Aaradhya Disposal Limited opens its book‑building IPO for bidding from 4th to 6th August 2025, raising up to ₹45.10 crore. The fresh issue comprises 38.88 lakh shares, priced at ₹110 to ₹116 each, and carries a face value of ₹10. The IPO will list on the NSE’s SME platform with a tentative listing date of 11th August 2025.
IPO Snapshot & Timeline
| Event | Date |
|---|---|
| IPO Open | 4 August 2025 |
| IPO Close | 6 August 2025 |
| Allotment | 7 August 2025 |
| Refund Initiation | 8 August 2025 |
| Tentative Listing | 11 August 2025 |
| Listing Platform | NSE & SME |
| Registrar | Bigshare Services Pvt Ltd |
Aaradhya Disposal invites bids in multiples of 1,200 shares, making the minimum retail investment ₹2,78,400 at the upper price band. The IPO defines separate quotas for market makers, QIBs, retail investors, and NIIs, aligning with SEBI’s norms.
Share Reservation Break‑Up
| Investor Category | Shares Reserved | % of Issue |
|---|---|---|
| Market Maker | 1,94,400 | ~5.00% |
| Qualified Institutional Buyers | 1,84,800 | ~4.75% |
| Retail Investors | 17,54,400 | ~45.12% |
| Non‑Institutional (HNI) | 17,54,400 | ~45.12% |
| Total | 38,88,000 | 100% |
Nearly ninety percent of shares go to retail and HNI investors, reflecting a deliberate strategy to attract retail participation alongside high‑net‑worth individuals.
GMP Trends & Listing Expectations
In the days leading up to the IPO, the Grey Market Premium (GMP) stayed flat at ₹0, suggesting a neutral sentiment among grey‑market brokers:
| Date | Issue Price | GMP | Estimated Listing Price | Listing Gain |
|---|---|---|---|---|
| 1 Aug 2025 | ₹116 | ₹0 | ₹116 | 0.00% |
| 31 Jul 2025 | ₹116 | ₹0 | ₹116 | 0.00% |
| 30 Jul 2025 | ₹116 | ₹0 | ₹116 | 0.00% |
This stability implies the market expects a listing close to the issue price on 11th August 2025.
Financial Story: Growth and Profitability
Aaradhya Disposal reports stellar growth in FY24–25 and builds a compelling case for long‑term value.
| Fiscal Year Ending 31 Mar | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| 2025 | 115.96 | 10.27 | 17.84 | 29.47 |
| 2024 | 75.91 | 3.99 | 7.28 | 16.68 |
| 2023 | 86.51 | 2.14 | 3.14 | 12.70 |
Year‑on‑year, the company expanded revenue by 53%, and PAT soared by 158%, demonstrating sharp operational leverage and improving margins. EBITDA nearly 2.5x doubled in one year. The debt burden dropped dramatically (from ₹45 crore to ₹3.66 crore), strengthening financial flexibility.
Financial Ratios & IPO Valuation Metrics
Here are the pre‑ and post‑issue ratios that inform valuation and future expectations:
| Metric | Pre‑IPO Value | Post‑IPO Estimate |
|---|---|---|
| PE Ratio | 11.57 | ~15.96 |
| EPS (₹) | 10.02 | ~7.27 |
| RoNW (%) | 34.87% | — |
| ROCE (%) | 25.15% | — |
| ROE (%) | 44.53% | — |
| EBITDA Margin (%) | 15.69% | — |
| Price‑to‑Book Value | 3.99 | — |
| Estimated Market Cap | ₹164 crore | — |
The pre‑IPO PE of 11.6 times appears reasonable given the double‑digit revenue and bottom‑line growth. The company expects post‑IPO dilution to ease EPS, but RoNW at 35%+ underscores strong capital efficiency.
Lot Size & Investment Details
Angel investors and retail bidders must follow the lot structure below:
| Investor Type | Lots | Shares | Approx Amount at ₹116 |
|---|---|---|---|
| Retail (Min & Max) | 2 | 2,400 | ₹2,78,400 |
| S‑HNI (Min) | 3 | 3,600 | ₹4,17,600 |
| S‑HNI (Max) | 7 | 8,400 | ₹9,74,400 |
| B‑HNI (Min) | 8 | 9,600 | ₹11,13,600 |
Retail investors cannot apply for more than two lots. HNI segments allow for higher ticket sizes before hitting SEBI’s upper limit.
Promoter Holding & Post‑IPO Equity Structure
| Ownership Stage | Promoter Stake |
|---|---|
| Pre‑Issue | 97.36% |
| Post‑Issue (Estimated) | 70.58% |
Promoters—including Sunil, Anil, and Shashi Maheshwari—will see dilution but maintain majority control post‑IPO, retaining direction over corporate strategy.
Strengths & Growth Drivers
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Eco‑Friendly Portfolio: The company manufactures biodegradable disposable products (paper-based plates, bowls, cups), servicing hotels, catering businesses, and retail chains. Demand for sustainable packaging is rising.
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Export Potential: It sells to international markets increasingly focused on green product adoption. The global push toward eco-conscious packaging provides a long runway.
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Marginal Expansion: PAT margins improved significantly through better inventory management and lower borrowing costs. EBITDA margin rose from ~10% to 15.7% in one year.
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Debt Clearance: Fast deleveraging (from ₹45 cr debt to ₹3.66 cr) reduces interest burden and strengthens return ratios.
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Scalable Business Model: Modest capex and flexible production setup allow the company to scale as demand rises.
Risks & Challenges
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Low Total Scale: With revenue of ₹116 crore in FY25, scale remains limited; the company remains vulnerable to demand cycles.
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Margin Pressures: Raw material price volatility and intense competition in the eco-disposable space can compress margins.
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Seasonality & Demand Shifts: Hospitality and event-driven demand can fluctuate substantially.
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Limited Technology Integration: Lower tech adoption and manual processes may limit operating efficiencies in future.
Outlook & Investor Verdict
Aaradhya Disposal IPO offers strong historical growth, reasonable valuation, and aligns with sustainable trends in packaging. Though the IPO lacks GMP support, long-term investors with conviction in the eco-friendly space may find the stock compelling.
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Short-term traders may skip due to flat GMP and expected listing near ₹116.
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Medium to long‑term investors should watch execution against expansion plans, export traction, and margin improvements.
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Valuation stands reasonable, assuming growth and profitability continue.
Final Takeaway
Aaradhya Disposal delivers a compelling pre‑IPO financial picture marked by 53% revenue growth, 158% PAT growth, and swift debt reduction. With the IPO opening on 4th August, investors should pay attention to allotment trends and subscription demand. Though GMP stays flat, the company’s execution in the eco-friendly product space constitutes the main driver for future returns. If the firm leverages export markets, continues margin expansion, and maintains cost discipline, long-term investment returns could significantly exceed the current valuation.
