The Aten Papers & Foam IPO is set to make its debut on the Indian stock market, and investors are eagerly waiting to understand whether this paper trading company offers a profitable investment opportunity. With the IPO opening on June 13, 2025, and a modest issue size of ₹31.68 crores, this BSE SME listing has caught the attention of retail and HNI investors alike.
But here’s the million-dollar question: Is the Aten Papers & Foam IPO worth your hard-earned money? With aggressive pricing and sudden profit jumps, this IPO presents both opportunities and risks that every investor must carefully evaluate.
In this comprehensive guide, we’ll dive deep into every aspect of the Aten Papers & Foam IPO – from company fundamentals to financial analysis, helping you make an informed investment decision.
What is Aten Papers & Foam Limited?
Aten Papers & Foam Limited operates as a crucial intermediary in India’s paper product supply chain. Incorporated in 2019, this Gujarat-based company has quickly established itself as a key player in the packaging industry.
The company’s business model is straightforward yet effective:
- Sources paper products from various mills across India
- Supplies specialized paper products to packaging industry clients
- Trades in wastepaper, selling it back to mills as raw material
- Maintains ready stock for immediate delivery to customers
Core Product Portfolio
The Aten Papers & Foam IPO company offers a diverse range of paper products:
1. Kraft Paper
- Recycled kraft paper primarily for packaging applications
- Serves Gujarat-based customers with flexible credit terms
- High demand in the growing e-commerce packaging sector
2. Absorbent Kraft Paper
- Specialized recycled paper for interior décor and furniture
- Growing market due to sustainable furniture trends
3. Paper Bag Kraft Paper
- Eco-friendly kraft paper bags for various applications
- Covers grocery, medical, and retail packaging needs
4. Tube Kraft Paper
- Industrial-grade tubes using wood pulp and cardboard
- Customized manufacturing based on client requirements
Aten Papers & Foam IPO Details: Key Information
| IPO Parameter | Details |
|---|---|
| IPO Opening Date | June 13, 2025 |
| IPO Closing Date | June 17, 2025 |
| Issue Size | ₹31.68 Crores |
| Price Band | ₹91 to ₹96 per share |
| Lot Size | 1,200 shares |
| Face Value | ₹10 per share |
| Issue Type | Fresh Issue (Book Building) |
| Listing Exchange | BSE SME |
| Tentative Listing Date | June 20, 2025 |
Investment Requirements
The Aten Papers & Foam IPO requires the following minimum investments:
- Retail Investors: ₹1,15,200 (1 lot of 1,200 shares at cut-off price)
- HNI Investors: ₹2,30,400 (2 lots of 2,400 shares)
- Minimum Investment: ₹1,09,200 (at lower price band)
Aten Papers & Foam IPO Timeline & Process
| Event | Date |
|---|---|
| IPO Opens | Friday, June 13, 2025 |
| IPO Closes | Tuesday, June 17, 2025 |
| Allotment Finalization | Wednesday, June 18, 2025 |
| Refund Initiation | Thursday, June 19, 2025 |
| Share Credit to Demat | Thursday, June 19, 2025 |
| Listing Date | Friday, June 20, 2025 |
| UPI Mandate Cut-off | 5 PM on June 17, 2025 |
Key Intermediaries
- Book Running Lead Manager: Swastika Investmart Ltd
- Registrar: Skyline Financial Services Private Ltd
- Market Maker: Sunflower Broking Private Limited
Financial Performance Analysis: The Numbers Don’t Lie
The Aten Papers & Foam IPO financial performance shows impressive growth, but requires careful analysis:
Revenue and Profitability Trends
| Financial Year | Revenue (₹ Cr) | PAT (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|
| FY 2022 | 89.82 | 0.76 | 3.74 |
| FY 2023 | 91.00 | 0.50 | 4.25 |
| FY 2024 | 96.80 | 2.78 | 7.03 |
| FY 2025 | 138.70 | 7.01 | 14.04 |
Key Performance Highlights
- Revenue Growth: 43% increase from FY24 to FY25
- Profit Surge: 152% jump in PAT during the same period
- ROE: Impressive 66.53% return on equity
- ROCE: Strong 43.84% return on capital employed
- PAT Margin: Healthy 5.06% profit margin
Valuation Analysis: Is Aten Papers & Foam IPO Fairly Priced?
Key Valuation Metrics
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS | ₹10.02 | ₹6.81 |
| P/E Ratio | 9.58x | 14.1x |
| Market Cap | – | ₹98.88 Cr |
| Price to Book | – | 4.79x |
The Aten Papers & Foam IPO appears aggressively priced based on current market standards. The post-IPO P/E of 14.1x for a small SME company in the paper trading business suggests premium valuation.
