Bhadra Paper Mills Limited manufacture diverse and multi-application range of paperboards and allied products and are focused in the production and marketing of paperboard products for packing, packaging and stationery segments of the paper industry. Bhadra Paper Mills IPO comprises public Issue of [●] Equity Shares of Rs.10/- each .

Let’s have a detailed review of the company and analytics of the Bhadra Paper Mills IPO release date, IPO offer price, subscription, Bhadra Paper Mills IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

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Bhadra Paper Mills IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments8.5/10
Industry Ranking7.8/10
Company Background7.9/10
Company Reputation7.9/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index8.4/10
Promoters Reputation7.7/10
Retail Appetite7.9/10
Top Brokers Review7.9/10
Overall Ratings8.1/10
Star Ratings★★★★☆

Summary of Bhadra Paper Mills IPO

Bhadra Paper Mills IPOBhadra Paper Mills Limited manufacture diverse and multi-application range of paperboards and allied products and are focused in the production and marketing of paperboard products for packing, packaging and stationery segments of the paper industry. Initial public offer of up to [●] Equity Shares of Rs. 10 each, at an Offer Price of Rs. [●] per Equity Share for cash aggregating up to Rs. 5100 Lakhs. The Offer comprises of a Fresh Issue of up to [●] Equity Shares aggregating to Rs. 4700 Lakhs and an Offer for Sale of up to [●] Equity Shares aggregating to Rs. 400 Lakhs by the Selling Shareholder.

From FY 2016-2017 to FY 2017-18 , as per the Restated Financial Statements,

  • The net asset value per Equity Share was Rs.529.90 and Rs.410.83 as on March 31,2018 and March 31,2017 respectively showing a growth of 29%.
  • The net worth, including non-controlling interests as on  March 31, 2018 was Rs. 3,158.18 and as on March 31,2017 was Rs.2,448.55.

The Promoters of this company are Mr. Subbaraju Lakshman and Mr. Madesh Lakshman. The lead manager to the issue are ARIHANT CAPITAL MARKETS LIMITED and the Registrar to this issue is Karvy Computershare Private Limited.


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    Bhadra Paper Mills IPO Date

    The opening and the closing date of Bhadra Paper Mills IPO is not known yet.


    Bhadra Paper Mills IPO Subscription

    Day / DateQIBNIIRIITotal Subscription
    Day 1 
    Day 2
    Day 3
    Day 4
    Day 5
    Shares Offered or Net Issue

    The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


    Bhadra Paper Mills IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.


    Bhadra Paper Mills IPO Price Band

    The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


    Bhadra Paper Mills IPO Equity Share Offering

    Initial public offer of up to [●] Equity Shares of Rs. 10 each, at an Offer Price of Rs. [●] per Equity Share for cash aggregating up to Rs. 5100 lakhs.


    Bhadra Paper Mills Limited – Company Overview

    Bhadra Paper Mills Limited manufacture diverse and multi-application range of paperboards and allied products and are focused in the production and marketing of paperboard products for packing, packaging and stationery segments of the paper industry. Their product portfolio includes duplex board (coated and uncoated), file board, chipboard, grey board and colour board of various GSMs.

    They operate through their manufacturing facility located on their own land admeasuring about 11 acres and 34 gunthas acres at Bommanahalli, in Bhadravathi taluka, Shimoga district of Karnataka for manufacturing their Products with capacity of 14,600 TPA. Their facility is located on the banks of river Tungabhadra, which facilitates adequate supply of water and the surrounding agricultural belt provides agricultural waste for use in their steam boilers. Their factory is well connected by road and is accessible to nearby towns and to Mangalore port. Through an established network of dealers and vendors, backed by experienced team of 180 employees including contract labour, they are successfully catering to the growing needs of the packaging and stationery segments of paper industry.

    The Company is promoted by  Mr. Subbaraju Lakshman and Mr. Madesh Lakshman and are the guiding force behind the growth and strategic decisions of the Company.

    Competitive Strengths of Bhadra Paper Mills Limited:

    • Locational advantages of our manufacturing unit.
    • Strong backward integration for sourcing raw materials
    • High quality packaging paper at competitive prices.
    • Strong relationships with key customers.
    • Experienced management team.
    • Judicious use of resources.

    Business strategies of Bhadra Paper Mills Limited:

    • Increase their market share in the paper and paper packaging board segments.
    • Maintain their focus on diversifying their product range and serving a larger segment of the industry.
    • Exploring the advantage of marketing their proposed Product line by leveraging their existing relationship with their dealers and customers.

    Bhadra Paper Mills Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    On the basis of Standalone statement:-

    Amount (in INR & Lakhs)
    30-Jun-1831-Mar-1831-Mar-1731-Mar-16
    Total Assets4,250.494,095.792,955.662,549.96
    Total Revenue1,121.254,432.043,776.193,497.78
    Total Expense879.183,522.353,249.223,015.03
    Profit After Tax218.33709.63368.71323.49

    Earnings per Equity Share (in Lakhs)

    30-Jun-1831-Mar-1831-Mar-1731-Mar-16
    Basic & Diluted36.63119.0661.8654.28

    From the above statements, one could find that the Bhadra Paper Mills Limited may perform well.


