Siddhi Cotspin Launches Rs 69.85 Crore IPO: Key Details for Investors
Cotton yarn manufacturer Siddhi Cotspin has opened its IPO for subscription until September 23. The Rs 69.85 crore IPO includes a fresh issue of Rs 53.40 crore and an offer for sale of Rs 16.46 crore. The price band is set at Rs 102-108 per share, with a minimum investment of Rs 2.59 lakh for 2,400 shares. The company plans to list on the NSE SME platform on September 26. Siddhi Cotspin reported a revenue of Rs 724.66 crore and net profit of Rs 13.08 crore in FY25, showing growth from the previous year. The IPO proceeds will be used for working capital, debt repayment, and general corporate purposes.
*this image is generated using AI for illustrative purposes only.
Cotton yarn manufacturer Siddhi Cotspin has opened its Initial Public Offering (IPO) for subscription, marking a significant move in the textile industry. The IPO, which will remain open until September 23, presents an opportunity for investors to participate in the company's growth story.
IPO Structure and Pricing
The Rs 69.85 crore IPO is structured as follows:
- Fresh issue: Rs 53.40 crore
- Offer for sale by existing shareholders: Rs 16.46 crore
Siddhi Cotspin has set the price band for its IPO at Rs 102-108 per share. Investors looking to participate should note that the minimum investment required is Rs 2.59 lakh for a lot of 2,400 shares.
Key Dates and Listing Information
- Subscription Period: Ongoing until September 23
- Expected Share Allocation Date: September 24
- Anticipated Listing Date: September 26
- Listing Venue: NSE SME platform
The grey market premium currently stands at 0%, suggesting that the market is not anticipating significant listing gains at this time.
Company Overview
Siddhi Cotspin operates from Dholi, Ahmedabad, and boasts a substantial production capacity:
- 29,376 spindles
- Annual production of 90 lakh kg cotton yarn
- 2.7 crore kg of value-added yarns produced annually
Financial Performance
The company has shown robust financial growth:
| Financial Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue (in crore) | 724.66 | 579.73 | +25.00% |
| Net Profit (in crore) | 13.08 | 12.18 | +7.39% |
Note: All financial figures are in Indian Rupees (INR)
Utilization of IPO Proceeds
Siddhi Cotspin plans to use the funds raised from the IPO for the following purposes:
- Working capital requirements: Rs 25.1 crore
- Debt repayment: Rs 8.97 crore
- General corporate purposes: Remaining amount
Investor Considerations
While the IPO presents an opportunity to invest in a growing cotton yarn manufacturer, investors should carefully consider the following:
- The company's financial growth trajectory
- The current market conditions in the textile industry
- The absence of expected listing gains as indicated by the grey market premium
As with any investment decision, potential investors are advised to review the company's prospectus and consult with financial advisors before participating in the IPO.
15
