Aten Papers & Foam Limited opens its IPO for subscription on March 28th 2025 and ends on April 2nd 2025. It is a 100% book-built issue with a fresh issue size of 30,00,000 equity shares with a price band ranging from Rs. 91-96.
The IPO is set to go public on April 7th 2025 on the Emerge platform of the Bombay Stock Exchange.
The company is in the paper industry and primarily operates as an intermediary in the Paper Product Supply Chain. It procures, stocks, and supplies a diverse and multi-application range of paper products like Kraft Paper, Tube Kraft Paper, Paper Bag Kraft Paper, etc from different paper mills and distributes it to various packaging product companies across India which are used for Packaging and Printing and manufacturers products like packaging boxes and shipper carton.
It also procures crucial raw materials like Wastepaper, from the stockiest and sells it to paper mills.
Its product portfolio includes Kraft papers, Duplex boards, and others as per customer specifications.
It operates mainly in Gujarat, and its registered office is in Changodar, Ahmedabad.
Details Of Aten Papers & Foam Limited IPO
Objectives of Aten Papers & Foam Limited IPO
The Company with the help of this IPO proposes to utilize the net proceeds for capital expenditure, working capital, and for strategic business developments.
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Financial Performance of Aten Papers & Foam Limited
The table below (in lakhs) shows the restated Financial Information of the company over the last 3 fiscal years and up-till September 30, 2024.
Particulars | For the year ended September 30, 2024 | 31.03.2024 | 31.03.2023 | 31.03.2022 |
Share Capital | 700.00 | 100 | 100 | 100 |
Total Net Worth | 1084.89 | 703.23 | 424.67 | 373.91 |
Revenue from operations | 5,817.45 | 9,679.82 | 9,099.72 | 8,981.53 |
Profit After Tax | 381.66 | 278.10 | 50.26 | 76.31 |
Industry Outlook
India’s paper industry in India is increasing due to the growing environmental concerns caused by plastics and the country’s sustainability goals. Many manufacturers have adopted paper packaging in recent years due to its eco-friendly, recyclable, and cost-effective benefits.
India accounts for about 5% of the global paper market and is the 15th largest paper producer in the world. The country’s Paper production reached 5,553,900 tons in the ten months ending January 2023 which included recycled paper as well.
The government has also taken necessary steps like initiatives to ban plastic, the Sustainability National Packaging initiative, set up recycling plants, engage with foreign companies, increase sustainable developments, etc to promote this industry.
As of 2024, the Paper and Paperboard Packaging Market was valued at USD 12.87 billion due to the rapid urbanization taking place, this market is expected to be driven by various sustainable innovations and, is estimated to grow at a CAGR of 6.63% and reach USD 17.74 billion by 2029.
Strengths and Risks of Aten Papers & Foam Limited
Strength:
IPO Subscription Details
The IPO is a book-built issue that offers a fresh issue size of 33,00,000 equity shares, each with a face value of Rs. 10. The bidding price ranges from Rs. 91 - 96 per share for a lot size of 1200. The IPO is set to go public on April 7th 2025 on the Emerge platform of the Bombay Stock Exchange.
Expert Recommendations
The paper industry is rapidly increasing with a growing focus on sustainability and, the shift towards eco-friendly products. Sustainability and environmental issues continue to be emphasized, and various innovations catering to paper and paper board packaging are expected to drive market growth in India.
The company has shown strong financial growth over the last three years but is also subject to various market risks which prospective investors should be aware of before investing.
Key Takeaways
The company with the help of this Initial Public Offering (IPO) aims to meet capital requirements and for general corporate purposes. It has shown healthy profits over the years but is also subject to many risks, Investors should carefully outline the risks given in the RHP draft before investing.
Frequently Asked Questions: HP Telecom India Limited
1. When is the Aten Papers & Foam Limited IPO being listed?
The IPO is set to go public on April 7th 2025.
2. Is the Aten Papers & Foam Limited IPO fairly Priced?
Based on the average EPS of 3.97. The price/earning ratio at the lower end of the floor price is 22.92 and 24.18 at the higher end of the price band. The bid price ranges from Rs. 91-96 per share.
3. Where else can we get more information about the Aten Papers & Foam Limited IPO?
You can get more information about the IPO on the BSE website and on following resources.
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