The IPO of Shreedhar Spinners opened for subscription on Tuesday, with the grey market signalling a muted listing. The company's shares were commanding a grey market premium (GMP) of 0%, indicating no expected listing gains ahead of the issue.
The NSE SME issue will remain open for bidding till June 25. The company aims to raise Rs 30.68 crore through an entirely fresh issue of 57.88 lakh shares. The price band has been fixed at Rs 51-53 per share, and the shares are scheduled to list on the NSE SME platform on July 1.
The minimum application size for retail investors is 4,000 shares, requiring an investment of Rs 2.12 lakh at the upper end of the price band.
Business and use of proceeds
Incorporated in 2020, Maharashtra-based Shreedhar Spinners manufactures 100% compact spun cotton yarn with counts ranging from Ne 10s to Ne 40s. The company operates a spinning facility at Amravati Textile Park with an installed capacity of 10,000 metric tonnes per annum and 28,608 spindles.
Its yarn is supplied to textile manufacturers for knitting and weaving applications across apparel, denim, bed linen, socks, furnishing fabrics and industrial textiles. The company primarily caters to B2B customers.
The IPO proceeds will be used to meet working capital requirements, purchase machinery for the existing manufacturing facility and for general corporate purposes.
Financial performance
Shreedhar Spinners reported 9% growth in revenue to Rs 146.55 crore in FY26, while profit after tax jumped 81% to Rs 6.17 crore. EBITDA stood at Rs 17.62 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
