New Delhi: Shares of Astron Paper & Board Mill made a blockbuster debut on exchanges on Friday with its shares rising as much as 141.5 per cent against the issue price of Rs 50 per share. After opening at Rs 115, Astron Paper shares rose to Rs 120.75. As of 10.46 am, there were no sellers in the counter against buy order for 8.48 lakh shares.

The strong response to Astron Paper & Board Mill shares came on the back of 243.29 times subscription of its Rs 70-crore initial public offer (IPO), which ended on December 20, 2017.

The issue received bids for 3,40,60,74,000 shares against 1,40,00,000 shares on offer. Maximum amount of bids were received from the HNI investors with the segment getting subscribed 397 times.

Incorporated in 2010, Astron Paper & Board Mill Ltd manufacturers Kraft paper, also known as paperboard or cardboard, which is used mainly in the packaging industry. The company has manufacturing facilities in Halvad, Gujarat. The company uses waste paper as raw material.

For the year ending March 31, 2017 the company had reported a net profit of Rs 99.59 crore on revenues of Rs 1,727.51 crore. Its net profit has witnessed a CAGR of nearly 50 per cent between Rs FY15-17.

With the IPO proceeds of nearly Rs 70 crore, the company wants to set up additional facility for manufacturing of lower GSM and lower B.F Kraft Paper and repay some unsecured loans.

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