Three M Paper Boards IPO Closed
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Schedule of Three M Paper Boards
| Issue open date | 12 Jul 2024 |
| Issue close date | 16 Jul 2024 |
| UPI mandate deadline | 16 Jul 2024 (5 PM) |
| Allotment finalization | 18 Jul 2024 |
| Refund initiation | 19 Jul 2024 |
| Share credit | 19 Jul 2024 |
| Listing date | 22 Jul 2024 |
| Mandate end date | 31 Jul 2024 |
| Lock-in end date for anchor investors (50%) | 18 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 18 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Three M Paper Boards
Incorporated in 1989, Three M Paper Boards is engaged in manufacturing recycled paper-based Duplex Board products used in various packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods. The company’s products are made out of 100% recycled waste paper and are completely biodegradable.
The Company is headquartered in Mumbai and operates a manufacturing facility in Chiplun, District Ratnagiri, Maharashtra. At the close of FY 2023–24, the Company had a total manufacturing capacity of 72,000 TPA of paper. The Company has a strong Pan-India distribution network of around 25 dealers and has also exported its products to over 15 countries in the Asia-Pacific, Middle East, the Mediterranean, and African regions.
Financials of Three M Paper Boards
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹39.83 crores |
| Fresh issue | ₹39.83 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 14 (37.8%) |
| Working capital | 10 (27%) |
| Debt reduction | 7 (18.9%) |
| General corporate purposes | 6 (16.3%) |
*All figures except EPS are in ₹ crores
Strengths
- In-house core competency in pulp & paper: The company has been a key player in the pulp and paper industry for over three decades. All production processes are managed internally, without any reliance on outsourcing, thereby guaranteeing consistent quality and reliability.
- Cost efficiency through in-house coal-based power generation: The company operates a 4 MW captive power plant, substantially lowering electricity expenses compared to purchasing power from external distributors. This self-sufficiency provides a more stable and cost-effective energy source for its operations.
- Extensive network of dealers and customers: The company boasts a comprehensive dealer network across India, with approximately 25 dealers. This robust distribution channel allows them to effectively service nationwide markets, ensuring wide-reaching customer access.
Risks
- Clientele risk: The company relies on its top 10 clients for over 45% of its revenue. Losing any of these major customers could negatively impact revenue and profitability.
- Geographical concentration risks: With operations primarily concentrated in Maharashtra, Karnataka, Goa, and Delhi, where more than 75% of revenue is generated, any adverse developments affecting these regions can pose significant operational risks.
- Dependence on imports for raw materials: The company sources its key raw material, waste paper, from regions such as the U.S., U.K., Central Europe, and the Middle East. Overdependence on these imports, coupled with a lack of alternative arrangements from Indian suppliers, could jeopardize profitability if trade relations with these countries deteriorate or if suppliers face internal issues in their respective nations.
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 19, 2024, on the registrar’s website and the NSE website.