Aten Papers & Foam is coming up with an IPO with a fresh issue of 33,00,000 shares worth INR 31.68 crores. The company aims to meet capital expenditure, incremental working capital requirements, and general corporate purposes. 

Aten Papers & Foam IPO – Important Dates

Read more about Aten Papers & Foam Limited IPO GMP

Aten Papers & Foam Limited IPO – Company Profile

Aten Papers & Foam operates as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, the company procures paper from different paper mills and resells it to clients in the packaging products industry. Examples of these products include Kraft Paper and Duplex Board.

The company also purchases waste paper from stockists and sells it to Paper mills which is crucial raw material for such mills. A wide range of grades, thicknesses, widths, and standards are available in the product portfolio for Kraft papers, Duplex boards and others according to customer specifications.

The Promoters, Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani, with their deep knowledge, vision, and industry insight, have been instrumental in shaping and executing the growth strategies. Their leadership has allowed us to adapt to evolving market demands and successfully expand the business.

Aten Papers & Foam Ltd IPO Fundamental Analysis 

• Revenue Trend: The revenue increased from ₹9,099.72 lakhs in March 2023 to ₹9,679.82 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 5,817.45 lakh. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. The debt equity ratio has consistently reduced, indicating financial stability.
• Profitability: The profit after tax (PAT) increased from ₹50.26 lakh in March 2023 to ₹278.10 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹ 381.66 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹0.72 in March 2023 to ₹3.97 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹ 5.45. 
• Return on Net Worth (RoNW): The RoNW has increased from 11.84% to 39.55%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

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Aten Papers & Foam IPO Financial Analysis

Aten Papers & Foam Limited IPO Peer Comparison

There are no listed companies which are precisely comparable to Aten Papers & Foam Limited with respect to the business model, size and financials. Hence, peer comparison is not possible.

Aten Papers & Foam Ltd IPO Objective

Aten Papers & Foam plans to utilise INR 4.25 crores for setting up waste paper processing units in Ahmedabad, INR 15.50 crores for working capital, and the remaining funds for general corporate purposes.

1. To meet capital expenditure: In order to increase the base of business activities, the company is proposing to set up waste paper processing units at three locations in the Ahmedabad viz. Unit I at Changodar, Unit II at Sanad and Unit III at Narol. The company plans to utilise INR 4.25 crores for the said purpose. 

2. To meet the working capital requirements: With an increase in revenue, the company expects the working capital requirement to increase in the future. For the said purpose, the company plans to utilise INR 15.50 crores from the net proceeds. 

3. General Corporate Purpose: The company will deploy the remaining amount for general corporate purposes, including strategic initiatives, partnerships, acquisitions, branding, marketing, facility upgrades, client referrals, and other business needs.

Aten Papers & Foam IPO Risks And Challenges

Aten Papers & Foam relies on a few key suppliers, with significant revenue from related parties. Adverse developments in Gujarat or the loss of key management could impact business operations.

1. The company is dependent on a few suppliers for the purchase of products. The loss of any of these large suppliers may affect the business operations. Moreover, a significant revenue of the company is from related parties.

2. The company has a significant sale generated from the state of Gujarat, and any adverse developments affecting the operations in this state could have an adverse effect on the operations.

3. The success depends on the ability to attract and retain the key management personnel. If the company is unable to do so, it would adversely affect the business and results of operations.

Aten Papers & Foam Ltd IPO – Industry & Market Potential

The India Paper and Paperboard Packaging Market size is estimated at USD 12.87 billion in 2024 and is expected to reach USD 17.74 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).

The paper packaging industry experienced growth over the last decade, owing to substrate choice changes, new market expansion, ownership dynamics, and government initiatives to ban plastic. Sustainability and environmental issues continue to be emphasised, and various innovations catering to paper and paperboard packaging are expected to drive market growth in India.

Aten Papers & Foam Limited IPO – Type of Offer

Aten Papers & Foam is launching an IPO with a fresh issue of 33,00,000 shares worth INR 31.68 crores. The company plans to fund capital expenditure, incremental working capital requirements, and general corporate purposes.

Aten Papers & Foam IPO Offer Size

The offer size is 33,00,000 fresh issue shares worth INR 31.68 crores. Aten Papers & Foam plans to utilise the proceeds for capital expenditure, incremental working capital requirements, and general corporate purposes.

Aten Papers IPO Allotment Structure

Aten Papers & Foam Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII), according to SEBI regulations. 1,65,600 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,65,600 shares, are reserved for market makers. 

How to apply for the Aten Papers & Foam Limited IPO?

To apply for the Aten Papers & Foam Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Aten Papers & Foam Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Aten Papers & Foam Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Aten Papers & Foam Limited IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Aten Papers & Foam Limited IPO: If you have applied for multiple IPOs, there might be a drop-down menu or a list where you can select the IPO you are interested in. Select the Aten Papers & Foam Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Aten Papers & Foam Limited IPO:

● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Aten Papers & Foam Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE SME: You can also check the allotment status on the official websites of the Bombay stock Exchange’s (NSE) Small Medium Exchange (SME) Platform. You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Aten Papers & Foam Limited Ltd IPO Offer Registrar

The registrar for the Aten Papers & Foam Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Skyline Financial Services Private Limited

D-153A, 1st Floor, Okhla Industrial Area Phase-I,

New Delhi – 110020, India 

Email: [email protected] 

Website: www.skylinerta.com

Aten Papers & Foam Limited SME IPO – FAQs