Cedaar Textile to raise Rs 600.90 million via IPO, sets price at Rs 130-140
The IPO will comprise a fresh issue of 4.3 million equity shares with a face value of Rs 10 through the book-building route.
Cedaar Textile, a manufacturer of a wide range of organic yarn products, announced that its initial public offering (IPO) will open for subscription on Monday, June 30, 2025. The anchor portion will be opened on Friday, June 27, 2025, and the issue will conclude on Wednesday, July 02, 2025. The company intends to raise Rs 600.90 million from the offering and aims to be listed on the NSE Emerge platform.
The price band for the issue has been fixed at Rs 130-140 per share, and the lot size will be 1,000 equity shares. Fast Track Finsec is the Book Running Lead Manager, and Skyline Financial Services is the registrar to the offer.
The IPO will comprise a fresh issue of 4.3 million equity shares with a face value of Rs 10 through the book-building route. As many as 7,82,000 equity shares have been reserved for the Anchor investors, 2,18,000 equity shares for the market maker, 5,22,000 equity shares allocated for the net QIB portion, 13,28,000 equity shares for NIIs, and the Retail (RII) portion accounts for not less than 15,00,000 equity shares.
According to RHP, Cedaar Textile intends to utilise Rs 80 million of the total IPO proceeds for the installation of Grid-tied Solar PV Rooftop System for Captive evacuation, Rs 170 million for the modernization of the machines, and Rs 240.9 million to meet working capital requirements. The remaining capital will be used for general corporate purposes and issue expenses.
The Bangalore-headquartered company manufactures and sells products like yarn, technical textile IFR, fabrics, and dyed yarn. It is specialised in the manufacturing of quality melange yarn for use in the household textile, woven goods, and hosiery. It operates a manufacturing unit in Akbarpur Channa, near Ludhiana, Punjab, that features a variety of machines, including blow room and carding equipment from Truszler/LMW, draw frame and speed frame from LMW, ring frames from LMW, Twister TFO, Autoconer, and fibre/yarn dyeing machines.
Cedaar Textile offers a wide range of raw white yarns, melange yarns, solid top dyed yarns, and grey fancy yarns in cotton, polyester, acrylic, viscose, tencel, modal, and other fibres. All yarns are offered with sustainability as the prime focus, in 100 per cent organic, recycle fibres (polyester and cotton) for a green environment and conservation of natural resources.
The company is promoted by the first-generation entrepreneurs Rajesh Mittal, Virendar Goyal, Bachangada Nachappa Monnappa and Bachangada Monnappa Saraswati. With a combined experience of 116 years in the textile industry, they have been instrumental in the growth strategy of the company.
Cedaar Textile has registered Rs 1.12 billion of revenue from operations with a profit (PAT) of Rs 70.06 million in the first nine months of the financial year 2024-25, ended December 31, 2024, compared to Rs 1.89 billion of revenue from operations and a profit (PAT) of Rs 110.05 millon in the fiscal year 2024.
