The shares of Siddhi Cotspin made a weak market debut on September 26, listing at Rs 86.40 apiece on the NSE Emerge platform. This marks a discount of 20 percent over the IPO price of Rs 108 apiece.
Ahead of listing, the unlisted shares of the company were trading flat at the IPO price of Rs 108 apiece in the grey market, with zero grey market premium (GMP), according to data on Investorgain and IPO Watch.
About Siddhi Cotspin SME IPO:
The Ahmedabad-based cotton yarns manufacturer had launched its SME IPO to raise Rs 69.85 crore through a fresh issue of 49.44 lakh shares, and an offer-for-sale (OFS) of 15.24 lakh shares by existing shareholders. The price band was set at Rs 102-108 per share.
The maiden public issue of the company saw strong investor interest during its three days of public bidding, being subscribed more than 4 times its offer size between September 19 and September 23. Investors could bid for a minimum of 1,200 shares, requiring an investment of Rs 1,29,600 at the upper price band, and in multiples thereafter.
How will IPO proceeds be used?
Siddhi Cotspin that manufactures and sells cotton yarn mainly to denim industries will utilise Rs 25.1 crore of fresh issue proceeds for its working capital requirements. Further, Rs 8.96 crore will be used for repayment of certain borrowings, and the remaining amount will be set aside for general corporate purposes.
About the company:
On the financial front, the company has reported net profit at Rs 13.1 crore for the year ended March 2025, registering a growth of 7.4 percent over Rs 12.2 crore in the previous year. Revenue during the same period increased by 24.7 percent to Rs 724.5 crore, up from Rs 580.9 crore.
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