Shreenath Paper Products Limited, established in 2011, is launching its Shreenath Paper Products Ltd IPO to raise ₹23.36 crores. The IPO is scheduled to open on February 25, 2025, and will close on February 28, 2025. The shares are priced at ₹44 each, with a lot size of 3,000 shares, requiring a minimum investment of ₹1,32,000.
Shreenath Paper Products Ltd IPO Details:
- IPO Opening Date: February 25, 2025
- IPO Closing Date: February 28, 2025
- Basis of Allotment: March 3, 2025
- Refunds Initiation: March 4, 2025
- Demat Credit of Shares: March 4, 2025
- IPO Listing Date: March 5, 2025
- Issue Size: 53,10,000 equity shares, aggregating to ₹23.36 crores.
- Market Maker Reservation Portion: 2,82,000 shares (₹1.24 crores).
- Net Issue: 50,28,000 shares (₹22.12 crores).
- Price per Share: ₹44 (including a premium of ₹34).
- Lot Size: 3,000 shares.
Company Overview:
Incorporated on October 10, 2011, Shreenath Paper Products Limited specializes in manufacturing paper and paper products. The company’s registered office is located in Aurangabad, Maharashtra.
Financial Highlights:
- Total Assets: Increased from ₹30.82 crores in March 2022 to ₹62.25 crores in December 2024.
- Revenue: ₹189.67 crores in 2024, compared to ₹206.7 crores in 2023.
- Net Profit: ₹4.39 crores in 2024, slightly up from ₹4.38 crores in 2023.
Shreenath Paper Products Ltd – Company Overview
Incorporation & Business:
Shreenath Paper Products Ltd was incorporated on October 10, 2011. The company specializes in the manufacturing of paper and paper products, including various types of corrugated boxes, paper rolls, and packaging materials. It operates in the packaging and paper industry, catering to a wide range of sectors such as FMCG, e-commerce, and industrial packaging.
Headquarters & Operations:
- Registered Office: Aurangabad, Maharashtra, India
- Manufacturing Facilities: The company has production units equipped with advanced machinery for paper processing and packaging solutions.
Financial Performance
- Revenue (FY 2024): ₹189.67 crores
- Revenue (FY 2023): ₹206.7 crores
- Net Profit (FY 2024): ₹4.39 crores
- Net Profit (FY 2023): ₹4.38 crores
- Total Assets: Grew from ₹30.82 crores in March 2022 to ₹62.25 crores in December 2024
Shreenath Paper Products Ltd IPO Lot Size
Here is the Shreenath Paper Products Ltd IPO Lot Size details in table format:
| Category | Lot Size (Shares) | Investment Amount (₹) |
| Retail Investors | 3,000 | ₹1,32,000 |
| Small HNI (S-HNI) | 6,000 | ₹2,64,000 |
| Big HNI (B-HNI) | 30,000 | ₹13,20,000 |
- Issue Price per Share: ₹44
- Minimum Lot Size: 3,000 shares
- Minimum Investment: ₹1,32,000 (for retail investors)
Shreenath Paper IPO Promoter Holding
The promoters of Shreenath Paper Products Ltd are:
- Alok Parekh
- Ronak Parekh
- Navneetdas Parekh
- Hasumati Navneetdas Parekh
- Harish Parekh
- Hasumati Harish Parekh
- Neha Parekh
- Sayali Parekh
The IPO comprises a fresh issue of 53,10,000 equity shares, representing 27.02% of the post-issue paid-up equity share capital. This indicates that the promoters will retain approximately 72.98% ownership after the IPO.
Shreenath Paper Products Ltd IPO Company Financials
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹62.25 Crores | ₹60.34 Crores | ₹50.95 Crores | ₹30.82 Crores |
| Revenue | ₹78.62 Crores | ₹189.67 Crores | ₹206.7 Crores | ₹141.75 Crores |
| Profit After Tax | ₹2.41 Crores | ₹4.39 Crores | ₹4.38 Crores | ₹1.34 Crores |
| Net Worth | ₹21.34 Crores | ₹18.93 Crores | ₹10.54 Crores | ₹5.65 Crores |
| Reserves and Surplus | ₹6.99 Crores | ₹4.59 Crores | ₹9.8 Crores | ₹4.97 Crores |
| Total Borrowing | ₹31.37 Crores | ₹28.89 Crores | ₹25.01 Crores | ₹16.73 Crores |
The company has shown a slight decline in revenue from ₹206.70 crores in FY 2022-23 to ₹189.67 crores in FY 2023-24, while net profit remained relatively stable. Notably, total assets have increased significantly from ₹30.82 crores in March 2022 to ₹62.25 crores in March 2024, indicating growth in the company’s asset base.
