Schedule of Subam Papers
| Issue open date | 30 Sep 2024 |
| Issue close date | 03 Oct 2024 |
| UPI mandate deadline | 03 Oct 2024 (5 PM) |
| Allotment finalization | 04 Oct 2024 |
| Refund initiation | 07 Oct 2024 |
| Share credit | 07 Oct 2024 |
| Listing date | 08 Oct 2024 |
| Mandate end date | 18 Oct 2024 |
| Lock-in end date for anchor investors (50%) | 03 Nov 2024 |
| Lock-in end date for anchor investors (remaining) | 02 Jan 2025 |
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 Subam Papers
Established in 2004, Subam Papers is engaged in the manufacturing of Kraft paper, Duplex board, and Paper products. Unlike traditional paper manufacturers, It does not manufacture the products from wood pulp but instead uses waste paper as its raw material. They use renewable energy through their own wind and solar power installations to minimize the environmental impact. In the financial year ending on March 31, 2024, the installed capacity for Kraft Paper was 300 metric tons per day (MTPD), resulting in a total annual capacity of 93,600 tons. For the Duplex board, the installed capacity was 140 MTPD, translating to an annual capacity of 47,200 tons. The company is located at Tirunelveli, Tamil Nadu, and is also in proximity to the Harbor city of Tuticorin, Tamil Nadu. The company’s products are used in various industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, printing, and more, where packaging is indispensable.
Financials of Subam Papers
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹93.70 crores |
| Fresh Issue | ₹93.70 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Investment in its subsidiary for financing its capital expenditure | 75 (80.04%) |
| General corporate purposes | 18.70 (19.96%) |
Strengths
- The company recycles paper waste and provides sustainable packaging solutions. By opting to recycle one ton of paper, It collectively saves the equivalent of 17 trees, conserving precious forests and promoting biodiversity. Furthermore, conserving 7,000 gallons of water and sparing 380 gallons of oil highlights the resource efficiency achieved through recycling.
- The company has invested in water pumping stations and connecting fully operational pipelines, ensuring efficient water distribution throughout the facility. Moreover, THe factory’s strategic location offers a distinct advantage, with the Thamirabarani River situated within a mere 6 km proximity.
- Subam’s unique advantage of producing a wide range of paper grades all on one campus creates substantial demand in the market for its products.
- It operates on a robust B2B business model, catering to a vast network of over 1200 customers over the past two decades. The business strategy mitigates credit risks by ensuring that no single customer accounts for more than 5% of its total sales.
Risks
- Wastepaper is the primary raw material for its manufacturing process, and its non-availability or price increases can significantly impact the financial performance. In the financial year 2022-2023, The company’s performance was severely affected due to raw material shortages.
- The company conducts its business activities on a purchase-order basis and has not entered into long-term agreements with its customers.
- It is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact the results of operations.
- It generates a major portion of sales in certain geographical regions, especially Tamil Nadu. Any adverse developments affecting the operations in these regions could adversely impact the business.