Neelam Linens and Garments (India)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Nov 2024 – 12 Nov 2024
- Listing date
- 18 Nov 2024
- Face value
- ₹10 per share
- Issue price
- ₹24 per share
- Lot size
- 6,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹13 Cr
- Market cap at offer price
- ₹48.52 Cr
- Promoter holding
- 74.18% → 54.29% pre-issue → post-issue
- ISIN
- INE0N1401016
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- 446-447, 4th Floor, Shah & Nahar Industrial Estate Sitaram Jadav Marg, Lower Parel, Delisle Road, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 15,36,000 | — | — |
| Market maker | 2,76,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹24
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 36,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 42,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.66 | 1.59 |
| P/E (×) | 14.46 | 15.09 |
| Price to book (×) | 1.46 | — |
| Market cap | — | ₹48.52 Cr |
Key performance indicators
- Return on net worth
- 3.31%
- ROCE
- 3.84%
- Debt / equity
- 3.12
- PAT margin
- 3.69%
- NAV per share
- ₹16.41
- Price to book
- 1.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Neelam Linens and Garments (India)
Incorporated on September 22, 2010 as Neelam Linens and Garments (India) Private Limited and converted to a public limited company in August-September 2022, Neelam Linens and Garments (India) Limited is headquartered in Lower Parel, Mumbai, with its processing facility across two units in Prithvi Complex, Bhiwandi, Thane. The company operates as a soft home furnishing company serving a global clientele including the USA, Australia and the Far East: it buys surplus or slightly imperfect fabric from the domestic market, adds value through designing, digital printing, dyeing, stitching and embroidery, and distributes refined bedsheets, pillow covers, duvet covers, towels, rugs, dohars and shirts/garments predominantly to discounted retail outlets; since 2023 it has also produced men's and women's fashion apparel in-house. It monetises in two ways — (1) processing and trading of products, where bedsheets contributed ₹6,949.34 lakhs (67.91%) of FY2024 revenue from operations of ₹10,233.91 lakhs, and (2) sale of import licences, where it sells RoDTEP/RoSCTL duty credit scrips received as export incentives and trades licences bought from exporters to importers, contributing ₹2,815.82 lakhs (27.51%) in FY2024. FY2024 profit after tax was ₹246.05 lakhs with EBITDA of ₹781.11 lakhs. The company is promoted by Kantilal Jethva and Bhavin Jethwa (who together held 63.70% pre-issue) and is raising a 100% fresh issue of up to 54,18,000 equity shares of face value ₹10 each on the NSE EMERGE platform.
Company Analysis
from RHPNeelam Linens and Garments (India) Limited is a Maharashtra-based soft home furnishing and garments company that processes, finishes and supplies bedsheets, pillow covers, duvet covers, towels, rugs and shirts/garments mainly to discounted retail outlets in India and abroad, while also earning revenue from selling and trading government-issued import licences (RoDTEP/RoSCTL duty credit scrips).
Incorporated on September 22, 2010 as Neelam Linens and Garments (India) Private Limited and converted to a public limited company in August-September 2022, Neelam Linens and Garments (India) Limited is headquartered in Lower Parel, Mumbai, with its processing facility across two units in Prithvi Complex, Bhiwandi, Thane. The company operates as a soft home furnishing company serving a global clientele including the USA, Australia and the Far East: it buys surplus or slightly imperfect fabric from the domestic market, adds value through designing, digital printing, dyeing, stitching and embroidery, and distributes refined bedsheets, pillow covers, duvet covers, towels, rugs, dohars and shirts/garments predominantly to discounted retail outlets; since 2023 it has also produced men's and women's fashion apparel in-house. It monetises in two ways — (1) processing and trading of products, where bedsheets contributed ₹6,949.34 lakhs (67.91%) of FY2024 revenue from operations of ₹10,233.91 lakhs, and (2) sale of import licences, where it sells RoDTEP/RoSCTL duty credit scrips received as export incentives and trades licences bought from exporters to importers, contributing ₹2,815.82 lakhs (27.51%) in FY2024. FY2024 profit after tax was ₹246.05 lakhs with EBITDA of ₹781.11 lakhs. The company is promoted by Kantilal Jethva and Bhavin Jethwa (who together held 63.70% pre-issue) and is raising a 100% fresh issue of up to 54,18,000 equity shares of face value ₹10 each on the NSE EMERGE platform.
