Swaraj Suiting SME
SME₹10.68 Cr issue
-5.00%
Listing gain over issue price
Issue size
₹10.68 Cr
1 lot at cut-off
₹1,12,000
Lot size
2,000shares
Allotment
23 Mar 2022
Listing
28 Mar 2022
Listing performance
Issue price
₹56
Listed at
₹53.20
Listing-day close
₹53.20
Latest price
₹316
Close on 23 Oct 2026
Listing gain
-5.00%
Return since issue
+1028.57%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 28 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹56 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹10.68 Cr
- Market cap at offer price
- ₹40.32 Cr
- Promoter holding
- 99.74% → 73.31% pre-issue → post-issue
- ISIN
- INE0GMR01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- F-483 To F-487, RIICO, Growth Centre Hamirgarh, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 96,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹56
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 16,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 18,000 | ₹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.
Valuation and performance
Valuation at offer price
₹56 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.99 | — |
| P/E (×) | 4.67 | — |
| Market cap | — | ₹40.32 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 6.99%
- EBITDA margin
- 12.21%
- NAV per share
- ₹171.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Swaraj Suiting SME
Swaraj Suiting Limited, incorporated on June 9, 2003, is a textile company primarily engaged in manufacturing, job contracting of grey fabrics, and trading of synthetic fabrics, finished (denim) fabrics, and yarns. The company operates a manufacturing facility in Bhilwara, Rajasthan, with a production capacity of approximately 1.50 million meters of fabric per month. It is expanding backward and forward through the establishment of a denim fabric processing plant in Neemuch, Madhya Pradesh, with an annual capacity of converting approximately 21.75 million meters of denim fabric. The company generates revenue through manufacturing and trading operations in the textile sector, which has contributed to India's economy with 2% of GDP and 12% of export earnings as of 2018-19.
Company Analysis
from RHPSwaraj Suiting Limited manufactures and trades grey fabrics, denim fabrics, and synthetic fabrics in the Indian textile industry.
Swaraj Suiting Limited, incorporated on June 9, 2003, is a textile company primarily engaged in manufacturing, job contracting of grey fabrics, and trading of synthetic fabrics, finished (denim) fabrics, and yarns. The company operates a manufacturing facility in Bhilwara, Rajasthan, with a production capacity of approximately 1.50 million meters of fabric per month. It is expanding backward and forward through the establishment of a denim fabric processing plant in Neemuch, Madhya Pradesh, with an annual capacity of converting approximately 21.75 million meters of denim fabric. The company generates revenue through manufacturing and trading operations in the textile sector, which has contributed to India's economy with 2% of GDP and 12% of export earnings as of 2018-19.
Textile ManufacturingDenim Fabric ProcessingFabric Trading
Objects of the Issue
- Working capital requirements for new project ₹955.00 Lakhs p.18
- Issue related expenses ₹50.00 Lakhs p.18
- General corporate purposes ₹63.48 Lakhs p.18
- Working capital requirements for new factory at Neemuch, Madhya Pradesh ₹955.00 lakhs p.58
- Issue related expenses ₹50.00 lakhs p.58
- General corporate purposes ₹63.48 lakhs p.58
- Expansion of new unit at Neemuch, Madhya Pradesh p.162
- General corporate purposes p.162
Issue Structure
- Total Issue
- ₹1068.48 Lakhs
- Fresh Issue
- ₹1068.48 Lakhs
- Offer for Sale
- Nil
- Lot Size
- 2,000 Equity Shares (minimum lot size)
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through manufacturing grey fabrics from its facility in Bhilwara, job contracting of grey fabrics, and trading of synthetic fabrics, finished denim fabrics, and yarns. Revenue from operations for FY 2020-21 was ₹59.87 crores, with the company serving both domestic customers and engaging in related party transactions with group entities.
Business Segments
Manufacturing of grey fabrics from the manufacturing facility in Bhilwara, Rajasthan with a production capacity of approximately 1.50 million meters of fabric per month.
Job contracting services for grey fabric production.
Processing and manufacturing of denim fabrics through a planned facility in Neemuch, Madhya Pradesh with annual capacity of converting approximately 21.75 million meters of denim fabric.
Trading of synthetic fabrics, finished denim fabrics, and yarns.
