Aten Papers & Foam Limited (APFL) is a prominent player in the paper and packaging industry, offering products ranging from business documents to essential hygiene papers. With over six years in the industry, the company manufactures recyclable and renewable products. Their diverse range includes paper for business contracts, exams, novels, and various life expressions. APFL caters to both domestic and global markets, delivering solutions designed to protect and connect the world.

Aten Papers & Foam IPO Details

Aten Papers & Foam is launching a Book Built Issue IPO amounting to ₹ 31.68 Crores. This entirely fresh issue consists of 33.00 Lakh shares, with the price band set between ₹ 91 and ₹ 96 per equity share. The market capitalization of the company at the upper price of ₹ 96 per share will be ₹ 98.88 Crores. The IPO will open for subscription on March 28, 2025, and close on April 2, 2025. The allotment will be finalized by April 3, 2025, and the listing is expected on April 7, 2025, on the BSE SME platform.

IPO Subscription and Investment Details

• Price Band: ₹ 91 to ₹ 96 per share

• Lot Size: 1,200 shares

• Minimum Investment for Retail Investors: ₹ 1,15,200 (1,200 shares)

• Minimum Investment for HNIs: ₹ 2,30,400 (2,400 shares)

Grey Market Premium and Allotment Information

As of March 25, 2025, the Grey Market Premium (GMP) for Aten Papers & Foam IPO stands at ₹ 0, indicating no price movement in the grey market. It is essential to note that the Grey Market Premium is based on unorganized trading and cannot determine the final listing price. The GMP is mentioned only for educational purposes and should not be used for making investment decisions.

To check the allotment status, investors can visit the registrar’s website after the allotment date. The process to check the status involves selecting Aten Papers & Foam from the dropdown menu, entering your application number or PAN, and submitting the details.

Company Financial Performance

Aten Papers & Foam has shown consistent revenue growth over the past few years, with a significant revenue of ₹ 8,982.28 Lakh for the fiscal year 2024. The company's EBITDA has fluctuated slightly, with ₹ 190.83 Lakh reported for the period ending September 2024. Despite some variation in its profit performance, with a profit after tax of ₹ 76.31 Lakh for FY24, the company has managed to expand its operations and adapt to market demands.

The pre-issue EPS for Aten Papers & Foam is ₹ 3.97, while the post-issue EPS stands at ₹ 2.70. The company’s P/E ratio is 24.18x pre-issue and 35.56x post-issue. These ratios, along with the company’s ROE of 49.31% and ROCE of 23.23%, indicate solid financial health but also suggest that the IPO is fully priced.

Investment Perspective and Recommendation

Given the current valuation and the financial performance of Aten Papers & Foam, the IPO is considered fully priced. The company’s steady growth is promising, but the high P/E ratios and lack of Grey Market Premium make it challenging to foresee significant listing gains. Therefore, we recommend cautious consideration for retail and high-net-worth investors. We advise investors to avoid the IPO for short-term gains or long-term investment purposes based on the current financial metrics.

Investors should carefully evaluate their risk appetite and consider the potential for future growth, but also keep in mind that the IPO is priced at a premium level in relation to its past financial performance.

Conclusion

In conclusion, Aten Papers & Foam Limited offers a unique and diverse range of products within the paper and packaging industry, and its IPO provides investors with an opportunity to participate in the company’s growth. However, the fully priced IPO, along with the current market conditions, suggests that this investment may not offer substantial returns in the near term. Investors should assess the potential risks before participating in this IPO.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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