Siddhi Cotspin Makes Market Debut After Rs 70 Crore IPO Sees 4.2x Subscription
Siddhi Cotspin, an Ahmedabad-based cotton yarn manufacturer, is listing on the stock market following its IPO that raised Rs 70 crore. The IPO was subscribed 4.2 times overall, with QIBs showing the highest interest at 17.50x. The company plans to use the proceeds for working capital, debt repayment, and general corporate purposes. Siddhi Cotspin reported a 25% increase in revenue to Rs 725.00 crore and a 7% rise in profit after tax to Rs 13.10 crore. However, the IPO currently shows no premium in the grey market ahead of its listing.
*this image is generated using AI for illustrative purposes only.
Siddhi Cotspin, a cotton yarn manufacturer based in Ahmedabad, is set to list on the stock market today following its successful Initial Public Offering (IPO) that raised Rs 70 crore. The IPO, which saw an overall subscription of 4.2 times, marks a significant milestone for the company as it transitions to public trading.
IPO Details and Subscription Rates
The IPO comprised two components:
- Fresh issue: Rs 53.40 crore
- Offer for sale: Rs 16.46 crore
The subscription rates across different investor categories were as follows:
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers | 17.50x |
| Non-Institutional Investors | 5.90x |
| Retail Investors | 1.50x |
Company Profile
Siddhi Cotspin operates its manufacturing facility in Dholi, Ahmedabad. The company's production capabilities include:
- 29,376 spindles
- Annual production capacity exceeding 90 lakh kilograms of cotton yarn
Financial Performance
The company has reported strong financial growth:
- Revenue: Increased by 25% to Rs 725.00 crore
- Profit After Tax: Rose by 7% to Rs 13.10 crore
Utilization of IPO Proceeds
The net proceeds from the IPO will be allocated as follows:
- Working capital needs: Rs 25.00 crore
- Debt repayment: Rs 9.00 crore
- General corporate purposes: Remaining amount
Market Sentiment
Despite the successful subscription, it's worth noting that the IPO currently shows no premium in the grey market ahead of its listing. This could indicate cautious sentiment among investors as the stock prepares for its market debut.
As Siddhi Cotspin begins its journey as a publicly traded company, investors and market watchers will be keen to observe its performance and how it leverages the capital raised to fuel future growth in the competitive cotton yarn manufacturing sector.
17
