Shreedhar Spinners IPO subscribed 1.39x on final day
Shreedhar Spinners Limited's SME IPO concluded with a total subscription of 1.39 times, led by strong demand from Non-Institutional Buyers (bHNI) at 5.55 times, while Retail and QIB categories remained undersubscribed. The issue proceeds will fund working capital and machinery purchases for the Amravati-based yarn manufacturer, which reported a PAT of ₹6.17 crore in FY2026.
*this image is generated using AI for illustrative purposes only.
Shreedhar Spinners Limited's SME IPO to fund working capital and machinery purchases concluded with a total subscription of 1.39 times. The issue, which opened on June 23, 2026, and closed on June 25, 2026, saw mixed interest across investor categories. While the overall subscription was modest, specific segments showed strong demand, contrasting with the Qualified Institutional Buyers (QIB) and Employee categories which remained fully unsubscribed.
Subscription Details
Non-Institutional Buyers drove the momentum for the issue. The bHNI (bids above ₹10 lakh) category was subscribed 5.55 times, while the sHNI (bids between ₹2 lakh and ₹10 lakh) category was subscribed 1.99 times. In contrast, Retail Individual Investors (RIIs) subscribed to 0.69 times the available quota. Qualified Institutional Buyers (QIB) and Employees recorded no subscriptions, standing at 0.00 times.
Investor Category Breakdown
| Investor Category | Subscription Level |
|---|---|
| Non-Institutional Buyers (bHNI) | 5.55 x |
| Non-Institutional Buyers (sHNI) | 1.99 x |
| Retail | 0.69 x |
| Qualified Institutional Buyers | 0.39 x |
| Employees | 0 x |
| Total Subscribed | 1.39 x |
Issue Structure and Objects
The IPO comprised a fresh issue of equity shares. Proceeds are allocated towards funding incremental working capital requirements of ₹21.04 crore and the purchase of machinery for the existing manufacturing facility at Amravati, Maharashtra, amounting to ₹4.95 crore. The remaining net proceeds will be utilised for general corporate purposes. Allotment is scheduled for June 29, with listing set for July 1.
Financial Performance
Shreedhar Spinners reported consistent revenue growth over the past three fiscal years. Revenue from operations increased from ₹126.14 crore in FY2024 to ₹134.27 crore in FY2025, and further to ₹146.37 crore in FY2026. Profit After Tax (PAT) improved significantly, rising from ₹3.35 crore in FY2024 to ₹6.17 crore in FY2026. The company’s PAT margin expanded to 4.21% in FY2026 from 2.65% in FY2024.
Financial Summary (₹ Crore)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 126.14 | 134.27 | 146.37 |
| Total Revenue | 126.35 | 134.43 | 146.55 |
| Total Expenses | 122.30 | 130.30 | 139.08 |
| Profit Before Tax | 4.05 | 4.13 | 7.47 |
| Profit After Tax | 3.35 | 3.42 | 6.17 |
| Total Assets | 92.28 | 102.32 | 172.12 |
| Total Equity | 16.92 | 20.34 | 29.76 |
Business Operations and Risks
The company operates a fully integrated spinning facility at Amravati with an installed production capacity of 10,000 MT per annum and 28,608 spindles. It produces yarn in counts ranging from Ne 10s to Ne 40s, catering exclusively to the B2B segment. Revenue is geographically concentrated, with Maharashtra contributing 90.20% of total revenue in FY2026. Investors should note the high debt-equity ratio of 3.89 for FY2026 and the pledging of 48.88% of pre-Issue capital by the promoter.
How will the lack of QIB subscription and high promoter pledging impact the stock's listing price and liquidity?
Will the new machinery purchases significantly improve margins beyond the current 4.21% to justify the high leverage?
What strategies does the company plan to implement to reduce its geographic concentration beyond Maharashtra?
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