Aten Papers & Foam share price off to a tepid start, lists at 6% discount on BSE SME

Aten Papers & Foam IPO Listing: The shares of Aten Papers & Foam, a paper and paper products maker, were off to a slow start on the BSE SME on Friday, June 20. Aten Papers & Foam shares got listed at ₹90 apiece, down 6.25% from their issue price of ₹96 per share.

The listing price of Aten Papers & Foam IPO was below what the grey market was pencilling in. Ahead of its listing, the Aten Papers & Foam IPO GMP was nil, indicating that investors expected the stock to list at par, rather than at a discount.

Aten Papers & Foam share price extended losses post listing, hitting the 5% lower price band of ₹85.50 apiece. From its issue price, Aten Papers & Foam stock was down nearly 11%, disappointing its IPO investors.

Aten Papers & Foam IPO details

The initial public offering (IPO) of Aten Papers & Foam was open for subscription from June 13 to June 17 at a fixed price of ₹96 per share. The public offer was an entirely fresh issue sale of 33 lakh shares, aiming to raise ₹31.68 crore.

Aten Papers & Foam IPO had seen a decent demand, garnering 1.49 times bids. Overall, the IPO garnered bids for 46,70,400 shares as against 31,34,400 shares on offer. The retail portion was subscribed 2.17 times, the non-institutional investor portion was booked 0.66 times, and the qualified institutional buyers portion received 2.91 times bids.

The minimum lot size for an application was set as 1200 shares, requiring an investment of at least ₹1,09,200 by the retail investors.

Aten Papers plans to utilise the IPO proceeds for capital expenditure, meeting working capital requirements and general corporate purposes.

Incorporated in 2019, Aten Papers & Foam operates as a key intermediary in the paper product supply chain. The company offers Kraft paper, duplex boards, and other products in various grades, thicknesses, and sizes, while also purchasing and selling wastepaper to paper mills as a crucial raw material.

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