Aaradhya Disposal Industries Ltd is launching its Initial Public Offering (IPO) on August 4, 2025, with a Book Built Issue of ₹ 45.10 Crores. The issue comprises only a Fresh Issue of 38.88 lakh equity shares. The IPO is set to close on August 6, 2025. The shares will be listed on NSE SME, with a tentative listing date on August 11, 2025.

The IPO Price Band has been fixed at ₹110 to ₹116 per equity share, with a lot size of 1,200 shares. Retail investors must apply for a minimum of 2 lots (2,400 shares), requiring an investment of ₹2,78,400.

The issue is being managed by Khambatta Securities Limited, with Bigshare Services Pvt Ltd as the registrar and Prabhat Financial Services Limited as the market maker.

Company Overview

Aaradhya Disposal Industries Limited is engaged in manufacturing environmentally friendly paper products such as paper cup blanks, ripple blanks, and bio-degradable coated paper. They use premium raw materials sourced from ITC, Century, Nippon, and West Coast. Their product portfolio includes Poly Coated Paper Rolls, Embossed Ripple Wall Paper Fans, and Multi-Colour Paper Fans.

The company is a leading exporter, manufacturer, and supplier of paper-based disposables, with a strong emphasis on quality and sustainability.

The leadership team includes:

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

• Mr. Anil Maheshwari, with expertise in sales, finance, and business development

• Mrs. Shashi Maheshwari, also a promoter

IPO Objectives

The company plans to use the Net Proceeds from the IPO towards:

1. ₹20.00 Crores for working capital requirements

2. ₹15.85 Crores for expansion through purchase of plant and machinery and civil works

3. ₹1.60 Crores for prepayment of term loans

4. Remaining amount for general corporate purposes

Financial Performance

The company has shown a consistent financial growth trend:

• Revenue from operations:

  • FY23: ₹8,651.05 Lakh

  • FY24: ₹7,591.26 Lakh

  • FY25: ₹11,595.63 Lakh

• EBITDA:

  • FY23: ₹603.32 Lakh

  • FY24: ₹939.74 Lakh

  • FY25: ₹2,023.50 Lakh

• Profit After Tax (PAT):

  • FY23: ₹214.48 Lakh

  • FY24: ₹398.59 Lakh

  • FY25: ₹1,027.39 Lakh

Key Ratios:

• Pre-issue EPS (FY24): ₹10.14

• Post-issue EPS: ₹7.27

• Pre-issue P/E: 11.43x

• Post-issue P/E: 15.96x

• ROCE (FY24): 25.15%

• ROE (FY24): 44.53%

• RoNW: 34.87%

These numbers indicate strong fundamentals but also suggest that valuation is on the higher side post-issue.

Grey Market Premium (GMP) Update

As of July 29, 2025, the GMP stands at ₹0, implying no listing gains are expected. The expected listing price remains at ₹116, which is the upper band of the issue price.

The Grey Market Premium (GMP) is not an official indicator and is driven by speculative demand and supply. Therefore, it cannot be considered reliable for pricing decisions. However, since the GMP is flat, there is no enthusiasm in the unorganised market.

IPO Allotment & Listing Details

• IPO Subscription Dates: August 4 to August 6, 2025

• IPO Allotment Date: August 7, 2025 (Thursday)

• Expected Listing Date: August 11, 2025 (Monday)

How to check IPO allotment status:

• Visit the registrar’s website (Bigshare Services Pvt Ltd)

• Select Aaradhya Disposal Industries from the dropdown

• Enter application number, PAN, or DP Client ID

• Click submit to check allotment status

Expert Recommendation

Despite a good financial performance, the valuation is fairly priced and listing gains are unlikely. The flat GMP, the large minimum investment size (₹2.78 lakh), and the lack of buzz in the grey market make this issue less attractive for short-term investors.

Experts recommend avoiding this IPO for listing gains.

However, long-term investors who believe in the eco-friendly packaging industry and sustainable product demand may consider it after evaluating future expansion capabilities and risk appetite.

Conclusion

Aaradhya Disposal Industries Ltd comes with strong fundamentals and robust business growth in a booming sustainable product segment. However, the IPO is fairly valued and the GMP shows no indication of quick returns. For those looking at short-term gains, this IPO does not look promising. Caution is advised.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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.

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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