Aaradhya Disposal Industries
Book Building issueSME₹45.10 Cr issue
-4.31%
Listing gain over issue price
Issue size
₹45.10 Cr
1 lot at cut-off
₹1,39,200
Lot size
1,200shares
Open
04 Aug 2025
Close
06 Aug 2025
Allotment
07 Aug 2025
Listing
11 Aug 2025
Listing performance
Issue price
₹116
Listed at
₹111
Listing-day close
₹116.55
Latest price
₹114.65
Close on 23 Oct 2026
Listing gain
-4.31%
Return since issue
-1.16%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Aug 2025 – 06 Aug 2025
- Listing date
- 11 Aug 2025
- Face value
- ₹10 per share
- Issue price
- ₹116 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹45.10 Cr
- Market cap at offer price
- ₹164 Cr
- Promoter holding
- 97.36% → 70.58% pre-issue → post-issue
- ISIN
- INE124401014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Khambatta Securities Ltd.
- Registered office
- Plot E-1, Industrial Area No-1, A.B.Road, Madhya Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,94,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹116
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,39,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,78,400 |
| S-HNI (max) | 7 | 8,400 | ₹9,74,400 |
| B-HNI (min) | 8 | 9,600 | ₹11,13,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹116 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.02 | 7.27 |
| P/E (×) | 11.58 | 15.96 |
| Market cap | — | ₹164 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 34.87%
- ROCE
- 25.15%
- Debt / equity
- 1.35
- PAT margin
- 9.04%
- EBITDA margin
- 15.69%
- NAV per share
- ₹29.07
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aaradhya Disposal Industries
Aaradhya Disposal Industries Limited, incorporated on January 16, 2014, and converted to a public limited company on October 28, 2024, is a manufacturer and supplier of quality paper products. The company offers an extensive range of paper-based solutions including paper cup blanks (PE coated, PLA coated and Barrier coated) and food-grade papers such as greaseproof paper, greaseproof slip easy paper, wet strength greaseproof, OGR paper, vegetable parchment paper, and TDL poster paper. With over a decade of expertise, the company provides customized solutions tailored to the unique needs of customers for retail packaging, foodservice use, and commercial printing. The company operates from Dewas, Madhya Pradesh, with two operational manufacturing units (E-1 and E-2) having a combined installed capacity of 15,000 MTPA as of March 31, 2025.
Company Analysis
from RHPAaradhya Disposal Industries Limited manufactures and supplies quality paper products including paper cup blanks and food-grade papers for domestic and international markets.
Aaradhya Disposal Industries Limited, incorporated on January 16, 2014, and converted to a public limited company on October 28, 2024, is a manufacturer and supplier of quality paper products. The company offers an extensive range of paper-based solutions including paper cup blanks (PE coated, PLA coated and Barrier coated) and food-grade papers such as greaseproof paper, greaseproof slip easy paper, wet strength greaseproof, OGR paper, vegetable parchment paper, and TDL poster paper. With over a decade of expertise, the company provides customized solutions tailored to the unique needs of customers for retail packaging, foodservice use, and commercial printing. The company operates from Dewas, Madhya Pradesh, with two operational manufacturing units (E-1 and E-2) having a combined installed capacity of 15,000 MTPA as of March 31, 2025.
