Shreenath Paper IPO Listing: Shares of Shreenath Paper, which supplies paper products to industries, entered the BSE SME today at such a huge discount that even the upper circuit is below the IPO price. Its IPO received more than 3 times the overall bids on the strength of retail investors. Shares have been issued at a price of Rs 44 under the IPO. Today, it entered the BSE SME at Rs 35.20, which means that IPO investors did not get listing gain but their capital decreased by 20 per cent. IPO investors got a further shock when the shares fell to the lower circuit of Rs 33.44 (Shreenath Paper Share Price). IPO investors are now in a loss of 24 per cent.
How will the Shreenath Paper IPO money be spent
Srinath Paper's ₹23.36 crore IPO was open for subscription from February 25-28. This IPO was subscribed 1.85 times overall on the strength of retail investors. In this, the half portion reserved for retail investors was filled 3.18 times. Under this IPO, 53.10 lakh new shares with a face value of Rs 10 have been issued. The company will use the money raised through these shares to meet the increased working capital requirements and for general corporate purposes.
About Shreenath Paper
Established in 2011, Shrinath Paper Products provides supply chain solutions to industries that use paper materials such as coated, food-grade, machine-glazed and adhesive papers in their manufacturing process. It supplies sublimation base paper, thermal base paper, straw paper, cup stock paper, security PSA sheets, high-strength paper, C2S and C1S papers, etc. It supplies paper products to industries such as FMCG, textiles, pharma, packaging, foods and beverages, e-commerce, etc. Its business is mainly spread across Maharashtra, Gujarat and Madhya Pradesh.
Talking about the financial health of the company, it had a net profit of Rs 1.34 crore in the financial year 2022, which jumped to Rs 4.38 crore in the next financial year 2023 and reached Rs 4.39 crore in the financial year 2024. During this period, the company's revenue also fluctuated. It got a revenue of Rs 141.75 crore in the financial year 2022, Rs 206.7 crore in the financial year 2023 and Rs 189.67 crore in the financial year 2024. Talking about the current financial year 2024-25, it has got a net profit of Rs 2.41 crore and revenue of Rs 78.62 crore in April-December 2024.
