New Delhi, August 11 (HS): Shares of Aradhya Disposal, a company engaged in the manufacturing of paper cups, ripple paper, coated paper rolls, and food-grade greaseproof and oil-resistant paper products, made a lacklustre debut on the stock market today. Despite opening at a discount, the stock recovered on the back of buying interest, though IPO investors managed to book only marginal profits.

Priced at ₹116 per share in its initial public offering (IPO), the stock listed at ₹111 — a 5% discount — on NSE’s SME platform. Following the debut, buying momentum pushed the shares up to ₹116.55 by 12 p.m., triggering the upper circuit limit. Even so, IPO subscribers saw a nominal gain of just 0.47%.

The ₹45.10-crore IPO, open for subscription from August 4 to 6, elicited a muted response, being subscribed only 1.41 times overall. The Qualified Institutional Buyers (QIB) category was subscribed 2.51 times, the Non-Institutional Investors (NII) category 1.25 times, and the Retail Investors category 1.46 times. The issue comprised entirely of fresh equity, with the company issuing 38.88 lakh new shares.

Funds raised from the IPO will be utilised for the purchase of plant and machinery, execution of expansion plans, repayment of term loans, and meeting general corporate purposes.

According to the company’s prospectus, revenue for FY 2024–25 rose 54% year-on-year to ₹113.69 crore, while net profit surged 158% to ₹10.27 crore, compared to ₹3.99 crore in FY 2023–24. This performance underscores a significant improvement in the company’s financial health and operational growth.

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Hindusthan Samachar / Jun Sarkar