IPO Details
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Schedule of Saffron Speciality Papers IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Saffron Speciality Papers Ltd IPO
The IPO of Saffron Speciality Papers Ltd comprises only a fresh issue with no offer for sale. The fresh issue size is up to 54,00,000 equity shares. It’s a 100% book-built issue. The IPO opens on TBA and closes on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Saffron Speciality Papers Ltd IPO
- To part finance the cost of establishing of new manufacturing facility at Bhiwandi, Thane
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company
- Enhancing working capital requirement of the company
- General corporate purpose
Saffron Speciality Papers Ltd IPO Valuation
Saffron Speciality Papers Ltd IPO Share Offer and Subscription Details
| Investor Category | 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 global stationery and art materials market, valued at USD 192 billion in 2022, is projected to reach USD 220 billion by 2027, at a CAGR of 2.8%. The Indian stationery industry reached a valuation of USD 4 billion in 2022 and is projected to expand at over 10% yearly to surpass USD 6 billion by 2025. The Indian stationery market is projected to achieve a CAGR of 8.2% during 2023-2029.
The demand for stationery products is growing rapidly in developing countries like India, with an increase in the number of educational institutes, corporates, and offices. There is a significant increase in disposable incomes with the expansion of the Indian economy, leading to a shift in consumer preference towards higher quality, premium and branded stationery options.
Company Information
Saffron Speciality Papers Ltd is a manufacturer and exporter of printed paper stationery and back-to-school paper stationery, serving clients domestically as well as outside India. The company specialises in highly customised mass-produced back-to-school paper stationery and printed paper stationery products with various finishing, embellishments, and binding options.
It also provides commercial printing services to various customers including corporate clients, banks, government departments/ organisations, trusts, etc.
Saffron Speciality Papers Ltd Strengths
Long term business relationship with customers
Exposure in export and domestic market segment
The company’s location in Bhiwandi provides excellent connectivity via major highways and proximity to the Nhava Sheva seaport is an added logistical advantage
The company is currently having presence in the Notebook/ Back-to-School Paper Stationery & Commercial Printing segment. Thus, dependence on a single vertical for revenue generation is avoided.
Risks of Saffron Speciality Papers Ltd IPO
- No Long-term Contracts with Suppliers
The company doesn’t have long term contracts or exclusive arrangements with any of its suppliers, and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.
- Significant Capital Expenditure
The company has been incurring significant capital expenditures to support its business expansion strategy. There can be no assurance that our past or future capital expenditures will result in growth and/or additional profitability for the company.
- High Working Capital Requirement
The company has a high working capital requirement and if it’s unable to raise sufficient working capital the operations of the company will be adversely affected.
All Financial Information about Saffron Speciality Papers
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
There are no listed companies in India that engage in all business segments in which Saffron Speciality Papers Ltd operates. Accordingly, it is not possible to provide a comparison of key performance indicators of the industry with the company.
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- Registrar: NSDL Database Management Ltd
- Book Running Lead Manager: BOI Merchant Bankers Ltd
Business Model
Saffron Speciality Papers Ltd products and services comprise:
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Notebooks and back-to-school paper stationery: Its notebooks and paper stationery products are designed for educational, office, and personal use. It offers a wide range of notebooks, from basic to premium quality, in both soft cover and hardbound formats and in multiple paper sizes.
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Commercial printing: The company started this business segment from April 2021. It started its own manufacturing in Unit -1 from October 2022 and its commercial printing services cover an array of products including diaries and calendars, business forms, bills, etc.
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Paper packaging: The company has entered into paper packaging segment and are empanelled as vendors for supplying paper packaging products for some of the reputed brands in these sectors.
Company Growth Trajectory
The company’s growth in revenue from operations jumped from 8.32% in FY 22 to 44.81% in FY 24. EBITDA margin also recorded a growth from 1.98% in FY 22 to 9.13% in FY 24, with PAT margin jumping from 0.67% in FY 22 to 3.05% in FY 24. An experienced operational team coupled with exposure in the export and domestic market segment has contributed to this growth.
Market Position
Saffron Speciality Papers Ltd has over a decade of experience in printed paper stationery products and a complete in-house production facility. Based on its consistent export performance in Notebook segment, the company has also been accorded the status of Two Star Export House.
Over the years, it has obtained various quality certifications such as ISO 9001:2015(Quality Management Systems), ISO 14001:2015 (Environmental management Systems) and ISO 45001:2018(Occupational Health and Safety Management Systems).
Saffron Speciality Papers Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 190.9015 | 132.5733 | 120.3820 |
Profit Before Tax (in ₹ crores) | 7.6169 | (0.1083) | 0.9449 |
Profit After Tax (in ₹ crores) | 5.8130 | (0.0166) | 0.7988 |
EPS in ₹ | 4.71 | (0.02) | 0.77 |
Saffron Speciality Papers Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 7.6169 | (0.1083) | 0.9449 |
Net Cash Flows from Operating Activities (in ₹ crores) | (11.3623) | (3.9158) | (18.9197) |
Net Cash Used in Investing Activities (in ₹ crores) | (6.8382) | (5.9141) | (0.8137) |
Net Cash from Financing Activities (in ₹ crores) | 17.1714 | 11.1117 | 18.6147 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 1.2360 | 2.2652 | 0.9835 |
How to Check the Allotment Status of Saffron Speciality Papers Ltd IPO?
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Saffron Speciality Papers Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- 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.
Saffron Speciality Papers IPO FAQs
What is the Saffron Speciality Papers Ltd IPO?
The IPO of Saffron Speciality Papers Ltd IPO comprises a fresh issue of up to 54,00,000 equity shares. It has no offer for sale.
When will the IPO of Saffron Speciality Papers Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the chairman and MD of Saffron Speciality Papers Ltd?
Sweta Agarwal is the chairman and MD of Saffron Speciality Papers Ltd.
From where can I read more about the IPO of Saffron Speciality Papers Ltd IPO?
You can read more about the IPO of Saffron Speciality Papers Ltd IPO from the company’s draft red herring prospectus here.
