Shanti Spintex
Book Building issueSME₹31.25 Cr issue
+8.57%
Listing gain over issue price
Issue size
₹31.25 Cr
1 lot at cut-off
₹1,40,000
Lot size
2,000shares
Open
19 Dec 2023
Close
21 Dec 2023
Allotment
22 Dec 2023
Listing
27 Dec 2023
Listing performance
Issue price
₹70
Listed at
₹76
Listing-day close
₹79.80
Latest price
₹34.90
Close on 16 Oct 2026
Listing gain
+8.57%
Return since issue
-50.14%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Dec 2023 – 21 Dec 2023
- Listing date
- 27 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹31.25 Cr
- Market cap at offer price
- ₹118 Cr
- Promoter holding
- 87.49% → 73.57% pre-issue → post-issue
- ISIN
- INE0QZQ01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Sub Plot 1, Unit 1, Survey No.297, Dholi, Integrated Spinning Park Limited, Dholi, Dholka, Gujarat
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 | 12,72,000 | — | — |
| Market maker | 2,24,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
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.
Shares allocated
12,72,000
Anchor portion
₹8.90 Cr
at ₹70 per share
Valuation and performance
Valuation at offer price
₹70 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.13 | — |
| P/E (×) | 9.82 | — |
| Market cap | — | ₹118 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 18.07%
- ROCE
- 10.12%
- Debt / equity
- 0.75
- PAT margin
- 2.73%
- NAV per share
- ₹39.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shanti Spintex
Shanti Spintex Limited, incorporated in 2010 as a private limited company and converted to public limited on August 18, 2023, manufactures various types of denim fabrics including power stretch spandex denim, knit denim, lightweight denim, rigid denim, over-dyed denim, and flat finish 3/1 denim. The company produces grey fabrics in multiple designs and offers denim fabrics in diverse shades and specifications ranging from 4.50 Oz/sq. yd. to 14.50 Oz/sq. yd. with widths spanning from 62 inches to 78 inches. The company's production facility is located in Dholka, Ahmedabad, Gujarat, and its registered office is at Sub Plot 1, Unit 1, Survey No. 297, Dholi - Integrated Spinning Park Limited.
Company Analysis
from RHPShanti Spintex Limited manufactures various types of denim fabrics with diverse specifications, serving the apparel and textile industries.
Shanti Spintex Limited, incorporated in 2010 as a private limited company and converted to public limited on August 18, 2023, manufactures various types of denim fabrics including power stretch spandex denim, knit denim, lightweight denim, rigid denim, over-dyed denim, and flat finish 3/1 denim. The company produces grey fabrics in multiple designs and offers denim fabrics in diverse shades and specifications ranging from 4.50 Oz/sq. yd. to 14.50 Oz/sq. yd. with widths spanning from 62 inches to 78 inches. The company's production facility is located in Dholka, Ahmedabad, Gujarat, and its registered office is at Sub Plot 1, Unit 1, Survey No. 297, Dholi - Integrated Spinning Park Limited.
textilesdenim fabricsapparel manufacturing
Objects of the Issue
- To meet Working Capital requirements ₹1800.00 lakhs p.21
- General Corporate Purpose p.21
- To meet Working Capital requirements ₹1800.00 lakhs p.68
- General Corporate Purpose [●] lakhs p.68
- Not specified in this document part
- Not explicitly stated in the provided portion of the document
Issue Structure
- Total Issue
- up to 44,64,000 Equity Shares aggregating up to ₹[●] lakhs
- Fresh Issue
- Upto 26,88,000 Equity Shares aggregating upto Rs. [●] Lakhs
- Offer for Sale
- Upto 17,76,000 Equity Shares aggregating upto Rs. [●] Lakhs
- Price Band
- [●] (Price band to be decided by the Company in consultation with the BRLM)
- Lot Size
- [●]
- Face Value
- ₹10
Business Model
The company manufactures denim fabrics and sells them to customers. Revenue is generated from the sale of various types of denim fabrics produced at its manufacturing facility.