Manufacturing of grey fabric from dyed and undyed yarn using 123 Airjet looms at the Bhilwara facility
Trading of finished fabrics to customers
Trading of yarn to customers
Manufacturing of yarn to grey fabrics on job contract basis where only weaving is done at the Bhilwara facility
Manufacturing and trading of finished fabrics
Manufacturing and sales of grey fabrics
Job weaving services for other parties
Manufacturing and sales of yarn
Manufacture of cotton and synthetic fabrics
SWOT Analysis
Strengths
- • Established textile manufacturing with production capacity of ~1.5M meters/month in Bhilwara(p.18)
- • Backward and forward integration strategy through new denim processing facility(p.18)
- • Experienced promoters with established relationships in the textile industry(p.26)
- • Experienced promoters with 25+ years in textile industry(p.77)
- • Strategic location in established textile hub with infrastructure access(p.83)
- • Established customer relationships and repeat business base(p.84)
- • ISO 9001:2005 Quality Management System certification(p.84)
- • Strong supplier relationships and supply chain management(p.84)
- • Established textile manufacturing presence since 2003 with significant production capacity(p.137)
- • Recognition for technology and quality in textile industry(p.137)
- • Environmental sustainability through renewable energy(p.137)
- • Strong revenue growth trajectory(p.102)
- • Promoter with extensive industrial experience(p.107)
- • ISO Certification and MSME registration(p.102)
- • Established operational presence in textile manufacturing with facilities in Rajasthan and Madhya Pradesh(p.160)
- • ISO 9001:2015 certification demonstrating quality management systems(p.171)
- • Positive financial track record with operating profit in at least 2 of 3 financial years(p.175)
- • Established export capabilities with EPCG licenses and IEC code(p.170)
Weaknesses
- • High dependence on top customers; top 5 customers represent 49.63% of FY2021 revenue(p.23)
- • High dependence on top suppliers; top 10 suppliers represent 83.57% of FY2021 purchases(p.23)
- • No long-term supply agreements for critical raw materials (cotton and synthetic yarn)(p.24)
- • Manufacturing facilities on leased land (99-year lease from RIICO and SIDIC)(p.24)
- • Registered office shared with group companies, creating document/communication risks(p.24)
- • Trademark applications objected under Trade Marks Act 1999; may lack statutory IP protections(p.26)
- • Outstanding litigation against company, directors, and promoters totaling ₹6,61,800(p.22)
- • No formal arrangements with third-party logistics providers; exposed to transportation cost fluctuations(p.25)
- • Group companies engaged in similar business; potential conflicts of interest in allocating opportunities(p.25)
- • Unsecured loans repayable on demand creating liquidity risk(p.25)
- • High customer concentration risk(p.86)
- • Sensitivity to revenue drops and raw material cost increases(p.86)
- • New manufacturing facility at early stage of operations(p.87)
- • Low capacity utilization at existing facility due to pandemic(p.87)
- • High debt-to-equity leverage(p.141)
- • Declining profitability and EBITDA margins(p.141)
- • Significant dependence on a few customer relationships(p.121)
- • Operational concentration in Bhilwara with single new facility in Madhya Pradesh(p.146)
- • Previous audit qualifications regarding gratuity provision(p.125)
- • Dependence on limited number of customers for significant portion of revenues(p.162)
- • Risk of failure to comply with financial and restrictive covenants in financing arrangements(p.162)
- • Declining profitability trend - net profit after tax decreased from 354.32 lakhs (FY2019-20) to 267.47 lakhs (FY2020-21)(p.164)
- • Pending income tax demands against promoters and company without appeal filed(p.166)
- • Inability to successfully diversify product offerings(p.162)
Opportunities
- • Indian textile industry contributed 2% to GDP and 12% to export earnings in FY2018-19(p.18)
- • Home textile exports grew at 9% in FY21 despite COVID-19 pandemic(p.18)
- • New denim processing facility in Madhya Pradesh with capacity of 21.75M metric meters annually(p.18)
- • Scope to expand customer base and reduce dependence on current major customers(p.23)
- • Government PLI scheme supporting textile manufacturing(p.68)
- • High growth potential in denim fabric market(p.86)
- • Growing domestic textile market and retail expansion(p.86)
- • Government support through Make in India and ATUFS initiatives(p.86)
