3B Films listed on BSE SME at ₹48.50 price with 3% discount, later declines to ₹46.08

The plastic packaging film manufacturer, 3B Films Limited, has made a disappointing debut on BSE SME platform. After closing its IPO bidding between May 30 - June 3, 2025, the company made its stock market debut on June 6, 2025, at a discount to the issue price and continued declining throughout the trading session. This fixed-price IPO raised ₹33.75 crore with a modest subscription of 1.8 times, marking a challenging start for India's flexible packaging sector as the company aims to expand production capacity through forward integration by installing new printing and lamination lines.

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3B Films IPO Listing Details

3B Films Limited launched its IPO through the fixed-price process and the 3B Films IPO was set at ₹50 per share. The minimum investment required was 3,000 shares costing ₹1,50,000. The IPO received a modest response with an overall subscription of 1.8 times - retail segment at 2.75 times and NII at 0.85 times by the final day of bidding, indicating lukewarm investor interest.

Listing Price: The 3B Films share price opened at ₹48.50 on BSE SME on June 6, 2025, at a 3% discount to the issue price, and later declined further to ₹46.08, reflecting weak market sentiment and investor concerns about valuation.

First-Day Trading Performance Outlook

3B Films commenced trading on BSE SME on June 6, 2025, witnessing a disappointing stock market debut. The 3B Films share price opened at ₹48.50, down 3% from its IPO price of ₹50, providing immediate losses to investors at listing. The stock continued its downward trajectory throughout the trading session, hitting a low of ₹46.08, representing a decline of nearly 8% from the issue price. The company entered the market with established operations in CPP and CPE films manufacturing, serving diverse industries including food packaging, with export presence in Dubai, Nepal, Sri Lanka, and several African nations.

Market Sentiment and Analysis

3B Films Limited, incorporated in 2014, operates as a Vadodara, Gujarat-based company engaged in manufacturing and supplying Cast Polypropylene (CPP) and Cast Polyethylene (CPE) films for packaging and thermoforming applications. The company's product portfolio includes transparent, metalized, white opaque, retort, anti-fog, easy-peel, and EVOH films with advanced facilities and R&D capabilities. Operating as part of the 3B Group, the company serves various industries including food packaging and has expanded production capacity to 750 MT monthly (9,000 MT annually) through installation of new imported machinery and MDO unit.

Market Sentiment:  Investors showed limited enthusiasm towards the company's business model, production capabilities, and growth prospects in India's competitive flexible packaging market, as evidenced by the weak subscription and discounted listing.

Performance Indicators: 3B Films demonstrated mixed financial performance with revenue decline from ₹76.40 crore in FY2024 to ₹57.18 crore in December 2024, though maintaining stable profitability, raising concerns about business momentum and market positioning.

Growth Drivers and Challenges

3B Films presents growth potential with its specialised CPP and CPE films manufacturing capabilities, advanced production facilities, and expanding export presence. The rising demand for flexible packaging solutions in food and consumer goods sectors supports its business prospects. However, the company faces significant challenges including intense competition in the packaging industry, high debt levels, modest investor interest reflected in weak subscription, and concerns about recent revenue decline affecting growth trajectory.

Growth Drivers:

Diversified Product Portfolio: Comprehensive range of CPP and CPE films including transparent, metalized, white opaque, retort, anti-fog, easy-peel, and EVOH films for various applications

• Advanced Manufacturing Infrastructure: State-of-the-art facility with imported machinery and MDO unit, doubling production capacity to 750 MT monthly
• Export Market Presence: International operations across Dubai, Nepal, Sri Lanka, and several African nations providing revenue diversification
• Forward Integration Plans: Strategic expansion into printing and lamination lines to provide end-to-end flexible packaging solutions
• R&D Capabilities: Continuous research and development focus for innovation in specialty products and packaging solutions
   

Challenges:

• Revenue Decline Concerns: Recent revenue drop from ₹76.40 crore in FY2024 to ₹57.18 crore in December 2024 raising questions about business momentum
• High Debt Burden: Significant debt-to-equity ratio of 3.45 indicating financial leverage concerns and working capital pressures
• Weak Market Reception: Modest subscription of 1.8 times and discounted listing reflecting limited investor confidence in valuation and prospects
• Intense Competition: Operating in highly competitive flexible packaging market with pressure from established players and pricing challenges

Utilisation of IPO Proceeds

3B Films plans to utilise the ₹33.75 crore raised from the fresh issue and offer for sale to strengthen its production capabilities and support strategic business expansion.

• Capital Expenditure: ₹4.43 crore allocated for capital expenditure towards expanding production capacity and installing new printing and lamination lines for forward integration.
• Working Capital: ₹7.15 crore designated for funding working capital requirements to support business operations and inventory management.
• General Corporate Purposes: ₹4.44 crore earmarked for general business needs and corporate initiatives to support strategic growth plans.
• Fresh Offer Expenses: ₹1.74 crore allocated for IPO-related expenses and regulatory compliance costs.
   

Financial Performance of 3B Films IPO

3B Films has shown mixed financial performance with recent revenue decline raising concerns:

• Revenue: ₹57.18 crore for December 2024, showing a decline from ₹76.40 crore in FY2024, reflecting challenging market conditions and competitive pressures in the flexible packaging sector.
• Net Profit: ₹4.20 crore in December 2024, maintaining relatively stable profitability compared to ₹4.29 crore in FY2024, showcasing operational efficiency despite revenue challenges.
• Financial Metrics: The company shows ROE of 14.91% and ROCE of 8.64%, but high debt-to-equity ratio of 3.45 indicating significant leverage concerns and financial risk factors.
   

3B Films offers a specialised investment opportunity in the flexible packaging films manufacturing sector with its advanced production capabilities, diverse product portfolio, and export presence. While it faces significant challenges including revenue decline, high debt levels, weak market reception, and intense competition, its manufacturing expertise and forward integration plans provide potential for long-term growth. However, the disappointing listing performance with a 3% discount and continued decline to ₹46.08 reflects investor concerns about valuation levels and near-term prospects, suggesting the need for careful evaluation before investment consideration.