By IndiaHub 
Non-institutional investors (NIIs) led the subscriptions, bidding 1.49 times their allocated quota. Retail investors followed with a subscription of 1.09 times, while qualified institutional buyers (QIBs) subscribed 43% of their share. The Rs 67.54 crore issue will close on May 29, and listing is expected on the NSE SME platform on June 3.
GMP hints at modest listing gain
According to market sources, the grey market premium (GMP) for Nikita Papers was last seen at Rs 5, indicating a listing price of Rs 109 against the upper IPO price band of Rs 104. This translates to a modest expected gain of 4.81%.
While the muted GMP suggests cautious near-term sentiment, analysts note that broader market support and strong final-day bidding could provide upside surprise during listing.
IPO structure and key details
The IPO is a complete fresh issue of 64.94 lakh equity shares, aiming to raise Rs 67.54 crore at the upper end of the Rs 95–104 price band. The lot size is fixed at 1,200 shares, requiring a minimum investment of Rs 1.25 lakh for retail participants.
Live Events
Anchor allocation took place on May 26, with the offer opening to other investors from May 27. Allotment is expected to be finalised by May 30.
Use of proceeds
Funds raised from the IPO will be deployed towards capital expenditure for setting up a renewable energy power plant based on biomass and Refuse Derived Fuel (RDF), working capital needs, and general corporate purposes.
Business profile
Founded in 2010, Nikita Papers is engaged in the manufacturing of Kraft paper, catering to industries aligned with eco-friendly and sustainable packaging. The company has built a strong presence in the market, underpinned by product quality, process efficiency, and an emphasis on environmental responsibility.
The proposed investment in renewable energy aligns with the company’s strategy of reducing reliance on conventional fuel sources and enhancing long-term operational sustainability.
Financial snapshot
In FY24, Nikita Papers reported revenue of Rs 338.60 crore, EBITDA of Rs 48.40 crore, and profit after tax (PAT) of Rs 16.60 crore. For the nine-month period ending December 2024, the company posted revenue of Rs 265.14 crore, EBITDA of Rs 43.80 crore, and PAT of Rs 15.68 crore—suggesting healthy year-on-year growth momentum.
Intermediaries
The IPO is managed by Fast Track Finsec Pvt Ltd, with Skyline Financial Services Pvt Ltd acting as the registrar. The equity share allocation includes 18.50 lakh shares for anchor investors, 12.33 lakh for QIBs, 9.25 lakh for NIIs, and 21.58 lakh for retail investors. A market maker portion of 3.26 lakh shares is also reserved.
Also read | The Leela IPO cruises through on final day of bidding, QIBs drive highest subscription. Check details
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)