New Delhi, Mar 5 (KNN) Shreenath Paper Products Limited witnessed a challenging market debut on Wednesday, March 5, 2025, as its shares listed at Rs 35.20 on the BSE SME platform, representing a significant 20 percent discount from its initial public offering (IPO) price of Rs 44 per share.

The company’s IPO, which was open for subscription from February 25 to February 28, 2025, raised Rs 23.36 crore through an entirely fresh issue of 5.31 million equity shares.

Despite expectations set by grey market indicators, where unofficial trading suggested a flat price around Rs 44 per share, the actual listing fell short of these preliminary estimates.

The public offering received a moderate investor response, being oversubscribed approximately 1.8 times. The basis of share allotment was finalised on March 3, 2025, with a lot size of 3,000 shares.

Bigshare Services served as the registrar, while Galactico Corporate Services acted as the sole book-running lead manager for the IPO.

According to the company’s Red Herring Prospectus, the proceeds from the public offering will be allocated towards meeting incremental working capital requirements and general corporate purposes.

Established in 2011, Shreenath Paper Products specialises in providing supply chain solutions for paper-based industries, offering products such as sublimation base paper, thermal base paper, and specialty papers.

The company primarily serves industries including FMCG, textiles, pharmaceuticals, and packaging, with its operational footprint concentrated in Maharashtra, Gujarat, and Madhya Pradesh.

The subdued market reception highlights the current challenges in the small and medium enterprise (SME) segment of the Indian stock market.

(KNN Bureau)