Abril Paper Tech Limited is today recognised as one of the leading suppliers and manufacturers of sublimation heat transfer paper in India, providing high-quality products catering to multiple industries. With a strong reputation in the digital printing industry, the company manufactures superior quality papers ranging from 30 GSM to 90 GSM in various sizes. Its products are extensively used across diverse sectors such as Home Furnishing, Fashion Apparel, Gym and Sportswear, T-Shirts, Garment Printing, Saree Printing, Nightwear, Swimwear, Hard Substances, Soft Signage and other textile-related industries.

IPO Structure and Details

The Abril Paper Tech IPO is being launched as a Fixed Price Issue worth ₹13.42 crore. The issue consists entirely of a fresh issue of 22 lakh equity shares, meaning no offer-for-sale (OFS) component is involved. The subscription window for investors opens on August 29, 2025, and will close on September 2, 2025. The basis of allotment is scheduled for September 3, 2025, with the company’s shares expected to list on the BSE SME platform on September 5, 2025.

The IPO price has been fixed at ₹61 per share. At this price, the company’s market capitalisation works out to ₹48.69 crore. The lot size has been set at 2,000 shares, with a minimum application requirement of 2 lots (4,000 shares). Therefore, an individual investor must invest at least ₹2,44,000 to apply.

The lead manager to the issue is Interactive Financial Services Limited, while KFIN Technologies Limited is acting as the registrar. The sole Market Maker for the issue is B. N. Rathi Securities Limited.

Abril Paper Tech IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Abril Paper Tech IPO is currently reported at ₹0, suggesting that there are no expected listing gains. It is important for investors to note that GMP is not an official indicator, as it is based on informal, unregulated market activity driven by demand and supply. Since the GMP is nil, it reflects a cautious sentiment from market participants towards the stock in the short term.

Objectives of the IPO

The company has laid out clear objectives for the utilisation of IPO proceeds:

1. Capital Expenditure: Around ₹540 lakh will be used for the purchase of machinery to expand production capabilities.

2. Working Capital: Around ₹500 lakh has been allocated to meet working capital requirements.

3. General Corporate Purpose: Around ₹201 lakh will be used for general corporate purposes, including business growth, administrative expenses, and strengthening the balance sheet.

Company Management

The company is led by an experienced management team:

• Mr. Vipul Dobariya, Promoter and Managing Director, brings over 6 years of business management experience, particularly in manufacturing operations, procurement, and strategic planning.

• Mr. Ashvinbhai Lathiya, Whole Time Director, also with 6 years of experience, focuses on distribution, marketing, and sales strategies.

• Mr. Prince Lathiya, Non-Executive Director, brings 3 years of experience in business expansion, market penetration, and brand building.

This leadership team has contributed to building Abril Paper Tech’s strong position in the sublimation paper segment of the Indian printing industry.

Financial Performance

Abril Paper Tech has shown a significant rise in revenues over the past two years, highlighting its growth potential.

• For the fiscal year ending March 31, 2025, revenues from operations stood at ₹6,091.45 lakh, compared to ₹682.61 lakh in FY 2024.

• The company’s EBITDA for FY 2025 was ₹201.06 lakh, up from ₹61.41 lakh in FY 2024.

• Profit After Tax (PAT) rose to ₹141.29 lakh in FY 2025 from ₹42.78 lakh in FY 2024.

This strong performance indicates that Abril Paper Tech has successfully scaled up its business, with revenues growing almost nine times in a single year.

Key Valuation Metrics

• Pre-issue EPS (FY24): ₹2.48

• Post-issue EPS (FY24): ₹1.77

• Pre-issue P/E ratio: 24.59x

• Post-issue P/E ratio: 34.46x

• ROCE (FY24): 16.38%

• ROE (FY24): 18.03%

• RoNW: 13.43%

These metrics suggest that while the company has shown strong growth, the IPO pricing is on the higher side, which may make it less attractive for listing gains.

Subscription and Allotment Details

The IPO subscription opens on August 29, 2025, and investors can apply until September 2, 2025. The allotment status will be finalised on September 3, 2025, and can be checked online via the registrar’s portal (KFIN Technologies).

Steps to check allotment status:

1. Visit the IPO allotment status page on the registrar’s website.

2. Select Abril Paper Tech Limited IPO from the dropdown menu.

3. Enter application number, PAN, or DP Client ID.

4. Submit the details to view the allotment status.

This simple process allows investors to confirm whether they have received shares in the IPO.

Should You Invest in Abril Paper Tech IPO?

While Abril Paper Tech has delivered impressive financial growth, the valuation appears stretched, and the GMP trend of ₹0 shows that there is no strong market enthusiasm for listing gains. Investors looking for short-term profits may avoid this IPO, as listing gains seem unlikely.

However, for long-term investors, the company operates in a niche and growing industry of sublimation transfer papers, which is integral to digital printing and apparel manufacturing. With increasing demand in sectors like fashion, home furnishing, sportswear, and signage, Abril Paper Tech may continue its growth trajectory if it utilises IPO proceeds effectively.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.