacturing model using wastepaper (not wood pulp) as primary raw material(p.26)
- • Large land bank of 400 acres with Government permission to withdraw 2.7 million liters of water daily(p.133)
- • Captive renewable power infrastructure: 14 MW solar plant and ~1.7 MW wind capacity(p.133)
- • Near-full capacity utilisation of Kraft Paper plant in FY24 (93,081 tons against 93,600 tons annual capacity)(p.133)
- • ISO 9001:2015 and FSC Recycled certified quality management systems(p.134)
- • Experienced promoter-MD with 19+ years in paper industry and chairman of Government of India's Development Council for Pulp, Paper and Allied Industries(p.134)
- • Strategic factory location in proximity to Tuticorin harbour(p.134)
- • Large unresolved GST audit discrepancies/notices (Rs. 282.71 Lakhs and Rs. 1,494.72 Lakhs) that may convert into demands(p.35)
- • Earnings volatility: FY23 profit fell to a loss of Rs. 26.79 lakhs from Rs. 2,600.23 lakhs due to wastepaper import disruption(p.35)
- • No long-term agreements with customers; entire business runs on a purchase-order basis(p.36)
- • Product concentration: Kraft Paper (55.50%) and Duplex Paper (28.12%) account for majority of FY24 sales(p.38)
- • Geographic concentration of sales in Tamil Nadu(p.38)
- • High levels of outstanding trade receivables (Rs. 11,076.29 lakhs in FY24) exposing the company to counterparty credit risk(p.38)
- • Heavy dependence on Promoters for day-to-day execution and strategic guidance(p.43)
- • Group companies (Saradhambika, B.M.M. Paper Board, Mayura Packaging) operate in the same line of business, creating conflict-of-interest risk(p.40)
- • Indian paper & packaging industry projected to grow from $50.5 billion (2019) to $204.81 billion by 2025 at 26.7% CAGR(p.124)
- • Demand tailwinds from e-commerce, food processing, pharmaceuticals, FMCG, manufacturing and healthcare sectors(p.124)
- • Rising packaging-material exports from India (US$ 844 million in FY19 to US$ 1,119 million in FY22, 9.9% CAGR)(p.125)
- • Industry-wide paradigm shift toward eco-friendly/sustainable packaging favours the company's recycled-wastepaper model(p.122)
- • Capacity expansion through subsidiary expected to take consolidated capacity beyond 1,000 MT/day by Q4 FY2024-25(p.133)
- • Optimistic industry outlook driven by population growth, urbanisation and rising disposable incomes(p.123)
- • Intense competition from local, multinational and global players with greater resources, causing margin/pricing pressure(p.36)
- • Foreign exchange rate fluctuation risk on significant imported raw materials (USD exposure)(p.40)
- • Adverse changes in government regulations or their implementation could disrupt operations(p.51)
- • Dependence on paper & packaging industry demand; any industry downturn would hurt revenues(p.37)
- • Raw material (wastepaper) price fluctuations given absence of long-term supply contracts(p.35)
- • Severe weather conditions and natural disasters could disrupt operations(p.45)
- • Adverse general economic and market conditions in India and globally(p.45)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. T Balakumar | Promoter | 49.52% | — |
| Ms. Sudha Alagarsamy | Promoter | 16.78% | — |
| B.M.M. Paper Board Private Limited | Promoter Group | 9.22% | — |
| Mr. Venkadasamy Thirupathi | Promoter Group | 5.85% | — |
| Mr. Solaisamy Solaisamy Alagarsamy | Promoter Group | 5.85% | — |
| Ms. Ramasamy Premavathi | Promoter Group | 5.74% | — |
| Saradhambika Paper and Board Mills Private Limited | Promoter Group | 1.61% | — |
| Ms. Madhumitha Balakumar | Promoter Group | 0.23% | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.