Aten Papers & Foam Limited IPO

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1. Incorporation & Structure:

Aten Papers & Foam Limited was incorporated on January 7, 2019, in Ahmedabad, Gujarat, as a private limited company and later converted into a public limited company on July 18, 2024.

2. Business Model:

The company operates as a vital intermediary in the paper product supply chain, primarily engaged in trading Kraft paper, Duplex board, and wastepaper. It procures paper from mills and resells to packaging industry clients while also sourcing wastepaper for supply to mills, supporting the recycling ecosystem.

3. Operations & Facilities:

a) Headquartered in Ahmedabad with a godown in Changodar.

b) Plans to establish 3 wastepaper processing units in Changodar, Sanand, and Narol, funded via IPO proceeds.

c) Sales are concentrated in Gujarat, contributing over 98% of total revenue in recent years.

4. Competitive Strengths:

a. Experienced Management with deep domain knowledge.
b. Diverse Product Range catering to varied customer requirements.
c. In-house Logistics with 4 commercial vehicles for timely delivery.
d. Strong Credit Lines with ₹9 crore sanctioned bank facilities.
e. Ready Stock Inventory allowing quick fulfillment of client orders.

5. Future Vision:

The company aims to scale its trading volume, deepen customer relationships, and support a circular economy model by developing in-house wastepaper processing capabilities.

Objects of the Aten Papers & Foam Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. Capital Expenditure  (₹4.27 cr) 2. To Meet Working Capital Requirements (₹45.7 cr) 3. General Corporate Purposes
DRHP of Aten Papers & Foam Limited IPO
RHP of Aten Papers & Foam Limited IPO

Aten Papers & Foam Limited IPO Details:

Open Date: Jun 13 2025
Close Date: Jun 17 2025
Total Shares: 33,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 31.68 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91 to 96 Per Equity Share
Listing At: BSE SME

Promoters And Management:

1. Mr. Mohamed Arif Lakhani, aged 44, is the founder, Chairman, and Managing Director of our Company. Despite not completing his secondary education, however with a strong entrepreneurial spirit, Mr. Lakhani launched his career in 2002 in the wastepaper trading business, steadily expanding his ventures until 2013. Currently, Mr. Lakhani oversees marketing, business development along with formulation of business strategies, planning and implementation in our company. 2. Ms. Amrin Lakhani, aged 44, is the founder and Non-Executive Director of our company, since July19, 2024 She is known for her dynamism, self-motivation, and vision. Despite not clearing her secondary examinations, her passion and energy have greatly contributed to our company's success. Mrs. Lakhani's exceptional administrative abilities, dedication, and organizational skills have played a crucial role in shaping our operations. She also holds directorship in Aten Packaging Private Limited and Aten Retail MV Limited. 3. Mr. Zuned Lakhani, aged 42, is the Executive Director of our company. He has completed his secondary education and brings approximately 15 years of experience in the paper industry. He was appointed as Executive Director following a resolution passed by our members on May 11, 2024. Currently, he oversees the Logistics Department of the company.

Financials of Aten Papers & Foam Limited IPO:

Company Financials in Crores
Particulars FY 2024-25 FY 2023-24  FY 2022-23 FY 2021-22
Revenue from Operations 138.69 96.79 90.99 89.81
EBITDA 10.65 5.15 1.87 1.90
EBITDA Margins 7.68% 5.32% 2.06% 2.12%
PAT 7.01 2.78 0.50 0.76
PAT Margins 5.06% 2.87% 0.55% 0.85%
ROCE 43.84% 23.23% 8.70% 8.77%
Debt Equity Ratio 0.79 2.23 3.78 4.13
CFOA 5.29 1.89 0.45 3.66
 

Comparison With Peers:

As per RHP no listed peers of the Company.

Recommendation on Aten Papers & Foam Limited IPO:

Review and Recommendation of Aten Papers & Foam IPO by team IZ is 3/10.

Lead Manager of Aten Papers & Foam Limited IPO:

  1. Swastika Investmart Limited

Registrar of Aten Papers & Foam Limited IPO:

  1. Skyline Financial Services Private Ltd

Discussion on Aten Papers & Foam Limited IPO:

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