Aten Papers & Foam Limited IPO: Date, Price, Listing Details

Aten Papers & Foam Limited, established in 2019, is set to launch its Aten Papers & Foam Limited IPO to raise capital for its business operations. Below are the comprehensive details of the IPO:

IPO Details:

Open Date: March 28, 2025

Close Date: April 2, 2025

Issue Type: Book Built Issue

Issue Size: ₹31.68 crores

Fresh Issue: 33,00,000 equity shares

Price Band: ₹91 to ₹96 per share

Face Value: ₹10 per share

Market Lot: 1,200 shares

Basis of Allotment Date: April 3, 2025

Refunds Initiation: April 4, 2025

Demat Credit Date: April 5, 2025

Listing Date (BSE SME): April 7, 2025

Lead Manager: Swastika Investmart Ltd

Registrar: Skyline Financial Services Private Ltd

Market Maker: Sunflower Broking Private Limited

Promoters: Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani

Retail Investors: ₹1,09,200 (at the lower price band) to ₹1,15,200 (at the upper price band)

High Net-worth Individuals (HNI): ₹2,30,400 (for 2 lots or 2,400 shares)

Financial Performance:

Fiscal Year 2023:

Revenue: ₹91.00 crores

Profit After Tax (PAT): ₹0.50 crores

Fiscal Year 2024:

Revenue: ₹96.80 crores

PAT: ₹2.78 crores

The company has demonstrated growth in both revenue and profitability over the past two fiscal years, indicating a positive financial trajectory.

Utilization of IPO Proceeds:

The net proceeds from the IPO are proposed to be utilized for the following purposes:

Funding capital expenditure requirements.

Meeting working capital needs.

General corporate purposes.

Aten Papers & Foam Limited IPO Lot Size

Here is the lot size details for Aten Papers & Foam Limited IPO:

Investor Category	Lot Size	Shares	Investment Amount
Retail (Minimum)	1	1,200	₹1,15,200
Retail (Maximum)	1	1,200	₹2,30,400
HNI (Minimum)	2	2,400	₹2,30,400
HNI (Maximum)	1	3,600	₹3,45,600

Minimum Investment for Retail Investors: 1 Lot (1,200 shares)

Minimum Investment for HNI: 2 Lots (2,400 shares)

About Aten Papers & Foam Limited

Incorporation Year: 2019

Headquarters: Ahmedabad, Gujarat, India

Industry: Paper Trading & Wastepaper Processing

Business Model & Operations

Aten Papers & Foam Limited primarily operates as an intermediary in the paper industry. The company engages in:

Paper Trading: Sourcing paper from mills and reselling it to packaging companies.

Wastepaper Processing: Procuring wastepaper from stockists and supplying it to mills for recycling.

Product Portfolio:

Kraft Paper Grades: Absorbent Kraft, Tube Kraft, Kraft Paper for bags.

Wastepaper: Used for paper mill recycling processes.

The company is planning to establish three wastepaper processing units in Changodar, Sanand, and Narol (Gujarat) to enhance its supply chain efficiency.

Management & Promoters

Mr. Mohamedarif Mohamedibrahim Lakhani (Managing Director)

Mrs. Amrin Lakhani

Aten Papers & Foam Limited – Product Portfolio

Aten Papers & Foam Limited specializes in paper trading and wastepaper processing. Their product offerings include:

Kraft Paper Grades:

Absorbent Kraft Paper – Used in laminates and industrial applications.

Tube Kraft Paper – Suitable for manufacturing paper tubes and cores.

Bag Kraft Paper – Used in making paper bags and packaging materials.

. Wastepaper Processing & Supply:

Recycled Kraft Wastepaper – Collected from stockists and supplied to mills for reprocessing.

Industrial Scrap Paper – Used for producing recycled paper products.

Packaging Paper:

Corrugated Board Paper – Used in the production of cardboard boxes.

Liner and Fluting Paper – Essential for manufacturing corrugated packaging.

Aten Papers & Foam Limited Financial Information

Here is the financial information for Aten Papers & Foam Limited:

Financial Year	FY 2022	2023	FY 2024
Total Revenue	₹55.80 Crores	₹91.00 Crores	₹96.80 Crores
Profit After Tax (PAT)	₹0.20 Crores	₹0.50 Crores	₹2.78 Crores
Net Worth	₹3.50 Crores	₹6.80 Crores	₹9.60 Crores
EBITDA	₹1.10 Crores	₹2.30 Crores	₹4.50 Crores
Earnings Per Share (EPS) (₹)	₹0.50 Crores	₹1.10 Crores	₹3.80 Crores

Key Observations:

Revenue Growth: The company has shown consistent growth, increasing from ₹55.80 crore in FY22 to ₹96.80 crore in FY24.

Profitability Increase: PAT jumped from ₹0.20 crore (FY22) to ₹2.78 crore (FY24), reflecting strong financial performance.

EPS Growth: Earnings per share (EPS) have increased significantly, making the IPO more attractive to investors.

Key Performance Indicator

Here are the Key Performance Indicators (KPIs) of Aten Papers & Foam Limited:

KPI	Values
ROE	49.31%
ROCE	23.23%
Debt/Equity	2.23
RoNW	39.55%
PAT Margin	2.87
Price to Book Value	9.55

Key Observations:

Revenue Growth: 73% growth from FY22 to FY23, with continued expansion in FY24.

Profitability: PAT and EBITDA have significantly improved, boosting margins.

EPS & RoNW: Strong rise in EPS and return on net worth indicates increased shareholder value.

Debt Management: The debt-to-equity ratio is declining, showing better financial stability.

Objects of the Issue

Funding Capital Expenditure Requirements – The company plans to invest in infrastructure and equipment to expand its wastepaper processing facilities.

Meeting Working Capital Needs – A portion of the funds will be used to support day-to-day operations, ensuring smooth business growth.

General Corporate Purposes – The remaining funds will be utilized for strategic initiatives, administrative expenses, and strengthening overall financial health.

Strengths of Aten Papers & Foam Limited IPO

Strong Revenue Growth – The company has shown steady growth in revenue and profitability over the past three years.

Expanding Wastepaper Processing Units – New processing facilities in Gujarat (Changodar, Sanand, and Narol) will enhance operations and efficiency.

Rising Demand for Recycled Paper – The increasing focus on sustainability and eco-friendly packaging boosts the demand for kraft and recycled paper.

Diverse Product Portfolio – The company supplies multiple grades of kraft paper and wastepaper, catering to various industries.

Debt Reduction & Financial Stability – The company’s debt-to-equity ratio has improved, showing better financial management.

Risks of Aten Papers & Foam Limited IPO

Dependence on Paper Mills & Suppliers – The company does not manufacture paper but relies on sourcing from mills, which may impact margins.

Raw Material Price Fluctuations – Changes in the cost of wastepaper and kraft paper can affect profitability.

Competitive Market – The paper trading and wastepaper processing industry is highly competitive, with established players.

SME IPO Volatility – Being listed on the BSE SME platform means lower liquidity compared to mainboard listings, which could result in price fluctuations.

Regulatory & Environmental Risks – Paper recycling and processing businesses are subject to environmental regulations, which may impact operations.