Aten Papers & Foam Ltd IPO
Status:
Overview
IPO date
13 Jun 2025 to 17 Jun 2025
Face value
₹ 10 per share
Price
₹ 91 to ₹96 per share
Issue Size
3,300,000 shares
(aggregating up to ₹ 31.68 Cr)
(aggregating up to ₹ 31.68 Cr)
Allotment Date
18 Jun 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of Aten Papers & Foam Ltd IPO
Aten Papers & Foam Ltd IPO Strategy
About Aten Papers & Foam Ltd
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T&C*
Strengths vs Risks of Aten Papers & Foam Ltd
Know the pros & cons
Strengths
Experienced Senior Management Team.- Variety of Products.
- High Credibility with our Banker and existing lines of Credit since 2019.
- In-house Logistics.
- Ready Stock.
Risks
- The company doesn't own any land or any other facilities including the current warehouses and registered offices. All of these properties are owned by its Promoter and Promoter Group and are provided on the rental basis to the company.
- The Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations. Moreover, significant revenue of the company is from related party.
- The Company has not entered into any agreements/ contracts for the supply of products. Risks related to shortfall or non-availability of products may adversely affect its manufacturing processes and have an adverse impact on the company operations and financial condition.
- Its Group Companies and also Promoter Group Entities is engaged in similar line of business.
- Historically, the company has been engaged in the business of Paper trading. Company is proposing to setup Waste paper processing Units. The activity of setting up a processing unit of wastepaper is a segment which the company has limited operating history, which, may make it difficult for the investor to evaluate its historical performance or future prospectus.
- The company has a significant sale generated from state of Gujarat and any adverse developments affecting its operations in this state could have an adverse development affecting the company operation in this state could have an adverse impact on its revenue and results of operation.
- Its Group company which constitutes a significant part of the company related party transactions M/s Majethia Papers Private Limited is currently involved a criminal case and in certain other tax related proceedings which are currently pending at various jurisdiction which may adversely affect the business of M/s Majethia Papers Private Limited impacting the scale of its business and affecting the going concern of the M/s Majethia Papers Private Limited which will ultimately affect its transactions and profitability ending up exposing the company to huge risk.
- The company has not yet placed orders in relation to the funding Capital Expenditure towards Setting up of Wastepaper Processing Units. In the event of any delay in placing the orders, or in the event the lessors are not able to start the Civil work in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed processing Units plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.
- The Company has lapsed /delayed in making the required filings under Companies Act, 2013 .
- The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
- The company success depends on its ability to attract and retain its key management personnel. If the company is unable to do so, it would adversely affect its business and results of operations.
- In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, KMPs hold a vested interest in the Company, to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the Company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
- The company may be seriously affected by delays in the collection of receivables from the company clients and may not be able to recover adequately on its claims.
- Its lenders have charge over the company movable and immovable properties in respect of finance availed by it and the company promoters, Directors have provided their personal guarantee for such debt facility availed by it.
- The Company has unsecured loans, which may be recalled at any time. Any recall of such loans may have an adverse effect on its business, prospects, financial condition and results of operations.
- The company may not be able to sustain if there is no effective implementation of its business and growth strategy.
- The company has applied for trademark but the same has been objected.
- The company is in the process of establishing waste paper processing units, introducing several operational risks that investors should consider.
- The company will continue to be controlled by its Promoters after the completion of the Issue.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company business, reputation and results of operations. Moreover, its promoters, directors and group companies are involved in certain litigations.
- In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company business.
- The company has experienced significant working capital requirements in the past and may continue to experience in future also. If the company experience insufficient cash flows from its operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
- The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
- Its insurance coverage may not adequately protect the company against certain operating risks and this may have an adverse effect on the results of its business.
- The company is dependent on third party transportation providers for supply of its products to the company customers. Any failures on the part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.
- There are delays in filing certain returns with Government Authorities.
- Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.
- Strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees/workmen in future could adversely affect its business and results of operations.
- The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them. Any breach of such restrictive covenants may affect business operations of the Company.
- Changes in technology may render its current technologies obsolete or requires the company to make substantial investments.
- The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.
- Its ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
- The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
Aten Papers & Foam Ltd Peer Comparison
Understand the company’s industry standing
Aten Papers & Foam Ltd
Face Value
10
Standalone / Consolidated
Standalone
Total Income Rs. Cr.
96.7982
EPS-Basis
---
EPS-Diluted
3.97
NAV Per Share
10.05
P/E-Basic EPS
---
P/E-Diluted EPS
---
RONW(%)
39.55
Latest NAV Period
---
Latest NAV
---
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The IPO opens on 13 Jun 2025 & closes on 17 Jun 2025.
Aten Papers & Foam Limited was originally incorporated on January 07, 2019, as a Private Limited Company as 'Aten Papers & Foam Private Limited' with the Registrar of Companies, Ahmedabad, Gujarat. Subsequently, the status of the Company was converted into a Public Limited and the name of Company was changed to 'Aten Papers & Foam Limited'. A fresh Certificate of Incorporation dated July 18, 2024 was issued by the Central Processing Centre, Manesar.
Company launched a public issue of 33,00,000 equity shares of Rs 10 by raising funds of Rs 31.68 crores in June, 2025 through fresh issue.