Disposable paper productsPaper cup blanks manufacturingFood-grade papersPackaging materials
Objects of the Issue
- Working Capital Requirement Rs. 2,000.00 lakhs p.20
- Capital expenditure towards purchase of Plant and Machinery and Civil Work for expansion plan of the Company Rs. 1,585.76 lakhs p.20
- Prepayment of term loans to banks Rs. 160.13 lakhs p.21
- General Corporate Purpose p.21
- Working capital requirements Rs. 2,000.00 lakhs p.90
- Capital expenditure towards purchase of Plant and Machinery and Civil Work Rs. 1,585.76 lakhs p.90
- Prepayment of term loans to banks Rs. 160.13 lakhs p.90
- General Corporate Purpose [●] p.90
- Expansion of Manufacturing Facility - Investment in barrier-coated paper production machinery and capacity enhancement p.161
- Technology enhancements and machinery acquisition p.162
- Funding capex for the new plant and expansion
Issue Structure
- Total Issue
- Up to 38,88,000 Equity Shares of face value of Rs. 10/- each aggregating to Rs. [●] Lakhs
- Fresh Issue
- Up to 38,88,000 Equity Shares of face value of Rs. 10/- each for cash at a price of Rs. [●] per Equity Share aggregating to Rs. [●] Lakhs
- Offer for Sale
- NA — The entire issue constitutes fresh issue of equity shares
- Price Band
- [●]
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- Rs. 10 each
Business Model
The company manufactures and supplies paper-based products on a direct-to-customer sales model without dealers or distributors. It earns revenue from sales of paper cup blanks and food-grade papers to domestic and export customers. As of fiscal 2025, revenue from operations was Rs. 11,369.15 lakhs, with exports comprising 11.91% of revenue from operations.
Business Segments
Manufactures paper cup blanks with PE coating, PLA coating, and Barrier coating for beverage and food service applications
Manufactures specialized food-grade papers including greaseproof paper, greaseproof slip easy paper, wet strength greaseproof, OGR paper, vegetable parchment paper, and TDL poster paper
Manufactures PE-coated, PLA-coated, and barrier-coated paper cup blanks for hot and cold beverages and food applications, providing moisture and grease resistance.
Produces greaseproof paper, wet strength greaseproof paper, bake oven paper, and vegetable parchment paper for food packaging applications including burgers, sandwiches, frozen foods, and bakery items.
Manufactures PE-coated, PLA-coated, and barrier-coated paper cup blanks for hot and cold beverages, eco-friendly and food-grade applications
Produces greaseproof paper, greaseproof 4K paper, wet strength greaseproof, vegetable parchment paper, TDL poster paper, and other specialized food-grade papers for packaging and baking applications
Manufacturing of PE coated, PLA coated, and barrier coated paper cup blanks
Manufacturing of greaseproof paper, greaseproof slip easy paper, wet strength greaseproof, OGR paper, vegetable parchment paper, and TDL poster paper
Provision of job work and other services on a case-by-case basis
Manufacture and sale of biodegradable paper pulp-based plates, bowls, cups, straws, and other disposable food service containers
SWOT Analysis
Strengths
- • Strong revenue growth and profitability trajectory(p.93)
- • Significant profit growth driven by operational efficiency(p.93)
- • Expanding production capacity to meet demand(p.100)
- • Improved leverage ratios and financial position(p.107)
- • Growing EBITDA margins indicating operational improvement(p.105)
- • High return on equity demonstrating shareholder value creation(p.107)
- • Advanced customized machinery enabling optimized coating temperature and seamless coating-paper fusion(p.153)
- • Grammage flexibility (30-500 GSM) on single machinery reduces production lines needed(p.154)
- • Strategic location in Dewas, Madhya Pradesh reduces raw material and transportation costs(p.154)
- • In-house designing team with international expertise and embossing capabilities(p.154)
- • Biodegradable and environmentally-friendly product portfolio with PLA and Barrier coatings(p.154)
- • Exceptional low wastage rate from optimized production processes(p.155)
- • Direct-to-customer sales model eliminates intermediaries and improves profitability(p.155)
- • Over a decade of expertise in paper products manufacturing with diverse product portfolio(p.267)