Business Segments
Manufacturing of various types of denim fabrics such as power stretch spandex denim, knit denim, light weight denim, rigid denim, over dyed denim and flat finish 3/1 denim
Purchase of grey fabrics from the market and sending them for finishing through third parties, then selling to customers
Trading of yarn procured from the domestic market
Generation of electricity through a 2 MW wind energy power plant commissioned in November 2022, with electricity adjusted against manufacturing facility electricity bill
Incorporates spandex to provide stretch and comfort, specifically for women's clothing, with product weight ranges between 8.50 ounce to 10.50 ounce, stretchability between 45% to 65%, available in knit weave, structure dobby, 4/1 satin & 3/1 flat twill, width ranges from 60" to 66"
Widely used in producing stylish clothing items, offering both comfort and a fashionable edge, with colour weft yarns, checks & line pattern, funky bright colours for kids & younger generation, product weight ranges from 11 ounce to 12.50 ounce, stretchability between 20% to 30%, width ranges from 68" to 78"
Mainly used for making shirts, Kurtis, school uniforms, skirts, fabric weight is between 4.50 ounce to 5.50 ounce, made in 2/1 twill weave or silky weave, width ranges from 65" to 78"
Basic non-stretchable denim, mainly used in workwear, jackets, jeans for men's & bell bottom denim for women, weight of denim is between 12 ounce to 14.50 ounce, width is between 68" to 76"
Denim fabrics dyed with different dark colours like black, brown, olive green, blue etc., different wash can be given on this type of denim fabric, product weight between 11 ounce to 13 ounce, width range is between 68" to 75"
Known for comfort and softness, weave is generally 3/1 twill, weight is between 10 ounce to 12.50 ounce, width is between 64" to 72"
Manufacturing of various types of denim fabrics including power stretch spandex denim, knit denim, lightweight denim, rigid denim, over-dyed denim, and flat finish 3/1 denim using 96 airjet looms with annual capacity of 1,92,72,000 meters
Procurement of grey fabrics from market, outsourcing yarn dyeing and finishing process to third parties, and selling finished fabrics to customers
Sale of yarn procured from domestic market
SWOT Analysis
Strengths
- • Diverse denim fabric manufacturing capabilities(p.94)
- • Significant installed weaving capacity(p.94)
- • Experienced promoter management in textile industry(p.94)
- • Vertical integration into renewable energy(p.94)
- • Diverse yarn sourcing capabilities(p.94)
- • Diverse denim fabric production capability with in-house weaving unit(p.95)
- • Stringent quality control mechanism with comprehensive testing protocols(p.95)
- • Experienced management team with deep industry knowledge(p.95)
- • Integrated production process enabling cost efficiency and quality control(p.95)
- • Strong capacity utilization growth trajectory(p.98)
- • Renewable energy adoption reducing operational costs(p.99)
- • Installed production capacity of 1,92,72,000 mtrs annually with 96 air-jet looms(p.177)
- • Established production facility since 2016 with operational track record(p.177)
- • Diverse product portfolio spanning multiple denim types and finishes(p.177)
- • Revenue growth from 11,280.07 lakhs in FY2021 to 37,033.22 lakhs in FY2023(p.177)
- • Positive profitability with profit after tax of 1,012.81 lakhs in FY2023(p.181)
- • Renewable energy assets including windmill and rooftop solar installations(p.157)
Weaknesses
- • High customer concentration with no long-term agreements(p.28)
- • Dependence on few raw material suppliers without long-term contracts(p.29)
- • Reliance on outsourced production without exclusivity arrangements(p.30)
- • Substantial indebtedness with high debt service obligations(p.34)
- • Unsecured loans repayable on demand(p.36)
- • Entire manufacturing operations concentrated in single location(p.34)
- • Promoters hold 87.49% of pre-offer share capital with significant control(p.22)
- • Promoter Group entities in similar competing business lines(p.36)
- • High dependence on Gujarat-based customer base(p.94)
- • Outsourced key production processes(p.94)
- • Limited control over finishing operations(p.94)
- • High geographical concentration in Gujarat customer base(p.96)
- • Dependence on outsourced critical manufacturing processes(p.98)
- • Promoter-dependent management structure(p.95)
- • Substantial revenue dependence on few customers—top 10 customers represented 96.04% of FY2023 revenue(p.184)
- • High debt-to-equity ratio of 0.57 as of September 2023(p.170)
- • Debt service coverage ratio of 0.26 as of September 2023 indicates low debt servicing capacity(p.171)
- • Low net profit margin of 3.23% in H1 FY2024 and 2.73% in FY2023(p.178)
