Three M Paper Boards IPO to open for subscription tomorrow; check GMP, price band, issue size, more

Three M Paper Boards IPO is scheduled to begin subscriptions on Friday, July 12, and end on Tuesday, July 16. The pricing range for the Three M Paper Boards initial public offering is ₹67 to ₹69 per share, with a face value of ₹10. A minimum of 2,000 shares, as well as multiples of those shares, are up for bid. The floor price is 6.7 times of the face value and the cap price is 6.9 times of the face value.

Retail investors has been offered 35%,QIB has been allocated 50% of the net offer, and the NII (HNI) have been allocated 15.00% of the offer. The market maker portion has been set side 5% of the issue.

The company produces high-quality duplex board paper products for both domestic and international markets. Its recycled paper-based Duplex Board products are used in a variety of packaging applications across industries, including food and beverage, pharmaceuticals, cosmetics, and consumer goods. The firm uses only 100% recycled waste paper to make its goods, which are fully biodegradable. The organisation consistently aims to make several breakthroughs in the areas of product development and production methods.

The company's production facility is situated in Chiplun, District Ratnagiri, Maharashtra, while its headquarters are in Mumbai. With the end of FY 2023–2024, the company's production plant, outfitted with cutting edge machinery and cutting edge technology, may produce up to 72,000 TPA of paper.

As per the RHP, the company's listed peers are N R Agarwal Industries Ltd (with a P/E of 6.84), Kuantum Papers Ltd (with a P/E of 7.64), and Shree Ajit Pulp and Paper Ltd (with 15.86).

Between March 31, 2024, and March 31, 2023, Three M Paper Boards Limited's profit after tax (PAT) increased by 71.53% while its revenue declined by -16.3%.

Three M Paper Boards IPO details

The Three M Paper Boards IPO, worth ₹39.83 crore, is purely an offer-for-sale of up to 5,772,000 equity shares.

The company plans to put the net proceeds of the issue to the following goals: The company plans to finance its long-term working capital requirements, install new machinery, modernise some processes within its current manufacturing facility, and install a plastic-fired low pressure boiler. Additionally, the company plans to pay back all or part of its outstanding debt and use the money for general corporate purposes.

The registrar for the Three M Paper Boards IPO is Bigshare Services Pvt Ltd, and the book running lead manager is Comfort Securities Limited. Comfort Securities is the Three M Paper Boards IPO market maker.

Three M Paper Boards IPO GMP today

Three M Paper Boards IPO GMP +30. This indicates Three M Paper Boards share price were trading at a premium of ₹30 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Three M Paper Boards share price was indicated at ₹99 apiece, which is 43.48% higher than the IPO price of ₹69.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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