Cedaar Textile, a vertically integrated yarn and textile products manufacturer, will raise Rs. 61 crore (around US $ 7.1 million) with an initial public offering (IPO) on the NSE Emerge platform.
The issue proceeds will be utilised for major operational improvements, such as the installation of a rooftop solar photovoltaic system for captive power utilisation, upgradation of manufacturing equipment, infusion of working capital and other miscellaneous general corporate requirements.
With a capacity of producing 9,000 tonnes of spun yarn and 1,900 tonnes of dyed yarn every year, Cedaar Textile also produces 10 tonnes of fabric per day. The company is likely to diversify into the garment segment by next year as part of its forward integration plan.
Rajesh Mittal, Managing Director, Cedaar Textile, said that their intention with this public offering is to upgrade their core manufacturing facilities, enhance energy efficiency by adopting solar and gear up for growth in high-potential segments such as technical textiles and branded apparel.
He added that this is not simply a capital raise—but this is a strategic inflection point that will enhance their leadership in value-added textiles and allow them to provide more innovative, sustainable solutions to customers worldwide.
