IPO Details

Bidding Dates

12 Jul '24 - 16 Jul '24

Minimum Investment

₹1,38,000/1 Lot (2000 Shares)

Price Range

₹67 - ₹69

Maximum Investment

₹1,38,000/1 Lot (2000 Shares)

Retail Discount

To be announced

Issue Size

₹39.83 Cr

Investor category and sub category

Qualified Institutional Buyers  |   Retail Individual Investors  |   Non-institutional Investors  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Jul 12, 2024

Closing Date

Jul 16, 2024

Allotment Date

Jul 18, 2024

Initiation of Refunds

Jul 19, 2024

Credit of Shares to Demat

Jul 19, 2024

Listing Date

Jul 22, 2024

Cut-off time for UPI mandate confirmation

Jul 16, 2024

About Three M Paper Boards Limited

Three M Paper Boards Limited, formerly known as Three M Paper Boards Private Limited and Three-M-Paper Manufacturing Company Private Limited, was founded in July 1989 by Mr. Hitendra Dhanji Shah. Initially incorporated as Three-M-Paper Manufacturing Company Private Limited in Mumbai, the company has undergone several name changes reflecting its growth and strategic transitions.

The company specialises in manufacturing recycled paper-based Duplex Board products used widely in packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods. Operating both domestically and internationally, Three M Paper Boards prides itself on producing environmentally friendly products made entirely from 100 percent recycled waste paper, ensuring biodegradability.

Headquartered in Mumbai with a manufacturing facility in Chiplun, Maharashtra, equipped with state-of-the-art technology, the company boasts a total manufacturing capacity of 72,000 metric tons per annum as of FY 2023–24.

Strategically positioned in a growing market driven by e-commerce, rising literacy rates, and expanding FMCG sectors, Three M Paper Boards anticipates substantial opportunities in India's paper industry. Despite global trends towards digitisation, the company foresees robust growth in the Indian paper sector, favoured by policy changes impacting raw material imports.

With a focus on operational efficiency and technological integration, Three M Paper Boards aims to maintain its competitive edge as a low-cost paper manufacturer. The company's recent initiative to establish a new 400 TPD Duplex Machine underscores its commitment to meet rising product demand and leveraging its market expertise.

Industry Outlook:

  1. The Indian paper industry is experiencing rapid growth, with an installed capacity of 30.73 million tonnes per annum and an 88% capacity utilisation rate as of FY 2023. Despite contributing 5% to global paper production, India's per capita paper consumption is only 15 kg, compared to the global average of 57 kg. This indicates substantial room for growth.
  2. The paper industry's annual turnover is INR 700 billion, supported by 861 paper mills, 526 of which are operational. As the economy grows, paper consumption is expected to increase significantly, with every one kg per capita rise in consumption resulting in an additional one million tonnes of demand.
  3. India is poised as the fastest-growing paper market globally, driven by factors like increasing literacy rates, the rise of FMCG sectors, and the growing importance of e-commerce. As paper consumption is projected to grow in multiples of GDP, Three M Paper Boards can leverage this trend to enhance its production and profitability, ensuring sustained growth and success in the future.

Three M Paper Boards Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. Capital expenditure of ₹1,400 lakh for installation of new machinery, modernization of processes, and installation of a plastic-fired low-pressure boiler.
  2. Funding Working Capital Requirements for an estimated cost of ₹1,000 lakh.
  3. Prepayment or repayment of part or all of the Company's outstanding borrowings of ₹700 lakh.
  4. Covering general corporate expenses for unforeseen expenses or strategic opportunities of ₹600 lakh.

Peer Details

According to the RHP, the following are the listed companies in India that operate in a business similar to Three M Paper Boards Limited:

  1. N R Agarwal Industries Limited
  2. Kuantum Papers Limited
  3. Shree Ajit Pulp and Paper Limited

How to Check the Allotment Status of the Three M Paper Boards Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app
  • Go to the individual order details page of the IPO that you had applied for.
  • Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.

