The Nikita Papers Limited IPO of Nikita Papers Limited is currently open for subscription and will close on May 29, 2025. The company, a manufacturer of Kraft paper based in Shamli, Uttar Pradesh, aims to raise ₹67.54 crore through this IPO, which is entirely a fresh issue of 64.94 lakh equity shares.
IPO Dates
- Opening Date: May 27, 2025
- Closing Date: May 29, 2025
- UPI Mandate Deadline: May 29, 2025 (5:00 PM IST)
- Basis of Allotment Finalization: May 30, 2025
- Initiation of Refunds: June 2, 2025
- Credit of Shares to Demat Accounts: June 2, 2025
- Listing Date on NSE Emerge: June 3, 2025
IPO Details
- Price Band: ₹95 to ₹104 per share
- Lot Size: 1,200 shares
- Minimum Investment: ₹1,14,000
- Issue Type: Book Building (SME)
- Listing Exchange: NSE Emerge
- Face Value: ₹10 per share
- Issue Size: ₹67.54 crore
IPO Reservation
- Qualified Institutional Buyers (QIBs): 18.99% (12,33,600 shares)
- Retail Individual Investors (RIIs): 33.24% (21,58,800 shares)
- Non-Institutional Investors (NIIs): 14.25% (9,25,200 shares)
- Anchor Investors: 28.49% (18,50,400 shares)
- Market Maker: 3,26,400 shares
Promoters of Nikita Papers Limited
The promoters of Nikita Papers Limited are members of the Bansal family and their respective Hindu Undivided Families (HUFs). Below are detailed profiles of the key promoters:
Mr. Ashok Kumar Bansal – Managing Director
- Date of Birth: October 8, 1959
- Age: 64 years
- Education: Bachelor of Commerce
- Experience: Over 40 years in the paper industry, specializing in sales, marketing, and strategic leadership.
- Roles: Managing Director at Nikita Papers Limited; also serves as a director at Alliance Farms & Agriculture Ltd.
- Shareholding: Holds 25,43,853 equity shares in the company.
Mr. Sudhir Kumar Bansal – Chairman
- Date of Birth: May 10, 1957
- Age: 67 years
- Education: Bachelor of Science
- Experience: Over 40 years in the paper industry, with expertise in manufacturing and plant management.
- Roles: Chairman at Nikita Papers Limited; director at Alliance Farms & Agriculture Ltd.
- Shareholding: Holds 1,65,490 equity shares through Sudhir Kumar Bansal & Sons HUF.
Mr. Ayush Bansal – Whole-Time Director
- Date of Birth: August 7, 1981
- Age: 42 years
- Education: Post Graduate Diploma in Business Management (Finance) from Fore School of Management
- Experience: Over 20 years in the paper and forest products industry, focusing on strategic planning and business development.
- Roles: Whole-Time Director at Nikita Papers Limited; director at Alliance Farms & Agriculture Ltd. and Globalinks Green Enviro LLP.
- Shareholding: Holds 2,98,490 equity shares individually and 2,43,770 shares through Ayush Bansal & Sons HUF.
Mr. Abhinav Bansal
- Roles: Promoter of Nikita Papers Limited.
- Shareholding: Holds 8,02,940 equity shares individually and 1,25,210 shares through Abhinav Bansal & Sons HUF.
Mr. Anuj Bansal
- Roles: Promoter of Nikita Papers Limited.
Ms. Sandhya Bansal – Director of Marketing
- Roles: Director of Marketing at Nikita Papers Limited since June 2, 2021; previously worked as a freelancing marketing strategist.
Promoter Group HUF Entities
- Ashok Kumar Bansal & Sons HUF: Holds 2,94,500 equity shares.
- Naresh Chand Bansal & Sons HUF: Holds 3,05,387 equity shares.
- Sudhir Kumar Bansal & Sons HUF: Holds 1,65,490 equity shares.
- Ayush Bansal & Sons HUF: Holds 2,43,770 equity shares.
- Abhinav Bansal & Sons HUF: Holds 1,25,210 equity shares.
- Anuj Bansal & Sons HUF: Holds 63,650 equity shares.
