Abril Paper Tech Makes Strong Debut on BSE SME Platform with 5% GMP
Abril Paper Tech, a Gujarat-based manufacturer of sublimation heat transfer paper, listed on the BSE SME platform with a 5% grey market premium. The company's Rs 13.42 crore IPO, priced at Rs 61 per share, was oversubscribed 11.20 times. Retail investors' portion was oversubscribed 16.79 times, while non-institutional investors' segment saw 5.51 times subscription. Abril Paper Tech reported a revenue of Rs 60.91 crore, up 142% year-on-year, and a profit after tax of Rs 1.41 crore, up 52%. The IPO proceeds will be used for capital expenditure, working capital requirements, and general corporate purposes.
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Abril Paper Tech, a Gujarat-based manufacturer of sublimation heat transfer paper, made a robust debut on the BSE SME platform, with its shares commanding a 5% grey market premium. The company's initial public offering (IPO) garnered significant investor interest, reflecting the growing appetite for small and medium enterprise stocks.
IPO Details and Subscription
The company's Rs 13.42 crore IPO was priced at Rs 61 per share and witnessed strong demand during its bidding period from August 29 to September 2. The issue was oversubscribed by an impressive 11.20 times, indicating robust investor confidence in the company's prospects.
- Retail Investor Interest: Retail investors showed particularly strong enthusiasm, with their portion being oversubscribed 16.79 times.
- Non-Institutional Investors: The non-institutional investor segment also saw solid demand, with a subscription rate of 5.51 times.
Company Overview
Abril Paper Tech specializes in the production of paper products for digital printing applications in the textiles and garments industry. The company's product range includes papers from 30 GSM to 90 GSM, catering to various needs in the digital printing sector.
Financial Performance
Abril Paper Tech has demonstrated significant growth in its financial performance:
| Metric | Amount | Year-on-Year Growth |
|---|---|---|
| Revenue | Rs 60.91 crore | 142% |
| Profit After Tax | Rs 1.41 crore | 52% |
This substantial increase in both revenue and profit underscores the company's strong market position and operational efficiency.
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated as follows:
- Capital Expenditure: Rs 5.40 crore for new machinery
- Working Capital Requirements: Rs 5 crore
- General Corporate Purposes: Remaining amount
This strategic allocation of funds is aimed at enhancing the company's production capabilities and supporting its growth trajectory.
The successful listing of Abril Paper Tech on the BSE SME platform highlights the increasing investor interest in small and medium enterprises. It also underscores the vital role of the SME platform in providing growth capital to emerging companies in India's dynamic business landscape.
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