Aaradhya Disposal Industries Ltd IPOAARADHYA

The IPO opens on 04 Aug 2025 & closes on 06 Aug 2025.

Aaradhya Disposal Industries Limited was originally incorporated as Aaradhya Disposal Industries Private Limited' on January 16, 2014 by the Registrar of Companies, Gwalior. Thereafter, Company converted into a Public Limited from Private Limited pursuant and the name of the Company changed from Aaradhya Disposal Industries Private Limited' to Aaradhya Disposal Industries Limited' and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Gwalior on October 28, 2024. The Company is the manufacturer and supplier of high- quality paper products that cater to a wide range of industries, both domestically and internationally. Manufacturing Unit of Company with an installation capacity of 12,000 metric tonnes per annum spread over an area of 55,151 square feet is situated at Dewas, near Indore, Madhya Pradesh. The Company established Manufacturing Unit at Dewas, in Madhya Pradesh in 2014. It installed one Printing, one Punching, one Coating and sixteen Paper Cup Making Machines, installed more Paper Cup Making Machines in 2015; launched four Punching, one Printing and few other Paper Cup Making Machines in 2017, expanded the production plant with the addition of Plot E-2 at Industrial Area No. 1, A.B. Road, in Dewas, Madhya Pradesh in 2019. The Company further installed one PLA and PE Coating Machines and added two Punching Machines in 2022 and has installed one Barrier Coating Machine in 2024. In 2025, Company installed 1 Boiler Machine in FY 2025. Company launched the initial public offer by issuing 38,88,000 equity shares of face value Rs 10 raising funds of Rs 45.10 Crore in Aug'25.

Aaradhya Disposal Industries Ltd IPO will close on 06 Aug 2025.

<ul><li>Strong, experienced and dedicated senior management team and qualified workforce.</li><li>Presence in Domestic as well as International Market.</li><li>Ability to provide products as per customer requirements</li><li>Engaged in the manufacturing of biodegradable and environment friendly products.</li><li>Ability to scout for new opportunities and capitalising the same.</li><li>Consistent track record of growth and financial performance.</li><li>Ability to serve diverse customer needs.</li><li>Ability to serve large and reputed customers</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Sunil Maheshwari</td> <td>2398000</td> <td>23.4</td> <td>2398000</td> <td>16.96</td> </tr> <tr> <td>2</td> <td>Anil Maheshwari</td> <td>2400000</td> <td>23.41</td> <td>2400000</td> <td>16.98</td> </tr> <tr> <td>3</td> <td>Shashi Maheshwari</td> <td>5180000</td> <td>50.54</td> <td>5180000</td> <td>36.64</td> </tr> <tr> <td>4</td> <td>Sheela Tapadia</td> <td>500</td> <td>---</td> <td>500</td> <td>---</td> </tr> <tr> <td>5</td> <td>Mamta Soni</td> <td>500</td> <td>---</td> <td>500</td> <td>---</td> </tr> </tbody> </table>

