3B Films IPO Opens: Neutral GMP, Mixed Sentiment

3B Films Limited, a manufacturer and distributor of cast polypropylene (CPP) and cast polyethylene (CPE) films, has launched its Initial Public Offering (IPO) on 30th May 2025. The issue is set to close on 3rd June 2025, and shares will be listed on the BSE SME platform on 6th June 2025.

The IPO comes at a fixed price of ₹50 per share, with a total issue size of ₹33.75 crore. Of this, ₹17.76 crore comes from a fresh issue, and ₹15.99 crore through an offer for sale (OFS). While 3B Films operates in a niche packaging materials segment, the IPO has drawn mixed responses due to the absence of a premium in the grey market and the moderate fundamentals reported so far.

This article provides a detailed overview of the 3B Films IPO, including its structure, objectives, financial performance, grey market premium (GMP) trends, and expert analysis to help investors make informed decisions.


IPO Details at a Glance

Particular Details
IPO Open Date 30th May 2025
IPO Close Date 3rd June 2025
Issue Price ₹50 per share
Face Value ₹10 per share
Total Issue Size 67,50,000 shares
Fresh Issue 35,52,000 shares (₹17.76 crore)
Offer for Sale (OFS) 31,98,000 shares (₹15.99 crore)
Lot Size 3,000 shares
Retail Investment (Min) ₹1,50,000
Listing Platform BSE SME
Listing Date (Tentative) 6th June 2025
Market Makers Portion 3,42,000 shares
Registrar Maashitla Securities Pvt. Ltd.

Grey Market Premium (GMP) Analysis

As of the IPO opening day, 30th May 2025, the GMP (Grey Market Premium) of 3B Films IPO is ₹0, indicating no unofficial premium or discount in pre-listing trade activity.

GMP History Table

Date IPO Price GMP Estimated Listing Price Estimated Gains
30-May-2025 ₹50 ₹0 ₹50 0.00%
29-May-2025 ₹50 ₹0 ₹50 0.00%
28-May-2025 ₹50 ₹0 ₹50 0.00%
27-May-2025 ₹50 ₹0 ₹50 0.00%
26-May-2025 ₹50 ₹0 ₹50 0.00%

The zero GMP reflects neutral investor sentiment and limited speculation, often seen in SME IPOs with less institutional engagement. GMP may change closer to the listing date depending on market interest and subscription status.


Company Overview: What Does 3B Films Do?

3B Films Limited is engaged in the production and supply of CPP (Cast Polypropylene) and CPE (Cast Polyethylene) films, which are used in:

  • Food and pharma packaging

  • Textile lamination

  • Industrial applications

These films are in high demand for moisture resistance, high clarity, and durability, especially in flexible packaging solutions. The company has built relationships across various industries including FMCG, food processing, and medical supplies.

Its niche in CPP and CPE manufacturing provides a focused product strategy, though it operates in a highly competitive and price-sensitive segment.


Use of IPO Proceeds

3B Films Limited will deploy the fresh issue proceeds towards the following:

  1. Working Capital Requirements

    • Support business growth and smooth operations amidst rising raw material costs.

  2. Capital Expenditure (Capex)

    • Upgrade and expand manufacturing facilities to enhance production capacity.

  3. General Corporate Purposes

    • Strengthen operational flexibility, including digital initiatives and employee retention.

  4. Offer-related Expenses

    • Cover underwriting, registrar, legal, and promotional costs.


Financial Performance Overview

FY23 vs FY24 Snapshot

Financial Metric FY24 (Mar’24) FY23 (Mar’23) Change %
Revenue ₹76.40 Cr ₹72.82 Cr +4.91%
Profit After Tax (PAT) ₹4.29 Cr ₹0.92 Cr +366.30%
RoNW (Return on Net Worth) 13.88%
ROE 14.91%
ROCE 8.64%
PAT Margin 5.67% ~1.26%

Key Takeaways:

  • Revenue Growth remains modest but consistent.

  • PAT surged by over 366%, primarily due to operational efficiencies and margin improvements.

  • RoNW and ROE are in double digits, indicating fair returns to equity holders.

  • Operating efficiency, however, remains constrained by raw material volatility and fixed cost absorption challenges.


Valuation Metrics

Currently, PE Ratio and EPS are not disclosed or not meaningfully calculated due to the small-scale profitability and fluctuating earnings. However, analysts note that:

  • Valuation appears stretched for a company with marginal topline growth and thin operating margins.

  • At ₹50 per share, and FY24 PAT of ₹4.29 crore, post-money market cap would be approximately ₹135 crore, implying a rough PE above 30x — relatively high for an SME player with limited history of sustained profits.


IPO Reviews and Market Sentiment

Analyst Sentiment:

  • Most brokerages have assigned a neutral to cautious outlook on the IPO.

  • Concerns around GMP absence, high valuation, and modest revenue trajectory dominate discussions.

Market Factors Influencing Sentiment:

  • SME IPOs typically attract niche investor segments, and lack of retail oversubscription may limit short-term listing gains.

  • The absence of cornerstone or institutional participation reduces confidence in long-term scaling.

Retail Participation:

  • Retail investors must invest at least ₹1.5 lakh (one lot of 3,000 shares), which is relatively high.

  • Investment recovery depends heavily on listing-day sentiment and follow-up price stability.


IPO Registrar Details

Registrar: Maashitla Securities Private Limited
For IPO allotment and refund status:
Website: https://maashitla.com/allotment-status/public-issues
Contact: +91-11-45121795-96

Investors are advised to check the registrar portal post the allotment date of 6th June 2025 for real-time status updates.


Risk Factors for Investors

Before subscribing, potential investors should consider the following risks:

  1. Thin Margins: Operating in a commoditized packaging segment where profitability can be highly cyclical.

  2. High Fixed Costs: As a manufacturing entity, the company faces sensitivity to capacity utilization.

  3. Limited Diversification: Heavy reliance on CPP/CPE with limited vertical integration or product diversity.

  4. SME Listing Risks: Shares listed on BSE SME may face lower liquidity and higher volatility.

  5. Valuation Stretch: At the current price point, the earnings multiple appears high without strong revenue momentum.


Final Verdict: Should You Subscribe?

For Aggressive Investors:

The 3B Films IPO may suit investors willing to take risks in SME listings for potential medium-term growth. The company’s improvement in PAT and operational metrics over FY24 is a positive. However, entry at ₹50 may be justified only if further EPS and margin expansions follow.

For Conservative or Long-Term Investors:

  • Absence of GMP

  • No clear peer benchmarking

  • High entry ticket (₹1.5 lakh minimum)

  • Elevated valuations

These indicate that the issue may not be suitable for long-term portfolio allocations without a deeper analysis of post-IPO results and performance.


Conclusion

The 3B Films IPO opens amid cautious optimism. While the financial turnaround in FY24 is noteworthy, the lack of grey market activity, thin analyst support, and stretched valuations call for a prudent investment approach. Investors are advised to study the allotment status, observe market demand during the bidding window, and assess post-listing fundamentals before making any long-term commitments.

ALSO READ: SAMIL FY25 Results: Strong Annual, Weak Q4 Earnings

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