Aten Papers & Foam Shares Make Muted Market Debut, List at 6% Discount
Aten Papers & Foam, a key intermediary in the paper product supply chain, made a subdued debut on the BSE SME platform on June 20, 2025. The stock listed at ₹90, a discount of 6.25% to its issue price of ₹96, and subsequently slipped further to ₹85.50-marking a 10.94% drop from the IPO price and a 5% fall from its opening level. The counter was frozen at its lower limit of 5% over its listing price, reflecting weak investor sentiment and limited buying interest.
IPO Timeline and Subscription Details
The ₹31.68 crore initial public offering (IPO) of Aten Papers & Foam was open for subscription from June 13 to June 17, 2025. The issue, priced between ₹91 and ₹96 per share, was oversubscribed 1.46 to 1.49 times, indicating modest demand.
The retail portion saw stronger interest, being subscribed 2.17 times, while qualified institutional buyers (QIBs) bid 2.91 times their quota. However, non-institutional investors showed lukewarm interest, with their segment covered only 0.66 times.
Use of IPO Proceeds and Market Capitalisation
The IPO comprised a fresh issue of 3.3 million equity shares, with no offer for sale component. The net proceeds are earmarked for capital expenditure, working capital requirements, and general corporate purposes. Post-issue, the company’s market capitalisation stands at approximately ₹99 crore.
Grey Market Signals
Ahead of listing, the grey market premium (GMP) for Aten Papers & Foam shares was flat at ₹0, signalling a tepid outlook for the stock and aligning with its lacklustre debut.
Company Overview and Financials
Aten Papers & Foam, incorporated in 2019, operates as an intermediary in the paper product supply chain. The company procures paper from various mills and supplies it to clients in the packaging industry, while also purchasing wastepaper from stockists and supplying it to paper mills as raw material. Its product portfolio includes Kraft paper, duplex boards, and absorbent paper, catering to a range of industrial and commercial applications.
For the year ended March 31, 2025, the company reported revenue from operations of ₹138.69 crore (₹139 crore as per some sources), marking a 43% year-on-year increase. Net profit surged 152% to ₹7.01 crore (₹7 crore as per some sources).
Despite this robust growth, some analysts have raised concerns about the sustainability of the recent jump in profitability, given the company’s small scale and limited employee base-just 14 as of March 2025.
Analyst Perspective and Outlook
Analysts noted that the muted debut reflects broader investor caution towards SME IPOs, especially those with limited scale and uncertain earnings sustainability. The absence of any grey market premium and the lack of strong institutional backing further dampened sentiment. However, the company’s strong revenue and profit growth in FY25 could attract interest if it demonstrates consistent performance and effective utilisation of IPO proceeds for business expansion. The focus will now shift to its execution on growth plans and ability to sustain profitability in a competitive market.
Conclusion: A Cautious Start for Aten Papers & Foam
Aten Papers & Foam’s market debut was marked by a lack of investor enthusiasm, with shares listing and trading at a discount to the IPO price. While the company has shown impressive recent growth, questions remain about the sustainability of its financial performance and its ability to scale operations. The IPO’s muted reception underscores the challenges faced by smaller companies seeking to tap public markets in a cautious investment environment.
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