Three M Paper Boards Limited: Paper Industry’s Next Big Thing or a Risky Venture?

NiftyTrader • July 10, 2024

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Three M Paper Boards (IPO) opens on July 12, 2024, and closes on July 16, 2024. The allotment for the Three M Paper Boards IPO is anticipated to be completed on Thursday, July 18, 2024. The IPO will be listed on the NSE and SME, with a tentative date of Monday, July 22, 2024.

The Three M Paper Boards IPO’s price band is Rs 67 to 69 per share. The IPO is a book-built issue of Rs 39.83 crores, entirely a fresh issue of 57.72 lakh shares.

Three M Paper Boards IPO Details

IPO Date	July 12, 2024 to July 16, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹67 to ₹69 per share
Lot Size	2000 Shares
Total Issue Size	5,772,000 shares (aggregating up to ₹39.83 Cr)
Fresh Issue	5,772,000 shares (aggregating up to ₹39.83 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE SME
Shareholding pre-issue	13,465,360
Shareholding post issue	19,237,360
Market Maker portion	290,000 shares

Three M Paper Boards IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹138,000
Retail (Max)	1	2000	₹138,000
HNI (Min)	2	4000	₹276,000

Three M Paper Boards IPO Objectives

The objectives of the Issue are:

Prepayment or repayment of all or a portion of outstanding borrowing availed by the Company;
General Corporate Purpose.
Capital expenditure for installation of new machinery, modernization of certain processes under existing manufacturing facility, and installation of plastic-fired low-pressure boiler;
Funding long-term working capital requirements of the Company; and

About Three M Paper Boards Limited

Founded in July 1989, Three M Paper Boards Limited specializes in manufacturing high-quality recycled paper-based Duplex Board products. These products are essential for packaging in industries like food and beverage, pharmaceuticals, cosmetics, and consumer goods. The company proudly supplies both domestic and international markets, reflecting its commitment to quality and sustainability.

Headquartered in Mumbai, India, Three M Paper Boards Limited operates a manufacturing facility in Chiplun, Dist. Ratnagiri, Maharashtra, with a production capacity of 72,000 TPA of paper for the fiscal year 2022-23. The company has a network of 25 dealers across India and exports to over 15 countries in the Asia-Pacific, Middle East, Mediterranean, and African regions. Dedicated to environmental sustainability, Three M Paper Boards produces eco-friendly, 100% recycled, and biodegradable Duplex Board products. The company is committed to continuous innovation in product development and manufacturing processes to meet global standards.

Three M Paper Boards Limited Financial Information

Three M Paper Boards Limited’s revenue decreased by -16.3% and profit after tax (PAT) rose by 71.53% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 March 2024	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	19,519.88	18,942.55	18,150.44	14,225.50
Revenue	27,601.56	32,974.92	31,600.49	16,552.14
Profit After Tax	1,134.72	661.53	327.56	172.63
Net Worth	6,110.39	4,725.67	4,064.14	3,736.58
Reserves and Surplus	4,763.85	4,070.65	3,409.12	3,081.56
Total Borrowing	7,264.08	8,182.40	7,802.06	5,353.41

Three M Paper Boards IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50.00% of the Net offer
Retail Shares Offered	Not less than 35.00% of the Offer
NII (HNI) Shares Offered	Not less than 15.00% of the Offer

Three M Paper Boards IPO Timeline

Sahaj Solar IPO opens on July 11, 2024, and closes on July 15, 2024.

IPO Open Date	Friday, July 12, 2024
IPO Close Date	Tuesday, July 16, 2024
Basis of Allotment	Thursday, July 18, 2024
Initiation of Refunds	Friday, July 19, 2024
A credit of Shares to Demat	Friday, July 19, 2024
Listing Date	Monday, July 22, 2024
Cut-off time for UPI mandate confirmation	5 PM on July 16, 2024

Conclusion

Three M Paper Boards Limited’s IPO, opening from July 12 to July 16, 2024, aims to raise Rs 39.83 crores through a fresh issue of 57.72 lakh shares, priced between Rs 67 to Rs 69 each. The company, known for its high-quality recycled paper-based Duplex Board products used in packaging across various industries, has a strong presence in both domestic and international markets. With a minimum investment of Rs 138,000 for retail investors and Rs 276,000 for HNIs, the IPO is managed by Comfort Securities Limited and is expected to be listed on the BSE SME on July 22, 2024. This IPO comes as the company seeks to bolster its financial position and market reach, supported by its robust distribution network and significant growth in profit after tax.