Shreedhar Spinners IPO opens June 23 to fund working capital
Shreedhar Spinners Limited, a Maharashtra-based compact spun cotton yarn manufacturer, will open its SME IPO on June 23, 2026. The company plans to raise ₹21.04 crore for working capital requirements and ₹4.95 crore for machinery purchases. Financials show revenue growth from ₹126.14 crore in FY2024 to ₹146.37 crore in FY2026, with PAT rising to ₹6.17 crore.
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Shreedhar Spinners Limited, a Maharashtra-based compact spun cotton yarn manufacturer, will open its SME IPO on June 23, 2026, to fund working capital and machinery purchases. 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. The issue closes on June 25, 2026, with allotment scheduled for June 29 and listing on July 1.
Issue Structure and Objects
The IPO comprises 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. The price band and lot size were not disclosed in the Draft Red Herring Prospectus (DRHP).
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 produces yarn in counts ranging from Ne 10s to Ne 40s, catering exclusively to the B2B segment, including textile manufacturers and yarn exporters. Its operations are ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified. Revenue is geographically concentrated, with Maharashtra contributing 90.20% of total revenue in FY2026.
Investors should note several material risks. The company has a high debt-equity ratio of 3.89 for FY2026. Additionally, 76,50,000 equity shares, representing 48.88% of the pre-Issue capital held by promoter Shreedhar Cotsyn Private Limited, are pledged with SBICAP Trustee Company Limited. Operations are dependent on a single manufacturing facility in Amravati, and the top 10 customers accounted for 81.51% of revenue in FY2026.
How will the company utilize the IPO proceeds to reduce its high debt-equity ratio of 3.89?
What strategies are planned to diversify the customer base beyond the current top 10 clients who contribute 81.51% of revenue?
Will the machinery purchase lead to an expansion beyond the current 10,000 MT production capacity or merely modernize existing operations?
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