- • Significant revenue growth and improved profitability in recent period(p.273)
- • Improved financial ratios including return on equity and debt-equity position(p.277)
- • Strong product margin improvement through introduction of high-margin products(p.274)
Weaknesses
- • Significant reliance on limited supplier base for raw materials(p.37)
- • Heavy customer concentration risk(p.35)
- • All operations concentrated in single location (Madhya Pradesh)(p.40)
- • No long-term contracts with key customers(p.44)
- • No long-term supply agreements with key suppliers(p.44)
- • Significant ongoing litigation and legal proceedings(p.30)
- • High working capital intensity requiring external financing(p.40)
- • Insufficient insurance coverage for fire and operational risks(p.39)
- • High financial leverage with significant debt burden(p.107)
- • Substantial working capital requirements with elevated inventory levels(p.94)
- • High trade receivables indicating extended credit period to customers(p.94)
- • Limited cash and liquidity position(p.60)
- • Single location manufacturing facility concentration(p.64)
- • High dependence on imported machinery(p.164)
- • Limited market presence in some regions(p.164)
- • High initial capital investment required for machinery and R&D(p.164)
- • Dependence on few large suppliers for paperboard with limited bargaining power(p.134)
- • Reliance on consolidated suppliers creates vulnerability to raw material price volatility(p.134)
- • High water consumption during manufacturing (3 lakh liters per 60,000 cups)(p.135)
- • Limited heat resistance and durability compared to plastic alternatives(p.135)
- • High dependence on a limited number of suppliers and customers(p.278)
- • Conflict of interest through related party transactions with promoter group entities in same line of business(p.200)
- • Ongoing litigation related to workplace fire incident(p.280)
- • High financial leverage with significant debt obligations(p.249)
- • Employee compensation litigation and awards against the company(p.283)
- • Delays in statutory dues payments including ESIC, PF and taxes(p.298)
- • Multiple tax demand notices against directors and KMPs(p.292)
- • Outstanding trade payables concentration with limited creditors(p.295)
Opportunities
- • Expansion of manufacturing capacity(p.20)
- • Working capital deployment for business growth(p.20)
- • Presence in international markets(p.39)
- • Growing domestic paper industry(p.20)
- • Significant market growth in paper cup stocks and food-grade papers(p.128)
- • Strong tailwinds from plastic ban driving shift to paper-based alternatives(p.128)
- • Expanding Indian food service and café culture(p.128)
- • Growing demand for biodegradable and sustainable packaging solutions(p.128)
- • India's strong economic growth and consumption dynamics(p.116)
- • Increasing penetration of e-commerce and quick-service restaurants(p.128)
- • Product diversification into new food-grade paper products(p.93)
- • Growing global demand for eco-friendly packaging solutions(p.164)
- • Expansion into international markets to broaden customer base(p.164)
- • Diversification into new sustainable packaging solutions for different industries(p.164)
- • Stringent plastic bans driving demand shift to paper-based disposables(p.129)
- • Rising food and beverage sector projected to grow at 8.1% CAGR (2024-2028)(p.129)
- • Growing middle-class with 100 million individuals willing to invest in premium café culture(p.130)
- • Online food delivery market with 66 million users driving demand for hygienic disposables(p.130)
- • Corporate sustainability commitments driving adoption of paper-based packaging(p.130)
- • Paper cup industry projected to grow from 20-23 billion units (FY2024) to 28-30 billion units (FY2032)(p.137)
- • Expansion into new high-margin paper products for food and beverage industries(p.267)
- • International market expansion through export capabilities(p.269)
- • Growing demand for sustainable and food-grade paper products(p.267)
- • Receipt of government subsidy supporting manufacturing expansion(p.255)
- • Conversion from private to public limited company enabling access to capital markets(p.296)
- • In-principle approval from NSE Emerge for listing and market access(p.296)
