Three M Paper Boards Ltd, a Mumbai-based company engaged in the business of manufacturing Recycled Paper-based Coated Duplex Board products since over 3 decades, will commence its expansion plans soon after its successful public issue of Rs 39.83 crore.
IPO subscription
The company's IPO subscribed over 171 times (excluding the anchor and market maker portion); the company's shares listed on BSE SME Exchange at Rs 76 per share, a 10 per cent premium to issue price of Rs 69 per share company plans to utilize Rs 14 crores towards capital expenditure, including the purchase of a Plastic-Fired Low-pressure Boiler, which will use waste plastic for power generation and significantly lower power costs.
Funds gathered from IPO
The funds will also support a factory building extension to increase storage capacity and the acquisition of a sheet cutter to enhance production speed. Rs 10 crores will be allocated for working capital and Rs 7 crore for term loan repayment, which will smooth operations, improve cash flow management, and lower interest costs. The remaining funds will be used for general corporate purposes and issue expenses.
The company raised Rs 39.83 crore through its SME IPO from a fresh issue of 57,72,000 equity shares of Rs 10 each at an issue price of Rs 69 per share. The public issue was oversubscribed over 171 times (excluding the anchor and market maker portions); the retail investor segment was subscribed to 175 times; and the non-institutional investor segment was subscribed to 284 times. Shares of the company were listed on the BSE SME Exchange on July 22 at Rs 76 per share, 10 per cent over the issue price of Rs 69 per share.
Financials ending FY24
For the financial year ended on March 31, 2024, Company reported revenue from operations at Rs 272.23 crore, EBIDTA of Rs 27.07 crore and net profit of Rs 11.35 crore. EBITDA was up by 25 per cent as compared to 21.66 crores in the previous financial year.
The net profit was up by 170 per cent as compared to 6.62 crores in the previous financial year. The company reported an increase in EBITDA margin from 6.57 per cent in the previous year to 9.94 per cent in the current year. Also, the PAT margin increased from 2.01 per cent in the previous year to 4.11 per cent in the current year.
Company Product offerings
The coated duplex boards produced by the company are made from 100 per cent recycled wastepaper and are fully biodegradable, making them an eco-friendly choice for packaging various FMCG and pharmaceutical goods.
The company's manufacturing facility in Chiplun, Maharashtra, is spread over an area of more than 30 acres and has an installed capacity of 72,000 tons per annum (TPA) along with a 4 MW captive power plant.
It is equipped with state-of-the-art technology for manufacturing paper boards of the global quality standard suitable for high-quality print jobs in the packaging sectors across the globe.
With a vast network of over 25 dealers nationwide and export operations in more than 15 countries, Three M Paper Boards maintains a broad market reach and a strong industry presence.
