Aaradhya Disposal IPO Subscribed 0.93x by Day 2; Retail Quota at 0.81x Amid Moderate Demand

Mumbai, 5 August 2025: Aaradhya Disposal Industries Limited’s ₹45.10 crore initial public offering (IPO) continued to draw investor interest on the second day of bidding. As of 5:24 PM on August 5, 2025, the issue was subscribed 0.93 times, with the highest participation seen from qualified institutional buyers (QIBs), while retail and high net-worth investors (HNIs) showed restrained engagement.

Retail Investors Subscribe 0.81x to Their Allotted Quota by Day 2

Retail individual investors subscribed 0.81 times of the shares reserved for them, bidding for 14.23 lakh shares against an offer of 17.54 lakh shares. The total bid amount from this segment stood at ₹16.51 crore, received from 593 applications. While this reflects a steady interest, it also suggests that retail demand is yet to reach full capacity as the issue heads into its final day.

QIBs Lead the Way with 2.51x Subscription on Day 2

The QIB category showed the strongest interest in Aaradhya Disposal IPO, with a 2.51x subscription rate. Bids for 4.63 lakh shares were received against an offer of 1.84 lakh shares, amounting to ₹5.37 crore. A total of 3 applications were filed in this category. Institutional participation is often viewed as a bellwether for broader investor confidence, and their robust bidding lends credibility to the offering.

NII Segment Sees 0.88x Overall Subscription; bNII at 1.19x While sNII Remains Low at 0.25x

The non-institutional investor (NII) category, which includes HNIs, was subscribed 0.88 times. Within this:

• bNII (above ₹10 lakh investment) subscribed 1.19 times, with bids for 13.95 lakh shares against 11.68 lakh shares offered, amounting to ₹16.19 crore.
• sNII (below ₹10 lakh investment) remained subdued at 0.25x, with bids for 1.45 lakh shares versus 5.85 lakh shares available, aggregating to ₹1.68 crore.

The total number of applications received in the NII category was 62, with total bids placed for 15.40 lakh shares.

Day-wise Progress Indicates Institutional Momentum Picking Up

On Day 1, the total subscription stood at 0.35 times, with QIBs at 1.17x, NIIs at 0.26x, and retail at 0.35x. By Day 2, this improved to:

• QIBs: 2.51x
• NIIs: 0.88x
• Retail: 0.81x
• Total: 0.93x

The numbers suggest a clear uptick in institutional activity, even as retail and smaller HNIs remain cautious. With one more day left for bidding, all eyes are on whether the IPO can cross full subscription.

IPO Structure and Investment Details: Price Band at ₹110–₹116 with ₹2.64 Lakh Minimum Investment

The IPO is a 100% fresh issue of 38.88 lakh equity shares, aggregating up to ₹45.10 crore. The price band has been fixed at ₹110 to ₹116 per share, and the lot size is 1,200 shares.

• Retail investors must apply for at least 2 lots (2,400 shares), requiring a minimum investment of ₹2,64,000.
• HNIs must apply for a minimum of 3 lots (3,600 shares), with a minimum investment of ₹4,17,600.

The IPO is being managed by Khambatta Securities Limited as the book-running lead manager, while Bigshare Services Pvt Ltd is the registrar. The market-making responsibility lies with Prabhat Financial Services Ltd.

IPO Timeline: Final Day of Bidding Ends August 6; Tentative Listing on August 11

• IPO Open Date: August 4, 2025
• IPO Close Date: August 6, 2025
• Allotment Finalisation: August 7, 2025
• Refund Initiation: August 8, 2025
• Demat Credit: August 8, 2025
• Listing on NSE SME: August 11, 2025
• UPI Cut-off Time: 5 PM, August 6, 2025

IPO Proceeds to Support Working Capital and Operational Expansion

The company plans to utilise the net proceeds primarily to strengthen its working capital base and scale up manufacturing capabilities. This includes:

• Working capital requirement to meet growing demand
• Technology upgrades in production facilities
• General corporate purposes

This strategic deployment aims to enhance operational efficiency and production scalability.

Aaradhya Disposal: Paper-Based Packaging Firm with a Diverse Product Portfolio

Established in 2014, Aaradhya Disposal Industries Limited is engaged in manufacturing and exporting paper-based products, including paper cup blanks, coated paper rolls, and ripple paper. Its offerings cater to food-grade and sustainable packaging needs.

The company’s key product range includes:

• PE coated, PLA coated, and barrier-coated paper cup blanks
• Greaseproof and oil-resistant food-grade papers
• Vegetable parchment and TDL (Titanium Dioxide) poster paper

Aaradhya provides customised paper packaging solutions for sectors such as retail packaging, food service, and commercial printing, promoting both quality and environmental responsibility.

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