Spinaroo IPO Listing: Stock lists at 3.6% premium on BSE SME
Spinaroo IPO Listing
Spinaroo IPO Listing: A Green Start for Paper Cup and Plate Manufacturer, Shares Open at ₹51 with 3% Premium
Spinaroo Commercial IPO Listing: A Promising Debut on BSE SME The much-anticipated initial public offering (IPO) of Spinaroo Commercial, a prominent manufacturer of paper cups, plates, and related products, made its debut on the Bombay Stock Exchange (BSE) SME platform today.
The IPO raised ₹10.17 crore, with shares listed at ₹52.85—an immediate premium of 3.63% over the issue price of ₹51.
The share price surged further after the initial listing, reaching ₹55.00 before closing the trading day at ₹54.85, marking a solid first-day gain of 7.55% for investors.
This successful listing reflects investor confidence in Spinaroo Commercial’s future potential, bolstered by its diversified product offerings and steady growth trajectory.
As a company that specializes in manufacturing paper and aluminium products, Spinaroo’s strong listing performance signals positive market sentiment towards the SME segment, which is becoming an increasingly popular investment choice for those looking for high-growth opportunities in niche markets.
IPO Subscription and Investor Demand
The Spinaroo Commercial IPO opened for subscription from March 28 to April 3, 2025. The offering was met with a healthy investor response, with the IPO being subscribed 1.52 times overall.
This indicates a robust demand for Spinaroo’s shares. Of particular note was the retail portion, which was subscribed 1.2 times, showcasing a strong interest among smaller investors in the company’s growth prospects.
The IPO comprised the issuance of 19.94 lakh new equity shares with a face value of ₹10 each, priced at ₹51 per share. The total funds raised amount to ₹10.17 crore.
This capital is intended to be deployed for two key purposes: the working capital requirements and general corporate activities.
Specifically, ₹7.13 crore of the raised funds will be used to meet the company’s working capital needs, which is essential for scaling its operations and meeting growing demand.
The remaining funds will be used for general corporate purposes, which could involve expanding production capacity, improving infrastructure, or pursuing other strategic investments that will support long-term growth.
The Post-Listing Performance: Strong Investor Returns
Spinaroo Commercial’s IPO listing turned out to be a successful one, providing immediate returns for investors who subscribed to the offering.
Shares of Spinaroo opened at ₹52.85, a premium of 3.63% over the issue price of ₹51. As the day progressed, the stock saw further momentum, climbing to ₹55.00, and closing the day at ₹54.85—an impressive first-day gain of 7.55%.
This initial market performance is a positive indicator of Spinaroo’s potential to create shareholder value in the long term.
IPO investors, especially retail investors, who had their shares allotted at the issue price of ₹51, saw immediate gains upon listing.
Such strong listing performance can be seen as a reflection of the broader market’s favorable sentiment towards the company’s growth prospects, as well as its potential to expand and capture market share in the rapidly growing packaging and disposable product industries.
How Spinaroo Plans to Utilize IPO Proceeds
The company has been clear about its plans for utilizing the funds raised from the IPO. Of the ₹10.17 crore raised, ₹7.13 crore will be allocated toward meeting Spinaroo’s working capital requirements.
This is essential for supporting the company’s day-to-day operations, such as procuring raw materials, financing production, and fulfilling growing customer demand.
Working capital plays a critical role in ensuring that Spinaroo can maintain smooth operations and continue meeting the demands of its clients, which include a diverse range of businesses in the food service and packaging sectors.
The remaining funds from the IPO will be used for general corporate purposes, which might include expanding Spinaroo’s manufacturing capabilities, investing in new technology, or enhancing its marketing and distribution efforts.
By directing the proceeds of the IPO towards these areas, Spinaroo intends to further solidify its position as a leader in the paper and aluminium product manufacturing industry while creating the infrastructure necessary to support future growth and development.
About Spinaroo Commercial: An Overview
Spinaroo Commercial was founded in August 2012 and has since carved a niche for itself in the manufacturing of paper cups, plates, and related products.
The company specializes in producing a variety of disposable products, including paper cups, plates, paper bowls, and aluminium foil containers.
It also manufactures semi-processed materials for paper cups, such as high-speed paper cup forming machines, flexo printing machines, and automatic roll die-cutting machines.
In addition to its product offerings, Spinaroo also provides machinery for paper cup production, which allows it to maintain a competitive edge in the market.
The company’s diverse range of products makes it an integral player in the fast-growing packaging industry, particularly within the food and beverage sector, where demand for disposable products is constantly increasing.
Over the years, Spinaroo has developed strong relationships with its customers and suppliers, helping to establish a solid reputation in the market. As demand for environmentally friendly, disposable products grows, Spinaroo is well-positioned to capitalize on this trend by leveraging its existing manufacturing capabilities and investing in future expansion.
Spinaroo’s Financial Performance: Growth Trajectory
Spinaroo’s financial performance has been on a consistent upward trajectory, reflecting the company’s ability to grow in a competitive market.
In FY 2022, the company recorded a net profit of ₹5.2 lakh. This figure rose to ₹9.3 lakh in FY 2023, and further expanded to ₹1.4 crore in FY 2024.
This steady increase in profitability underscores Spinaroo’s ability to navigate market challenges and generate positive returns.
However, despite the company’s improving profitability, its revenue has shown some fluctuations over the past few years.
In FY 2022, Spinaroo posted revenue of ₹47.58 crore, which rose to ₹53.19 crore in FY 2023. Yet, in FY 2024, the company’s revenue dropped to ₹41.21 crore, a decline that was primarily due to market conditions and fluctuations in demand.
Despite the revenue fluctuations, Spinaroo’s ability to generate strong profits in recent years indicates that it is effectively managing its costs and improving operational efficiency. This has helped the company remain profitable even in periods of revenue volatility.
For the first half of FY 2024-25 (April–September 2024), Spinaroo reported a net profit of ₹6.1 lakh and revenue of ₹21.02 crore, demonstrating its ability to maintain positive growth and profitability despite potential market uncertainties.
Final Remarks: A Strong Outlook for Spinaroo
The successful IPO listing of Spinaroo Commercial marks an important milestone for the company, highlighting its growth potential and solidifying investor confidence.
With its established market position in the paper and aluminium product manufacturing industries, Spinaroo is well-placed to capitalize on the growing demand for disposable products.
The funds raised through the IPO will be crucial in supporting the company’s expansion plans, particularly in terms of increasing working capital and investing in future growth initiatives.
While Spinaroo’s revenue has seen some fluctuations, its profitability trajectory remains strong, and its diversified product offerings ensure it can meet the evolving needs of the market.
For investors looking for opportunities in the SME space, Spinaroo represents an appealing choice with its promising growth outlook, solid financial performance, and a well-structured strategy for the use of IPO proceeds.
As the company continues to strengthen its position in the market, it is poised for long-term growth, and today’s strong IPO debut is just the beginning of what promises to be a successful journey.
