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Spinaroo Commercial Limited opens its IPO for subscription on March 28th 2025 and ends on April 3rd 2025. It is a Fixed-price issue with a fresh issue size of 19,94,000 equity shares totalling up to Rs. 1,016.94 lakhs with a bid price set at Rs. 51.

The IPO is set to go public on April 8th 2025 on the SME platform of Bombay Stock Exchange.
 
The company was incorporated in 2012 and is engaged in manufacturing aluminium foils, Paper Cups, Paper Plates, Paper Bowls, Semi Processed Material for Paper Cups, etc.

It also deals in a wide range of paper cup-related machinery like paper cut machines, Flexo Printing Machine, etc.

It has a diverse portfolio and two manufacturing units in West Bengal, where it primarily operates.

Its clientele expands across 12 states and 2 Union Territories in the domestic market and has initiated dealings with Bhutan as well.

The company aims to expand its geographical reach in the domestic and international markets.

Table of Contents
Details Of Spinaroo Commercial Limited IPO
Objectives of Spinaroo Commercial Limited IPO
Financial Performance of Spinaroo Commercial Limited
Industry Outlook
Strengths and Risks of Spinaroo Commercial Limited
Strength:
IPO Subscription Details
Frequently Asked Questions: Spinaroo Commercial Limited

Details Of Spinaroo Commercial Limited IPO

IPO Review Spinaroo Commercial Limited
  • Fresh Issue Size: It provides a fresh issue size of 19,94,000 equity shares totalling up to Rs. 1,016.94 lakhs, each with a face value of Rs. 10.
  • Price Range: The bid price for each equity share is set at Rs.51 per share.
  • Issue Type: The IPO is a Fixed-price issue.
  • Lot size: It is providing a lot size of 2000. 
  • Subscription date: The issue period begins on March 28th 2025 and ends on April 3rd 2025
  • Listing Date: The IPO is going to be listed on April 8th 2025.
  • Stock Exchange: The IPO is going to be listed on BSE (SME).

    • Objectives of Spinaroo Commercial Limited IPO

    The company with the help of this IPO proposes to utilize the net proceeds to meet working capital and make strategic business developments.

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    Financial Performance of Spinaroo Commercial Limited

    The table below (in lakhs) stipulates the restated Financial Information of the company over the last 3 fiscal years and up-till September 30, 2024.

    Particulars  

    For the year ended September 30, 2024

    31.03.2024

    31.03.2023

    31.03.2022

    Share Capital

    500

    100

    100

    100

    Total Net Worth

    664.40

    602.92

    462.86

    369.81

    Revenue from operations

    2,101.50

    4,083.68

    5,312.50

    4,744.43

    Profit After Tax

    61.48

    140.05

    93.06

    51.89

    Industry Outlook

    The paper cup or the disposable cup industry is a growing industry in India. They are eco-friendly and biodegradable and help save time and effort as it does not require cleaning and can be easily disposed of after a single use.

    These cups are used for consuming beverages like tea, coffee, soup, and soft drinks and have a high demand in social and public gatherings due to their cost-effective and efficient usages. 

    IN 2023, the paper cups market size in India reached 22.7 billion Units and is projected to increase at (a CAGR) of 2.64% and reach 28.7 billion Units by 2032. Globally, this market is projected to increase at a CAGR of 6.2% and cross US$ 9.35 billion by 2033.

    Strengths and Risks of Spinaroo Commercial Limited

    Strength:

  • The company deals in manufacturing aluminium foil and all kinds of paper products like cups, plates bowls, etc. in the most sustainable manner.
  • The company has a diverse portfolio and has built strong clientele across 12 states and 2 Union Territories in the domestic market and has initiated dealings with Bhutan.
  • The company has a strong management team and has shown significant growth in the last three years increasing its profit after tax from Rs. 51.89 lakhs in 2022 to Rs. 140.05 lakhs in 2024 (with Rs. 61.48 lakhs as of 30.09.2024).
    • Weakness;
  • The company’s failure to anticipate the changes in the customer's preferences and meet its demand may adversely affect the company's operations and financial conditions.
  • The average cost of acquisition of equity shares by the promoters is lower than the issue price and has issued equity shares lower than the issue price in the last 12 months.
  • The company maintains a high level of inventory which puts the company’s financial resources at strain. Failure to better manage these inventories may also put the company at risk.
  • The company operates from its manufacturing company in West Bengal, any kind of political, natural, or economic disruption may adversely affect the company's operations and financial conditions
  • The company’s promoters and directors are facing certain tax proceedings and other litigation, any adverse outcome of these pending litigation may affect the business, resulting in loss of operations and financial condition.
  • The company is at constant risk in the procurement and storage of  Aluminum sheets in large quantities without any proper storage facilities.

    • IPO Subscription Details

    The IPO is a fixed-price issue that offers a fresh issue size of 19,94,000 equity shares totaling up to Rs. 1,016.94 lakhs, each with a face value of Rs. 10. The price bid is set at 51 per share for a lot size of 2000. The IPO is set to go public on April 8th 2025 on the Emerge platform of the Bombay Stock Exchange.

    Expert Recommendations

    The use of paper cups is increasing due to the rise in demand for social and public gatherings. The Indian manufacturing industry is projected to be one of the fastest-growing sectors and the paper cup or the disposable cup industry is projected to grow at a CAGR of 2.64% and reach 28.7 billion Units by 2032.

    The company has also shown significant performance and healthy financial growth over the years. However, the company is also subject to certain risks that the investors should carefully analyze before investing.

    Key Takeaways

    The company with the help of this Initial Public Offering (IPO) aims to meet capital requirements and for general corporate purposes. It has shown healthy profits over the years but is also subject to risks given the volatility of the market which the Investors should outline before investing.

    Frequently Asked Questions: Spinaroo Commercial Limited

    1. When is the Spinaroo Commercial Limited IPO being listed?

    The IPO is set to go public on April 8th 2025.

    2. Is the Spinaroo Commercial Limited IPO fairly Priced?

    Based on the average EPS of 14.01 as of 31.03.204. The price/earning ratio is 3.64. The bid price is set at Rs. 51 per share.

    3. Where else can we get more information about the Spinaroo Commercial Limited IPO?

    You can get more information about the IPO on the BSE website and on following resources.

    1. https://www.ibef.org/industry/paper-packaging

    2. https://spino.co.in/


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