Aten Papers & Foam Limited, a company operating in the paper and packaging industry, is set to make its stock market debut with a ₹31.68 crore Initial Public Offering (IPO). The offering consists entirely of a fresh issue of 33 lakh equity shares, with the subscription period running from March 28 to April 2, 2025. Investors can track its journey as the company prepares to list on the BSE SME platform on April 7, 2025.
The IPO is priced between ₹91 and ₹96 per share, with a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,15,200 (1 lot), while High Net-worth Individuals (HNI) must subscribe to at least 2 lots (₹2,30,400). The company has outlined an efficient post-subscription schedule, with share allotment set for April 3, 2025, ensuring a smooth transition to listing. As this biofuel producer enters the public market, it presents a compelling opportunity within India’s paper and packaging sector.
Aten Papers & Foam Limited IPO is a fundraise worth ₹31.68 crores comprising purely of a fresh issue with 33,00,000 shares reserved for the market maker Sunflower Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from March 28, 2025, to April 2, 2025, providing an opportunity for investors looking to gain a stake in the paper and packaging industry.
| Aten Papers & Foam IPO date | March 28, 2025 - April 2, 2025 |
| Price band | ₹91 to ₹96 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 33,00,000shares amounting to ₹31.68 crores |
| Total issue size | 33,00,000 shares amounting to ₹31.68 crores |
| Listing at | BSE SME |
| Market maker portion | 1,65,600 shares - Sunflower Broking Pvt Ltd |
| Shareholding post-issue | 1,03,00,000 shares |
| Shareholding pre-issue | 70,00,000 shares |
The Aten Papers & Foam Limited IPO opens for subscription on March 28, 2025, and closes on April 2, 2025, with allotment scheduled for April 3, 2025.
| IPO open date | March 28, 2025 (Friday) |
| IPO close date | April 2, 2025 (Wednesday) |
| Basis of allotment | April 3, 2025 (Thursday) |
| Initiation of refunds | April 4, 2025 (Friday) |
| Credit of shares to Demat account | April 4, 2025 (Friday) |
| Listing date on BSE SME | April 7, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on April 2, 2025 (Wednesday) |
Aten Papers & Foam Limited, established in 2019, plays a crucial role in the paper product supply chain, sourcing materials from various mills and supplying them to the packaging industry. The company offers a diverse range of products, including Kraft paper, duplex boards, and absorbent paper, catering to different industrial needs with varying grades, thicknesses, and sizes. Additionally, it contributes to sustainability by purchasing and selling wastepaper to paper mills, ensuring efficient resource utilisation in the manufacturing process.
With a well-established presence in the market, Aten Papers & Foam Limited distinguishes itself through its experienced senior management team, in-house logistics, and strong financial credibility. The company maintains a ready stock of essential materials, enabling it to meet client demands promptly while ensuring seamless operations. As of November 2024, it operates with a dedicated team of 14 employees, focusing on delivering high-quality and eco-friendly paper solutions to businesses across various sectors.
Aten Papers & Foam Limited plans to utilise the net proceeds from its IPO to support key business objectives, including ₹42.5 million for capital expenditure to enhance infrastructure and ₹155 million for incremental working capital requirements to ensure operational efficiency. Additionally, funds will be allocated for general corporate purposes and public issue expenses, reinforcing the company’s growth strategy in the paper and packaging industry.
As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 49.31%, Return on Capital Employed (ROCE) at 23.23% and a Debt-to-Equity ratio of 2.23. The Return on Net-Worth (RoNW) stands at 39.55%, and the PAT Margin was 2.87%. The Price to Book Value was 9.55. The company’s market capitalisation is ₹98.88 crores.
| Period Ended | Sep 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 58.18 | 96.8 | 91 | 89.82 |
| Assets | 37.82 | 32.92 | 29.62 | 27.85 |
| Net Worth | 10.85 | 7.03 | 4.25 | 3.74 |
| Profit After Tax | 3.82 | 2.78 | 0.5 | 0.76 |
| Reserves & Surplus | 3.85 | 6.03 | 3.25 | 2.75 |
| Total Borrowing | 10.96 | 15.67 | 16.03 | 15.44 |
Amount in ₹ crores
The pre-IPO EPS is at ₹3.97, while the post-IPO EPS will be ₹7.41. Similarly, the pre-IPO Price to Earnings ratio is 24.16 and will become 12.95 post-IPO.
Aten Papers & Foam has been experiencing steady growth, with consistent increases in revenue and impressive profitability. In just a year, its profit after tax (PAT) has risen from ₹50.26 lakhs to ₹278.10 lakhs, reaching ₹381.66 lakhs by September 2024. This demonstrates not only growth but also efficiency, with a high return on equity of 39.55%. The company also has a well-diversified product range, including Kraft Paper, Duplex Boards, and wastepaper trading, allowing it to cater to a variety of customer needs.
What sets Aten apart is its experienced leadership, with promoters who have over two decades of industry expertise. It has built strong relationships with paper mills and packaging clients, securing a solid position in the supply chain. Looking ahead, the company is making strategic moves, such as setting up three wastepaper processing units in Ahmedabad, which will support its expansion. With the rising demand for sustainable packaging, Aten is well-placed to take advantage of this trend. Additionally, its in-house logistics ensure smooth operations, and with India’s packaging market growing at 6.63% annually, the company is in a strong position for the future.
Aten Papers & Foam faces some challenges. A key issue is that it does not own any land or facilities, instead renting them from its promoters. This reliance on leases introduces an element of risk. The company is also highly dependent on a small number of suppliers, meaning that any disruption in supply could have a significant impact. Similarly, a large portion of its revenue comes from a few key clients in Gujarat, making it financially vulnerable if any of them are lost. Another challenge is its entry into wastepaper processing, an area where it has limited prior experience.
Regulatory risks are another concern, as sustainability laws and environmental regulations are constantly evolving. The company also engages in a high level of related-party transactions, which can sometimes raise questions around transparency. Furthermore, one of its group companies is involved in legal issues, which could potentially affect Aten’s reputation. Delays in capital expenditure for its wastepaper processing units could also slow down growth. Additionally, the company’s heavy reliance on the Gujarat market exposes it to regional economic fluctuations, while commodity price volatility could impact profit margins. Lastly, past delays in regulatory filings could attract scrutiny, and the company’s product diversification remains somewhat limited compared to competitors.
Being among the early public investors in Aten Papers & Foam Limited could present an opportunity to participate in the company's growth trajectory in the space of paper and packaging industry. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Aten Papers & Foam Limited IPO?
The Aten Papers & Foam Limited IPO is an BSE SME offering consisting of 33,00,000 equity shares with a face value of ₹10, aiming to raise ₹31.68 crore. The price band has been set between ₹91 to ₹96 per share, with a minimum order quantity of 1200 shares. This IPO will be open for subscription from March 28, 2025, to April 2, 2025. Swastika Investmart Private Limited is the book-running lead manager, Skyline Financial Services Private Limited is the registrar while Sunflower Broking Private Limited is the market maker.
When will the Aten Papers & Foam IPO open?
The Aten Papers & Foam Limited IPO will open for subscription on March 28, 2025, and will close on April 2, 2025.
When is the Aten Papers & Foam IPO listing date?
The tentative listing date for the Aten Papers & Foam Limited IPO is Monday, April 7, 2025.
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