Shreenath Paper Products Limited, incorporated in 2011 as a private limited company, transitioned to a public limited entity in April 2023 following a shareholder resolution on March 21, 2023. Based in Aurangabad, Maharashtra, the company operates as a vital supply chain partner, bridging paper mills and manufacturers by sourcing and supplying a diverse range of specialized paper products.
Its offerings include sublimation base paper, thermal base paper, straw paper, cup stock paper, security pressure-sensitive adhesive (PSA) sheets, high-strength paper, and coated papers like C2S and C1S, available in grades from 24 to 350 GSM.
These products, made from recycled waste paper, bagasse-based materials, and virgin pulp, cater to industries such as FMCG, textiles, pharmaceuticals, packaging, food and beverages, e-commerce, and education.
The company’s business model focuses on understanding client-specific needs, curating technical specifications, identifying suitable manufacturers, testing samples, and ensuring timely delivery of quality materials. With a strong regional presence in Maharashtra, Gujarat, and Madhya Pradesh, Shreenath Paper Products has built a reputation for reliability and efficiency, employing a lean team of nine staff as of December 31, 2024.
IPO Related Details
| Detail | Information |
|---|---|
| IPO Size | ₹23.36 crores |
| Fresh Issue | 53.10 lakh shares |
| Offer for Sale (OFS) | None |
| Price per Share | ₹44 |
| Subscription Rate (Day 2) | 0.38 times |
| Listing Exchange | BSE SME |
| Lead Manager | Galactico Corporate Services Ltd |
| Registrar | Bigshare Services Pvt Ltd |
| Market Maker | Pure Broking Pvt Ltd |
IPO Timeline Details
| Event | Date |
|---|---|
| IPO Opening Date | February 25, 2025 |
| IPO Closing Date | February 28, 2025 |
| Allotment Finalization | March 3, 2025 |
| Refunds Initiated | March 4, 2025 |
| Shares Credited to Demat | March 4, 2025 |
| Listing Date | March 5, 2025 |
IPO Promoter Details
SPPL is led by a team of professionals with deep expertise in supply chain management:
- Alok Parekh (Chairman & Managing Director):
- B.E. in Information Technology from Dr. Babasaheb Ambedkar Marathwada University.
- Oversees vendor relationships, finance, and strategic growth.
- Ronak Parekh (CEO & Whole-Time Director):
- Holds BMS and MMS degrees from the University of Mumbai.
- Leads product innovation and market expansion.
- Aditya Daultabadkar (Non-Executive Director):
- MDS in Periodontics; brings operational oversight.
Financial Performance (FY24 vs. FY23)
| Metric | FY24 (₹ Crore) | FY23 (₹ Crore) | Change (%) |
|---|---|---|---|
| Revenue | 189.67 | 206.70 | -8.24% |
| Profit After Tax | 4.39 | 4.38 | +0.23% |
| Total Assets | 60.34 | 50.95 | +18.43% |
| Net Worth | 18.93 | 10.54 | +79.60% |
| Total Borrowings | 28.89 | 25.01 | +15.51% |
| Reserves & Surplus | 4.59 | 9.80 | -53.16% |
Key Ratios:
- Return on Equity (RoE): 23.19%
- Earnings Per Share (EPS): ₹3.07 (FY24)
- Price-to-Earnings (P/E) Ratio: 26.97x (Post-IPO)
Balaji Phosphates IPO Date, Price, GMP, Review, Details
Objects of the Issue
- Working Capital Requirements: ₹18 Crore allocated to fund inventory, receivables, and operational expenses.
- General Corporate Purposes: ₹2.87 Crore for strategic initiatives and operational flexibility.
- Issue Expenses: ₹2.49 Crore for regulatory and administrative costs.
Operational Strengths
- Diverse Product Portfolio: Supplies 15+ specialized papers, including thermal base, sublimation base, security PSA sheets, and coated papers (24–350 GSM).
- Multi-Industry Clientele: Serves FMCG, textiles, pharmaceuticals, e-commerce, and packaging sectors.
- Supplier Network: Partnerships with 50+ paper mills ensure consistent material availability.
- Geographic Focus: Stronghold in Maharashtra, Gujarat, and Madhya Pradesh contributes to 85% of revenue.
- Sustainability: Uses recycled waste paper and bagasse (agricultural residue) for 70% of products.
Risks and Challenges
- Working Capital Intensity: High dependency on receivables (₹14.2 Crore as of FY24) may strain liquidity.
- Third-Party Reliance: No in-house manufacturing; procurement risks from supplier delays.
- Competitive Market: Price sensitivity in the paper industry could pressure margins.
- Debt Burden: Borrowings increased to ₹28.89 Crore in FY24, raising interest cost concerns.
Company Upcoming Plan
Shreenath Paper Products aims to leverage the IPO proceeds to strengthen its supply chain infrastructure, expand its customer base in existing markets (Maharashtra, Gujarat, Madhya Pradesh), and explore new regions and industries.
The company plans to enhance its vendor network, improve responsiveness to market demands, and capitalize on the growing demand for eco-friendly and high-strength paper products in packaging and FMCG sectors. While it lacks in-house manufacturing, its focus on agility and curated supply solutions positions it for incremental growth in a competitive landscape.
Company Official RHP and DRHP
The Red Herring Prospectus (RHP) and Draft Red Herring Prospectus (DRHP) provide detailed insights into the IPO and company operations, accessible on SEBI’s portal.
Frequently Asked Questions
What does Shreenath Paper Products Limited do?
It provides supply chain solutions by sourcing and supplying specialized paper products for industries like FMCG and packaging.
What is the IPO price and size?
The price is ₹44 per share, with a total size of ₹23.36 crores.
When does the IPO list?
It lists on March 5, 2025, on the BSE SME platform.
What is the minimum investment for retail investors?
₹132,000 for 3,000 shares (1 lot).
Who are the promoters?
Alok Parekh, Ronak Parekh, and six family members.
What are the IPO proceeds used for?
Working capital requirements and general corporate purposes.
How can I check my allotment status?
Use your PAN or application number on the BSE or Bigshare Services website.
