“Three M Paper Boards IPO Debut: Shares Open 10% Above Issue Price on BSE SME Platform”
Three M Paper Boards Ltd. made a subdued debut on the BSE SME platform, with its shares listing at a 10% premium to the issue price of ₹69 apiece. The stock opened for trading at ₹76, reflecting a 10.14% premium over its IPO price, and subsequently surged to a high of ₹79.80 per share during early trading.
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M Paper Boards
Early trading sessions saw significant investor interest, with more than 10.64 lakh shares of Three M Paper Boards changing hands on the BSE SME platform. This trading activity valued the company at approximately ₹146.2 crore based on prevailing market prices.
The IPO process for Three M Paper Boards concluded recently, with robust subscription figures highlighting investor confidence. The IPO, which aimed to raise ₹39.83 crore through a fresh issue of 57.72 lakh shares at a face value of ₹10 each, received overwhelming response during its subscription period from July 12 to July 16, 2024.
During the subscription window, the IPO was oversubscribed by 171 times, receiving bids for 65.8 crore shares against the offered 38.46 lakh shares. Non-institutional investors (NIIs) showed particularly strong interest, oversubscribing their portion by 285 times, while retail investors subscribed 175 times, reflecting widespread retail participation. Qualified institutional buyers (QIBs) also demonstrated robust demand, oversubscribing their segment by 79 times.
Post allotment and refund processes, Three M Paper Boards allotted shares to successful bidders on July 18, with refunds issued to non-allottees the following day. Shares were credited to the Demat accounts of successful applicants on July 19, facilitating smooth post-IPO trading.
Comfort Securities Limited served as the book-running lead manager for the IPO, overseeing the process from pricing to listing. Bigshare Services Pvt Ltd acted as the registrar for the issue, managing the IPO’s administrative aspects. Comfort Securities also played a crucial role as the market maker for the IPO, ensuring liquidity and market stability post-listing.
Prior to the IPO, the company’s promoters — Hitendra Dhanji Shah, Prafulla Hitendra Shah, and Rushabh Hitendra Shah — collectively held 100% of the company’s shares. However, post-issue, their stake reduced to 70%, reflecting the infusion of new institutional and retail shareholders into the company.
Established in July 1989, Three M Paper Boards Ltd. operates out of Maharashtra and specializes in manufacturing recycled paper-based duplex board products for diverse packaging applications across industries. The company’s manufacturing facility boasts an annual production capacity of 72,000 metric tonnes.
In conclusion, Three M Paper Boards’ IPO debut and subsequent market performance underscore its potential for growth in the packaging industry, supported by strong investor interest and robust subscription metrics during its public offering.
