The Nikita Papers IPO, a ₹67.54 crore bookbuilt public issue, is officially open for subscription from 27th May 2025 to 29th May 2025. With a price band fixed at ₹95–₹104 per share, the IPO comprises a 100% fresh issue of 64.94 lakh equity shares and is expected to list on the NSE SME platform on 3rd June 2025.
Despite a flat grey market premium (GMP) of ₹0, investors are evaluating Nikita Papers Limited’s strong profit growth and capacity expansion plans as reasons to subscribe.
IPO Snapshot: Key Information
| Parameter | Details |
|---|---|
| IPO Open Date | 27th May 2025 (Tuesday) |
| IPO Close Date | 29th May 2025 (Thursday) |
| Allotment Date | 30th May 2025 |
| Refund Initiation | 2nd June 2025 |
| Listing Date | 3rd June 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹95 – ₹104 |
| Issue Size | 64,94,400 shares (₹67.54 crore) |
| Lot Size (Retail) | 1,200 shares |
| Minimum Investment | ₹1,24,800 |
| Registrar | Skyline Financial Services Pvt. Ltd. |
| Listing Exchange | NSE SME |
| Market Cap (Post-IPO) | ₹256.55 crore (est.) |
Grey Market Premium (GMP)
As of 26th May 2025, Nikita Papers IPO shows no grey market premium. While GMPs often reflect market buzz or potential upside, a zero GMP may indicate cautious sentiment due to macroeconomic conditions or valuation concerns.
| Date | IPO Price | GMP | Est. Listing Price | Est. Gain % |
|---|---|---|---|---|
| 26-05-2025 | ₹104 | ₹0 | ₹104 | 0.00% |
| 25-05-2025 | ₹104 | ₹0 | ₹104 | 0.00% |
| 24-05-2025 | ₹104 | ₹0 | ₹104 | 0.00% |
About Nikita Papers Limited
Established in 1989, Nikita Papers Limited is a leading manufacturer of Kraft paper, offering sustainable paper solutions suitable for packaging, wrapping, and printing industries. The company specializes in eco-friendly products with GSM ranging from 70 to 200, catering to both domestic and international markets.
With a focus on green production, Nikita Papers combines operational efficiency with sustainable processes, including plans to set up a power plant to meet future energy needs.
IPO Objectives: Purpose of the Issue
The ₹67.54 crore raised through this IPO will be utilized as follows:
-
Capital Expenditure:
For establishing an in-house power generation plant to improve energy independence and reduce cost over time. -
Debt Repayment:
Reduction of existing borrowings to ease interest burden and improve cash flow. -
General Corporate Purposes:
Expansion, working capital, and other operational needs to support scaling.
Shareholding Pattern
| Shareholders | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoters | 80.38% | 59.21% |
| Public | 19.62% | 40.79% |
The promoters include the Bansal family, with multiple individual and HUF entities involved in the management and ownership.
Financial Performance Snapshot
Despite a revenue dip in FY24, Nikita Papers has seen strong profit growth driven by margin expansion and cost efficiencies.
| Year Ended | Revenue (₹ Cr.) | PAT (₹ Cr.) | Assets (₹ Cr.) | Debt (₹ Cr.) | Net Worth (₹ Cr.) |
|---|---|---|---|---|---|
| FY25 (Q3) | 272.38 (9M) | 15.68 | 349.78 | 206.71 | 93.05 |
| FY24 | 346.78 | 16.60 | 299.00 | 189.24 | 77.37 |
| FY23 | 401.31 | 8.65 | 256.80 | 163.02 | 54.74 |
| FY22 | 358.49 | 6.95 | 235.30 | 124.74 | 46.10 |
📊 Despite lower top-line numbers in FY24, profit margins improved significantly with a 91.9% increase in PAT.
Valuation & Key Ratios
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 9.13 | 8.48 |
| PE Ratio | 11.39 | 12.27 |
| Return on NW (%) | 21.45 | — |
| Return on Equity (%) | 21.45 | — |
| Return on Capital (%) | 28.71 | — |
| PAT Margin (%) | 4.79 | — |
With a post-IPO P/E of 12.27, Nikita Papers stands attractively priced compared to some overvalued peers, while still maintaining healthy profitability metrics.
Peer Comparison
| Company Name | Revenue (₹ Cr.) | PE Ratio | EPS (₹) | RoNW (%) | NAV (₹) |
|---|---|---|---|---|---|
| Nikita Papers Limited | 346.78 | 11.39 | 9.13 | 21.45% | 51.20 |
| Magnum Ventures Ltd. | 462.00 | 10.67 | 5.04 | 3.62% | 115.64 |
| Tamil Nadu Newsprint & Papers Ltd. | 4,762.00 | 307.96 | 30.08 | 10.00% | 301.94 |
| Ruchira Papers Ltd. | 660.00 | 6.55 | 16.48 | 12.00% | 138.81 |
| Pakka Ltd. | 413.00 | 18.62 | 12.57 | 18.38% | 67.58 |
📌 Nikita Papers outperforms most peers in RoNW and EPS while maintaining a moderate P/E, making it a competitive option in the mid-tier segment.
IPO Reservation & Lot Size
| Investor Category | Reservation % | Lot Size | Investment (₹) |
|---|---|---|---|
| Retail | >35% | 1,200 | ₹1,24,800 |
| NII (HNI) | >15% | 2,400+ | ₹2,49,600+ |
| QIB | <50% | Large | — |
Each lot comprises 1,200 shares. Retail investors can only apply for 1 lot, as per SME norms.
Risks and Considerations
Pros:
✅ Diversified paper product range
✅ Strong PAT growth and RoNW
✅ Expansion via internal power generation
✅ Consistent promoter group with decades of experience
Cons:
⚠️ Revenue decline in FY24
⚠️ High debt (~₹206 Cr as of FY25)
⚠️ Low GMP signals neutral sentiment
⚠️ Limited brand visibility in non-industrial segments
Should You Subscribe?
Here’s a summary:
| Criteria | Verdict |
|---|---|
| Financial Performance | 👍 Strong PAT growth |
| Valuation | ✅ Fair pricing |
| Industry Outlook | 👍 Positive for packaging and kraft paper |
| GMP Sentiment | ❌ Flat |
| Analyst Recommendation | ⚖️ Subscribe (long-term view) |
📈 If you’re a long-term investor with confidence in India’s packaging and industrial paper sectors, Nikita Papers IPO may offer sustainable returns despite initial flat listing expectations.
How to Apply for Nikita Papers IPO?
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Log in to your demat or trading account.
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Go to the “IPO” section and select “Nikita Papers IPO.”
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Enter your bid amount (minimum 1 lot of 1,200 shares).
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Accept the UPI mandate or confirm via ASBA.
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Wait for allotment results on 30th May 2025.
How to Check Allotment Status?
🔍 You can check allotment via:
NSE Website:
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Go to the IPO allotment section
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Select equity issue: “Nikita Papers IPO”
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Enter PAN or Application Number
Registrar Portal (Skyline Financial Services):
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Visit: skylinefinancial.org
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Go to “IPO Allotment”
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Enter details and submit to see status
Final Thoughts
Nikita Papers IPO arrives at a time when the demand for sustainable and industrial paper products is gaining momentum. Despite a temporary dip in revenue, profitability and return metrics are robust. The proceeds from the IPO are targeted toward operational strengthening, which indicates foresight and ambition.
Whether you’re aiming for long-term growth or medium-term returns, Nikita Papers could be a paper play worth investing in — especially for those focused on fundamentals over market buzz.
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