Subam Papers Ltd. launched its IPO on October 3, 2024, and it will be open until October 5, 2024. The company aims to raise ₹45.14 crore by offering shares priced between ₹45-48. Investors can buy a minimum of 3000 shares.

Subam Papers is known for making eco-friendly paper and packaging materials. The company has grown steadily, and many investors are showing interest. On the first day, the IPO received strong support, especially from retail investors.

GMP (Grey Market Premium): This shows how much investors are willing to pay above the share price in the unofficial market. For Subam Papers, the GMP is around ₹4-5, which suggests that people expect a small gain when the shares are listed. It indicates that Subam’s shares might get listed at a price 10-12% higher than the issue price.

Company’s Background: Subam Papers produces various kinds of paper used for packaging, and its products are in demand due to the shift towards environmentally friendly solutions. More industries like FMCG, e-commerce, and pharmaceuticals are moving to eco-friendly packaging, and Subam is in the right place to benefit from this shift. The company has been performing well financially too, with a revenue of ₹150 crore in FY 2023 and a net profit of ₹8.5 crore.

Why You Should Consider Investing:

1. Growing Industry: The demand for paper packaging is increasing as businesses move towards more sustainable options. The ban on single-use plastics has also boosted demand for paper products, making companies like Subam Papers attractive for future growth.
2. Strong Financials: The company has seen steady revenue and profits, which adds confidence in its long-term prospects. With the IPO proceeds, Subam Papers will repay its debt, which will further strengthen its financial position.
3. Positive GMP: The Grey Market Premium suggests that investors are expecting some listing day gains, making it a good option for those looking for short-term profits.

Risks to Think About:

1. Paper Industry is Cyclical: The paper market can fluctuate based on economic conditions. During a slowdown, demand for packaging might decrease, affecting companies like Subam.
2. Raw Material Costs: Any sudden increase in the price of pulp (used to make paper) can affect the company’s profitability.
3. Competition: Subam Papers faces competition from other big players in the industry. Staying competitive means the company must continuously improve its products and efficiency.

Read Detail here Analyisis – Subam Papers IPO GMP Live Rates day by day with Kostak rates.