Is Aten Papers & Foam Ltd IPO Halal or Haram? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether Aten Papers & Foam Ltd IPO meets Shariah Screening guidelines or not.
Is Aten Papers & Foam Ltd IPO Halal or Not?
Aten Papers & Foam Ltd IPO is considered Not Halal and Non-Shariah Compliant because the company fails the “Illiquid Assets to Total Assets Ratio” criterion, with an illiquid assets ratio of 1.89%, falling below the required 20% threshold under Shariah guidelines.
Refer to Aten Papers & Foam IPO RHP for cross check and detailed information of latest financial report.
Shariah Screening of Aten Papers & Foam Ltd IPO
For an IPO or Stocks to be considered Halal, it must pass all the Shariah screening criteria, which include:
| Criteria | Value | Status |
| Business Activity | Paper Products | ✅ PASS |
| Impermissible Income to Total Revenue | 0.01% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 28.97% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 1.89% | ❌ FAIL |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Aten Papers & Foam Ltd IPO Price Detail
| IPO Date | March 28, 2025 to April 02, 2025 |
| Expected Listing Date | Mon, April 07, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹91 to ₹96 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 33,00,000 shares(aggregating up to ₹31.68 Cr) |
| Fresh Issue | 33,00,000 shares(aggregating up to ₹31.68 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Pre-Issue Shareholding | 70,00,000 shares |
| Post-Issue Shareholding | 1,03,00,000 shares |
| Market Maker Portion | 1,65,600 shares |
Business Overview of Aten Papers & Foam Ltd
Incorporated in 2019, Aten Papers & Foam Ltd plays a key role in the paper product supply chain, sourcing paper from various mills and supplying it to the packaging industry. The company offers a diverse range of products, including Kraft paper, duplex boards, and wastepaper for recycling.
Its product line includes recycled Kraft paper, absorbent Kraft paper for furniture, eco-friendly paper bag Kraft paper, and tube Kraft paper used in various applications. With an experienced management team, in-house logistics, and established banking credibility, the company ensures efficient operations and ready stock availability. As of November 30, 2024, it employs 14 professionals, focusing on quality, sustainability, and customer satisfaction.
Listing Details of Aten Papers & Foam Ltd IPO
| IPO Opening Date | Fri, Mar 28, 2025 |
| IPO Closing Date | Wed, Apr 02, 2025 |
| Expected Allotment Date | – |
| Refund Initiation | – |
| Shares Credited to Demat | – |
| Expected Listing Date | Mon, Apr 07, 2025 |
| UPI Mandate Confirmation Deadline | – |
Aten Papers & Foam Ltd Financial Information (Restated)
| Category | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹37.82 Cr | ₹32.92 Cr | ₹29.62 Cr | ₹27.85 Cr |
| Revenue | ₹58.18 Cr | ₹96.8 Cr | ₹91 Cr | ₹89.82 Cr |
| Profit After Tax | ₹3.82 Cr | ₹2.78 Cr | ₹0.5 Cr | ₹0.76 Cr |
| Net Worth | ₹10.85 Cr | ₹7.03 Cr | ₹4.25 Cr | ₹3.74 Cr |
| Reserves & Surplus | ₹3.85 Cr | ₹6.03 Cr | ₹3.25 Cr | ₹2.75 Cr |
| Total Borrowing | ₹10.96 Cr | ₹15.67 Cr | ₹16.03 Cr | ₹15.44 Cr |
Conclusion
Based on the Shariah screening standard, Aten Papers & Foam Ltd is considered Not Halal and Non-Shariah Compliant due to its illiquid assets to total assets ratio falling below the required threshold. (Allah Knows the Best)
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.