IPO Details
RHP/DRHPIssue Date
27 May - 29 May'25
Investment/lot
₹ 124800
Price Range
95 - 104
Lot Size
1200
IPO Size
₹ 67.54 Cr
IPO Listing Details
Listing On
3 Jun'25
Issue Price
104
Listed Price
₹ 90
Retail Gain/Listing Gain
▼-13.46%
Schedule of Nikita Papers IPO
Start date
27/05/2025
End date
29/05/2025
Allotment of bids
30/05/2025
Refund Initiation
02/06/2025
Listing on exchange
03/06/2025
About Nikita Papers IPO
The IPO of Nikita Papers Ltd comprises a fresh issue of up to 64,94,400 equity shares. There’s no offer for sale in this 100% book-built issue. The total issue size is ₹67.54 crores. The lower price band is ₹95 and the upper price band is ₹104. The lot size is 1200.
The IPO opens on May 27, 2025 and closes on May 29, 2025. The listing of equity shares will take place on June 3, 2025 and the credit of shares to the demat account will take place on June 2, 2025. The basis of allotment will take place on May 30, 2025 and the initiation of refunds will take place on June 2, 2025.
Objectives of Nikita Papers IPO
- To meet capital expenditure towards setting up a power plant
- To meet out the working capital requirements of the company
- To meet out the general corporate purposes
- To meet the issue expenses
Nikita Papers IPO Valuation
Nikita Papers IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
The Indian paper industry is expected to witness an increased demand for packaging paper coming from manufacturing sector owing to the requirement of better-quality packaging of FMCG products marketed through the organised retail and ecommerce sector.
Over the longer term, the overall growth of the Indian paper industry is expected to remain healthy on the back of increase in economic activity coupled with increasing penetration of specialised and conventional packaging in sectors like FMCG, healthcare, e-commerce, pharmaceuticals, and consumer industries.
The demand for writing and printing also remained strong backed by reopening of schools, other educational institutions, and offices etc. Consequently, overall paper consumption is likely to witness 7.3% average annual growth to reach 30 million tonnes by FY 2028. During the same period, the India kraft paper market size is estimated to grow from 7.67Mn tonnes in FY 2023 to reach 12.4 million tons by 2030, exhibiting a growth rate (CAGR) of 10% during FY 2023-28.
Company Information
Nikita Papers Ltd manufactures kraft paper ranging from 80 to 200 GSM in various Burst Factor (B.F.) ranges. This diverse product offering allows Nikita Papers Ltd. to cater to a wide range of customer needs within the paper industry. At present the installed capacity of the company is approx. 1,33,000 M.T. per annum.
Nikita Papers Strengths
Expansion into Fluting Media
Nikita Papers Ltd has undertaken an initiative by adding a Fluting Media Multi-liner Kraft paper project to its existing manufacturing unit and in line installed and commissioned Paper Machine (PM) -2. Further, the company has increased its strength by installing the newly commissioned paper machine -2 by adding volume of production (Capacity 250 Tons Per Day) and also by Making Better/Higher Grades of Paper.
Innovative Equipment
By leveraging advanced technology, the company can enhance efficiency, productivity, and product quality. The implementation of latest equipment also provides a competitive edge over rivals by enabling cost optimisation and faster production cycles. This modernisation initiative not only ensures the company's ability to meet evolving customer demands but also strengthens its position in the industry, driving growth and sustainability in the long run.
Strategic Location
The company’s location at a well-connected site with access to essential infrastructure facilities which is advantageous for the company. This facilitates efficient transportation of raw materials and finished products, reducing logistics costs and lead times. Additionally, proximity to infrastructure facilities such as power, water, and transportation networks ensures uninterrupted operations and operational efficiency.
Network of Dealers and Customers
The company serves a diversified customer base comprising multinational corporations, regional brands, converters, and packaging manufacturers. Its flexible manufacturing processes and responsive customer support allow it to accommodate varying demand levels and deliver customised solutions to meet specific requirements.
Risks of Nikita Papers IPO
- Raw Material Cost Fluctuation
Waste paper serves as a primary raw material for producing the finished product of the company, i.e., kraft paper. Fluctuations in the cost of waste paper can stem from factors such as changes in recycling rates, market demand for paper products, and global economic conditions. When waste paper costs rise, it increases the input expenses for production, potentially squeezing profit margins unless offset by improved operational efficiency.
- Dependence on Few Customers
The company’s top ten customers contributed 84.15%, 71.26%, 65.31%, and 71.87% of its total revenue from operations on restated standalone basis for the period ended on December 31, 2024 and for the financial year ended on March 31, 2024, 2023 and 2022, respectively.
At present, the company does not have any long-term or exclusive arrangements with any of its customers and it cannot assure that it will be able to sell the quantities it has historically supplied to such customers.