    Bhadra Paper Mills IPO – Promoters

    The Promoters of this company are:

    • Mr. Subbaraju Lakshman 
    • Mr. Madesh Lakshman

    Interest in promotion of the Company

    Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Bhadra Paper Mills IPO Offer Details or Issue Details

    Particulars No. Of Equity Shares
     Equity Shares Offered Up to [●] Equity Shares aggregating up to Rs. 5100 Lakhs
     Of which:
    Fresh IssueUp to [●] Equity Shares aggregating up to Rs. 4700 Lakhs
    Offer for saleUp to [●] Equity Shares aggregating up to Rs. 400 Lakhs
     Reserved for Market Makers Upto [●] Equity Shares of face value of Rs. 10/- each
     Net Issue to the Public Upto [●] Equity Shares of face value of Rs.10/- each
     Of which:
    QIB PortionNot more than [●] Equity shares of face value of Rs. 10/- each fully paid of the Company for cash at a price of Rs. [●]/- per share aggregating Rs. [●] Lakhs; shall be available for allocation to QIB
    Of which
     Retail Investors Portion Upto [●] Equity Shares of face value of Rs. 10/- each  (available for allotment to Retail Individual Investors of up to Rs. 2.00 Lakhs)
     Non-Retail Investors PortionUpto [●] Equity Shares of face value of Rs. 10 /- each  (available for allocation to investors up to Rs. 2.00 Lakhs)
     Equity Shares outstanding prior to the Issue1,05,79,000 Equity Shares
     Equity Shares outstanding after the Issue[●] Equity Shares

    Bhadra Paper Mills IPO Issue Object

    These are the IPO Issue Objects of the company

    • Funding the Working Capital requirements of the Company:
    •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
    •  General Corporate Purposes

    Bhadra Paper Mills IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Well established Company engaged in manufacture of paperboards and allied products, with a consistent track record of profits and positive operational cash flows.
    • Proven quality of products enabling Company to cater to niche category of quality conscious customers mainly in South India.
    • Promoters’ expertise in procurement of waste paper – which is our main raw material – through a well established 40-year-old proprietary network ensures easy availability of quality raw material at very competitive prices, reducing dependence on imports and improving the margins. 
    • Company has managed its resources prudently; it is practically debt-free, has been financing its working capital requirements and capital expenditure (including recent investment in a 2.5 MW Solar Plant and acquisition of 3.2 acres of land contiguous to the existing factory site) through internal accruals.
    • Proposed expansion project when completed, will enable Company to cater to duplex board segment (existing product) as well as kraft paper segment (proposed) in the paper industry which segments together comprise approx. 51% of the industry size. (Industry Size source: CARE Industry Report)

     The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-163.0615.51
    31-Mar-173.4815.06
    31-Mar-186.7122.4731.86
    • Price to Earnings (P/E) ratio in relation to Issue Price of [●] per Equity Share of face value of Rs. 10 each
    ParticularsP/E ratio
    Highest138.78
    Average45.28
    Lowest9.02
    • Competitive Peers:
    Sr. No. ParticularsFace Value  (in Rs.)Net IncomeBasic and Diluted EPS (In Rs.)P/E RatioRONW in %
    1Bhadra Paper Mills Limited10.004,4326.71NA22.47
    2West Coast Paper Mills Ltd.21,75,21533.799.0226.60
    3Emami Paper Mills Ltd101,37,7272.7167.916.75
    4JK Paper Ltd.102,90,00014.8510.1815.83
    5International Paper Appm Ltd.101,28,51020.8921.6314.73
    6Astron Paper & Board Mill Ltd.1025,3704.5024.1816.57
    7South India Paper Mills Ltd.1013,6610.64138.780.68

     

    Bhadra Paper Mills IPO Lead Managers

    Lead Managers
    ARIHANT CAPITAL MARKETS LIMITED
    #
    1011 Solitaire Corporate Park
    Building No. 10, 1st Floor
    Guru Hargovindji Road, Chakala
    Andheri (East)
    Mumbai 400093, India.
    Telephone: +91 22 4225 4800
    Facsimile: +91 22 4225 4880
    Email: mbd@arihantcapital.com
    Contact Person: Mr. Amol Kshirsagar/ Mr. Satish Kumar P
    Website: www.arihantcapital.com
    SEBI registration number: INM000011070
    CIN: L6712MP1992PLC007182

    Bhadra Paper Mills IPO Registrar to offer

    Registrar to the Offer
    Karvy Computershare Private Limited
    Karvy Selenium, Tower – B
    Plot 31 and 32, Gachibowli
    Financial District, Nanakramguda, Hyderabad 500 032 Telangana, India
    Tel: +91 40 6716 2222, Fax: +91 40 2343 1551
    E-mail: pcil.ipo@karvy.com
    Investor grievance e-mail:einward.ris@karvy.com
    Website: www.karisma.karvy.com
    Contact Person: Murali Krishna M
    SEBI Registration No.: INR000000221

    Other Details:

    • Statutory Auditor – M/s. Mohan & Sridhar, Chartered Accountants
    • Bankers to the Company – Vijaya and Syndicate Bank 

    Bhadra Paper Mills IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.5/107.4/108.5/108.1/107.1/10
    Sharekhan7.2/107.1/108.6/108.1/107.2/10
    Kotak Securities7.3/107.5/108.4/108.1/107.3/10
    ICICI Direct7.3/107.3/108.7/108.1/107.1/10
    IIFL7.5/107.2/108.8/108.0/107.1/10
    Edelweiss7.5/107.4/108.4/108.3/107.2/10
    Zerodha7.4/107.1/108.5/108.1/107.0/10
    5Paisa7.1/107.1/108.4/108.1/107.1/10
    Karvy7.4/107.3/108.2/108.1/107.1/10
    Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

    Bhadra Paper Mills IPO Grey Market Premium

    The Bhadra Paper Mills IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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      Bhadra Paper Mills IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)


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