The Abril Paper Tech Limited IPO has officially opened for subscription, marking another addition to the SME IPO market. The issue size stands at ₹13.42 crore, consisting entirely of a fresh issue of 22 lakh equity shares. Being a fixed price issue, the offer price has been set at ₹61 per equity share, with the subscription window running from 29 August 2025 to 02 September 2025. The allotment will be finalized on 03 September 2025, and the shares are scheduled to list on the BSE SME platform on 05 September 2025.

At the IPO price of ₹61 per share, the company will achieve a market capitalization of ₹48.69 crore. The IPO has a lot size of 2,000 shares, and retail investors are required to invest in a minimum of 2 lots (4,000 shares), translating to an investment of ₹2,44,000. Interactive Financial Services Limited is the book running lead manager, KFin Technologies Limited is acting as the registrar, and B. N. Rathi Securities Limited is serving as the sole market maker for this issue.

Company Overview

Abril Paper Tech Limited is recognized as one of the leading manufacturers and suppliers of sublimation heat transfer paper in India. The company specializes in delivering high-quality paper ranging from 30 GSM to 90 GSM across multiple sizes. Its products cater to diverse applications in the digital printing industry, including home furnishings, fashion apparel, gym and sportswear, T-shirts, garments printing, saree printing, nightwear, swimwear, soft signage, hard substrates, and other textile-related industries.

The company is spearheaded by Mr. Vipul Dobariya, the Promoter and Managing Director, who brings 6 years of business management experience in manufacturing operations and procurement. Mr. Ashvinbhai Lathiya, the Whole Time Director, has a similar 6 years of expertise in distribution, marketing, and sales strategies, while Mr. Prince Lathiya, the Non-Executive Director, has 3 years of experience in guiding expansion, brand building, and market penetration.

IPO Grey Market Premium (GMP)

As per the latest update, the Grey Market Premium (GMP) of Abril Paper Tech IPO is ₹0, suggesting that the expected listing price remains ₹61, the same as the issue price. This indicates that the grey market does not currently anticipate any listing gains. It is important to note that GMP is unofficial, unregulated, and should only be viewed for informational purposes as no actual trading occurs in this market.

IPO Subscription Status

By 11:30 AM on 01 September 2025, the second day of bidding, the IPO was subscribed 1.59 times, reflecting moderate investor interest. The live subscription status can be checked on the BSE portal. The demand trend in the final day will play a decisive role in shaping the allotment ratios and potential listing performance.

Financial Performance

The financials of Abril Paper Tech Limited showcase a significant jump in revenue and profitability in recent years:

• Revenue from operations stood at ₹6,091.45 lakh in FY 2025, compared to ₹682.61 lakh in FY 2024.

• EBITDA reached ₹201.06 lakh in FY 2025, up from ₹61.41 lakh in FY 2024.

• Profit After Tax (PAT) was ₹141.29 lakh in FY 2025, versus ₹42.78 lakh in FY 2024.

This financial trajectory indicates strong growth momentum, with a robust expansion from FY24 to FY25.

Valuation Metrics

The key performance indicators for Abril Paper Tech show the following:

• 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 valuations suggest that the IPO is fairly priced, with limited room for undervaluation-driven listing gains.

Utilisation of IPO Proceeds

The net proceeds from the IPO will be directed towards:

1. ₹540 lakh for capital expenditure, specifically for the purchase of machinery.

2. ₹500 lakh for working capital requirements.

3. ₹201 lakh for general corporate purposes.

This allocation reflects the company’s strategy to expand production capacity and strengthen operations.

IPO Allotment and Listing

The allotment date is scheduled for 03 September 2025. Investors can check their allotment status on the registrar’s website by selecting Abril Paper Tech Limited IPO, entering their application number, PAN, or DP Client ID, and submitting the details. Shares are expected to be credited to investors’ demat accounts before the listing on 05 September 2025.

Expert Review and Outlook

Market analysts note that Abril Paper Tech has demonstrated strong revenue growth in a short time frame, backed by increasing demand for sublimation heat transfer paper in the digital printing industry. However, at the IPO price of ₹61 per share, the valuation metrics indicate the issue is fairly priced, leaving little scope for immediate listing gains.

The Grey Market Premium at ₹0 further reinforces this outlook. As a result, experts recommend that investors avoid applying purely for listing gains. However, long-term investors who believe in the expansion of the digital printing sector and increasing demand for sublimation paper products may consider this IPO for portfolio diversification.

Conclusion

The Abril Paper Tech IPO is a ₹13.42 crore fixed price issue opening at ₹61 per share with listing scheduled on BSE SME. With a market capitalization of ₹48.69 crore post issue and moderate subscription levels, the IPO reflects fair pricing without speculative upside.

While the company’s financial growth trajectory is strong, the absence of a positive GMP trend and relatively high P/E ratio suggest limited listing gains. Therefore, short-term investors are advised to stay cautious, while long-term investors with confidence in the digital printing and textile industry’s growth prospects can evaluate this IPO as a calculated bet.

The Upcoming IPOs in this week and coming weeks are Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Austere Systems, Optivalue Tek Consulting, Vigor Plast India, Goel Construction Company.

The Current active IPO are Amanta Healthcare, Rachit Prints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Oval Projects.

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