Shri Techtex IPO will open for subscription from 26 July 2023. the company aims for an issue size of ₹45.14 Cr through this IPO.
Company Overview
| Full name | Shri Techtex Limited |
| Sector | Textile |
| Industry | Textile |
| Company Website | https://shritechtex.com/ |
About Company
Incorporated in 2011, Shri Techtex is engaged in the business of manufacturing Polypropylene (PP) Non-Woven Fabric. The practical use of non-woven fabric is more ecological for specific applications, especially in fields and industries where disposable or single-use products are essential, such as organic farming, hospitals, health care, nursing homes, home furnishing, vehicle upholstery seat fabrication, Mattress & furniture covering, ecological packaging, industrial and consumer goods. As of now, it manufactures PP non-woven fabric up to 4.5 meters in size and 15 GSM to 800 GSM.
Shri Techtex’s manufacturing facility is situated at Simaj of Dholka Taluka in Ahmedabad District of Gujarat. The manufacturing facility is spread across 41548 sq. meters with a manufacturing capacity of 3600 MT PP non-woven fabric per annum. Since FY 2011, as a Partnership firm, the company was engaged in the business of industrial trading activity in Polymers, Chemicals, Packaging Materials, and other allied products. Upon conversion of the Partnership Firm to a company, Shri Techtex continued manufacturing on a job-work basis. w.e.f. 1 April 2021, as a result of the demerger, the said business of contract manufacturing was transferred to the resultant company Aurum Fabritech Private Limited (Aurum Fabritech Private Limited was converted to LLP w.e.f. 2 February 2022). After the demerger, to date, the company is engaged in the business of manufacturing Polypropylene (PP) Non-Woven Fabric.
The company is planning an expansion, through this Issue by adding new products PP Tufted Fabric, commonly known as Artificial Grass, and PP Multifilament Yarns. Shri Techtex is in the process of importing specialized machinery for manufacturing the said new products and expects both pieces of machinery to be ready for commercial production by October 2023.
The Objective of the Issue
- Construction of Factory Shed,
- Commissioning of Solar Plant,
- Purchase of Machineries,
- To meet working capital requirements,
- General corporate purpose, and to meet public issue expenses.
IPO Timetable
| IPO Opening date | 26 July 2023 |
| IPO Closing | 28 July 2023 |
| Basis of Allotment | 02 August 2023 |
| Initiation Refund | 03 August 2023 |
| Credit to Demat Account | 04 August 2023 |
| Listing Date | 07 August 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹45.14 Cr – 7,400,000 shares |
| Fresh Issue | ₹45.14 Cr – 7,400,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹54 to ₹61 per share |
| Lot size | 2000 Shares |
| Market Maker portion | 372,000 shares |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹122,000 |
| Retail (Max) | 1 | 2000 | ₹122,000 |
| HNI (Min) | 2 | 4,000 | ₹244,000 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 39.47 | 51.18 | 56.92 |
| Expenses | 23.43 | 41.19 | 46.47 |
| Net income | 12.66 | 8.27 | 9.11 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 7.21 | 4.71 | 5.19 |
| PE ratio | – | – | 10.40 – 11.75 |
| RONW (%) | 60.98 | 39.37 | 30.54 |
| NAV | 11.83 | 11.96 | 16.99 |
| ROCE (%) | 44.55 | 29.21 | 20.07 |
| EBITDA (%) | 45.79 | 23.96 | 21.97 |
| Debt/Equity | 0.72 | 1.17 | 1.07 |
Company Promoters
- Mr. Hanskumar Ramakant Agarwal
- Mrs. Shradha Hanskumar Agarwal
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Lead Manager(s)
BEELINE CAPITAL ADVISORS PRIVATE LIMITED
807, Phoenix, Opp. Girish Cold Drinks,
Near Vijay Cross Roads, Navrangpura, Ahmedabad – 380009
Phone: 079 4840 5357
Email: mb@beelinemb.com
Website: www.beelinemb.com
IPO Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor,
247 Park, L.B.S. Marg,
Vikhroli (West), Mumbai – 400083,
Maharashtra
Phone: +91 22 49186200
E-mail: shritechtex.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
SHRI TECHTEX LIMITED
Harmony, 2nd Floor,15/A, Shree Vidhyanagar Co.Op. Hsg. Soc. Ltd.
Opp. NABARD, Nr. Usmanpura Garden Ahmedabad -380014, Gujarat
Phone: +91 78741 32777
E-mail: cs@shritechtex.co.in
Website: www.shritechtex.com
Allotment Status
Shri Techtex IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status.
Final thoughts
Shri Techtex IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
