Shreenath Paper Products IPO listing today. Here's what GMP signals ahead of debut

Shreenath Paper Products saw a subdued response for its IPO and the company's shares will debut on the BSE SME platform on Wednesday. Ahead of the listing, the GMP is Nil in the grey market. Most of the SME IPOs this year had zero premiums in the unofficial market, impacted by the correction in the equities.

The company offered around 53 lakh shares to investors, where the IPO was subscribed just over 1.5x. Retail investors made the highest bids, which was not backed up by non-institutional investors.

Shreenath Paper will use the Rs 23 crore it raised from the IPO for meeting incremental working capital requirements and general corporate purposes.

Shreenath Paper Products: Company overview

The company is a leading supply chain solutions provider, catering to industries where paper forms a major part of raw materials. It specialises in supplying a wide range of paper products, including sublimation base paper, thermal base paper, straw paper, cup stock paper, poster paper, and various pressure-sensitive adhesive (PSA) sheets.

These products are used across diverse industries such as FMCG, textiles, food and beverages, e-commerce, pharmaceuticals, and advertising.

The paper products supplied by the company find applications in industries like heat-sensitive printers (ATM and POS paper), restaurants, security labels, educational materials, and packaging for industrial and household purposes.

Shreenath Paper Products financials

The company has demonstrated consistent financial growth over the past few years. For the nine-month period ending December 2024, revenue from operations stood at Rs 77 crore.

In FY24, revenue stood at Rs 185.85 crore, up from Rs 204.44 crore in fiscal 2023 and Rs 135.98 crore in fiscal 2022. Revenue from operations accounted for 97.99%, 97.99%, 98.91%, and 95.93% of total income in the respective periods. The company’s revenue has grown at a compound annual growth rate (CAGR) of 16.91% from fiscal 2022 to fiscal 2024.