Silverton Industries Files For IPO, To Raise Rs 300 Crore For Green Initiatives

Eco-friendly paper manufacturer Silverton Industries has submitted its draft initial public offering papers to SEBI, India's market regulator, seeking approval to raise funds. The company plans to raise capital through a combination of a fresh issue of shares and an offer-for-sale by its promoters.

The proposed IPO is a blend of fresh issuance of shares valued at Rs 300 crore, with an offer-for-sale of 3.22 crore equity shares from the promoters, according to the DRHP.

Silverton Industries intends to allocate the proceeds from the fresh issue towards several green initiatives. A significant portion, amounting to Rs 129.4 crore, will be dedicated to capital expenditure aimed at sustainability projects at its existing manufacturing facility. These projects notably include the installation of a 14 MW waste-to-energy captive power plant and a compressed bio-gas plant.

Additionally, Rs 25.25 crore is marked for enhancing rewinder and sheeter capacity and for the construction of in-house warehouses at the current facility, which is expected to significantly boost operational efficiency. Further, Rs 72 crore will be utilised for the payment of debt, with the remaining funds allocated for general corporate purposes.

Pantomath Capital Advisors has been appointed as the sole book running lead manager for this public issue.

Silverton Industries specialises in the manufacturing and marketing of eco-friendly specialty paper, serving a diverse spectrum of end-use industries. Their comprehensive range of paper-based products includes writing and printing paper, kraft paper, cupstock paper, and various other specialised grade papers.

The global paper industry has demonstrated consistent growth, expanding from 394 million tonnes in 2019 to 420 million tonnes in 2024, achieving a CAGR of 1% to 2%, according to a Crisil Report.

This growth has been predominantly driven by the paperboard segment, which saw its share increase from 73% to 77% during the specified period. There is an increasing global focus on reducing plastic waste and promoting circular economy practices which has led to a significant shift towards paper-based packaging, consequently boosting the demand for paperboards.