- • Dematerialization infrastructure in place with NSDL and CDSL(p.296)
- • Positive cash accruals from operations in 2 out of 3 preceding financial years(p.302)
- • Multiple ISO certifications demonstrating quality and compliance standards(p.297)
- • Potential migration to main board from SME exchange(p.322)
Threats
- • Intense competition from Chinese exporters with aggressive pricing(p.31)
- • Export revenue vulnerability to geopolitical tensions(p.31)
- • Raw material price volatility and supply chain disruptions(p.37)
- • Foreign exchange rate fluctuation risk(p.38)
- • Dependence on regulatory approvals and licenses(p.43)
- • Risk of economic slowdown in India(p.55)
- • Operational risks including fire, power failure and equipment breakdown(p.43)
- • Wage inflation and labour cost increases(p.54)
- • Volatility in raw material costs, particularly paper prices(p.93)
- • Intense competition from domestic and international manufacturers(p.93)
- • Risk of fire incidents and operational disruptions(p.93)
- • Global economic slowdown and trade policy uncertainty(p.114)
- • Rising tariffs and trade tensions affecting imports and competitiveness(p.115)
- • Dependence on few large customers and concentrated customer base(p.94)
- • Industry cyclicality and economic sensitivity of paper consumption(p.123)
- • Intense competition in eco-friendly packaging sector(p.164)
- • Changing regulatory environment may impose stricter compliance requirements(p.164)
- • Economic downturns reducing consumer demand for premium eco-friendly products(p.164)
- • Raw material sourcing challenges with rising global demand creating supply bottlenecks(p.134)
- • Volatility in wood pulp and paperboard prices affecting profit margins(p.134)
- • High production costs for manufacturing compared to plastic alternatives(p.134)
- • High equipment and technology costs for specialized manufacturing(p.135)
- • Waste management challenges due to plastic coating layers making recycling difficult(p.135)
- • Rise of reusable containers and alternative sustainable packaging threatening disposable cup market(p.136)
- • Volatility and cyclicality of raw material prices(p.268)
- • Intense competition in paper products manufacturing industry(p.278)
- • Regulatory and compliance risks including labor and factory safety regulations(p.280)
- • Exposure to foreign exchange volatility through export transactions(p.244)
- • Litigation involving promoters related to cheque dishonor and employee compensation(p.284)
- • Tax litigation and income tax demands at multiple levels(p.291)
- • GST compliance issues and indirect tax demands(p.290)
- • Regulatory compliance burden with multiple pending notices and audits(p.291)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sunil Maheshwari | Promoter | 23.40% | 16.96% |
| Mr. Anil Maheshwari | Promoter | 23.41% | 16.98% |
| Mrs. Shashi Maheshwari | Promoter | 50.54% | 36.64% |
| Sunil Maheshwari | Promoter | 23.40% | 16.96% |
| Anil Maheshwari | Promoter | 23.41% | 16.98% |
| Shashi Maheshwari | Promoter | 50.54% | 36.64% |
| Sheela Tapadia | Promoter Group | negligible | negligible |
| Mamta Soni | Promoter Group | negligible | negligible |
| Sunil Maheshwari | Promoter & Managing Director | 23.40% | 16.96% |
| Anil Maheshwari | Promoter & Director | 23.41% | 16.98% |
| Shashi Maheshwari | Promoter & Executive Director | 50.54% | 36.64% |
| Sunil Maheshwari | Promoter | 23.40% | — |
| Anil Maheshwari | Promoter | 23.41% | — |
| Shashi Maheshwari | Promoter | 50.54% | — |
| Sunil Maheshwari | Promoter/Managing Director | — | — |
Leadership
Mr. Sunil Maheshwari · Managing Director
Mrs. Shashi Maheshwari · Executive Director
Mr. Anil Maheshwari · Director & CFO
Ms. Surabhi Modi · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Aaradhya Disposal Industries IPO FAQs
What is the lot size of Aaradhya Disposal Industries IPO?
The minimum lot size of Aaradhya Disposal Industries IPO is 1,200 shares. One lot costs ₹1,39,200 at the cut-off price.
When does Aaradhya Disposal Industries IPO open and close?
Aaradhya Disposal Industries IPO opened for subscription on 04 Aug 2025 and closed on 06 Aug 2025.
What is the listing date of Aaradhya Disposal Industries IPO?
Aaradhya Disposal Industries IPO listed on 11 Aug 2025.