- • Abundant raw material availability(p.86)
- • Strategic location advantage for new MP plant(p.86)
- • Capacity expansion into denim fabric manufacturing(p.102)
- • Export market development through council membership(p.102)
- • Growing market for synthetic and technical textiles(p.101)
- • Potential for backward integration and product diversification(p.101)
- • Expansion to new manufacturing unit at Neemuch, Madhya Pradesh expected to commence by end of March-April 2022(p.162)
- • Access to public capital markets through IPO listing on NSE EMERGE platform(p.162)
- • Growing textile export market with registered membership in Synthetic & Rayon Textiles Export Promotion Council(p.172)
Threats
- • Significant competition from organized, unorganized, and international players (China, Bangladesh, Vietnam)(p.30)
- • Volatility in raw material prices (yarn, cotton, chemicals) may impact margins(p.24)
- • Non-availability or supply disruptions of critical raw materials (cotton and synthetic yarn)(p.23)
- • COVID-19 pandemic has caused operational disruptions and cost pressures(p.25)
- • Changes in government regulations, laws, and their implementation affecting textile operations(p.30)
- • Taxes and levies (GST, customs duties, excise) affecting product cost and demand(p.30)
- • Political instability, changes in economic liberalization policies could harm business(p.31)
- • Natural calamities (earthquakes, floods, etc.) could negatively impact Indian economy(p.31)
- • Global economic conditions, interest rates, foreign exchange fluctuations affecting business(p.31)
- • Labor strikes, work stoppages, wage demands could disrupt operations(p.26)
- • Over-capacity in domestic denim industry(p.86)
- • Cyclicality and periods of excess capacity in denim industry(p.86)
- • International competition from lower-cost producers(p.88)
- • Intense competition from large regional, national and international players(p.88)
- • Low barriers to entry encouraging new competitors(p.88)
- • Regulatory compliance burden from multiple municipal and pollution authorities(p.100)
- • Fluctuating input costs and commodity price volatility(p.135)
- • Competitive pressure in textile manufacturing(p.101)
- • High working capital requirements and credit exposure(p.134)
- • Exposure to foreign currency and exchange rate fluctuations(p.140)
- • COVID-19 pandemic impact on operations and profitability(p.162)
- • Rapid technological advancement and inability to keep pace with change(p.162)
- • Increased competition in textile sector(p.162)
- • Adverse impact from general economic and business conditions in India and operational markets(p.162)
- • Changes in laws and regulations affecting textile sector operations(p.163)
- • Political instability or changes in government could cause significant adverse effects(p.163)
- • Risk of natural or man-made disasters affecting operations and financial condition(p.163)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mohammed Sabir Khan | Promoter | 24.81% | — |
| Samar Khan | Promoter | 3.48% | — |
| Nasir Khan | Promoter | — | — |
| Divine Suiting Private Limited | Promoter Group | 23.45% | — |
| Gomoto Textiles Private Limited | Promoter Group | 17.08% | — |
| Jamuna Synthetics Private Limited | Promoter Group | 16.24% | — |
| Sakina Textile Private Limited | Promoter Group | 14.28% | — |
| Mohammed Sabir Khan | Promoter | 24.81% | 18.23% |
| Samar Khan | Promoter | 3.48% | 2.56% |
| Nasir Khan | Promoter | — | — |
| Divine Suiting Private Limited | Promoter Group | 23.45% | 17.24% |
| Gomoto Textiles Private Limited | Promoter Group | 17.08% | 12.55% |
| Jamuna Synthetics Private Limited | Promoter Group | 16.24% | 11.94% |
| Sakina Textile Private Limited | Promoter Group | 14.28% | 10.49% |
| Mr. Mohammed Sabir Khan | Promoter | 24.81% | 18.23% |
| Mrs. Samar Khan | Promoter | 3.48% | 2.56% |
| Mr. Nasir Khan | Promoter | — | — |
| Mohammed Sabir Khan | Promoter | — | — |
| Nasir Khan | Promoter | — | — |
| Samar Khan | Promoter | — | — |
Leadership
Mohammed Sabir Khan · Managing Director
Samar Khan · Whole Time Director
Nasir Khan · Whole Time Director
Rahul Kumar Verma · Company Secretary & Compliance Officer
Prakash Chandra Jain · Chief Financial 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.
Swaraj Suiting SME IPO FAQs
What is the lot size of Swaraj Suiting SME IPO?
The minimum lot size of Swaraj Suiting SME IPO is 2,000 shares. One lot costs ₹1,12,000 at the cut-off price.
What is the listing date of Swaraj Suiting SME IPO?
Swaraj Suiting SME IPO listed on 28 Mar 2022.