Aaradhya Disposal Industries Limited, a company focused on environmental health, is launching its Initial Public Offering (IPO) from August 4 to August 6, 2025. The IPO is a Book Built Issue aiming to raise approximately ₹45.10 Crores entirely through a Fresh Issue of 38.88 lakh shares.

The price band is fixed between ₹110 to ₹116 per equity share, with a lot size of 1,200 shares. Investors must subscribe to a minimum of 2 lots (2,400 shares) which will cost around ₹2,78,400 at the upper price band. The shares are proposed to be listed on the NSE SME platform with a tentative listing date of August 11, 2025.

The IPO is managed by Khambatta Securities Limited as the Book Running Lead Manager, Bigshare Services Pvt Ltd as the registrar, and Prabhat Financial Services Limited as the market maker.

Grey Market Premium (GMP) and Listing Outlook

The Grey Market Premium is currently estimated at ₹10, implying a potential listing gain of approximately 8.62% over the upper price band. Investors should note that GMP is an unofficial indicator and should be used only for informational purposes. Actual listing performance may vary based on market conditions.

Company Background and Business Overview

Aaradhya Disposal Industries is known for manufacturing paper cup blanks, ripple blanks, and a variety of quality paper products. The company emphasizes using premium raw materials from reputed suppliers such as ITC, Century, Nippon, and West Coast to ensure product excellence. Its product portfolio includes Poly Coated Paper Rolls, Embossed Ripple Wall Paper Fans, Bio-degradable coated paper, and Multi-Colour Paper Fans. These offerings have positioned Aaradhya Disposal as a leading paper products manufacturer, exporter, and supplier in the industry.

Promoter and Management

The company is led by experienced promoters:

• Mr. Sunil Maheshwari, with over a decade of experience in manufacturing paper-related products.

• Mr. Anil Maheshwari, having more than ten years of expertise in sales, technical accounting, financial advisory, and business development.

• Mrs. Shashi Maheshwari, also part of the promoter group.

Financial Performance

The company’s financials indicate steady growth:

This consistent growth in revenue and profitability demonstrates the company's expanding operational efficiency and strong market demand.

IPO Objectives

The net proceeds from the IPO will be utilized as follows:

1. ₹20 Crores to meet working capital requirements.

2. ₹15.86 Crores for expansion, including purchase of plant, machinery, and civil works.

3. ₹1.60 Crores towards prepayment of term loans.

4. Remaining funds for general corporate purposes.

Valuation Metrics

• Pre-issue EPS (FY24): ₹10.14

• Post-issue EPS (FY24): ₹7.27

• Pre-issue P/E Ratio: 11.43x

• Post-issue P/E Ratio: 15.96x

• Return on Capital Employed (ROCE) FY24: 25.15%

• Return on Equity (ROE) FY24: 44.53%

• Return on Net Worth (RoNW) FY24: 34.87%

These metrics suggest the IPO is fairly priced relative to its earnings and return profiles.

Subscription and Allotment Details

The subscription window opens on August 4, 2025, and closes on August 6, 2025. The allotment is expected on August 7, 2025. Investors can check their allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID.

Conclusion and Recommendation

Given its solid financial growth, experienced management, and reasonable valuation, the Aaradhya Disposal Industries IPO could be a promising opportunity for risk-tolerant investors seeking listing gains. The company's focus on environmental-friendly products and expansion plans also present potential for future growth.

Disclaimer

This review is for educational and informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investment decisions should be made after consulting a qualified financial advisor. Investments in securities are subject to market risks. Readers should carefully read all offer documents before investing.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

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