Three M Paper Boards IPO booked 35.07x on the second bidding day led by retail investors; check GMP

Subscriptions for the Three M Paper Boards IPO opened on Friday, July 12, and will run through Tuesday, July 16. The initial public offering (IPO) of Three M Paper Boards is priced between ₹67 and ₹69 per share, having a face value of ₹10. There are multiples of those shares, and a minimum of 2,000 shares are up for bid.

Retail investors were given a 35% offer, QIB received 50% of the net offer, and the NII (high net worth individuals) received 15% of the offer. Five percent of the issuance has been allocated to the market maker share.

The business manufactures premium duplex board paper goods for both home and foreign consumers. Products from this company, such as Duplex Board made from recycled paper, are utilised in a range of packaging applications for consumer goods, medicines, food and beverage, and cosmetics. The company creates entirely biodegradable products using only 100% recycled waste paper. The organisation continuously strives to achieve a number of innovations in the fields of manufacturing techniques and product development.

The company's headquarters are in Mumbai, while its production plant is located in Chiplun, District Ratnagiri, Maharashtra. The company's manufacturing facility, which is equipped with state-of-the-art machinery and technology, has the capacity to manufacture up to 72,000 TPA of paper by the end of FY 2023–2024.

The company's listed peers, according to the RHP, are Shree Ajit Pulp and Paper Ltd (15.86), Kuantum Papers Ltd (7.64), and N R Agarwal Industries Ltd (6.84).

Tentatively, Three M Paper Boards IPO basis of allotment of shares will be finalised on Thursday, July 18 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Friday, July 19. Three M Paper Boards IPO shares are likely to be listed on NSE SME on Monday, July 22.

Three M Paper Boards IPO subscription status

Three M Paper Boards IPO subscription status is 35.07 times, on day 2. 

The retail portion was subscribed 55.11 times, and NII portion was booked 34.99 times. Qualified Institutional Buyers has booked 1%.

The company has received bids for 13,46,62,000 shares against 38,40,000 shares on offer, according to data on chittorgarh.com.

Three M Paper Boards IPO subscription status was 8.02 times, on day 1.

Three M Paper Boards IPO details

The Three M Paper Boards IPO, worth ₹39.83 crore, is purely an offer-for-sale of up to 5,772,000 equity shares.

The following objectives will be funded by the issue's net proceeds, according to the company: financing its long-term working capital needs, installing new equipment, updating a few procedures at its present manufacturing site, and installing a low pressure boiler powered by plastic. Furthermore, the business intends to utilise the funds for general corporate purposes and repay all or a portion of its current debt.

Comfort Securities Limited is the book running lead manager and Bigshare Services Pvt Ltd is the registrar for the Three M Paper Boards IPO. The market maker for the Three M Paper Boards IPO is Comfort Securities.

Three M Paper Boards IPO GMP today

Three M Paper Boards IPO GMP +34 . This indicates Three M Paper Boards share price were trading at a premium of ₹34 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Three M Paper Boards share price was indicated at ₹103 apiece, which is 49.28% higher than the IPO price of ₹69.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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