Three M Paper Boards
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Jul 2024 – 16 Jul 2024
- Listing date
- 22 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹69 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹39.83 Cr
- Market cap at offer price
- ₹133 Cr
- Promoter holding
- 100.00% → 70.00% pre-issue → post-issue
- ISIN
- INE0UK501010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Comfort Securities Ltd.
- Registered office
- A33 & 34, Floor-2, Royal Industrial Estate, 5-B Naigaon Cross Road, Wadala, Maharashtra
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 | 16,42,000 | — | — |
| Market maker | 2,90,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹69
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,38,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,76,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,66,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,04,000 |
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 (₹) | 8.43 | 5.90 |
| P/E (×) | 8.19 | 11.69 |
| Price to book (×) | 1.52 | — |
| Market cap | — | ₹133 Cr |
Key performance indicators
- Return on net worth
- 18.51%
- ROCE
- 19.71%
- Debt / equity
- 1.19
- PAT margin
- 4.11%
- NAV per share
- ₹45.38
- Price to book
- 1.52
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Three M Paper Boards
Incorporated in Mumbai on July 26, 1989 as Three-M-Paper Manufacturing Company Private Limited and renamed Three M Paper Boards Limited upon conversion to a public limited company in January 2024, the company manufactures coated Duplex Board made from 100 percent recycled waste paper at a single manufacturing facility in Chiplun, Dist. Ratnagiri, Maharashtra, with a total manufacturing capacity of 72,000 TPA of paper at the close of FY 2022-23. Its product line features the established ROYAL brand of paper and boards (Royal Grey Back, Prima Grey Back, Royal White Back) in GSM ranges of roughly 200-500, sold into packaging applications such as food packaging, FMCG, garments and apparel, liquor cartons, playing cards and pharmaceuticals through a Pan-India network of around 25 dealers, with exports to more than 15 countries across the Asia Pacific, Middle East, Mediterranean and African subcontinents. The company makes money by selling these boards (FY 2023 revenue from operations of ₹32,725.21 lakhs and profit after tax of ₹661.53 lakhs), sourcing its principal raw material, waste paper, largely through imports from the USA, UK, Central Europe and the Middle East. It had 231 employees as of February 29, 2024 and is promoted by the Shah family, which along with the Promoter Group held 100% of the pre-issue paid-up capital.
Company Analysis
from DRHPThree M Paper Boards Limited manufactures recycled paper-based coated Duplex Board products used in packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics and consumer goods, supplying both domestic and international markets.
Incorporated in Mumbai on July 26, 1989 as Three-M-Paper Manufacturing Company Private Limited and renamed Three M Paper Boards Limited upon conversion to a public limited company in January 2024, the company manufactures coated Duplex Board made from 100 percent recycled waste paper at a single manufacturing facility in Chiplun, Dist. Ratnagiri, Maharashtra, with a total manufacturing capacity of 72,000 TPA of paper at the close of FY 2022-23. Its product line features the established ROYAL brand of paper and boards (Royal Grey Back, Prima Grey Back, Royal White Back) in GSM ranges of roughly 200-500, sold into packaging applications such as food packaging, FMCG, garments and apparel, liquor cartons, playing cards and pharmaceuticals through a Pan-India network of around 25 dealers, with exports to more than 15 countries across the Asia Pacific, Middle East, Mediterranean and African subcontinents. The company makes money by selling these boards (FY 2023 revenue from operations of ₹32,725.21 lakhs and profit after tax of ₹661.53 lakhs), sourcing its principal raw material, waste paper, largely through imports from the USA, UK, Central Europe and the Middle East. It had 231 employees as of February 29, 2024 and is promoted by the Shah family, which along with the Promoter Group held 100% of the pre-issue paid-up capital.
