Shri Techtex
Book Building issueSME₹45.14 Cr issue
+33.03%
Listing gain over issue price
Issue size
₹45.14 Cr
1 lot at cut-off
₹1,22,000
Lot size
2,000shares
Open
26 Jul 2023
Close
28 Jul 2023
Allotment
02 Aug 2023
Listing
04 Aug 2023
Listing performance
Issue price
₹61
Listed at
₹81.15
Listing-day close
₹85.20
Latest price
₹59
Close on 23 Oct 2026
Listing gain
+33.03%
Return since issue
-3.28%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jul 2023 – 28 Jul 2023
- Listing date
- 04 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹61 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹45.14 Cr
- Market cap at offer price
- ₹152 Cr
- Promoter holding
- 100.00% → 70.34% pre-issue → post-issue
- ISIN
- INE0OMF01015
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Harmony, 2nd Floor, 15/A, Shree Vidhyanagar Co.Op., Hsg. Soc.Ltd.Opp.Nabard, Nr.Usmanpura Garden, 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 | 21,00,000 | — | — |
| Market maker | 3,72,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹61
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,22,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,44,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,76,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,98,000 |
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
21,00,000
Anchor portion
₹12.81 Cr
at ₹61 per share
Valuation and performance
Valuation at offer price
₹61 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.19 | — |
| P/E (×) | 11.75 | — |
| Market cap | — | ₹152 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.54%
- ROCE
- 20.07%
- Debt / equity
- 1.07
- PAT margin
- 16.00%
- NAV per share
- ₹16.99
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shri Techtex
Shri Techtex Limited, incorporated in 2018 and converted to a public company in January 2023, is engaged in the business of manufacturing polypropylene (PP) non-woven fabric. Originally established as a partnership firm 'M/s Shree Tech Tex Company' in January 2011, the company evolved through various constitutional changes and a demerger in 2021. The manufacturing facility is located at Village Simaj in Dholka Taluka, Ahmedabad District, Gujarat, spread across 41,548 square meters with an installed capacity of 3,600 MT PP non-woven fabric per annum. The company manufactures PP non-woven fabric in sizes up to 4.5 meters and densities ranging from 15 GSM to 800 GSM. Historically, the company majorly catered to offshore customers and has begun exploring the domestic market from FY 2022-23. The company plans business expansion by adding new product lines: Hot melt Coating Lamination and PP Multifilament Yarn, with machinery expected to be ready for commercial production by April 2024.
Company Analysis
from RHPShri Techtex Limited manufactures polypropylene (PP) non-woven fabrics for industries including geotextiles, horticulture, furniture, construction, and healthcare.
Shri Techtex Limited, incorporated in 2018 and converted to a public company in January 2023, is engaged in the business of manufacturing polypropylene (PP) non-woven fabric. Originally established as a partnership firm 'M/s Shree Tech Tex Company' in January 2011, the company evolved through various constitutional changes and a demerger in 2021. The manufacturing facility is located at Village Simaj in Dholka Taluka, Ahmedabad District, Gujarat, spread across 41,548 square meters with an installed capacity of 3,600 MT PP non-woven fabric per annum. The company manufactures PP non-woven fabric in sizes up to 4.5 meters and densities ranging from 15 GSM to 800 GSM. Historically, the company majorly catered to offshore customers and has begun exploring the domestic market from FY 2022-23. The company plans business expansion by adding new product lines: Hot melt Coating Lamination and PP Multifilament Yarn, with machinery expected to be ready for commercial production by April 2024.