Nikita Papers Limited IPO Lot Size
The Nikita Papers Limited IPO offers a minimum lot size of 1,200 equity shares. Investors can apply in multiples of this lot size. The investment amount varies based on the price band of ₹95 to ₹104 per share.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 1200 | ₹1,24,800 |
| Retail (Maximum) | 1 | 1200 | ₹1,24,800 |
| HNI (Minimum) | 2 | 2,400 | ₹2,49,600 |
Nikita Papers Limited IPO Promoter Holding
| Shareholding Stage | Promoter Holding |
|---|---|
| Pre-IPO | 80.38% |
| Post-IPO | 59.22% |
This reduction in promoter holding is due to the issuance of new shares in the IPO, which increases the total number of outstanding shares, thereby diluting the promoters’ percentage ownership.
Nikita Papers Limited IPO GMP
As of May 26, 2025, the Grey Market Premium (GMP) for the Nikita Papers Limited IPO is currently ₹0, indicating no premium or discount over the issue price in the grey market. This suggests that the IPO shares are trading at par with the upper end of the price band, which is ₹104 per share.
About Nikita Papers Limited
Nikita Papers Limited is a prominent Indian manufacturer of Kraft paper, headquartered in Shamli, Uttar Pradesh. Established in 1989 and converted into a public company in 2003, the company has grown to become a significant player in the paper manufacturing industry, with a strong emphasis on sustainability and quality.
Company Overview
- Founded: 1989
- Headquarters: Shamli, Uttar Pradesh, India
- Industry: Paper Manufacturing
- Product Range: Specializes in Kraft paper ranging from 80 to 200 GSM with various burst factors, catering to industrial, commercial, and packaging applications.
- Installed Capacity: Approximately 133,000 metric tons per annum (MTPA)
- Workforce: Employs between 201–500 individuals
Sustainability Initiatives
Nikita Papers is committed to environmentally sustainable practices. The company operates as a “Zero Water Discharge” facility, emphasizing the recycling of waste paper and the use of eco-friendly production methods. This approach not only reduces environmental impact but also aligns with global trends towards sustainable packaging solutions.
Recent Developments
In May 2025, Nikita Papers Limited launched its Initial Public Offering (IPO) to raise ₹67.54 crore. The funds are earmarked for:
- Setting up a biomass-based power plant to enhance energy self-sufficiency
- Meeting working capital requirements
- General corporate purposes and issue-related expenses
The IPO reflects the company’s strategic move to bolster its infrastructure and align with sustainable energy practices.
Nikita Papers Limited Financial Information
Here is the detailed financial information of Nikita Papers Limited, as per the Restated Financial Statements included in the company’s Red Herring Prospectus:
| Financial Metric | 2021–2022 | 2022–2023 | 2023–2024 | 2024 (Apr–Dec) |
|---|---|---|---|---|
| Revenue from Operations | ₹356.41 crore | ₹398.33 crore | ₹338.60 crore | ₹265.14 crore |
| Other Income | ₹2.07 crore | ₹2.98 crore | ₹8.18 crore | ₹7.24 crore |
| Total Revenue | ₹358.48 crore | ₹401.31 crore | ₹346.78 crore | ₹272.38 crore |
| Profit After Tax (PAT) | ₹6.99 crore | ₹8.65 crore | ₹16.60 crore | ₹15.68 crore |
| Net Worth | ₹54.74 crore | ₹77.37 crore | ₹93.05 crore | – |
| Total Borrowings | ₹163.02 crore | ₹189.24 crore | – | – |
| Total Assets | ₹256.80 crore | ₹299.00 crore | – | – |
Financial Highlights
- Revenue Trends: The company experienced a decline in revenue from ₹401.31 crore in 2022–23 to ₹346.78 crore in 2023–24. However, the revenue for the nine months ended December 31, 2024, stood at ₹272.38 crore, indicating a potential recovery.
- Profitability: Despite the dip in revenue, the Profit After Tax (PAT) nearly doubled from ₹8.65 crore in 2022–23 to ₹16.60 crore in 2023–24, reflecting improved operational efficiency. The PAT for the nine months ended December 31, 2024, was ₹15.68 crore.
- Net Worth Growth: The company’s net worth increased from ₹54.74 crore in 2021–22 to ₹93.05 crore in 2023–24, showcasing a strong equity base.