<ul><li>The Company, its Promoters, Directors, Group Entities and Key Managerial Personnel are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.</li><li>A portion of its revenues are generated from exports. Any adverse changes in the conditions affecting these exports and the company inability to grow its business in new geographic markets may adversely impact the company business, results of operations, profitability and margins, cash flows and financial condition.</li><li>An increase in the cost of raw materials or a shortfall in the availability of raw materials such as Paper Cup Board, Craft Paper, Granules for PE and PLA coating, Ink and Food Grade Chemicals - OGR, OTR and MTR from its suppliers due to various reasons could have a material adverse effect on the company business, results of operations, cash flows and financial condition as its may not be able to pass on such costs to the company customers.</li><li>The company has experienced fire outbreak in its manufacturing facility on May 05, 2023. The compay regularly work with flammable materials and activities in its operation which can be dangerous and could cause injuries to people or property.</li><li>The Company has reported certain negative cash flows from its investing activities and financing activities, details of which are given below. Sustained negative cash flow could impact our growth and business.</li><li>Restated Standalone Financial Statements disclosed in the Draft Red Herring Prospectus may differ from that of disclosed in this Red Herring Prospectus</li><li>The company derives a significant portion of its revenue from the company top 5 & top 10 customers. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company business, results of operations, financial condition and cash flows.</li><li>Its manufacturing capacity may not reach their installed capacity and the company may also be unable to effectively utilize its expanded manufacturing capacities.</li><li>Its business is largely concentrated in two states i.e. Madhya Pradesh and Gujarat ("States") and is affected by various factors associated with these states.</li><li>The Company procures more than 85% of its total raw material requirements mainly from five suppliers, any dispute with them or any delay/ disruption/ strike/ lock-outs in their business operation could have a material adverse effect on its business, production, sales and financial condition.</li><li>Its may not be able to protect our "Proprietary Technology" and prevent the unauthorised use, which could harm the company business.</li><li>A portion of its revenues and expenses are denominated in foreign currencies. As a result, the company is exposed to foreign currency exchange risks and regulatory changes in foreign exchange management which may adversely impact its results of operations.</li><li>The Company has lodged the Insurance claim in past. Its insurance coverage may not be adequate to protect the company against all material risks.</li><li>Its business is working capital intensive. If the company experience insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of the company operations.</li><li>Its existing Manufacturing Facility and Registered Office are located in Madhya Pradesh and any adverse changes in the conditions affecting the region can adversely impact the company business, results of operations, profitability and margins, cash flows and financial condition.</li><li>There have been instances of delays of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to the Registrar of Companies.</li><li>There have been certain instances of delays in payment of certain statutory dues by it. Any further delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have a material adverse impact on its financial condition and cash flows.</li><li>The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business, and the company may experience delays in obtaining, renewing or maintaining such licenses or permits or be unable to obtain such licenses and approvals.</li><li>Its existing manufacturing facility is subject to operating risks. The unexpected shutdown or slowdown of operations at the company manufacturing facility could have a material adverse effect on its business, results of operations, cash flows and financial condition.</li><li>The company does not own its Registered Office and Manufacturing Facility. Any revocation or adverse changes in the terms of the leave and license/ lease may have an adverse effect on the company business, prospects, results of operations and financial condition.</li><li>The company does not have any long-term agreements with its key suppliers for the continuous supply of raw materials. Absence of such agreements leaves it vulnerable to sudden disruptions in supply, potential price increases, or unfavourable adjustments to supply terms, all of which could adversely affect its production schedules and financial stability.</li><li>The company does not have long-term agreements with any of its customers, the loss of one or more of them or a reduction in their demand for its products could adversely affect the company business, results of operations, financial condition and cash flows.</li><li>The company is subject to strict quality requirements and any product defect issues or failures by its or the company raw material suppliers or its customers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on its financial condition and results of operations.</li><li>Its business is dependent on direct sales model. A decrease in the revenue the company earn from such key direct customers and an inability to expand or effectively manage its customer could adversely affect the company business, results of operations, profitability and margins, cash flows and financial condition.</li><li>If the company does not continue to invest in new technologies and equipment, its technologies and equipment may become obsolete and its cost of processing may increase relative to the company competitors, which may have an adverse impact on its business, results of operations and financial condition.</li><li>Its inability to collect receivables and default in payment from the company customers could result in the reduction of our profits and affect its cash flows.</li><li>Trade Receivables and Inventories form a substantial part of its current assets. Failures to manage the company inventory could have an adverse effect on its business, results of operations, cash flows and financial condition.</li><li>Compliance with, changes in, safety, health and environmental laws and various labour, workplace related laws and regulations, including terms of the approvals granted to it, may increase the company compliance costs and as such adversely affect its business, prospects, results of operations and financial condition.</li><li>Its Independent Directors does not have qualification related to the business of the Company.</li><li>Certain experience-related documents of Mr. Narender Tulsidas Kabra, our Independent Director, are not available, which may affect the completeness of its disclosures.</li><li>A portion of the Net Proceeds may be utilized for pre-payment of term loans availed by the Company.</li><li>The company own plant & machinery, resulting in increased fixed costs to the Company. In the event the company is not able to generate adequate cash flows it may have a material adverse impact on its operations.</li><li>The company cannot assure you that the Objects of the Issue will be achieved within the expected time frame, or at all, and any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>The company is highly dependent on its Promoters and the company Key Managerial Personnel. Any inability on its part to retain or recruit skilled personnel could adversely affect its business, results of operations and financial condition.</li><li>The company has certain contingent liabilities and commitments which, if materialised, may adversely affect its financial condition.</li><li>The company is subject to risks arising from interest rate fluctuations, which could reduce its profitability and adversely affect its business, results of operations, cash flows and financial condition.</li><li>The company is heavily dependent on machinery for its operations and any disruption to the same may cause interruption in business.</li><li>Some of its Certificates, Registrations and Licences are in erstwhile name.</li><li>Certain Group Entities Operates in Related Business Segments.</li><li>Its Promoters, certain of the company Directors, Key Managerial Personnel may have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>Industry information included in this Red Herring Prospectus has been derived from the Disposable Paper Cups/Glasses Cup Stock and Food grade Paper Market India Report ("D&B Report", which was prepared by Dun & Bradstreet ("Dun & Bradstreet") and exclusively commissioned and paid for by our Company for the purposes of the Issue, and any reliance on information from the Report for making an investment decision in the Issue is subject to inherent risks.</li><li>The company has unsecured loans that may be recalled by the lenders at any time and we may not have adequate funds to make timely payments or at all.</li></ul>

The Issue type of Aaradhya Disposal Industries Ltd is Book Building - SME.

The minimum application for shares of Aaradhya Disposal Industries Ltd is 2400.

The total shares issue of Aaradhya Disposal Industries Ltd is 3888000.

Initial public issue of up to 38,88,000 equity shares of face value of Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 116 per equity share (including a share premium of Rs. 96 per equity share) ("Issue Price") aggregating to Rs. 45.1 crores ("Issue /Offer"). This issue includes a reservation of up to 1,94,400 equity shares aggregating to Rs. 2.26 crores for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue shall constitute 27.50% and 26.13%, respectively, of the post-issue paid-up equity share capital of the company, respectively.