technical textilesnon-woven fabric manufacturinggeotextileshorticulturefurnitureconstructionhealthcare
Objects of the Issue
- Construction of Factory Shed ₹371.25 lakhs p.23
- Purchase of Machineries ₹630.83 lakhs p.23
- Commissioning of Solar Plant ₹489.70 lakhs p.23
- To Meet Working Capital Requirements ₹1,531.47 lakhs p.23
- General Corporate Purpose ₹1,126.28 lakhs p.23
- Construction of Factory Shed ₹371.25 Lakhs p.88
- Purchase of Machineries ₹630.83 Lakhs p.88
- Commissioning of Solar Plant ₹489.70 Lakhs p.88
- To Meet Working Capital Requirements ₹1,531.47 Lakhs p.88
- General Corporate Purpose ₹1,126.28 Lakhs p.88
- To meet Public Issue Expenses ₹364.48 Lakhs p.88
- Funding capex for manufacturing of hot melt coating lamination machinery p.117
- Funding capex for PP multifilament yarn manufacturing machinery p.117
- Setting up solar power plant p.125
- Funding capex for new manufacturing lines - Hot Melt Coating Lamination facility with installed capacity of 3360 tons per annum and PP Multifilament Yarn facility with installed capacity of 1200 tons per annum p.195
Issue Structure
- Total Issue
- ₹4,514.00 lakhs (7,400,000 equity shares)
- Fresh Issue
- 7,400,000 equity shares aggregating to ₹4,514.00 lakhs
- Offer for Sale
- Not applicable - entire offer constitutes fresh issue
- Price Band
- ₹54 (Floor Price) to ₹61 (Cap Price)
- Lot Size
- 2,000 equity shares and in multiples of 2,000 equity shares thereafter
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and sells polypropylene non-woven fabrics. Historically, it catered primarily to offshore customers, and has started exploring domestic market opportunities. The company also engages in job work and contract manufacturing services for group companies and external clients.
Business Segments
Manufactures PP non-woven fabric in various sizes (up to 4.5 meters) and densities (15 GSM to 800 GSM) for use in geotextiles, horticulture, furniture, construction, healthcare, organic farming, hospitals, nursing homes, home furnishing, vehicle upholstery, mattress and furniture covering, and ecological packaging.
Manufacturing of Polypropylene Non-Woven Fabric in variety of sizes and density for applications in organic farming, hospitals, health care, nursing homes, home furnishing, vehicle upholstery seat fabrication, Mattress & furniture covering, ecological packaging, industrial and consumer goods
Made from 100% Virgin Polypropylene or Polyester staple fibres which are mechanically needle punched to form a fabric of randomly entangles fibres giving the fabric multi-dimensional strength and stability. Used for separation and stabilization in construction activities such as earth stabilization, erosion control, roadways, temporary pathways, drainage, railways sports field.
Spun bond non-woven synthetic roofing underlayment using specialized polymers and additives to replace traditional tar paper roofing underlayment. Available for both Metal and Shingle roofs, including self-adhesive variants.
Non-woven fabrics used as a network of discontinuous fire-retardant fibres for thermal insulation applications. Used as inner layers in various applications requiring thermal and acoustic insulation.
Non-woven fabric used as backing of carpets and wall coverings, low-quality blankets, hidden layers in furniture systems, and wadding/padding. Applications include decking, dustcover, insulator, pull strips, flange, quilt backing, dust covers.
Spun bonded non-woven fabrics for horticulture applications including row covers, crop covers, plant protection, landscape fabric, mulch fabric, and paving underlay fabric with varying GSM grades.
Nonwoven medical textiles used in surgery and medicine with applications including bandages, surgical gowns, cast paddings & covers, packs, surgical drapes, sterile packaging, dressings, sterile overwraps, surgical masks, swabs, underpads.
