Neelam Linens and Garments (India) is set to open its Rs 13-crore initial public offering for subscription on November 8. The price band has been fixed at Rs 20-24 per share.
The book-built issue consists of fresh issue component of 54.18 lakh shares with no offer-for-sale portion. Thus, the entire IPO funds will go to the company.
The Maharashtra-based soft home furnishing company will utilise Rs 5.57 crore out of the issue proceeds for the purchase of embroidery machines for expansion, Rs 4 crore for repaying debt, and the remainder funds for general corporate purposes.
The total debt on its books as of June 2024 was Rs 75.66 crore, which is significantly higher. Its revenue from operations dropped marginally to Rs 102.3 crore in the fiscal 2024, down from Rs 103.6 crore in the previous year, while the profit after tax increased to Rs 2.46 crore, up from Rs 2.38 crore a year ago. Profit for the three months period ended June 2024 was Rs 0.8 crore on revenue of Rs 21.8 crore.
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Neelam Linens , which entered the apparel industry by starting an in-house production of men’s and women’s fashion apparel since 2023, specialises in the processing, finishing and supplying of bedsheets, pillow cover, duvet cover, towels, rugs, doher, shirts & garments predominantly for discounted retail outlets.
The company also earns revenue from sale of import licences. An import licence is a governmental authorisation required for the importation of goods that are not freely importable.
Half of the offer size has been reserved for qualified institutional investors, 35 percent for retail investors, and the remainder 15 percent shares of the IPO for non-institutional investors. Retail investors can bid for a minimum and maximum of 6,000 equity shares worth Rs 1.44 lakh at the upper price band, as they can not exceed the investment limit of Rs 2 lakh for the IPO.
Also read: Swiggy IPO subscription status day 2: Issue booked 35%, retail leads at 84%; GMP dips further
The maiden public issue will close on November 12, while investors can start trading in Neelam Linens shares on the NSE Emerge effective 18.
Expert Global Consultants is acting as the merchant banker for the issue, while Purva Sharegistry (India) is the registrar to the issue.
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