Silverton Industries files IPO papers with Sebi; seeks raising Rs 300 cr via fresh issue

New Delhi: Eco-friendly paper manufacturer Silverton Industries has filed draft papers with markets regulator Sebi seeking its approval to raise funds through an initial public offering (IPO).

The proposed IPO is a combination of fresh issuance of shares worth Rs 300 crore, and an offer-for-sale of 3.22 crore equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP) filed on Friday.

At present, promoters and promoter group entities hold 100 per cent stake in the company.

Proceeds from the fresh issue to the tune of Rs 129.4 crore would be used towards capital expenditure for sustainability initiatives at the existing manufacturing facility, such as the installation of a 14 MW waste-to-energy captive power plant and a compressed bio gas plant.

An additional Rs 25.25 crore will be used to enhance the rewinder and sheeter capacity and to construct in-house warehouses at the existing facility, Rs 72 crore for the payment of debt and the remaining funds will be used for general corporate purposes.

As of December 31, 2024, the company's total borrowings stood at Rs 193.86 crore, draft papers showed.

Silverton Industries is into manufacturing and marketing of eco-friendly specialty paper, serving a diverse spectrum of end-use industries. Its comprehensive range of paper-based products comprise writing and printing paper; kraft paper; cupstock paper, and other specialised grade papers.

According to a Crisil report, the global paper industry grew from 394 million tonne in 2019 to 420 million tonne in 2024, achieving a Compound Annual Growth Rate (CAGR) of 1-2 per cent. This growth was primarily driven by the paperboard segment, which saw its share increase from 73 per cent to 77 per cent in the same period.

The rising demand for sustainable and eco-friendly packaging solutions, particularly in the e-commerce and food industries, has been a significant factor contributing to the growth of the paperboard segment.

Additionally, the increasing focus on reducing plastic waste and promoting circular economy practices has led to a shift towards paper-based packaging, further boosting the demand for paperboards, the report mentioned.

For the nine-month period ended December 31, 2024, the company reported a total income of Rs 752.45 crore and a profit of Rs 82.44 crore.

Pantomath Capital Advisors is the sole book running lead manager to the public issue.