Question : What is the overview of the company?

Nikita Papers Limited is a leading Indian manufacturer specializing in recycled kraft paper, with a strong emphasis on sustainability and innovation.

Core Business Activities

Established in 1992, Nikita Papers focuses on producing high-quality kraft paper using 100% recycled waste paper. Their products cater to various packaging needs, offering a range of shades, bursting factors, and grammage options to meet diverse market requirements .

Manufacturing Facilities

The company operates two advanced paper-making machines:

• PM1: Commissioned in 1992, this machine has been upgraded over the years and now boasts a daily production capacity of 150 tons.
• PM2: Introduced in 2021, this state-of-the-art facility specializes in producing lighter GSM paper, contributing to an annual production capacity of up to 125,000 TPA .

Sustainability Initiatives

Nikita Papers is committed to environmental responsibility, operating as a zero water discharge facility. They employ aerobic and anaerobic water treatment technologies, significantly reducing fresh water consumption in their manufacturing processes. Additionally, the company utilizes captive power plants to ensure consistent and efficient energy supply .

Product Applications

The company’s kraft paper is known for its high ductile and tensile strength, making it suitable for various applications, including wrapping, packaging, and the production of paper bags. Their products are non-toxic and child-friendly, aligning with their commitment to safety and quality .

Global Presence

With a production capacity exceeding 180,000 TPA, Nikita Papers exports its products to over 15 countries across Asia, the Middle East, and Africa, including China, Egypt, and Iran .

Certifications

Nikita Papers holds ISO 14001:2015 certification for Environmental Management Systems and is certified by the Forest Stewardship Council (FSC), reflecting their dedication to sustainable and responsible manufacturing practices

Revenue Bifurcation:

Geographywise Revenue Bifurcation:

Capacity and Capacity Utilization:

Question 2: Who are the Promoter of the Company?

Ashok Kumar Bansal – Chairman
With over 35 years of experience, including more than 25 years in the paper industry, Mr. Bansal leads the company as its Chairman. He has been instrumental in steering the company’s growth and strategic direction.

Ayush Bansal – Director
Appointed as a Director on September 14, 2004, Ayush Bansal contributes to the company’s operations and decision-making processes.

Sandhya Bansal – Director
Serving as a Director since June 2, 2021, Sandhya Bansal plays a role in the governance and oversight of the company’s activities.

Question 3: How Company Performed in the past?

Question 4: How much money is the company raising and why?

In the IPO, the company is offering 64.94 Lakh shares, priced at INR 95-104 per share, aggregating to total of INR 67.54 Cr , with a lot size of 1200 shares. For the Purpose of:

Capital Expenditure towards settings up of Power Plant – INR 50 Cr

Funding of working capital requirements

General Corporate Purposes – INR 12.54 Cr

Question 5: Valuation of the company and comparison with other companies

Question 6. Summary of outstanding Litigations

✅ Strengths

1. Experienced Leadership
   The promoters have over three decades of experience in the industrial paper segment, providing deep industry insights and aiding in product portfolio expansion.
2. Diversified Product Portfolio and Geographic Reach
   Nikita Papers offers a range of kraft paper products catering to various industries, including packaging materials like corrugated boxes, paper tubes, and cones. The company has established a diversified geographic presence across multiple Indian states.
3. Long-standing Customer Relationships
   The company has maintained healthy relationships with key clients, some spanning over two decades, contributing to business stability.
4. Sustainable Manufacturing Practices
   Nikita Papers operates as a zero water discharge facility, employing advanced water treatment technologies and utilizing captive power plants, underscoring its commitment to environmental responsibility.

⚠️ Weaknesses

1. High Working Capital Requirements
   The company’s operations are working capital intensive, with gross current assets estimated at 150-160 days as of March 31, 2024. This is driven by receivables of 95-100 days and inventory levels of 40-50 days, necessitating substantial funding.
2. Average Financial Risk Profile
   Nikita Papers’ financial risk profile is constrained by a high Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio, expected around 2.4-2.5 times as of March 31, 2024. Debt protection metrics are moderate, with an interest coverage ratio of 2.6-2.65 times.
3. Exposure to Industry Cyclicality
   The paper industry is subject to price fluctuations and demand variability linked to economic activity. Intense competition due to low entry barriers and unfavorable government policies can affect profitability.
4. Employee Satisfaction Concerns
   Employee reviews indicate areas for improvement in job security, work-life balance, and company culture, with an overall rating of 2.9 out of 5 on AmbitionBox.

🏢 Company Registered Office

Address:
A-10, 1st Floor, Landmark Near Deepali Chowk, Saraswati Vihar, Pitampura, North West Delhi, Delhi – 110034, India
Email: info@nikitapapers.com
Phone: +91 79054 62919
Website: www.nikitapapers.com
CIN: U74899DL1989PLC129066

🏭 Manufacturing Facility

Address:
C-10, Industrial Estate, Panipat Road, Shamli, Uttar Pradesh – 247776, India

🗂️ Registrar & Transfer Agent (RTA)

Skyline Financial Services Private Limited
Address:
D-153A, 1st Floor, Okhla Industrial Area, Phase-I, New Delhi – 110020, India
Phone: +91-11-40450193-97
Email: ipo@skylinerta.com
Website: www.skylinerta.com

📌 FAQs – Nikita Papers IPO

Q1. What does Nikita Papers Limited do?
A: Nikita Papers Limited is engaged in the manufacturing of recycled kraft paper using 100% waste paper. Their products are used in packaging applications like corrugated boxes, paper bags, and wrapping materials.

Q2. Is Nikita Papers an environmentally sustainable company?
A: Yes. The company operates as a zero water discharge facility, uses aerobic and anaerobic water treatment technologies, and has its own captive power plants to ensure sustainable manufacturing.

Q3. Where is Nikita Papers Limited headquartered?
A: The registered office is located at A-10, 1st Floor, Near Deepali Chowk, Saraswati Vihar, Pitampura, North West Delhi – 110034, India.

Q4. Who are the promoters of Nikita Papers?
A: The company is promoted by Mr. Ashok Kumar Bansal (Chairman), Mr. Ayush Bansal (Director), and Ms. Sandhya Bansal (Director).

Q5. What are the key strengths of Nikita Papers?
A:

• Experienced promoters
• Long-standing client relationships
• Strong domestic and export presence
• Focus on sustainability
• ISO and FSC certifications

Q6. Who is the Registrar and Transfer Agent (RTA) for Nikita Papers IPO?
A: Skyline Financial Services Private Limited is the official RTA. You can reach them via ipo@skylinerta.com.

Q7. What are the company’s main products?
A: Nikita Papers produces kraft paper in various GSM and BF (Burst Factor) ranges used for packaging, wrapping, and industrial applications.

Q8. What is the company’s production capacity?
A: The total installed capacity is approximately 180,000 tonnes per annum across two advanced paper machines (PM1 and PM2).