Shreedhar Spinners, a Maharashtra-based company, has opened its IPO for bidding on the NSE SME platform, aiming to raise Rs 30.68 crore through a fresh issue of 57.88 lakh shares. The bidding will remain open until June 25, with the price band set at Rs 51-53 per share. The shares are scheduled to list 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. The proceeds from the IPO will be utilized to meet working capital requirements, purchase machinery for the existing manufacturing facility, and for general corporate purposes.
Incorporated in 2020, Shreedhar Spinners specializes in manufacturing 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 various applications, primarily catering to B2B customers.
Financially, Shreedhar Spinners reported a 9% growth in revenue to Rs 146.55 crore in FY26, while profit after tax surged by 81% to Rs 6.17 crore. EBITDA for the year stood at Rs 17.62 crore.
The IPO is a significant step for Shreedhar Spinners as it seeks to expand its operational capabilities and strengthen its market position. Investors and market analysts will be closely watching the subscription levels and the stock's performance post-listing.
Background
Shreedhar Spinners' IPO comes at a time when the textile industry is witnessing a resurgence in demand, driven by both domestic and international markets. The company's focus on B2B customers and its strategic location in Maharashtra, a major textile hub, positions it well for future growth.
Looking ahead, the market will be keen to see how Shreedhar Spinners utilizes the IPO proceeds to enhance its production capacity and meet the growing demand in the textile industry. The company's financial growth trajectory will also be a focal point for potential investors.
