Shreenath Paper Limited is coming up with an IPO consisting of a fresh issue of 53,10,000 shares worth ₹2336.40 Lakhs. The company aims to utilise the net proceeds to fund its working capital requirements and for general corporate purposes.

Shreenath Paper IPO – Important Dates

Read more about Shreenath Paper Products Limited IPO GMP

Shreenath Paper Products Limited IPO – Company Profile

Shreenath Paper Products Limited, incorporated in 2011, is primarily engaged in the business of providing supply chain solutions to industries where paper forms a major part of their raw materials.

The company understands client needs, defines specifications, sources specialized manufacturers, tests samples, procures materials in desired quantities, and supplies paper in various grades made from recycled paper, bagasse, and virgin pulp.

The company supplies a range of papers, including sublimation, thermal base, straw, cup stock, security PSA sheets, high-strength, C2S, and C1S papers. These products serve industries like FMCG, textiles, pharmaceuticals, packaging, food & beverages, and e-commerce, primarily in Maharashtra, Gujarat, and Madhya Pradesh.

Shreenath Paper Products Ltd IPO Fundamental Analysis 

Shreenath Paper Products Limited’s financial analysis reveals a decline in performance. Revenue has decreased, but profitability has increased. EPS has remained stable, whereas  RoNW has decreased, along with asset growth and rising equity, indicating potential operational efficiency. 

• Revenue Trend: The revenue decreased from ₹20,443.77 lakhs in March 2023 to ₹18,584.83 lakhs in March 2024. 
• Equity and Liabilities: Equities have consistently increased over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹438.47 lakhs in March 2023 to ₹439.06 lakhs by March 2024. 
• Earnings per Share (EPS): The EPS has remained stable at ₹3.07 per share in March 2023 and March 2024, reflecting stable earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has decreased from 41.59% to 23.19%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. 

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Shreenath Paper IPO Financial Analysis

Shreenath Paper Products Limited IPO Peer Comparison

Shreenath Paper Products Limited shows a high P/E Ratio and RONW when compared to its peers. JK Paper Limited excels in revenue and has the highest EPS when compared to others, whereas Star Paper Mills Limited has the highest NAV whereas Seshasayee Paper And

Boards Limited has shown stable growth.

Shreenath Paper Products Ltd IPO Objective

The main objective of Shreenath Paper Products Limited is to fund the working capital requirements and for General corporate purposes.

1. Meeting incremental working capital requirements: The Company proposes to utilise up to ₹1800.00 Lakhs from the Net Proceeds towards meeting its incremental working capital requirements in Fiscal 2025 and Fiscal 2026. The company requires additional working capital to fund future growth requirements.

2. General corporate purposes: The company proposes to deploy the balance Net Proceeds aggregating to ₹ 287.16 Lakhs towards general corporate purposes, subject to such amount not

exceeding 25% of the Gross Proceeds, in compliance with the SEBI (ICDR) Regulations, 2018.

Shreenath Paper IPO Risks And Challenges

Shreenath Paper Limited’s risk includes reliance on third-party manufacturers, dependence on key suppliers, negative cash flow, and risk of improper trade receivables management, which could adversely impact operations, profitability, and business performance.

• The company does not own any manufacturing facilities and relies on third-party manufacturers, which exposes them to risks related to their manufacturing processes.

• They rely on their top 5 suppliers for a continuous paper supply. Any disruption in the supply from these third-party manufacturers could negatively impact their operations.

• The company has experienced negative cash flow recently. Any future negative cash flows could impact their cash flow needs, potentially hindering their ability to operate the business and execute growth plans.

• Trade receivables make up a significant portion of their current assets and net worth. Poor management of these receivables could negatively impact their net sales, profitability, cash flow, and liquidity.

Shreenath Paper Products Ltd IPO – Industry & Market Potential

Paper exports from India increased in volume from 0.66 million tonnes in FY17 to 2.85 million tonnes in FY22 and in value from Rs. 3,041 crores (US$ 391.97 million) to Rs. 13,963 crores (US$ 1.79 billion) during the same time.

This growth spans different grades of paper. Coated paper and paperboard exports climbed by 100% in value, uncoated writing and printing paper by 98%, tissue paper by 75%, and kraft paper by 37%.

Paper mills in India, particularly in the organised sector, have invested over Rs. 25,000 crores (US$ 3.22 billion) in new capacity and clean-green technology during the last 5-7 years. India has been a net exporter of paper in volume terms during the last two fiscal years.

Shreenath Paper Products Limited IPO – Type of Offer

Shreenath Paper Products Limited plans a fresh issue of 53,10,000 shares, seeking worth ₹2336.40 Lakhs to fund its working capital requirements and for general corporate purposes. 

1. Fresh Issue: The company will issue 53,10,000 crore new shares to raise capital, aiming to collect ₹2336.40 Lakhs. The company intends to utilise the proceeds from the fresh issue to fund its working capital requirements and for general corporate purposes.

Shreenath Paper IPO Offer Size

The offer size of Shreenath Paper Limited is ₹2336.40 Lakhs, consisting of a fresh issue of  53,10,000 shares. The company aims to fund its working capital requirements and for general corporate purposes.

Shreenath Paper Products Limited IPO Allotment Structure

Shreenath Paper Products Limited’s allocation will be as follows: A minimum of 50% for Retail Individual Investors (RII) and the remaining to other investors, including corporate bodies or institutions, irrespective of the number of specified securities applied for, according to SEBI regulations as it is a fixed price issue.

● Retail Individual Investors (RII): A minimum of 50% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

How to apply for the Shreenath Paper IPO?

To apply for the Shreenath Paper IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Shreenath Paper IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Shreenath Paper Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Shreenath Paper IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Shreenath Paper IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the  Shreenath Paper IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Shreenath Paper IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Shreenath Paper IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Shreenath Paper Products Ltd IPO Offer Registrar

The registrar for the Shreenath Paper Products Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

BIGSHARE SERVICES PRIVATE LIMITED

S6-2, 6th Floor, Pinnacle Business Park,

Next to Ahura Centre,

Mahakali Caves Road, Andheri (East) 

Mumbai – 400093,

Maharashtra, India

Telephone: +91 022 6263 8200

Email Id: [email protected]

Website: www.bigshareonline.com

Shreenath Paper IPO – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.