Aten Papers & Foam IPO Day 1: Check subscription status, GMP, and other details

Mint

3 days ago

Aten Papers & Foam IPO: The initial public offering (IPO) of Aten Papers & Foam opened for subscription today, June 13 and will close on June 17. The company, which aims to raise ₹ 31.68 crore through the SME IPO, has set price band in the range of ₹ 91-96 per share.
Aten Papers & Foam IPO was subscribed 0.29 times bids at the end of the first day. The IPO received bids for 9.16 lakh shares against 31.34 lakh shares on offer. The retail investor segment was booked 0.10 times, while the non-institutional investors (NII) category was subscribed 0.41 times. Meanwhile, the qualified Institutional buyers category was subscribed 1.02 percent.
Aten Papers & Foam GMP today
The company's shares in the grey market traded at 0. This indicates an estimated listing price of ₹ 96, same IPO price of ₹ 96.
One must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
Aten Papers & Foam IPO was entirely a fresh issue of 33 lakh shares with no offer for sale component. Retail investors could apply with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹ 1.09 lakh.
The proceeds from the IPO will be allocated as follows: ₹ 4.27 crore will be used to meet capital expenditure requirements, ₹ 15.5 crore will go towards funding incremental working capital needs, and the remaining amount will be set aside for general corporate purposes and public issue-related expenses.
The allotment status for Aten Papers IPO is expected to be finalised on June 18. Successful investors will see equity shares credited to their Demat accounts by June 24, while refunds for those who did not receive allotment will be processed the same day.
Shares of Aten Papers are set to debut on BSE SME on June 20.
Of the total net offer, 47.5 percent has been earmarked each for retail and non-institutional investors, while the remaining 5 percent is allocated to qualified institutional buyers.
Swastika Investmart Ltd is acting as the book-running lead manager for the Aten Papers & Foam IPO, while Skyline Financial Services Private Ltd has been appointed as the registrar for the issue. Sunflower Broking Private Limited is serving as the market maker for the IPO.
"APFL is engaged in the trading in the paper product supply chain. It provides products suitable for packaging industry and thus follows B2B mode of operations. It posted steady growth in its top and bottom lines. Based on its recent financial performance, the issue appears aggressively priced. The sudden boost in bottom lines from FY24 onwards raise eyebrows and concern over its sustainability going forward. Well-informed/cash surplus investors may park moderate funds for medium term in this pricey bet," said Dilip Davda of Chittorgarh.com, recommending a 'may apply' rating to the issue.
Incorporated in 2019, Aten Papers & Foam plays a key role in the paper product supply chain. The company procures paper from various mills and supplies it to clients in the packaging industry. Its product portfolio includes duplex boards, kraft paper, and other paper variants available in different sizes, grades, and thicknesses.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.