Subam Papers IPO Fully Subscribed On Day 2; Check GMP Today

Subam Papers Ltd.'s initial public offering that opened for subscription on September 30 was fully subscribed on Tuesday. The SME issue was subscribed 0.44 times on Monday.

The IPO has been subscribed 3.23 times as of 4:47 p.m. on Tuesday

• Qualified Institutions: NIL

• Non-institutional Buyers: 2.55 times

• Retail Investors: 5.37 times

The subscription status will be updated at regular intervals.

The grey market premium (GMP) of Subam Papers IPO is Rs 60 as of 2:53 p.m. on October 1, implying a 39.47% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 212 per share.

GMP is not an official price quote for the stock and is based on speculation. 

The Rs 93.70-crore public offer is an entirely fresh issue of 61.65 lakh shares with no offer-for-sale portion. Investors can bid in the IPO till the final day of subscription, which is October 3.

The IPO price band has been set in the range of Rs 144 to Rs 152 per share. Retail investors can bid in the IPO with a minimum lot size of 800 shares, amounting to an investment of Rs 1,21,600.

The company has appointed Bigshare Services Pvt. as the registrar for the IPO, with Gretex Corporate Services Ltd. acting as the book-running lead manager for the issue. Gretex Share Broking Ltd. is the market maker for the offering.

As per the company's red herring prospectus, of the 61,64,800 shares offered - 19% is reserved for Qualified Institutions (QIBs), 14.25% for Non-Institutional Investors, 33.25% for Retail investors and 28.5% for Anchor investors.

The allotment of shares in the Subam Papers IPO is set to be finalised on Oct. 4. This will be followed by the credit of shares into the demat account of successful bidders, along with refunds for non-allottees on Oct. 7.

Shares of Subam Papers Ltd. are set to be listed on the BSE SME platform, tentatively on Oct. 8.

The grey market premium for the Subam Papers SME IPO was at Rs 55, as of 08:24 a.m. on Monday, according to InvestorGain.

Investors must note the GMP is highly speculative and is not an official listing price of a stock.

Subam Papers specialises in manufacturing Kraft packaging paper and paper products using waste paper as raw material. 

Founded in October 2006, the company has an installed capacity of 300 metric tons per day, equating to an annual capacity of 93,600 tons. 

They offer a range of Kraft paper and Duplex Boards in various shades and specifications, catering to industries such as automotive, textiles, FMCG, food and pharmaceuticals. 

The company employed 500 permanent staff as of September 2024.

The company plans to use the funds raised from the public issue for capital expenditure in its subsidiary. A portion of the money raised in the public offer will also be used to cover general corporate purposes.

Subam Papers Ltd. reported a revenue of Rs 496.97 crore in fiscal 2024, a 2.67% year-on-year decline from Rs 510.62 crore in fiscal 2023. 

The company’s profit after tax stood at Rs 33.41 crore in fiscal 2024, compared to Rs 26.79 lakh loss in the previous fiscal.