Key Performance Indicator (KPI)
| KPI | Values |
|---|---|
| ROE | 21.45% |
| ROCE | 28.71% |
| Debt/Equity | 0.45 |
| RoNW | 21.45% |
| PAT Margin | 4.79 |
| Price to Book Value | 2.44 |
Objects of the Issue
The objects of the issue for the Nikita Papers Limited IPO refer to how the company intends to utilize the proceeds raised through the public offering. These are clearly outlined in the Red Herring Prospectus (RHP). Below are the key objectives:
| Sl. No. | Purpose | Amount (₹ in Crore) |
|---|---|---|
| 1 | Funding the capital expenditure for setting up a 9.5 MW biomass-based power plant | ₹35.51 |
| 2 | Working capital requirements of the company | ₹16.00 |
| 3 | General corporate purposes | ₹11.58 |
| 4 | Issue-related expenses | ₹4.45 |
| Total | ₹67.54 crore |
Details
1) Biomass Power Plant:
- The company plans to invest significantly in setting up an in-house biomass-based power plant to reduce energy costs and reliance on external electricity. This aligns with their sustainability initiatives.
2) Working Capital:
- To support day-to-day operations and enhance liquidity for the purchase of raw materials, production, and other operational needs.
3) General Corporate Purposes:
- These include brand development, business expansion strategies, and administrative expenses.
4) Issue Expenses:
- Covers costs related to the IPO process such as underwriting, legal, accounting, registrar, and compliance fees.
Strengths of Nikita Papers Limited IPO
- Experienced Leadership: The promoters, including Chairman Ashok Kumar Bansal, bring over 35 years of experience in the paper industry, providing strategic direction and industry insights.
- Established Market Presence: With over three decades in operation, Nikita Papers has built a strong reputation and maintains robust distributor relationships across India.
- Diverse Product Portfolio: The company offers a range of Kraft paper products, varying from 80 to 200 GSM, catering to diverse customer requirements in packaging and industrial applications.
- Sustainability Initiatives: Nikita Papers is investing in a 9.5 MW biomass-based power plant to enhance energy efficiency and reduce environmental impact, aligning with global sustainability trends.
- Financial Growth: Despite industry challenges, the company has demonstrated revenue growth, with operating income increasing from ₹356.43 crore in FY 2022 to ₹398.19 crore in FY 2023.
Risks of Nikita Papers Limited IPO
- Single Manufacturing Facility: Operations are concentrated in a single facility in Shamli, Uttar Pradesh, making the company vulnerable to regional disruptions such as natural calamities or social unrest.
- Raw Material Price Volatility: Fluctuations in the prices of raw materials can impact profit margins, necessitating adaptive procurement and pricing strategies.
- High Working Capital Requirements: The company has significant working capital needs, with gross current assets estimated at 138 days as of March 31, 2023, driven by receivables and inventory levels.
- Customer Concentration: Dependence on a limited number of customers for sales poses a risk; the loss of any major customer could adversely affect revenues and profitability.
- Regulatory Compliance: The company has faced instances of non-compliance with certain provisions of the Companies Act, 2013, which, although rectified, could lead to potential regulatory actions.
- Environmental Regulations: Being in the paper manufacturing industry, Nikita Papers is subject to stringent environmental regulations, and any non-compliance could result in penalties or operational restrictions.
Nikita Papers Limited Contact Details
Here are the official contact details for Nikita Papers Limited, including their manufacturing plant, registered office, and corporate office:
🏭 Manufacturing Plant (Factory)
- Address:
C-10, Industrial Estate, Panipat Road,
Shamli, Uttar Pradesh – 247776, India - Phone: +91 7455 040 080
- Email: info@nikitapapers.com
- Website: www.nikitapapers.com
🏢 Registered Office
- Address:
A-10, 1st Floor, Landmark Near Deepali Chowk,
Saraswati Vihar, Pitampura,
North West Delhi – 110034, India - Phone: +91 7905 462 919
- Email: info@nikitapapers.com
🏢 Corporate Office
- Address:
D-153/A, 1st Floor, Okhla Industrial Area,
Phase-I, New Delhi – 110020, India - Phone: +91 11 2681 2682
- Fax: +91 11 3085 7562
- Email: info@nikitapapers.com
📬 Additional Contacts
- Marketing Inquiries: marketing@nikitapapers.com
- Alternate Phone: +91 93194 30989
Nikita Papers Limited IPO Registrar
🏢 Skyline Financial Services Private Limited
- Address:
D-153A, 1st Floor, Okhla Industrial Area, Phase-I,
New Delhi – 110020, India - Phone: +91-11-40450193-97
- Email: ipo@skylinerta.com
- Website: www.skylinerta.com
Skyline Financial Services is responsible for handling all IPO-related activities for Nikita Papers Limited, including processing applications, managing allotment procedures, and addressing investor queries.
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