- Geographical Concentration
The company’s business operations are based and concentrated in one area i.e., Shamli, Uttar Pradesh. As a result, any localised social unrest, natural calamities, distress or breakdown of services and utilities in and around this region, could have a material adverse effect on its business, financial position and results of operations.
Further, any continuous addition of similar industries/competitors in and around these areas, without commensurate growth of its infrastructural facilities may put pressure on the existing infrastructure and also increase competition in the area, which may affect its business and results of operation.
All Financial Information about Nikita Papers
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | PAT (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV in ₹ |
|---|---|---|---|---|
Nikita Papers Ltd | 15.6811 | 9.81 | 21.45 | 51.20 |
Magnum Ventures Ltd | 24.7026 | 5.04 | 3.62 | 115.64 |
Tamil Nadu Newsprint and Papers Ltd | 208.1600 | 30.08 | 10 | 301.94 |
Ruchira Papers Ltd | 49.1949 | 16.48 | 12 | 138.81 |
Pakka Ltd | 48.6693 | 12.57 | 18.38 | 67.58 |
Anchor Investor Bidding Date May 26, 2025
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Skyline Financial Services Pvt Ltd
- Book Running Lead Manager: Fast Track Finsec Pvt Ltd
Business Model
The company manufactures kraft paper ranging from 80 to 200 GSM in various Burst Factor (B.F.) ranges. Kraft paper, also known as sack paper, serves as a versatile material utilised in packaging and crafting applications. Its inherent porosity facilitates breathability, making it particularly valuable for wrapping goods that necessitate ventilation.
Company’s Growth Trajectory
The PAT margin of the company increased from 1.94% in FY 22 to 4.90% in FY 24, while EBITDA margin grew from 8.31% in FY 22 to 14.29% in FY 24. Experienced promoters coupled with investment in latest technology has helped the company grow.
Market Position
Incorporated as a private limited company in 1989, In 1991, a unit in the name of Nikita Papers Ltd. was established at Industrial Estate, Panipat Road, Shamli (U.P) to manufacture Kraft paper with 30 tons per day capacity.
Since then, the company has undergone many expansion and modernisations from time to time as per the demand of the market to maintain its quality and now the paper quality of the company is well established in the paper market. At present the installed capacity of the company is approx. 1,33,000 M.T. per annum.
Nikita Papers Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 346.7828 | 401.3091 | 358.4857 |
Profit Before Tax (in ₹ crores) | 24.1980 | 9.7957 | 8.1467 |
Profit After Tax (in ₹ crores) | 16.5953 | 8.6452 | 6.9521 |
EPS in ₹ | 9.81 | 5.28 | 7.05 |
Nikita Papers IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 24.1980 | 9.7957 | 8.1467 |
Net Cash Flow from Operations (in ₹ crores) | (12.5725) | (13.0199) | 27.7109 |
Net Cash Used in Investing Activities (in ₹ crores) | (2.5636) | (14.2999) | (11.1852) |
Net Cash Flow From/ (used in) Financing Activities (in ₹ crores) | 18.2712 | 27.4339 | (15.7574) |
Cash and Cash Equivalents at the Closing of the Year (in ₹ crores) | 8.1498 | 5.0148 | 4.9007 |
How to Apply for Nikita Papers IPO?
1. Visit the Registrar’s Website
- Visit the official website of Skyline Financial Services Ltd
- Click on ‘Check Allotment Status’ from ‘Rights Issue’ under ‘Investors’
- Select ‘Company Name’ and enter either your Client ID, CAF No or PAN
- Click on ‘Search’ to know the status
2. Check on the NSE Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Nikita Papers Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Click on Submit to check the status
How to Apply for Dr Agarwal’s Health Care Ltd IPO?
To apply for this IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
- Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
- Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Nikita Papers IPO FAQs
When is Nikita Papers IPO listing date?
Nikita Papers IPO will list on 2025-06-03.
What is the issue size of Nikita Papers IPO?
67.54 is the issue size of Nikita Papers IPO.
What is the minimum lot size required for Nikita Papers IPO?
The minimum lot size is 1200 shares and the investment required is ₹124800.
What is the price band of the Nikita Papers IPO?
The price band of Nikita Papers IPO is ₹95 to ₹104.
Where can I read more about Nikita Papers business?
You can read more about Nikita Papers and its IPO from the company’s red herring prospectus (RHP) here.
What is the Nikita Papers Ltd IPO?
The IPO of Nikita Papers Ltd comprises a fresh issue of up to 64,94,400 equity shares.
When will the IPO of Nikita Papers Ltd go live?
The IPO of Nikita Papers Ltd will go live on May 27, 2025. It will close on May 29, 2025.
From where can I read more about the IPO of Nikita Papers Ltd?
You can read more about the IPO of Nikita Papers Ltd from the company’s red herring prospectus here.
