IPO opens on July 12 at a price band of ₹67 to ₹69 apiece.
MUMBAI, July 10 (The CONNECT) – Recycled paper-based coated duplex board maker Three M Paper Boards will open its IPO on July 12 at a price band of ₹67 to ₹69 apiece.
The Rs. 40 crore-IPO is a fresh issue of 57,72,000 equity shares of Rs. 10 each. Investors can bid for a minimum of 2000 Equity Shares and in multiples of 2000, thereafter, in the issue that closes on July 16.
Rs. 14 crores from the issue proceeds will be allocated towards capital expenditure, including the purchase of a plastic-fired low-pressured boiler, which will use waste plastic for power generation and significantly lower power costs.
Additionally, Hot & Soft Nip Calendars will be acquired to elevate product quality, enabling premium pricing and aligning with customer preferences.
Three M Paper Boards Limited, headquartered in Mumbai, was established in July 1989 by Hitendra Dhanji Shah, who has over three decades of experience in the paper industry. The company produces 100% recycled paper by using biodegradable products and is committed to continuous innovation in both product development and manufacturing processes.
Given India’s current per capita paper consumption, the company foresees significant opportunities ahead. The rise of e-commerce, increasing literacy rates, and the growth of the FMCG, packaged food, and stationery industries suggest a promising future for the Indian paper industry, which is expected to outpace global growth. Despite the trend toward digitization, the Indian paper industry is projected to achieve double-digit growth over the next five years.
Additionally, changes in Chinese import policies have positively impacted Indian mills that consume wastepaper, boosting the industry further. With these favorable conditions, the company remains optimistic about the industry’s prospects.
The company’s manufacturing facility is located in Chiplun, Maharashtra, equipped with state-of-the-art machines and modern technologies, with a total manufacturing capacity of 72,000 TPA as of FY 2023-24. The facility is well-connected by both rail and sea, with a broad-gauge railway line on the Mumbai-Trivandrum section and proximity to Jaigarh Port. This connectivity ensures cost-effective transportation and streamlined operations for both imports and exports, facilitating strategic planning for export activities, potentially increasing export volumes, and expanding market reach.
For fiscal 2024, Three M Paper Boards Limited reported total revenue of Rs 276.01 crore. Profit after tax increased by 71.53%, reaching Rs 11.34 crore compared to Rs 6.61 crore in fiscal 2023.
The Issue is being made through the Book Building Process, wherein not more than 50% of the Net Issue shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Net Issue shall be available for allocation to Non-Institutional Investors and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders.
Comfort Securities Limited is the sole book-running lead manager and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on SME Platform of BSE Limited (BSE SME).