Objects of the Issue: How Will Your Money Be Used?
The Aten Papers & Foam IPO proceeds will be utilized strategically:
| Purpose | Amount (₹ Cr) | Percentage |
|---|---|---|
| Capital Expenditure | 4.27 | ~13.5% |
| Working Capital Requirements | 15.50 | ~49% |
| General Corporate Purposes | Balance | ~37.5% |
Strategic Use Analysis
- Working Capital Focus: Nearly 50% allocation indicates growth-oriented approach
- Capex Investment: Moderate infrastructure expansion plans
- Corporate Flexibility: Balanced approach with general corporate purposes
Competitive Advantages: What Sets Them Apart?
The Aten Papers & Foam IPO company boasts several competitive strengths:
1. Experienced Management Team
- Promoters: Mr. Mohamedarif Mohamedibrahim Lakhani and Mrs. Amrin Lakhani
- Pre-IPO Holding: 99.99% promoter ownership
- Industry Experience: Deep understanding of paper trading dynamics
2. Operational Efficiency
- In-house Logistics: Cost-effective delivery system
- Ready Stock Model: Immediate customer fulfillment
- Diverse Product Range: Multiple revenue streams
3. Financial Credibility
- Banking Relationships: Strong credit lines since 2019
- Debt Management: Debt-to-equity ratio of 0.79
- Lean Operations: Only 14 employees as of November 2024
Risk Analysis: What Could Go Wrong?
Key Investment Risks
1. Market Concentration Risk
- Heavy dependence on Gujarat market
- Limited geographical diversification
2. Commodity Price Volatility
- Paper prices subject to raw material fluctuations
- Margin pressure during unfavorable cycles
3. Sustainability Concerns
- Sudden profit jump raises sustainability questions
- Small scale operations in competitive market
4. SME Market Risks
- Lower liquidity compared to main board stocks
- Higher volatility and price manipulation risks
Should You Invest in Aten Papers & Foam IPO?
Investment Recommendation Matrix
- You have moderate risk appetite
- Looking for SME exposure in portfolio
- Believe in India’s packaging growth story
- Can afford to park funds for medium term
- You’re a conservative investor
- Need immediate liquidity
- Uncomfortable with aggressive valuations
- New to IPO investments
Expert Opinion Summary
Industry expert Dilip Davda suggests: “The issue appears aggressively priced based on recent financial performance. Well-informed/cash surplus investors may park moderate funds for medium term in this pricey bet.”
How to Apply for Aten Papers & Foam IPO
Application Process
- Through Net Banking: Use your bank’s IPO application facility
- Via Broker Platforms: Apply through Zerodha or Dhan
- UPI Payment: Ensure UPI mandate approval before 5 PM on June 17, 2025
- ASBA Facility: Block funds in your bank account
Required Documents
- PAN Card: Mandatory for all applications
- Demat Account: Essential for share credit
- Bank Account: For payment processing
- KYC Compliance: Complete know-your-customer documentation
New to Stock Market? Learn more about What is Demat Account: Complete Guide to Opening Your First Demat Account in India 2025 before applying.
Alternative Investment Options
If you’re unsure about the Aten Papers & Foam IPO, consider these alternatives:
Recent IPO Opportunities
Compare with other recent IPOs like Oswal Pumps IPO 2025: Complete Investment Guide for better decision-making.
Diversified Investment Approach
Consider building a balanced portfolio with Complete ETF Investment Guide: How to Generate 22% Returns with Just 15 Minutes Weekly alongside IPO investments.
Frequently Asked Questions (FAQs)
Conclusion: The Final Verdict
The Aten Papers & Foam IPO presents a mixed investment proposition. While the company shows impressive recent growth and operates in the promising packaging sector, the aggressive pricing and sudden profit surge raise sustainability concerns.
Key Takeaways:
- Strong Recent Performance: 43% revenue growth and 152% profit jump
- Aggressive Valuation: Post-IPO P/E of 14.1x appears stretched
- Market Opportunity: Positioned in growing packaging industry
- Risk Factors: Concentrated market presence and sustainability questions
Investment Strategy: This IPO suits moderate risk investors with surplus capital who can afford to wait for medium-term returns. Conservative investors should consider alternative options or wait for better entry opportunities.
Remember: Never invest more than you can afford to lose, especially in SME IPOs. Diversification across asset classes remains key to successful wealth building.
Ready to Start Your Investment Journey? Open your free trading and demat account with Dhan or Zerodha and begin building your portfolio today.
