3M Paper Public Issue: Three M Paper Board Ltd, a company engaged in the business of manufacturing recycled paper-based coated duplex board products for over three decades, plans to raise up to Rs. 40 crore through its SME IPO.
The company has received approval to launch its public issue on the SME platform of BSE Limited (BSE SME). The coated duplex boards manufactured by the company are made from 100 percent recycled waste paper and are completely biodegradable, making them an eco-friendly option for packaging various FMCG and pharmaceutical goods. Comfort Securities Limited is the book running lead manager for the issue.
Rs. 40 crore IPO each. Includes a fresh issue of 57,72,000 equity shares of face value of Rs. The total proceeds from the issue will be used for various purposes such as Rs. 14 crore for capital expenditure including the purchase of plastic-fired low-pressure boilers that will use waste plastic to generate power and save a lot of power costs.
In addition, hot and soft nip calenders will be procured to enhance product quality so that premium pricing is available and customer preference is maintained. The funds will also be used for expansion of factory building to increase storage capacity and purchase of sheet cutters to increase production speed. Rs. 10 crore for working capital. Rs. 7 crore will be used for debt repayment to ease operations, improve cash flow management and reduce interest expenses. The remaining funds will be used for general corporate purposes and issue-related expenses.
Three M Paper Boards Limited (formerly known as Three M Paper Boards Private Limited and 3M Paper Manufacturing Company Private Limited) was established in 1989. It is one of the ISO-9001 certified companies engaged in the business of manufacturing recycled paper-based duplex board products in the range of 200 to 500 gsm. These board products are used for various packaging purposes in industries such as food and beverages, pharmaceuticals, cosmetics and consumer goods. The company supplies its high quality duplex board paper products in domestic and international markets.