Mumbai-based Abril Paper Tech faced a disappointing start on their stock market debut. The company kicked off trading on the BSE SME platform at Rs 48.80 per share, which is about 20% lower than their issue price of Rs 61. This comes as a surprise since their initial public offering (IPO) was actually very well received by investors.
The IPO, which raised Rs 13.42 crore, was subscribed 11.20 times during the bidding period from August 29 to September 2. Those interested in buying shares had bid for a total of 2.33 crore shares against the issue of 20.88 lakh shares.
Most of the demand came from retail investors, with the retail segment subscribing 16.79 times. Non-institutional investors (NIIs) showed strong interest too, subscribing 5.51 times. The IPO was entirely a fresh issue — no shares were being sold by existing shareholders.
Abril Paper Tech plans to use the funds to buy advanced machinery for increasing production capacity, improve its technology, support working capital needs, and fund future growth plans. Prince Lathiya, Non-Executive Director of the company, said, “We have established a strong presence in the sublimation and heat transfer paper industry, and the new funds will help us expand and strengthen our market position.”
The company priced its shares at Rs 61 each, with a minimum lot size of 2,000 shares. Retail investors had to invest at least Rs 2.44 lakh for four lots, while high-net-worth investors needed at least Rs 3.66 lakh for three lots.
Interactive Financial Services Limited was the lead manager for the IPO. Kfin Technologies Limited handled registration, and B.N. Rathi Securities Limited acted as the market maker.
Founded in 2023, Abril Paper Tech makes sublimation heat transfer paper used in digital printing for garments, textiles, hosiery, curtains, and home furnishings. Its range includes papers from 30 GSM to 90 GSM, available in sizes from 24 to 72 inches. The company’s manufacturing plant is located in Palsana, Gujarat.
While the stock didn’t perform as expected on debut, Abril Paper Tech remains a key player in the niche market of sublimation paper — and investors will be watching closely to see how the company’s growth unfolds.
