Three M Paper Boards Ltd to commence its expansion plans post successful public issue of Rs. 39.83 crore  

Mumbai (Maharashtra): Three M Paper Boards Ltd, a Mumbai based company engaged in the business of manufacturing Recycled Paper-based Coated Duplex Board products since over 3 decades to commence its expansion plans soon post its successful public issue of Rs. 39.83 crore. 

Company’s IPO subscribed over 171 times (excluding Anchor and market maker portion); Company’s shares listed on BSE SME Exchange at Rs. 76 per share – 10% premium to issue price of Rs. 69 per share 

IPO Highlights:-

• The company raised Rs. 39.83 crore for the public issue through Fresh Public issue of 57.72 lakh equity shares 
• The Company is a leading manufacturer of Coated duplex paper boards, utilizing 100% recycled wastepaper to produce biodegradable finished products
• Funds raised through the issue will be used for business expansion including purchasing machinery, factory building extension, repayment of loans, working capital infusion and general corporate purposes
• The company's manufacturing facility in Chiplun, Maharashtra is spread over an area of over 30 acres 
• For FY23-24 company reported total income of Rs. 276.02 crore and Net Profit of Rs. 11.35 crore

Company plans to utilize Rs. 14 crores towards capital expenditure, including the purchase of a Plastic-Fired Low-Pressured Boiler, which will use waste plastic for power generation and significantly lower power costs. The funds will also support a factory building extension to increase storage capacity and the acquisition of a sheet cutter to enhance production speed. Rs. 10 crores will be allocated for working capital and Rs. 7 crores for term loan repayment, which will smoothen operations, improve cash flow management, and lower interest costs. The remaining funds will be used for general corporate purposes and issue expenses.

Company raised Rs. 39.83 crore through its SME IPO from a fresh issue of 57,72,000 equity shares of Rs. 10 each at issue price of Rs. 69 per share. The public issue was oversubscription over 171 times (excluding Anchor and market maker portion), Retail investor segment was subscribed 175 times while Non Institutional investor segment subscribed 284 times. Shares of the company were listed on BSE SME Exchange on 22 July at Rs. 76 per share – 10% over the issue price of Rs. 69 per share. 

Established in 1989, Three M Paper Boards Ltdis one of the ISO-9001 certified companies engaged in the business of manufacturing recycled paper-based Duplex Board products ranging from 200 to 500 GSM used in various packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods and supplies its high-quality duplex board paper products in both the domestic and international markets. The Coated Duplex Boards produced by the company are made from 100% recycled wastepaper and are fully biodegradable, making them an eco-friendly choice for packaging various FMCG and pharmaceutical goods. 

The company's manufacturing facility in Chiplun, Maharashtra is spread over an area of more than 30 acres has an installed capacity of 72,000 tons per annum (TPA) along with 4 MW captive power plant and is equipped with state-of-the-art technology for manufacturing paper boards of the global quality standard suitable for high-quality print jobs in the packaging sectors across the globe. With a vast network of over 25 dealers nationwide and export operations in more than 15 countries, Three M Paper Boards maintains a broad market reach and a strong industry presence.

For the financial year ended on March 31, 2024, Company reported revenue from operations at Rs. 272.23 crore, EBIDTA of Rs. 27.07 crore and net profit of Rs. 11.35 crore. The EBITDA was up by 25% as compared to 21.66 crores of previous financial year. The net profit was up by 170% as compared to 6.62 crores of previous financial year. The Company reported an increase in EBITDA Margin from 6.57% in previous year to 9.94% in current year. Also, the PAT margin increased from 2.01% in previous year to 4.11% in current year.