Spunweb Nonwoven IPO closes: Investors bought 233.35 times, check GMP, listing & allotment dates

Spunweb Nonwoven IPO

Gujarat-based non-woven fabrics maker Spunweb Nonwoven has closed its initial public offering (IPO) with a massive 233.35 times subscription with investors bidding 106.12 crore equity shares compared to the offer size of 45.48 lakh shares, on July 16.

The company is set to finalise IPO share allotment by July 17, and the trading in Spunweb Nonwoven shares will commence on the NSE Emerge, effective July 21.

Investors across categories showed solid interest in the Spunweb Nonwoven IPO with non-institutional investors being the leader amongst them, subscribing 365.06 times their allotted quota.

This follows retail investors and qualified institutional buyers who bid 251.87 times and 164.7 times their reserved portions.

Given the healthy interest from investors, Spunweb IPO shares traded at around 35-40 percent premium in the grey market, the unofficial market where the IPO shares can be bought and sold till the listing, the market observers said.

Incorporated in 2015, Spunweb Nonwoven that seeks valuation of Rs 230 crore is raising Rs 60.98 crore via initial share sale of 63.51 lakh shares at a price of Rs 96 per share.

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The IPO comprises of solely fresh issue. Of which, Rs 17.31 crore has already been raised by the company via anchor book of 18.03 lakh shares on July 11. About 50 percent of these shares will have a lock-in period of 30 days from the date of allotment and the lock-in for remainder 50 percent shares will end after 90 days from the allotment date.

The company is going to spend Rs 39 crore for the working capital requirements of itself and subsidiary SIPL. The remainder IPO money will be utilised for repayment of certain debt, and general corporate purposes.

Spunweb Nonwoven manufactures polypropylene spunbond nonwoven fabrics primarily used in hygiene, healthcare, packaging, agriculture, roofing & construction, industrial and home furnishing sectors. Diapers, sanitary pads, face masks, PPE kits, shopping bags, grocery bags, fruit cover and crop cover are some of the products made through nonwoven fabrics.