Aten Papers And Foam Limited
- Minimum Investment₹1,09,200
- Price Range₹91 - ₹96
- Issue Size₹31.68 Cr
- Lot Size1200 shares
This stock belongs to the SME (Small & Medium Enterprises) segment which usually has low liquidity and hence, is also riskier. It will be traded in a lot size of 2000 shares after listing.
Proceeds of this IPO to be used for
Capital expenditure
To meet working capital requirements
General corporate purposes
Strengths & Weaknesses of Aten Papers And Foam Limited
Variety of products
The company trades and supplies customised paper products, sourcing packaging, printing, and recycling mills. It maintains inventory and processes paper as per customer needs
Financial strength
The company has maintained strong credibility with its bankers and a Rs 900 lakh credit facility since 2019. It supports small mills with cash purchases and provides credit to end users, acting as a financial intermediary. This role enhances negotiation power and improves margins
In-house logistics
The company owns four commercial vehicles for door-to-door delivery, reducing transportation costs. It transports products from mills to customers and outsources logistics when needed
Dependent on few suppliers
The company relies on a few key suppliers, with the top ten contributing over 77% of total purchases. A loss of any major supplier could impact operations. Additionally, a significant portion of purchases comes from related parties. While the company seeks new suppliers for better quality and pricing, there is no guarantee of maintaining long-term relationships or securing timely replacements
Asset ownership risk
The company rents all its premises, including warehouses and offices, from its promoters. Any dispute or failure to renew rental agreements could disrupt operations and impact business performance
Geographically concentrated
With over 97% of its revenue from Gujarat, the company is highly dependent on this region. Economic, political, or competitive changes could impact sales and business performance. Expansion efforts continue, but high concentration increases vulnerability to market shifts
Financials
Earnings Per Share
No Data
Balance Sheet
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Cash Flow
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About Aten Papers And Foam Limited
- PromoterMohamedarif Mohamedibrahim Lakhani
- PromoterAmrin Lakhani