Subam Papers Limited , a prominent player in the paper industry, has announced a capital raise and reported financial results for the half-year ended September 30, 2025. The company's board has approved a preferential issue to raise Rs 107.04 crore, along with an increase in authorized share capital.

Preferential Issue Details

The board of Subam Papers has approved a preferential issue of:

• 26,32,800 warrants, each convertible into one equity share
• 44,09,600 equity shares

Both the warrants and equity shares will be issued at Rs 152 per share, including a premium of Rs 142.

Capital Structure Changes

Subam Papers has increased its authorized share capital from Rs 25.05 crore to Rs 32 crore.

Financial Performance

For the half-year ended September 30, 2025, Subam Papers reported consolidated financial results:

All figures in Rs crore

While the company has shown top-line growth, there has been a decrease in net profit compared to the same period last year.

Management Commentary

T. Balakumar, Managing Director of Subam Papers Limited, stated in the company's filing, "The preferential issue will strengthen our capital base and provide us with the resources to pursue our growth plans. Despite challenges, our revenue growth demonstrates the robust demand for our products and our ability to expand our market presence."

Investor Implications

The preferential issue is set to bring in a mix of promoter and public investors, potentially changing the company's shareholding structure. This could lead to increased liquidity in the stock and potentially broader market interest in Subam Papers.

As Subam Papers Limited continues to navigate the paper industry landscape, these recent developments signal the company's approach to funding its growth and maintaining its competitive edge in the market.

Subam Papers Limited's wholly owned subsidiary, Subam Paper and Boards Private Limited, is set to diversify its operations by venturing into the logistics and transportation business. The company announced the launch of a new vertical called VIB Logistics, following shareholder approval for amendments to the Memorandum of Association on August 13, 2025.

New Business Venture

The new logistics division will focus on three primary areas:

1. Movement of goods
2. Storage services
3. Delivery operations

VIB Logistics aims to serve both in-house operations and external clients, potentially opening up new revenue streams for the company.

Strategic Objectives

The company's decision to enter the logistics sector is driven by two main objectives:

1. Cost Reduction: By handling its own logistics and transportation needs, Subam Paper and Boards Private Limited aims to reduce transportation costs for its in-house operations.

2. Revenue Diversification: The new division will also cater to external clients, potentially creating an additional source of income for the company.

Investment and Approval

Subam Papers Limited has outlined its commitment to this new venture with a significant financial backing:

• Investment Plan: The company plans to invest up to Rs 10.00 crores in the new logistics business line.
• Shareholder Approval: The expansion into logistics received shareholder approval during an Extraordinary General Meeting (EGM) held on August 13, 2025.

Regulatory Compliance

In adherence to regulatory requirements, Subam Papers Limited has informed the BSE Limited about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Managing Director, T. Balakumar, signed off on the official communication to the stock exchange.

This strategic move by Subam Papers Limited's subsidiary into the logistics sector represents a significant step in the company's growth and diversification strategy. As the new venture unfolds, stakeholders will be keen to observe its impact on the company's overall performance and market position.