Subam Papers revised its project cost to ₹104.37 crore from ₹107.04 crore following an under-subscription in its preferential issue. The company raised ₹74.36 crore against the targeted ₹107.04 crore, resulting in a shortfall that necessitated a reduction in the allocation for General Corporate Purposes. The funds were initially intended for debt repayment, investment in a subsidiary, and general corporate purposes.

The Board of Directors had previously approved the fund raise on November 14, 2025, and shareholders endorsed the plan at an Extra-Ordinary General Meeting on December 10, 2025. The preferential issue comprised 26,32,800 Convertible Warrants and 44,09,600 Equity Shares, both priced at ₹152.00 each. The warrants were allocated to the Promoters and Promoter Group, while the equity shares were offered to Non-Promoter (Public) category investors.

Fund Utilisation and Shortfall

The company received ₹64.36 crore against the proposed ₹67.02 crore from the preferential issue of Equity Shares due to under-subscription. Additionally, ₹10.00 crore was received against Convertible Warrants, representing 25% of the total warrant issue proceeds. The total proceeds of ₹74.36 crore fell short of the targeted ₹107.04 crore, leading to a ₹2.66 crore deficit in the equity issue proceeds.

In response, the Board of Directors, at a meeting on May 26, 2026, revised the project cost and fund utilisation plan. The allocation for General Corporate Purposes was reduced from ₹4.03 crore to ₹1.36 crore. The overall project cost was adjusted downward from ₹107.04 crore to ₹104.37 crore to align with the actual funds raised.

Revised Fund Allocation

The revised utilisation of the proceeds is as follows:

The investment in the wholly-owned subsidiary, Subam Paper and Boards Private Limited, is intended for setting up a Corrugated Box Unit. The company informed the BSE Limited of the revision on May 27, 2026.

Subam Papers has approved its audited standalone and consolidated financial statements for the quarter and financial year ended March 31, 2026. The Board of Directors met on May 26, 2026, to finalize the results, which received an unmodified opinion from M/s. CNGSN & Associates LLP, Statutory Auditors. The meeting commenced at 5:30 P.M. IST and concluded at 8:50 P.M. IST. The company submitted the financial results to BSE Limited under Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors confirmed that the financial statements present a true and fair view in conformity with the Indian Accounting Standards. The audit covered the standalone financial results of the company and the consolidated results of the group, which includes subsidiaries such as Subam Paper and Boards Private Limited and Subam Agro Ventures Private Limited, as well as associates like Saradhambika Paper and Board Mills Private Limited. The auditors noted that the consolidated financial results include the financials of certain subsidiary entities and associates that were not audited by them but were based on management-certified financial statements and reports of other auditors.

Q4 Financial Performance

Subam Papers reported a net loss of 26M Rupees for Q4, an improvement compared to a net loss of 34M Rupees in the same quarter of the previous year. Q4 revenue came in at 1.2B Rupees, up from 1.1B Rupees year-on-year, reflecting a recovery in top-line performance during the quarter.

Full Year Financial Performance

For the financial year ended March 31, 2026, the company reported a total income of ₹12,112.36 lakh on a standalone basis, compared to ₹14,251.62 lakh in the previous year. The standalone net profit for the year was ₹-242.70 lakh, a decrease from the prior period. On a consolidated basis, total income stood at ₹12,112.36 lakh, with a net profit of ₹-242.70 lakh for the year. Basic earnings per share (EPS) for the standalone entity were reported at ₹-1.02 for the year.

Key Financial Metrics

The audited statement of assets and liabilities indicated that the company's total assets increased to ₹56,499.65 lakh standalone and ₹71,122.94 lakh consolidated as of March 31, 2026.