Contact Details of Three M Paper Boards Limited IPO

  • Registered office: A33 & 34, Floor -2, Royal Industrial Estate, 5-B Naigaon Cross Road, Wadala, Mumbai, Maharashtra, India, 400031
  • Phone: +91 22 6812 5757
  • E-mail: compliance@threempaper.com

IPO Financials

Particulars Year ending on 31st March 2024 Year ending on 31st March 2023 Year ending on 31st March 2022 Year ending on 31st March 2021
Revenue from Operations (in ₹ lakh) 27,223.48 32,725.21 31,290.04 16,508.82
Profit After Tax (PAT) (in ₹ lakh) 1,134.72 661.53 327.56 172.63
Cash & Cash Equivalents (in ₹ lakh) 9.02 9.16 26.82 8.43
Return on Net Worth (%) 18.57 14.00 8.06 4.62
Net Worth (in ₹ lakh) 6,110.39 4,725.67 4,064.14 3,736.58
EBITDA (in ₹ lakh) 2,706.84 2,166.30 1,754.76 1,455.36
Reserves and Surplus (in ₹ lakh) 4,763.85 4,070.65 3,409.12 3,081.56

Know before investing

Strengths

6

  1. The company boasts over 30 years of experience in pulp and paper, ensuring quality through in-house production.

  2. The company benefits from low electricity costs due to its 4 MW captive coal-based power plant.

  3. By converting operational waste into electricity, Three M Paper Boards Limited reduces coal costs and waste disposal expenses.

  4. The increased environmental consciousness and plastic ban have boosted the demand for eco-friendly packing paper.

  5. Robust pan-India dealer network and established raw material suppliers ensure wide distribution and a reliable supply chain.

  6. Reduced reliance on China by major economies enhances the export potential for Three M Paper Boards Limited.

Risks

6

  1. Outstanding legal cases involving its promoters and directors could negatively impact the company's operations and financial health.

  2. Instances of non-filing or delayed filing with statutory authorities could result in penalties, affecting the company's financial condition.

  3. Heavy reliance on a few significant customers means losing any of them could severely impact the company's revenue.

  4. Delays in placing orders for plant and machinery could increase costs and affect the company's revenue and profitability.

  5. The company's major sales are concentrated in Maharashtra, Karnataka, Goa, and Delhi. Any adverse developments in these regions could impact revenue.

  6. Dependence on continuous relationships with significant customers poses a risk to the company’s business prospects if any customer discontinues or reduces purchases.

  • How to Apply in IPO
  • How to Check IPO Allotment Status
Play Button

Login to Angel One App / Website & click on IPO

Select desired IPO & tap on "Apply"

Enter UPI ID, set quantity/price & submit

Accept mandate on the UPI app to complete the process

Play Button

Login to Angel One App / Website

Choose IPO section on Home Page

Click IPO Orders

Chose the IPO application you want to view the status for

Three M Paper Boards IPO FAQs

What is Three M Paper Boards Limited's IPO?

Three M Paper Boards Limited IPO is a book built issue IPO. The IPO will be open from July 12, 2024, to July 16, 2024.

When will Three M Paper Boards Limited's IPO be allotted?

The Basis of Allotment will happen on Thursday, July 18, 2024.

When will Three M Paper Boards Limited's IPO open for subscription?

The IPO subscription window will open on July 12, 2024.

What minimum lot size can retail investors subscribe to?

The lot size for Three M Paper Boards Limited’s IPO is 1 lot of 2,000 shares, with a minimum investment of ₹1,38,000.

When will Three M Paper Boards Limited list on exchanges?

The listing date for Three M Paper Boards Limited is July 22, 2024.

How do I check the allotment status of the Three M Paper Boards Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app
  • Go to the individual order details page of the IPO that you had applied for. 
  • Check the IPO allotment status as such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.

What would be the listing gains on the Three M Paper Boards Limited IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

I have finished the application process for the Three M Paper Boards Limited IPO, but the funds still need to be debited. What is the reason?

Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.

How do I approve the UPI mandate request for Three M Paper Boards Limited IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Three M Paper Boards Limited using one PAN?

You can submit only one application using your PAN card.