Domestic sales of PP non-woven fabric and services to customers within India
Export sales of PP non-woven fabric to international markets including USA, Taiwan, Canada, Denmark and China
SWOT Analysis
Strengths
- • Established PP non-woven fabric manufacturing with proven capacity(p.20)
- • Serves growing technical textiles market with diverse end-use applications(p.20)
- • Well-positioned manufacturing facility with strong logistics connectivity(p.20)
- • Strong capacity utilization demonstrating operational efficiency(p.33)
- • Experienced promoter management team with established track record(p.99)
- • Strategic location of manufacturing facility with owned land(p.99)
- • Integrated manufacturing capabilities and infrastructure for quality delivery(p.99)
- • Diversified product applications across multiple industries(p.99)
- • Experienced promoters with 15+ and 25+ years in technical textiles(p.147)
- • Strategic manufacturing location with good connectivity and infrastructure(p.124)
- • Established 3600 MT annual manufacturing capacity(p.124)
- • Quality assurance and customer retention track record(p.124)
- • Diversified product applications reducing industry dependency(p.125)
- • Established manufacturing capacity with modern infrastructure(p.195)
- • Diversified product range in non-woven fabrics(p.195)
- • Strong export presence across multiple geographies(p.195)
- • Revenue growth and operational profitability(p.197)
- • Positive net worth and healthy capital structure(p.231)
- • Mandatory dematerialized form with dual depository connectivity(p.276)
- • Established tripartite agreements with both major depositories(p.275)
- • Assigned ISIN for equity shares(p.275)
Weaknesses
- • Heavy dependence on small customer base creating revenue concentration risk(p.31)
- • Significant reliance on related party sales limiting independent revenue generation(p.31)
- • Heavy supplier concentration with majority purchases from few vendors(p.31)
- • Substantial proportion of purchases from related parties(p.31)
- • High debt levels creating financial vulnerability(p.40)
- • Significant unsecured demand loans creating liquidity risk(p.41)
- • Negative operating cash flow indicating working capital challenges(p.36)
- • Unregistered trademarks creating brand protection vulnerabilities(p.39)
- • High customer concentration with top 3 customers accounting for 84.4% of revenue(p.103)
- • Negative operating cash flows of ₹759.79 lakhs in FY2023 indicating working capital pressure(p.102)
- • Elevated long-term borrowings of ₹2,501.82 lakhs as of March 31, 2023(p.50)
- • High working capital requirement increased significantly to ₹5,068.84 lakhs for FY2023-24(p.92)
- • High debt-to-equity ratio of 1.07x as of March 31, 2023(p.143)
- • Declining profit margins; PAT margin fell from 32.07% to 16.00%(p.143)
- • Significant shift from export to domestic sales; export revenue dropped 55% YoY(p.119)
- • Heavy dependence on USA for exports at 93.18% of export revenue(p.119)
- • Capital-intensive industry requiring significant investment(p.125)
- • Negative operating cash flow of ₹759.79 lakhs in FY2023(p.118)
- • High customer concentration creating revenue dependency(p.200)
- • High supplier concentration for raw materials(p.200)
- • Significant debt burden relative to equity(p.201)
- • Related party transactions with group companies(p.229)
- • Declining profitability margins over three years(p.196)
- • Compulsory dematerialized allotment limits investor choice(p.248)
- • Dependency on complex UPI mechanism for retail participation(p.264)
- • Technical rejection risks from depository data mismatches(p.271)
Opportunities
- • Expanding into hot melt coating lamination and PP multifilament yarn production(p.20)
- • Growing domestic market for non-woven products(p.20)
- • Rising Indian technical textiles market with strong growth trajectory(p.22)
- • Significant global demand growth for technical textiles(p.22)
- • India positioned as emerging global manufacturing hub with government support(p.21)
- • Planned expansion into new business lines including hot melt coating lamination(p.92)
- • India positioned as fastest-growing major economy with projected 6.5-7.0% growth(p.113)
- • Rising domestic consumption and private investment activity driving manufacturing growth(p.112)
- • Installation of solar plant to reduce manufacturing costs and improve profitability(p.92)
- • Expansion into new product lines: Hot melt coating lamination and PP multifilament yarn(p.125)