Objects of the Issue
- Prepayment or repayment of all or a portion of outstanding borrowing availed by our Company ₹ 700.00 lakhs p.79
- Capital expenditure for installation of new machinery, modernisation of certain processes under existing manufacturing facility and installation of plastic fired low pressure boiler ₹ 1,400.00 lakhs (Offer Summary on page 23 states ₹ 1,440.00 lakhs) p.79
- Funding long-term working capital requirements of our Company ₹ 1,000.00 lakhs p.79
- General corporate purposes (utilization capped at 25% of Gross Proceeds) ₹ 600.00 lakhs (Offer Summary on page 23 states ₹ 560.00 lakhs) p.79
Issue Structure
- Total Issue
- Upto [●] Equity Shares aggregating up to ₹ [●] lakhs (size not finalised in the DRHP)
- Fresh Issue
- Fresh Issue of up to [●] Equity Shares aggregating up to ₹ [●] lakhs
- Offer for Sale
- Nil
- Face Value
- ₹ 10/- each
Business Model
Revenue is earned from the manufacture and sale of coated Duplex Board produced from recycled waste paper at its 72,000 TPA Chiplun plant (with captive power), sold to converters and packaging customers in India (82.04% of FY 2023 revenue from operations) and exported internationally (17.96% in FY 2023), distributed through a network of around 25 dealers; raw material is procured domestically and via imports on spot-order basis.
Business Segments
SWOT Analysis
- • Diversified coated duplex board product portfolio (grades from 200 to 500 GSM)(p.136)
- • Consistent financial performance with disciplined payments to banks and creditors(p.136)
- • Established exporter with presence in more than 15 countries(p.137)
- • Economies of scale leading to low raw-material procurement costs(p.138)
- • Experienced promoters with deep paper-industry knowledge(p.139)
- • Diversified customer base and dealer network(p.139)
- • Freight/logistics advantage from plant location near key markets and a port(p.139)
- • Long-established brand in duplex paper(p.92)
- • High customer concentration — top 10 customers contributed up to ~64% of revenues(p.32)
- • High indebtedness — total borrowings of ₹7,660.31 lakhs as of September 30, 2023(p.36)
- • Dependence on a single manufacturing facility at Chiplun, Ratnagiri(p.39)
- • Outstanding legal proceedings involving the Company, Promoters and Directors(p.31)
- • Unsecured loans from promoters/Directors (₹1,193.97 lakhs outstanding) repayable on demand(p.41)
- • No long-term or definitive agreements with customers; reliance on purchase orders(p.37)
- • Geographic concentration of sales — four states contribute ~75% of total sales(p.33)
- • Orders yet to be placed for 86% of plant & machinery under the Issue objects(p.32)
- • Strategy to expand into new geographic markets and customer segments(p.141)
- • Strategy of product diversification across customer needs and market segments(p.140)
- • Projected growth in duplex board apparent consumption from 5.65 MT (FY2023) to 7.69 MT (FY2028)(p.128)
- • Expanding e-commerce industry driving demand for duplex board packaging(p.128)
- • Low per-capita paper consumption in India (15 kg vs 57 kg global average) indicates growth headroom(p.108)
- • IPO-funded capex to improve quality and increase manufacturing capacity(p.81)
- • Planned new 400 TPD Duplex Machine to capture increasing product demand(p.129)
- • Foreign exchange rate fluctuations — imports formed 47–80% of raw material purchases(p.35)
- • Volatility in supply and pricing of raw materials (waste paper), which form ~49–59% of revenue(p.37)
- • Rising interest rates on floating-rate debt would increase finance costs(p.38)
- • Environmental and worker health/safety regulation compliance costs and liabilities(p.40)
- • Decline in demand for coated duplex boards or shift to alternative technology/consumer habits(p.33)
- • Labour unrest, strikes/work stoppages and increased wage costs in a labour-intensive industry(p.41)
- • Inflation in India raising input costs and compressing profits(p.47)
- • Failure to obtain, retain or renew required approvals, licenses and permits(p.34)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hitendra Dhanji Shah | Promoter | 67.84% | — |
| Prafulla Hitendra Shah | Promoter | 15.25% | — |
| Rushabh Hitendra Shah | Promoter | 10.66% | — |
| Hitendra Dhanji Shah HUF | Promoter Group | 5.05% | — |
| Harsha Rushabh Shah | Promoter Group | 0.37% | — |
| Jagdish Dhanji Gada | Promoter Group | 0.30% | — |
| Sarla Jagdish Gada | Promoter Group | 0.53% | — |
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.