Key Performance Indicator
| KPI | Values |
| ROE | 23.19% |
| ROCE | 19.32% |
| RoNW | 23.19% |
| PAT Margin | 2.36 |
| Price to Book Value | 3.33 |
Notes:
- Return on Equity (ROE): Calculated as Net Profit divided by Net Worth. For FY 2023-24, with a Net Profit of ₹4.39 crores and Net Worth of ₹21.34 crores, ROE is approximately 20.57%.
- Return on Capital Employed (ROCE): This metric requires data on Earnings Before Interest and Taxes (EBIT) and Total Capital Employed, which are not available in the provided sources.
- Return on Net Worth (RoNW): Equivalent to ROE, as both measure the efficiency in generating profits from shareholders’ equity.
- Profit After Tax (PAT) Margin: Requires data on Revenue and Net Profit. While Net Profit for FY 2023-24 is ₹4.39 crores, specific revenue figures for this period are not available.
- Price to Book Value (P/BV): This ratio compares the market price per share to the book value per share. It requires the company’s current market capitalization and the number of outstanding shares, which are not provided.
Objects of the Issue
The Initial Public Offering (IPO) of Shreenath Paper Products Ltd aims to raise ₹23.36 crores through the issuance of 53,10,000 equity shares at a price of ₹44 per share.
The primary objectives of this IPO are:
- Business Expansion: To fund the growth and diversification of the company’s operations, enabling it to enhance production capacities and enter new markets.
- Working Capital Requirements: To provide additional working capital to support day-to-day operations, ensuring smooth business functioning and financial stability.
Shreenath Paper Products Ltd Returns and Growth
Based on the available financial data, here is a summary of the key financial metrics for Shreenath Paper Products Ltd over the past three fiscal years:
| Fiscal Year Ending | Revenue (₹ Crores) | Net Profit (₹ Crores) | Total Assets (₹ Crores) | Net Worth (₹ Crores) |
| March 31, 2022 | Data not available | Data not available | ₹30.82 | ₹5.65 |
| March 31, 2023 | ₹206.70 | ₹4.38 | Data not available | Data not available |
| March 31, 2024 | ₹189.67 | ₹4.39 | ₹62.25 | ₹21.34 |
Key Observations:
- Revenue Growth: The company experienced a decline in revenue from ₹206.70 crores in FY 2022-23 to ₹189.67 crores in FY 2023-24.
- Net Profit Stability: Despite the decrease in revenue, net profit remained relatively stable, with a slight increase from ₹4.38 crores in FY 2022-23 to ₹4.39 crores in FY 2023-24.
- Asset Growth: Total assets saw significant growth, increasing from ₹30.82 crores in March 2022 to ₹62.25 crores in March 2024.
- Net Worth Enhancement: The company’s net worth improved from ₹5.65 crores in March 2022 to ₹21.34 crores in March 2024, indicating enhanced financial stability.
Strengths Of Shreenath Paper Products Ltd IPO:
- Diverse Product Portfolio: The company offers a wide range of paper products, catering to various industries such as FMCG, textiles, pharmaceuticals, and packaging. This diversification can help mitigate risks associated with dependence on a single sector.
- Strategic Industry Role: Serving as an intermediary between paper product manufacturers and paper mills, Shreenath Paper Products plays a crucial role in the supply chain, potentially ensuring steady demand for its services.
- Asset Growth: The company’s total assets have shown significant growth, increasing from ₹30.82 crores in March 2022 to ₹62.25 crores in March 2024, indicating a strengthening financial position.
Risks Of Shreenath Paper Products Ltd IPO:
- Revenue Decline: There has been a decrease in revenue from ₹206.70 crores in FY 2022-23 to ₹189.67 crores in FY 2023-24, which may raise concerns about the company’s growth trajectory.
- High Entry Investment: The IPO’s minimum lot size is 3,000 shares at ₹44 per share, requiring a minimum investment of ₹1,32,000. This amount may be substantial for some retail investors, potentially limiting participation.
- Market Volatility: The paper industry is susceptible to fluctuations in raw material prices and demand-supply dynamics, which can impact profitability.
Prospective investors should conduct thorough due diligence, considering these factors alongside their financial goals and risk tolerance, before participating in the IPO.
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