Nikita Papers IPO listing on June 3. Check GMP and other details

Synopsis

Nikita Papers is ready to launch its IPO on the NSE SME platform on Tuesday. The IPO size is Rs 67.54 crore. Subscription was slightly above 1x. Grey market activity suggests a quiet debut. The IPO price is Rs 104 per share. The company manufactures kraft paper. Proceeds will fund upgrades and expansion. In FY24, revenue was Rs 346.78 crore.

Nikita Papers is set to debut on the NSE SME platform on Tuesday, June 3, following the completion of its Rs 67.54 crore initial public offering (IPO). While the issue just managed to scrape through with overall subscription slightly above 1x, the absence of grey market activity suggests a subdued listing ahead.

According to the latest data, the grey market premium (GMP) for Nikita Papers stands at Rs 0 as of June 2. With the IPO price fixed at the upper end of the band at Rs 104 per share, the estimated listing price is also expected to be around Rs 104 — implying no expected gains or losses for investors on debut.

Despite steady financials, market response and lack of GMP momentum suggest a cautious investor stance.

The IPO, which was entirely a fresh issue of 64.94 lakh shares, was open for subscription between May 27 and May 29. The lot size was 1,200 shares, requiring a minimum investment of Rs 1.24 lakh for retail investors. The issue barely crossed the minimum threshold, pointing to weak demand, especially when compared to recent SME listings.

Nikita Papers is engaged in the manufacturing of kraft paper used in packaging applications such as corrugated boxes, paper bags, and wrapping paper. The company offers a GSM range of 70–200 and operates from its manufacturing unit in Uttar Pradesh. It primarily caters to domestic demand and has a distribution base across India.

The IPO proceeds are proposed to be used for equipment upgrades, expansion into fluting media, and working capital requirements. Fast Track Finsec was the lead manager to the issue, while Skyline Financial Services acted as the registrar.

In FY24, the company reported revenue of Rs 346.78 crore and a net profit of Rs 16.60 crore. For the nine months ended December 2024, it clocked Rs 272.38 crore in revenue and Rs 15.68 crore in PAT, indicating stable operational performance.

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