Aten Papers & Foam Limited IPO, a Book Built Issue of ₹31.68 Crores, witnessed subscription of 1.47 times as per the final day data on June 17, 2025. The company, known for designing recyclable and renewable paper solutions, caters to various personal and commercial uses across India and abroad. This IPO, entirely a fresh issue of 33 lakh equity shares, was opened for subscription from June 13 to June 17, 2025.

The price band for the IPO is ₹91 to ₹96 per equity share, valuing the company at a market capitalisation of ₹98.88 Crores at the upper band. The minimum lot size is 1,200 shares, meaning retail investors must invest at least ₹1,15,200, while HNIs must invest at least ₹2,30,400. The IPO is being managed by SWASTIKA INVESTMART LIMITED as the Book Running Lead Manager, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED as the registrar and Sunflower Broking Private Limited as the Market Maker.

As per updates, the Grey Market Premium (GMP) for Aten Papers & Foam IPO is ₹0, indicating no expected premium or listing gains in the unlisted market. This could be a signal of lukewarm investor interest or balanced pricing. It is essential to remember that Grey Market Premium is unofficial, unregulated, and only indicative of unorganised demand and supply trends.

The IPO allotment date is June 18, 2025, and investors can check their status by visiting the registrar's website, selecting the IPO name from the dropdown, and entering the application number, PAN, or DP Client ID. The tentative listing date for shares on the BSE SME platform is June 20, 2025.

Company Overview

Aten Papers & Foam Limited (APFL) has carved a niche in the paper industry over the last six years, delivering customized, eco-friendly, and renewable solutions. Their paper products cater to personal, industrial, and commercial segments, ranging from business documents and contracts to novels and hygiene products. Their slogan-like essence – “Paper for every aspect of life” – defines their diverse product utility.

The promoters, Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani, have leveraged their industry expertise to steer the company through expansions and adapt to evolving market trends. The firm emphasizes sustainable manufacturing and has a mission to create environmentally conscious products that connect and protect.

Financial Performance

APFL has demonstrated consistent financial growth over the last four years:

• Revenue from operations:

  • FY2025 (till Mar 31): ₹13,870.23 Lakhs

  • FY2024: ₹9,679.82 Lakhs

  • FY2023: ₹9,099.72 Lakhs

  • FY2022: ₹8,982.28 Lakhs

• EBITDA:

  • FY2025: ₹1,066.39 Lakhs

  • FY2024: ₹515.27 Lakhs

  • FY2023: ₹187.58 Lakhs

  • FY2022: ₹190.83 Lakhs

• Profit After Tax (PAT):

  • FY2025: ₹701.14 Lakhs

  • FY2024: ₹278.10 Lakhs

  • FY2023: ₹50.26 Lakhs

  • FY2022: ₹76.31 Lakhs

This indicates a clear upward trend in revenue, profitability, and operational efficiency.

From a valuation standpoint, Aten Papers & Foam exhibits the following:

• Pre-issue EPS: ₹10.02

• Post-issue EPS: ₹6.81

• Pre-issue P/E ratio: 9.58x

• Post-issue P/E ratio: 14.10x

• ROCE (FY24): 43.84%

• ROE (FY24): 66.53%

• RoNW: 49.93%

These indicators reflect strong operational returns and profitability, but the valuation at post-issue P/E of 14.10x is on the higher side given the sector benchmarks in the SME segment.

Objectives of the IPO

The company plans to utilise the Net Proceeds for the following:

1. ₹427.74 Lakhs for Capital Expenditure to support infrastructure expansion.

2. ₹4,574.58 Lakhs to meet working capital requirements, indicating a focus on scaling operations and stabilising liquidity.

3. Balance funds allocated for General Corporate Purposes, which could include branding, hiring, or technology upgrades.

IPO Subscription Status

The IPO was subscribed 1.47 times in total by 7:00 PM on June 17, 2025, which reflects moderate investor interest. A subscription below 2x on final day may raise questions on future demand post listing, unless backed by institutional or anchor support.

Aten Papers & Foam IPO Review – Investment Recommendation

Despite healthy revenue growth, profitability, and strong return ratios, the absence of a Grey Market Premium, moderate subscription rate, and limited upside potential suggest a conservative market sentiment toward this IPO.

While the business fundamentals appear solid, the valuation appears slightly stretched when compared to peer SME paper manufacturers. Furthermore, zero GMP implies flat listing expectations, possibly close to the upper band of ₹96.

Hence, investors looking for short-term listing gains are advised to avoid this issue. Long-term investors may also consider evaluating the post-listing performance before making an entry.

Conclusion

The Aten Papers & Foam IPO offers an opportunity to invest in a growing paper manufacturing company with solid financials and a strong vision for sustainability. However, lack of GMP movement, modest subscription levels, and fair valuation mean investors must proceed with caution. While the company presents a compelling growth story, the IPO does not currently reflect an attractive entry point for either listing gains or long-term investment.

The listing is expected on June 20, 2025, and it will be crucial to observe the market reception and volume trends post-listing to make informed investment decisions.

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.

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