Is Shreenath Paper Products Ltd IPO Halal or Not? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether Shreenath Paper Products Ltd IPO meets Shariah Screening guidelines.
Is Shreenath Paper Products Ltd IPO Halal or Not?
The IPO of Shreenath Paper Products Ltd is considered Not Halal and Non-Shariah Compliant due to failing key financial criteria in Islamic finance screening. The reasons are:
- High Interest-Bearing Debt:
- The company’s interest-bearing debt to total assets ratio is 50.39%, which exceeds the acceptable Shariah threshold (usually 33%).
- This indicates a heavy reliance on interest-based financing, which is not permissible in Islam.
- Illiquid Assets to Total Assets Ratio:
- The illiquid assets ratio is 18.02%, which also results in a fail status.
- If illiquid assets fall below a certain level, it may indicate excessive cash or interest-based financial instruments, making the stock non-compliant.
Since the company fails two key financial screening criteria, it is classified as Not Halal and Non-Shariah Compliant and not suitable for halal investment.
Shariah Compliance Analysis of Shreenath Paper Products Ltd
| Criteria | Value | Status |
| Business Activity | TRADING | ✅ PASS |
| Impermissible Income to Total Revenue | 0.32% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 50.39% | ❌ FAIL |
| Illiquid Assets to Total Assets Ratio | 18.02% | ❌ FAIL |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Listing Details of Shreenath Paper Products Ltd IPO
| IPO Opening Date | Tuesday, February 25, 2025 |
| IPO Closing Date | Friday, February 28, 2025 |
| Expected Allotment Date | Monday, March 03, 2025 |
| Refund Initiation | Tuesday, March 04, 2025 |
| Shares Credited to Demat | Tuesday, March 04, 2025 |
| Expected Listing Date | Wednesday, March 05, 2025 |
| UPI Mandate Confirmation Deadline | Friday, February 28, 2025 |
Business Overview of Shreenath Paper Products Ltd
Incorporated in 2011, Shreenath Paper Products Ltd is a leading provider of supply chain solutions for industries reliant on specialized paper materials. The company supplies a diverse range of paper types, including coated, food-grade, machine-glazed, and adhesive papers, catering to sectors such as packaging, printing, FMCG, pharmaceuticals, and e-commerce.
Product Portfolio:
- Sublimation Base Paper – Ideal for heat-sensitive printing applications.
- Thermal Base Paper – Used in ATM receipts, POS terminals, and thermal printing.
- Straw Paper – High-strength, low-ash paper designed for eco-friendly straws.
- Cup Stock Paper – Moisture-resistant, multi-layered paper for cup manufacturing.
- Pressure-Sensitive Adhesive (PSA) Sheets – Includes security labels, transcode PSA, and digital PSA sheets.
- Industrial Paper – High-strength coated and uncoated paper for packaging and labeling.
- Medical Grade Insert Paper – Used for pharmaceutical packaging and medical documentation.
With a customer-centric, order-driven model, Shreenath Paper Products ensures high-quality, customized solutions for businesses across multiple industries. Its strategic sourcing, strong supplier network, and commitment to innovation make it a key player in the paper supply chain industry.
Shreenath Paper Products Ltd. Financial Information (Restated)
| Category | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹ 62.25 Cr | ₹ 60.34 Cr | ₹ 50.95 Cr | ₹ 30.82 |
| Revenue | ₹ 78.62 Cr | ₹ 189.67 Cr | ₹ 206.7 Cr | ₹ 141.75 |
| Profit After Tax | ₹ 2.41 Cr | ₹ 4.39 Cr | ₹ 4.38 Cr | ₹ 1.34 |
| Net Worth | ₹ 21.34 Cr | ₹ 18.93 Cr | ₹ 10.54 Cr | ₹ 5.65 |
| Reserves & Surplus | ₹ 6.99 Cr | ₹ 4.59 Cr | ₹ 9.8 Cr | ₹ 4.97 |
| Total Borrowing | ₹ 31.37 Cr | ₹ 28.89 Cr | ₹ 25.01 Cr | ₹ 16.73 |
| (All amounts are in ₹ Crore) | ||||
Conclusion
Based on the screening criteria, Shreenath Paper Products Ltd IPO appears to be Not Halal and Non-Shariah Compliant (Allah Knows the Best) as it does not meet all major shariah screening guidelines. However, investors should conduct their own due diligence and review the company’s financials periodically for any changes in compliance.
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.