Aten Papers & Foam Limited (APFL) is an Indian paper manufacturer that has been operating in the industry for over six years. The company specializes in designing and producing recyclable and renewable paper products that serve hygiene, documentation, emotional expression, and packaging needs. From notebooks to napkins, novels to exam papers, Aten's products touch every part of daily life.

The company is now entering the capital market with a Book Built IPO of ₹31.68 crores, consisting solely of a Fresh Issue of 33 lakh equity shares. The IPO opens for subscription on June 13, 2025, and closes on June 17, 2025. The tentative listing date is June 20, 2025, on the BSE SME platform. The IPO is managed by Swastika Investmart Limited as the Book Running Lead Manager, while Skyline Financial Services Private Limited serves as the registrar. Sunflower Broking Pvt. Ltd. acts as the Market Maker.

IPO Price Band and Lot Size

The price band for the Aten Papers IPO is set at ₹91 to ₹96 per share. The lot size is 1,200 shares, which means:

• Minimum investment for retail investors: ₹1,15,200

• Minimum investment for HNIs (2 lots): ₹2,30,400

At the upper price band of ₹96, the company's post-issue market capitalization will be approximately ₹98.88 crore.

Objectives of the IPO

The company plans to use the IPO proceeds for the following:

1. ₹427.74 lakhs for capital expenditure

2. ₹4,574.58 lakhs to meet working capital requirements

3. Remaining funds will be used for general corporate purposes

Grey Market Premium (GMP) Status

As of June 10, 2025, the GMP of Aten Papers IPO is ₹0, meaning there is no unofficial premium in the grey market. This typically signals low speculative interest and could imply flat listing performance unless institutional demand changes the outlook closer to listing.

Note: GMP is not regulated, and should not be considered a reliable indicator for pricing or listing performance.

Financial Performance Snapshot

Aten Papers & Foam Limited has shown consistent growth in revenues and profitability over the years. Below is a financial summary:

(*FY2024-25 is for the period ended March 31, 2025)

Key Ratios and Valuations

• Pre-Issue EPS (FY24): ₹10.02

• Post-Issue EPS (FY24): ₹6.81

• Pre-Issue P/E Ratio: 9.58x

• Post-Issue P/E Ratio: 14.10x

• Return on Capital Employed (ROCE): 43.84%

• Return on Equity (ROE): 66.53%

• Return on Net Worth (RoNW): 49.93%

While these performance ratios, especially ROE and ROCE, are impressive and point toward strong operational efficiency, the IPO is still considered fairly priced to slightly expensive based on post-issue valuation.

Management and Promoters

The company is promoted by Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani. Their leadership and deep understanding of the paper industry have contributed to Aten's growth and ability to cater to evolving industry demands.

Allotment & How to Check Status

The allotment date is expected to be June 18, 2025 (Wednesday). Here's how you can check your allotment:

1. Visit the registrar website (Skyline Financial Services).

2. Select "Aten Papers & Foam Limited IPO" from the list.

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

4. Click “Submit” to check your status.

Conclusion: Should You Subscribe?

While Aten Papers has shown consistent financial growth and high returns on equity, the absence of a Grey Market Premium, high retail entry barrier (₹1.15 lakh minimum investment), and no unique value proposition in a competitive industry indicate limited upside potential on listing.

The company has solid fundamentals, but without strong institutional demand or clear listing gains signals, this IPO may not reward short-term investors.

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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