Astron Paper and Board Mill Ltd

astron paper

About the Company:

Astron Paper and Board Mills Limited (Incorporated in 2010) is engaged in manufacturing of kraft paper.

Within a short span of time,Company has developed a name for itself in kraft paper industry and they have been able to establish a brand associated with qualitative and comprehensive range of kraft papers.

They mainly cater to packaging industry and have been able to develop a loyal clientele network consisting of various packaging companies and MNCs.

Currently they are operating in domestic markets with their products being supplied on pan India basis.

Company is one of the major kraft paper manufacturers in Gujarat with manufacturing facility having an installed capacity of 96,000 mt tonnes per annum.

Company’s manufacturing facility is situated at Halvad, Gujarat and is well equipped with requisite plant and machineries and other facilities.

Company’s manufacturing and dispatch process has been assessed and certified as meeting the requirements of ISO 9001: 2008 and ISO 14001: 12004 by an international organisation viz. SGS United Kingdom Ltd. Systems & Services Certification.

Kraft Paper manufactured by them is mainly used in manufacturing corrugated boxes which is used by all industrial and commercial packaging units

Kraft paper is used by packaging industry for manufacturing corrugated boxes and liners,corrugated sacks and composite containers.

Capacity Utilization Levels & Installed Capacity:

About Promoter Group:

  • Company is promoted by Kirit G. Patel,Ramakant Patel, Karshanbhai Patel and Asian Granito (India) Limited.
  • Asian Granito (India) Limited is Listed on NSE & BSE.


Management Team:

  1. Mr.Kirit G.Patel (Designation : Chairman and Managing Director)
  2. Mr.Ramakant Patel (Designation : Executive Director)
  3. Mr.Karshanbhai Patel (Designation : Executive Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Kirit Patel 66,99,650 4.24
Karsanbhai Patel 35,75,000 2.77
Ramakant Patel 11,82,900 9.10
Asian Granito India Limited 87,75,000 8.95


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake (%)
Kirit G. Patel
20.61% 14.40%
Ramakant Patel 3.64% 2.54%
Karshanbhai Patel 11.00% 7.68%
Asian Granito India
27.00% 18.87%
Promoter Group Entities
           0.38%               0.26%
Total 62.64% 43.77%


Objectives of the Issue:

  • Setting up of additional facility for manufacturing of lower GSM and lower B.F Kraft Paper.
  • Part repayment of unsecured loan availed by our Company.
  • Funding the working capital requirements of the Company.
  • General corporate purposes.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Setting up of additional facility for manufacturing of lower GSM and lower B.F Kraft Paper
Part Repayment of unsecured loan availed by the Company 8.1
Funding the working capital requirements of the Company 23.9
General corporate purposes 15.0
Net Proceeds 70 cr


Future Growth Strategies:

  • They are setting up additional manufacturing facility to manufacture lower GSM and lower B.F Kraft paper .This facility will complement their existing capacity as the Kraft paper used in inner layer of corrugated boxes is generally of lower GSM and lower B.F which was not manufactured by them till now.
  • To expand their business,they intend to aggressively penetrate in the domestic markets and expand their domestic market presence by expanding the sales and distribution network.
  • Since the raw material for corrugated box is Kraft paper they also have plans enter into packaging industry ie. manufacturing of corrugated boxes and thereby expanding the business.


Also watch this In Depth Details about the Company:


Positives for the Company:

  • Company proposes to enhance its installed capacity by setting up of additional manufacturing facility by way of addition to the installed capacity of 33,000 mt p.a which is proposed to commence in January,2018.
  • Setting up of additional manufacturing facility which will increase their product range.
  • As they are ISO Certified, therefore they are recognised vendor with large corporate houses and MNCs. Such MNCs require their corrugators to source the kraft paper for their corrugated boxes from their list of approved vendors only.
  • With Expansion to other regions we should expect a very good growth in future.
  • As they plan to start manufacturing of corrugated boxes,it will further increase the business.
  • With each passing year the demand for corrugated boxes for packaging is increasing steadily.
  • Company is also in the process of exploring export markets.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17
Revenue  26.72  106.19  152.13  157.85  184.58
Net Profit  (-4.14) (-3.02)  4.12  6.08  9.96


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Astron Paper & Board Mills
10 3.06 16.33 21.98% 13.94
Shree Ajit Pulp & Paper Ltd 10
17.74 6.84% 174.77
Genus Paper and
Board Limited
1 0.27 20.37 2.14% 12.60
South India Paper
Mills Limited
10 8.41 12.25 9.21% 91.33


IPO Details: 

Details Info
Issue Opens on 15th December 2017
Issue Closes on:. 20th December 2017
Issue Price Rs.45 – 50
Face Value Rs.10
Minimum Lot 280 shares
Minimum Investment Rs.14,000
Retail Allocation 35%
Issue Constitutes 30.10%
Issue Size Rs.70 crores
Market Cap Rs.232 crores
Listing at NSE & BSE
Total Equity Shares Offered (Fresh) 1,40,00,000
Equity Shares Prior 3,25,00,000
Equity Shares after the issue 4,65,00,000


Important Dates:

Finalization of Basis of Allotment on or Before 26th December 2017
Initiation of Refunds on or Before 27th December 2017
Credit of Equity Shares: on or Before 28th December 2017
Listing Date: on or Before 29th December 2017


Subscription Details:


(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3 Day-4
QIB  13,30,000  1.5 1.8 5.74 103.36
NII  73,15,000  0.04 0.45 1.16 396.9
Retail  46,55,000  1.96 14.07 33.57 73.36
Employee  7,00,000  0.04 0.58 1.59    2.7
TOTAL  1,40,00,000  0.721 5.11 12.39 241.7


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
3.06 16.33 21.98% 13.94


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Subscribe Long Term 40%


Grey Market Premium :

Date IPO Price Band Grey Market premium Kostak Rates
28/12/17 Astron Paper & Board Mill Ltd Rs.45 – 50 35- 37 1550- 1650

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Company Contact Info:
Astron Paper and Board Mill Limited,
D-702, Seventh Floor, Ganesh Meridian,
S.G. Highway,Ahmedabad -380060,
Gujarat, India.
Tel No:+ 91-79-40081221
Fax No:+ 91-79-40081220


IPO Registrar Info:
C-101, 247 Park, 1st Floor,
LBS Marg, Vikhroli (W), Mumbai-400083
Tel: 022 49186200
Fax:022 49186195
Grievance E-mail:


Lead Manager to the Issue:
406-408, Keshava Premises,
Bandra Kurla Complex, Bandra East,
Mumbai – 400 051
Te l: +91 22 6194 6700
Fax: +91 22 2659 8690