Aten Papers & Foam Limited (APFL), a significant name in the Indian paper and packaging sector, has launched its Initial Public Offering (IPO) to raise ₹31.68 crores via a Book Built Issue. The issue comprises entirely a fresh issue of 33 lakh equity shares, and the company aims to continue its growth by investing in capital infrastructure, meeting working capital requirements, and funding general corporate expenses.

The IPO opened for subscription on June 13, 2025, and is set to close on June 17, 2025. Investors who apply can expect the allotment of shares to be finalized on June 18, and the tentative listing date is June 20, 2025, on the BSE SME platform.

The price band for Aten Papers & Foam IPO is fixed between ₹91 and ₹96 per equity share. At the upper end of this band, the market capitalization will stand at ₹98.88 crores. With a lot size of 1,200 shares, retail investors will need to invest at least ₹1,15,200, while HNIs will need to apply for a minimum of 2 lots, amounting to ₹2,30,400.

The issue is being managed by Swastika Investmart Limited as the book running lead manager, with Skyline Financial Services Private Limited acting as the registrar, and Sunflower Broking Private Limited serving as the market maker.

About Aten Papers & Foam Limited

Aten Papers & Foam Limited has spent the past six years becoming a respected force in the paper and foam products industry. It offers innovative and sustainable paper solutions, emphasizing recyclable and renewable products for diverse uses ranging from hygiene to documentation and packaging. Its catalogue covers everything from business documents, books, and packaging materials to everyday writing paper and emotional expression mediums. In short, the company creates paper for every aspect of life.

The company operates with a clear vision for sustainability and innovation. Under the leadership of Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani, the promoters of the company, Aten Papers & Foam has successfully diversified its offerings and expanded its operational reach.

IPO Objective

According to its red herring prospectus, Aten Papers & Foam plans to utilise the Net Proceeds from the IPO as follows:

1. ₹427.74 Lakhs will be allocated for capital expenditure.

2. ₹4,574.58 Lakhs will be used to meet working capital requirements.

3. The remainder will be utilised for general corporate purposes.

Aten Papers & Foam IPO GMP and Subscription Status

As of June 17, 2025, at 11:00 AM, the IPO has been subscribed 1.05 times, reflecting a moderate interest from investors on the final day. However, the Grey Market Premium (GMP) for Aten Papers & Foam IPO has remained at ₹0, indicating no speculative trading interest in the unofficial market.

This flat GMP suggests that investors do not anticipate a strong listing gain, and hence, the sentiment around this IPO remains cautious. While GMPs are unofficial and speculative, they often reflect investor sentiment before listing.

Financial Performance

The company has shown a steady financial growth trajectory, particularly in recent years. Here is a look at its key financial metrics:

• Revenue from Operations

  • FY25 (till March 31): ₹13,870.23 lakh

  • FY24: ₹9,679.82 lakh

  • FY23: ₹9,099.72 lakh

  • FY22: ₹8,982.28 lakh

• EBITDA

  • FY25: ₹1,066.39 lakh

  • FY24: ₹515.27 lakh

  • FY23: ₹187.58 lakh

  • FY22: ₹190.83 lakh

• Profit After Tax (PAT)

  • FY25: ₹701.14 lakh

  • FY24: ₹278.10 lakh

  • FY23: ₹50.26 lakh

  • FY22: ₹76.31 lakh

This consistent upward movement indicates operational efficiency and market acceptance of its products. However, despite the rising revenue and profit, the absence of GMP traction signals investor hesitation.

Key Performance Ratios

• 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

• ROCE (FY24): 43.84%

• ROE (FY24): 66.53%

• RoNW (FY24): 49.93%

The return ratios are robust, especially ROE and ROCE, which indicate efficient capital deployment and profitability. Despite these positives, valuation metrics suggest the IPO may be fully priced.

Allotment Status – How to Check

To check the Aten Papers & Foam IPO Allotment Status:

• Visit the registrar’s website (Skyline Financial Services Private Limited).

• Select “Aten Papers & Foam IPO” from the dropdown.

• Enter your PAN, application number, or DP Client ID.

• Click submit to view your allotment status.

This process will help investors quickly verify whether shares have been allotted to them post-IPO closure.

Expert Recommendation

Despite Aten Papers & Foam’s impressive financial performance and robust returns, the lack of grey market interest, combined with fair valuation multiples, makes this IPO less attractive for listing gains. Experts suggest that while the company is fundamentally strong, the IPO may not offer short-term returns.

Therefore, investors looking for quick gains or short-term positions may consider avoiding this issue. Long-term investors may keep the stock on their watchlist, but with caution.

In conclusion, Aten Papers & Foam Limited IPO provides an opportunity to invest in a growing and sustainable player in the paper industry, with strong returns and expanding operations. However, current market sentiment and GMP trends suggest caution. The IPO is fairly valued, and unless investor interest increases, it might not yield significant listing gains.

Hence, investors are advised to Avoid the Aten Papers & Foam IPO for listing or long-term investment, unless willing to take a high-risk bet in the SME segment.

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 Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures.

The Current active IPO are  Eppeltone Engineers, Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers.

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.