- • Strong industry growth trajectory; technical textiles market projected to grow from $19 Bn (FY24) to $40 Bn with 16.05% CAGR(p.116)
- • Government support through PLI scheme; ₹10,683 crore approved outlay for textile sector(p.115)
- • India positioned as emerging global manufacturing hub with 'Make-in-India' initiative(p.114)
- • Growing domestic market opportunity; 11.23% domestic revenue growth in FY2023(p.119)
- • Healthcare and infrastructure sectors are major drivers of technical textile industry growth(p.116)
- • Expansion into new product segments(p.195)
- • Growing domestic market penetration(p.195)
- • Increased domestic sales contribution(p.183)
- • Migration pathway to NSE main board for growth(p.247)
- • Compulsory market-making support for three years on SME exchange(p.247)
- • Retail investor allocation protection of minimum 35% of issue(p.249)
Threats
- • COVID-19 pandemic creating operational disruptions and demand uncertainty(p.43)
- • Global economic slowdown and recession risks affecting demand(p.20)
- • Volatility in raw material pricing and supply chain disruptions(p.34)
- • Foreign exchange fluctuation risks on machinery imports(p.31)
- • Geographic concentration of operations creating regional risk(p.32)
- • Manufacturing facility concentration creating operational disruption risk(p.33)
- • Inflation pressures limiting pricing power(p.46)
- • Rising interest rates increasing debt servicing costs(p.44)
- • Regulatory and compliance risks from changing government policies(p.44)
- • Product substitution risk from technological innovations(p.32)
- • Global economic slowdown with growth forecast at 1.7% for 2023, third weakest in nearly three decades(p.109)
- • Persistent high global inflation and synchronized central bank monetary tightening(p.109)
- • Global trade expected to slow sharply with negative trade growth in H2:2022(p.113)
- • Weakening global demand and potential reduction in export opportunities(p.113)
- • Highly competitive market with minimal entry barriers; competition from regional, national and international players(p.127)
- • Price volatility of raw materials (PP granules and polyester staple fibers)(p.127)
- • Global economic uncertainty affecting export demand; export growth declined Q1 to Q2 FY23 due to inflation(p.114)
- • COVID-19 pandemic impact; operations shut down March 23, 2020 to March 26, 2022(p.128)
- • Rising interest rates affecting borrowing costs; finance costs of ₹80.72 lakhs in FY2023(p.171)
- • Regulatory risks including environmental compliance and waste management regulations(p.136)
- • Dependency on international markets subject to external shocks(p.195)
- • Exposure to foreign exchange fluctuation risks(p.183)
- • Industry competition from existing and potential competitors(p.200)
- • Regulatory and compliance risks in multiple jurisdictions(p.196)
- • Uncertainty from COVID-19 pandemic and economic conditions(p.196)
- • Regulatory changes post-prospectus filing(p.279)
- • Foreign investment restrictions based on land border proximity(p.278)
- • SEBI's ongoing streamlining of IPO timelines may alter procedures(p.245)
- • Risk of issue withdrawal affecting investor returns(p.244)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hanskumar Ramakant Agarwal | Promoter | 36.52% | 25.69% |
| Shradha Hanskumar Agarwal | Promoter | 36.42% | 25.62% |
| Hanskumar Ramakant Agarwal | Promoter | 36.52% | 25.69% |
| Shradha Hanskumar Agarwal | Promoter | 36.42% | 25.62% |
| Radhadevi Agrawal | Promoter Group | 13.46% | 9.46% |
| Ramakant Bhojnagarwala | Promoter Group | 13.56% | 9.54% |
| Kiranbhai Bhailalbhai Patel | Promoter Group | 0.02% | 0.02% |
| Vikas Srikishan Agarwal | Promoter Group | 0.02% | 0.01% |
| Shuchi Vikas Agrawal | Promoter Group | Negligible | Negligible |
| Mr. Hanskumar Ramakant Agarwal | Promoter | 36.52% | — |
| Mrs. Shradha Hanskumar Agarwal | Promoter | 36.42% | — |
| Hanskumar Ramakant Agarwal | Promoter | — | — |
| Shradha Hanskumar Agarwal | Promoter/Director | — | — |
Leadership
Hanskumar Ramakant Agarwal · Promoter
Shradha Hanskumar Agarwal · Promoter
Akanksha Aswani · Company Secretary and 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.
Shri Techtex IPO FAQs
What is the lot size of Shri Techtex IPO?
The minimum lot size of Shri Techtex IPO is 2,000 shares. One lot costs ₹1,22,000 at the cut-off price.
When does Shri Techtex IPO open and close?
Shri Techtex IPO opened for subscription on 26 Jul 2023 and closed on 28 Jul 2023.
What is the listing date of Shri Techtex IPO?
Shri Techtex IPO listed on 04 Aug 2023.