Aaradhya Disposal Industries Limited, a reputed player in eco-friendly paper product manufacturing, is launching its Book Built IPO of ₹45.10 crore on August 4, 2025, and the issue will close on August 6, 2025. The IPO is entirely a fresh issue of 38.88 lakh equity shares, aimed at capitalising the business for expansion, debt reduction, and working capital needs.

The company is a major manufacturer and supplier of Poly Coated Paper Rolls, Embossed Ripple Wall Paper Fans, Multi-Colour Paper Fans, and biodegradable coated paper products used in cups, containers, and packaging.

IPO Price Band, Lot Size, and Key Dates

• Price Band: ₹110 to ₹116 per share

• Lot Size: 1,200 shares

• Minimum Investment: ₹2,78,400 (for 2 lots of 2,400 shares)

• Market Cap at Upper Band: ₹164.00 crore

• Issue Type: Book Built Issue (NSE SME)

Grey Market Premium (GMP) Trend

As of 29 July 2025, the Grey Market Premium is ₹10, implying a potential listing price of ₹126, which is an 8.62% premium over the upper price band of ₹116.

📌 Note: Grey Market trends are unofficial and unregulated. They offer only speculative insight and are not indicative of true market valuation.

Anchor and Lead Management Details

• Lead Manager: Khambatta Securities Ltd

• Registrar: Bigshare Services Pvt Ltd

• Market Maker: Prabhat Financial Services Ltd

About the Company

Aaradhya Disposal Industries Ltd., founded by Mr. Sunil Maheshwari, focuses on promoting environmentally sustainable packaging solutions. Their clients span FMCG, food delivery, retail, and health sectors. The company uses top-quality raw materials sourced from ITC, Century, Nippon, and West Coast to ensure the quality and biodegradability of its offerings.

Promoters

• Mr. Sunil Maheshwari – Over a decade in manufacturing paper products

• Mr. Anil Maheshwari – Experience in sales, accounting, finance, and operations

• Mrs. Shashi Maheshwari – Promoter and Director

Financial Performance

The company has demonstrated consistent growth in revenue and profitability over the last three fiscal years:

This growth is attributed to rising demand for disposable and biodegradable products, alongside improved production capacity.

Valuation Metrics and Key Ratios

• Pre-issue EPS (FY24): ₹10.14

• Post-issue EPS (FY24): ₹7.27

• Pre-issue P/E: 11.43x

• Post-issue P/E: 15.96x

• ROCE: 25.15%

• ROE: 44.53%

• RoNW: 34.87%

📊 These figures suggest the IPO is fairly priced compared to industry benchmarks, with strong returns on equity and capital employed.

IPO Objectives

The net proceeds from the IPO will be used for:

1. ₹20.00 crore – Working capital requirements

2. ₹15.85 crore – Capital expenditure for plant and machinery and civil work

3. ₹1.60 crore – Prepayment of bank loans

4. Balance – General corporate purposes

How to Check IPO Allotment Status

Allotment will be finalised on August 7, 2025, and investors can check it via Bigshare Services portal:

Steps to check allotment status:

1. Go to the allotment page

2. Select “Aaradhya Disposal Industries Ltd” from the dropdown

3. Enter your PAN, Application Number, or DP ID

4. Click submit to view status

Should You Invest in Aaradhya Disposal Industries IPO?

✅ Pros:

• Strong revenue and profit growth

• Sustainable and in-demand product line

• Use of high-quality raw materials

• Clean balance sheet with strategic use of IPO proceeds

• Reasonable valuation and strong ROE

⚠️ Risks:

• IPO priced on higher side of SME benchmarks

• Sectoral risks around raw material costs

• Only ₹10 GMP (8.6%) suggests limited short-term upside

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  Disclaimer

  The above analysis is for educational and informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Kindly consult your financial advisor before investing.

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

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  The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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