- • Inventory turnover declined significantly to 8.12 in H1 FY2024 from 28.77 in FY2023(p.171)
- • Pending income tax scrutiny proceedings initiated following search and seizure operation in July 2022(p.187)
Opportunities
- • Strong projected growth in Indian textile and apparel industry(p.21)
- • India's dominant position as world's largest cotton producer(p.21)
- • Expansion of readymade garments exports(p.21)
- • Diversified product portfolio with multiple fabric types and specifications(p.21)
- • Strong growth trajectory in Indian textile sector(p.88)
- • Denim sector expansion and export potential(p.89)
- • Government support through textile infrastructure schemes(p.88)
- • Technology upgradation incentives available(p.89)
- • Expansion into new geographic markets beyond Gujarat(p.96)
- • Enhanced operational efficiency through economies of scale(p.96)
- • Substantial unutilized production capacity(p.98)
- • Government support through Technology Upgradation Fund Scheme and Industrial Policies(p.101)
- • Growth in denim consumption with diverse product applications(p.97)
- • Expansion of grey fabric finishing revenue which grew 173% year-over-year to ₹18,343.08 lakhs in FY2023(p.181)
- • Growing denim fabric revenue with 37.63% year-over-year increase to ₹12,754.29 lakhs in FY2023(p.181)
- • Production of diverse denim weights from 4.50 Oz/sq. yd to 14.50 Oz./sq. yd across multiple widths(p.177)
- • Use of diverse yarn types including cotton, viscose, spandex, and specialty fibers(p.177)
- • Potential for migration to BSE main board from SME Exchange with capital increase(p.211)
Threats
- • Vulnerability to changes in consumer preferences for denim apparel(p.27)
- • Intense competition from large established competitors(p.28)
- • Volatile raw material supply and pricing(p.29)
- • Slowdown in economic growth adversely affecting business(p.39)
- • Changes in laws and regulations affecting operations(p.39)
- • Natural disasters and pandemic risks(p.39)
- • Political instability affecting Indian securities markets(p.40)
- • Geographical concentration of revenue and supply chain in Gujarat(p.34)
- • Global economic slowdown and weakening demand(p.82)
- • Tightened global financial conditions and rising interest rates(p.82)
- • Currency depreciation risk(p.85)
- • Commodity price volatility(p.82)
- • Intense competition from larger domestic and international players(p.99)
- • Competitive disadvantage from larger competitors' resources and scale(p.99)
- • Dependence on raw material (yarn) supply from external sources(p.97)
- • Industry exposure to operational hazards and business interruptions(p.100)
- • Loss of major customers or reduction in orders would have material adverse effect on business(p.184)
- • Business exposed to general economic and market conditions including international trade(p.178)
- • Dependence on yarn sourcing from domestic market subject to price volatility(p.177)
- • Exposure to global economic disturbance including pandemic and geopolitical risks(p.178)
- • Regulatory and compliance risks including tax proceedings and environmental regulations(p.178)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharat Bhushan Omprakash Agarwal | Promoter | 21.36% | 17.96% |
| Rikin Bharatbhushan Agarwal | Promoter | 21.33% | 17.93% |
| Vineeta V. Chiripal | Selling Shareholder | — | — |
| Chiripal Exim LLP | Selling Shareholder | — | — |
| Bharat Bhushan Omprakash Agarwal | Promoter | 21.36% | 17.96% |
| Rikin Bharatbhushan Agarwal | Promoter | 21.33% | 17.93% |
| Urmila Bharatbhusan Agarwal | Promoter Group | 7.31% | 6.15% |
| Kautilya Traders Pvt. Ltd. | Promoter Group | 19.52% | 16.41% |
| Vijay Shubham Contrade Private Limited | Promoter Group | 17.97% | 15.11% |
| Vineeta V. Chiripal | Selling Shareholder | 7.63% | — |
| Chiripal Exim LLP | Selling Shareholder | 4.87% | — |
| Bharat Bhushan Omprakash Agarwal | Promoter/Chairman, Whole Time Director & CFO | 21.36% | — |
| Rikin Bharatbhushan Agarwal | Promoter/Managing Director | 21.33% | — |
| Bharatbhushan Omprakash Agarwal | Promoter/Director | — | — |
| Rikin Bharatbhushan Agarwal | Promoter/Director | — | — |
Leadership
Bharat Bhushan Omprakash Agarwal · Promoter/Director/CFO
Rikin Bharatbhushan Agarwal · Promoter/Managing Director
Mohini Singhal · Company Secretary & Compliance Officer
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.
Shanti Spintex IPO FAQs
What is the lot size of Shanti Spintex IPO?
The minimum lot size of Shanti Spintex IPO is 2,000 shares. One lot costs ₹1,40,000 at the cut-off price.
When does Shanti Spintex IPO open and close?
Shanti Spintex IPO opened for subscription on 19 Dec 2023 and closed on 21 Dec 2023.
What is the listing date of Shanti Spintex IPO?
Shanti Spintex IPO listed on 27 Dec 2023.