Objects of the Issue
- Funding capital expenditure requirement of the Company towards purchase of Embroidery Machines for expansion ₹557.41 lakhs p.76
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company ₹400.00 lakhs p.76
- General corporate purposes (capped at 25% of gross proceeds) p.80
Issue Structure
- Total Issue
- Up to 54,18,000 Equity Shares aggregating up to ₹ [●] Lakhs (amount not yet disclosed; the Issue will constitute 26.80% of post-issue paid-up equity share capital)
- Fresh Issue
- Up to 54,18,000 Equity Shares of face value ₹10/- each aggregating up to ₹ [●] Lakhs (entire Issue is a Fresh Issue, including a Market Maker Reservation Portion of 2,76,000 shares; Net Issue of 51,42,000 shares constituting 25.43% of post-issue capital)
- Offer for Sale
- Nil (no Offer for Sale component)
- Face Value
- ₹10/- each
Business Model
Revenue comes from two streams: (i) processing and trading of home-furnishing/textile products — sourcing surplus or slightly imperfect fabric cheaply in bulk from domestic suppliers, applying value-added services such as designing, digital printing, dyeing, stitching and embroidery at its Bhiwandi facility, and selling finished bedsheets, pillow covers, towels, rugs, dohars and garments mainly to discounted retail outlets in India and export markets (USA, Australia, Far East); and (ii) sale of import licences — selling RoDTEP and RoSCTL duty credit scrips obtained from the government as export incentives to importers, and separately purchasing import licences from exporters and reselling them to importers to earn the margin.
Business Segments
SWOT Analysis
- • Cost advantage from bulk procurement of surplus/slightly imperfect high thread-count fabric(p.106)
- • Experienced promoters with wide industry network driving customer acquisition(p.107)
- • Integrated processing infrastructure delivering quality products, customer retention and repeat orders(p.107)
- • Consistent track record of profitability (~₹10,000+ lakh revenue and positive PAT across FY22-FY24)(p.103)
- • Recognized as best supplier by key overseas customer (Big Lots)(p.125)
- • High product concentration in bedsheets (67.91% of FY24 revenue)(p.29)
- • Dependence on few customers; top 1 customer contributed 40.32% of FY24 revenue(p.31)
- • Supplier concentration and absence of long-term supply contracts(p.30)
- • Substantial reliance on thin-margin import-license trading activity (up to ~46% of income)(p.32)
- • High leverage: total borrowings of ₹7,566.04 lakhs vs net worth of ₹2,428.80 lakhs (June 30, 2024)(p.42)
- • History of negative cash flows (operating cash flow was ₹(1,112.49) lakhs in FY2023)(p.34)
- • Single production unit concentration at Bhiwandi(p.33)
- • Incomplete documentary evidence for capital built-up; compounding application filed(p.32)
- • Direct-to-customer retail via own stores to improve margins and enter new markets(p.107)
- • Expanding product portfolio with new products to attract more customers/geographies(p.107)
- • Indian textile & apparel industry tailwind: expected 10% CAGR to US$190 billion by 2025-26(p.97)
- • Export growth opportunity: textile exports projected at US$65 billion by FY26(p.97)
- • Government PLI scheme support for textile manufacturers(p.97)
- • IPO-funded capex in embroidery machines to raise capacity, efficiency and quality(p.77)
- • Foreign exchange rate fluctuation risk on USD-linked export earnings(p.34)
- • Protectionist trade measures (anti-dumping duties, tariffs) in export markets(p.34)
- • Macro-economic slowdown in India and key export markets (USA, Australia, Africa)(p.46)
- • Industry-wide challenges facing the soft home furnishing sector(p.47)
- • Intense competition and pricing pressure in the bedsheets market(p.30)
- • Potential adverse revisions to India's sovereign debt rating raising financing costs(p.47)
- • Natural/man-made disasters, pandemics and hostilities disrupting operations(p.47)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bhavin Jethwa | Promoter | 55.32% | 40.50% |
| Kantilal Jethva | Promoter | 8.38% | 6.13% |
| Manjula Jethva | Promoter Group | 5.24% | 3.83% |
| Janki Jethva | Promoter Group | 5.24% | 3.83% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.