Aten Papers and Foam Limited The initial public proposal (IPO) came on the market on 13 June 2025, but on the very first day the issue failed to win the trust of investors. The company has set a target to raise around ₹ 31.68 crore, for which 33 lakh equity shares are being issued. This entire issue is based on new (fresh) shares.
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Average response received on the first day
About 70% subscription took place till the first day of the issue. While the share of QIB (Qualified Institutional Buyers) was completely filled, about 93% from Retail Investors and NII (Non-Institutional Investors) category saw only 41% subscription in the category.
No life in GMP, surprise in the market
The biggest concern of IPO is about the Gray Market Premium (GMP). Even after opening the issue, its GMP remains ₹ 0. This means that there is no additional demand or hope regarding this stock in the unlisted market, due to which small investors are in confusion.
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Price and investment limit
The price band of Aten Papers IPO has been fixed from ₹ 91 to ₹ 96 per share. A lot consists of 1,200 shares in a lot, making the minimum investment amount to ₹ 1,15,200. Such a huge amount is making the decision difficult for small investors.
What does the company do?
Aten Papers & Foam Limited supplies paper products to the packaging area. The company purchases craft paper, duplex board and other paper products and sells it to packaging companies. Also, the waste collects the paper and brings it to the paper mills as a raw material.
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Strong financial performance
In FY 2024, the company’s income was ₹ 96.80 crore, which increased to ₹ 138.70 crore in FY25. Similarly, the profit in FY24 was ₹ 2.78 crore, which increased to ₹ 7.01 crore in FY25 – that is, the profit increased by more than 2.5 times.
Use of amount raised from IPO
The company has stated that the amount raised from the IPO will be used for the following objectives:
- ₹ 4.27 crore in capital expenses,
- ₹ 15.50 crore in working capital requirements,
- The remaining amount in normal corporate works.
Indication for investors
Although the company’s financial performance is positive, the response received from the market has been cold. Due to GMP zero, this issue can be risky for investors expecting listing gains.
