IPOs have become quite popular in the apparel and textile space, with multiple players either planning for an IPO or actively conducting one. The three most recent are the IPOs from Cedaar Textiles, Marc Loire Fashions and Silky Overseas.
The Cedaar Textile IPO opened for subscription on 30th June, aiming to raise Rs. 60.90 crore (US $ 7.11 million). Priced between Rs. 130 (US $ 1.52)- Rs. 140 (US $ 1.64) per share, it requires a minimum investment of Rs. 1,30,000 (US $ 1,518). As of day one, the subscription stood at 11%, with a grey market premium suggesting a potential listing at Rs. 150 (US $ 1.75). Cedaar Textile IPO price band has been set at Rs. 130 (US $ 1.52) to Rs. 140 (US $ 1.64) per share. The minimum lot size for an application is 1,000 shares, requiring an investment of at least Rs. 1,30,000 (US $ 1,518) by the retail investors.
The yarn manufacturer plans to use the funds raised via IPO for various purposes. It has earmarked Rs. 8 crore (US $ 934,000) for the installation of grid-tied solar PV rooftop system, Rs. 17 crore (US $ 1.98 million) for modernisation of machines, Rs. 24.90 crore (US $ 2.91 million) for meeting working capital needs and the rest for general corporate purposes and issue-related expenses.
Ludhiana-based Cedar Textile Ltd manufacturers a wide range of yarns used in the textile industry. Its product portfolio includes raw white yarns, melange yarns, solid top-dyed yarns, and grey fancy yarns along with polyester, viscose, acrylic, tencel, modal and other fibres. The company also manufactures and sells technical textile IFR and fabrics, caterign to both the household textile and garment industries. The company sources to both domestic and international markets. The company saw a revenue Rs. 190 crore (US $ 22.19 million) in 2024, with a profit of Rs. 11.05 crore (US $ 1.29 million).
The IPO for Silky Overseas opened on the 30th of June and is aiming to raise Rs. 30.68 crore (US $ 3.58 million), with an offering of 19.06 lakh equity shares, with an upper price band of Rs. 161, with a minimum investment of Rs 1,28,800 (US $ 1,504) and high net-worth individuals investing a minimum of Rs. 2,57,600 (US $ 3,008).
The bedding essentials manufacturer plans to use net proceeds from its IPO for several key purposes. A portion will be allocated to setting up an additional storage facility. The company also intends to repay or prepay certain existing debt facilities. Another part of the funds will be used to meet working capital requirements. The remaining amount will go toward general corporate purposes.
The company specialises in the manufacturing of blankets, bed sheets and comforters. The company handles the entire production process in-house, from knitting and dyeing to processing, printing and packaging. The company markets its range of textile products under the brand name Rian Decor. Its manufacturing operations are based in Gohana, Haryana, where it produces bedding essentials including blankets, bed sheets and comforters.
For the period ending 31st January, Silky Overseas Ltd. posted a revenue of Rs 105.35 crore (US $ 12.3 million) and a profit after tax of Rs 9.17 crore (US $ 1.07 million). For the full financial year ended 31st March 2024, the revenue stood at Rs 70.26 crore (US $ 8.20 million) with a profit after tax of Rs 5.53 crore (US $ 645,000).
Marc Loire Fashions opened its IPO on the 30th June, aiming to raise around Rs. 21 crore (US $ 2.45 million). The IPO issue comprises an issuance of 21 lakh shares with a per issue price of Rs. 100. The minimum investment is for Rs. 1,20,000 (US $ 1,401), with high net-worth individuals investing a minimum of Rs. 2,40,000 (US $ 2,803).
The company has proposed to utilise the proceeds from the IPO to expand its retail network, meet working capital requirements and for general corporate purposes.
Marc Loire Fashions is a women’s footwear brand, catering to the B2B market. The company was established in 2014. It has a presence in states such as West Bengal, Tamil Nadu and Gujarat.
The company reported a 15.44% year-on-year increase in its profit after tax to Rs 4.71 crore (US $ 550,000) in FY ’25 from Rs 4.08 crore (US $ 476,000) in FY ’24. Total revenue rose 5% YoY to Rs 42.46 crore (US $ 4.96 million) in FY ’25 from Rs 40.40 crore (US $ 4.72 million) in FY ’24.