The Company is involved in the business of Trading of various types of papers. The Company operate as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, it procure paper from different paper mills and resell them to clients in the packaging products industry. Examples of these products include Kraft Paper and Duplex Board. It also purchase Wastepaper from stockiest and sell them to Paper mills which is crucial raw material for such mills.
The Company operate Godown in Changodar, Ahmedabad City, wherein it sells papers in the domestic markets specially in the state of Gujarat. The paper products manufactured by customers have a variety of end use applications and are used mainly in the packaging industry. It sell papers in the domestic markets specially in the state of Gujarat.
Aten Papers & Foam Ltd IPO will close on 17 Jun 2025.
- Experienced Senior Management Team.
- Variety of Products.
- High Credibility with our Banker and existing lines of Credit since 2019.
- In-house Logistics.
- Ready Stock.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Mohamedarif Mohamedibrahim Lak | 3500000 | 50 | 3500000 | 33.98 |
| 2 | Amrin Lakhani | 3499500 | 49.99 | 3499500 | 33.98 |
| 3 | Ismail Ibrahimbhai Lakhani | 100 | --- | 100 | --- |
| 4 | Ibrahim Noormohmmad Memon | 100 | --- | 100 | --- |
- The company doesn't own any land or any other facilities including the current warehouses and registered offices. All of these properties are owned by its Promoter and Promoter Group and are provided on the rental basis to the company.
- The Company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations. Moreover, significant revenue of the company is from related party.
- The Company has not entered into any agreements/ contracts for the supply of products. Risks related to shortfall or non-availability of products may adversely affect its manufacturing processes and have an adverse impact on the company operations and financial condition.
- Its Group Companies and also Promoter Group Entities is engaged in similar line of business.
- Historically, the company has been engaged in the business of Paper trading. Company is proposing to setup Waste paper processing Units. The activity of setting up a processing unit of wastepaper is a segment which the company has limited operating history, which, may make it difficult for the investor to evaluate its historical performance or future prospectus.
- The company has a significant sale generated from state of Gujarat and any adverse developments affecting its operations in this state could have an adverse development affecting the company operation in this state could have an adverse impact on its revenue and results of operation.
- Its Group company which constitutes a significant part of the company related party transactions M/s Majethia Papers Private Limited is currently involved a criminal case and in certain other tax related proceedings which are currently pending at various jurisdiction which may adversely affect the business of M/s Majethia Papers Private Limited impacting the scale of its business and affecting the going concern of the M/s Majethia Papers Private Limited which will ultimately affect its transactions and profitability ending up exposing the company to huge risk.
- The company has not yet placed orders in relation to the funding Capital Expenditure towards Setting up of Wastepaper Processing Units. In the event of any delay in placing the orders, or in the event the lessors are not able to start the Civil work in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed processing Units plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.
- The Company has lapsed /delayed in making the required filings under Companies Act, 2013 .
- The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
- The company success depends on its ability to attract and retain its key management personnel. If the company is unable to do so, it would adversely affect its business and results of operations.
- In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, KMPs hold a vested interest in the Company, to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the Company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
- The company may be seriously affected by delays in the collection of receivables from the company clients and may not be able to recover adequately on its claims.
- Its lenders have charge over the company movable and immovable properties in respect of finance availed by it and the company promoters, Directors have provided their personal guarantee for such debt facility availed by it.
- The Company has unsecured loans, which may be recalled at any time. Any recall of such loans may have an adverse effect on its business, prospects, financial condition and results of operations.
- The company may not be able to sustain if there is no effective implementation of its business and growth strategy.
- The company has applied for trademark but the same has been objected.
- The company is in the process of establishing waste paper processing units, introducing several operational risks that investors should consider.
- The company will continue to be controlled by its Promoters after the completion of the Issue.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company business, reputation and results of operations. Moreover, its promoters, directors and group companies are involved in certain litigations.
- In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company business.
- The company has experienced significant working capital requirements in the past and may continue to experience in future also. If the company experience insufficient cash flows from its operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
- The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
- Its insurance coverage may not adequately protect the company against certain operating risks and this may have an adverse effect on the results of its business.
- The company is dependent on third party transportation providers for supply of its products to the company customers. Any failures on the part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.
- There are delays in filing certain returns with Government Authorities.
- Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.
- Strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees/workmen in future could adversely affect its business and results of operations.
- The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them. Any breach of such restrictive covenants may affect business operations of the Company.
- Changes in technology may render its current technologies obsolete or requires the company to make substantial investments.
- The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.
- Its ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
- The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
The Issue type of Aten Papers & Foam Ltd is Book Building - SME.
The minimum application for shares of Aten Papers & Foam Ltd is 1200.
The total shares issue of Aten Papers & Foam Ltd is 3300000.
Public issue of 33,00,000 equity shares of face value of Rs. 10/- each of Aten Papers & Foam Limited ("APFL" or the "Company" or the "Issuer") for cash at a price of Rs. 96/- per equity share including a share premium of Rs. 86/- per equity share (the "Issue Price") aggregating to Rs. 31.68 crores ("The Issue"), of which 1,65,600 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 96/- per equity share including a share premium of Rs. 86/- per equity share aggregating to Rs. 1.59 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e., net issue of 31,34,400 equity shares of face value of Rs. 10/- each at a price of Rs. 96/- per equity share including a share premium of Rs. 86/- per equity share aggregating to Rs. 30.09 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 32.04% and 30.43%, respectively, of the post issue paid up equity share capital of the company.