Abril Paper Tech shares list at 20 pc discount, leaving investors with big losses

Mumbai, Sep 5 Abril Paper Tech made a weak stock market debut on Friday, listing at Rs 48.80 on the BSE SME platform, about 20 per cent lower than its issue price of Rs 61.

This came as a surprise since the company’s IPO had received a strong response from investors.

The Rs 13.42 crore SME issue was subscribed 11.20 times during the bidding period from August 29 to September 2.

Abril Paper Tech had offered 20.88 lakh shares and received bids for 2.33 crore shares in total.

The retail segment saw the highest demand with a subscription of 16.79 times, while non-institutional investors (NIIs) subscribed 5.51 times

The IPO was entirely a fresh issue of 22 lakh shares, with no offer-for-sale component.

The company said it would use the funds to buy advanced machinery for expanding capacity, meet working capital needs, cover corporate expenses and support future growth plans.

"We have built a strong foundation in the sublimation and heat transfer paper industry, and the fresh funds will enable us to expand capacity, upgrade technology, and strengthen our market presence," Prince Lathiya, Non-Executive Director, Abril Paper Tech Ltd, said.

Priced at Rs 61 per share, the lot size was 2,000 shares. Retail investors had to invest a minimum of Rs 2.44 lakh for 4,000 shares, while high-net-worth investors had to apply for at least three lots (6,000 shares), costing Rs 3.66 lakh.

Interactive Financial Services Limited acted as the lead manager, with Kfin Technologies Limited as the registrar and B.N. Rathi Securities Limited as the market maker.

Abril Paper Tech, founded in 2023, makes sublimation heat transfer paper used in digital printing for garments, textiles, hosiery, curtains, and home furnishings.

Its papers range from 30 GSM to 90 GSM and are available in sizes between 24 and 72 inches. The company’s manufacturing facility is located in Palsana, Gujarat.

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