Aastha Spintex Files ₹160 Crore IPO Papers; Plans Falcon Yarns Acquisition

New Delhi | Wednesday, Oct 1, 2025: Gujarat-based Aastha Spintex Limited has filed draft papers with the capital markets regulator for a ₹160 crore mainboard IPO. The issue will be a 100 percent fresh issue, with no offer-for-sale component. Shares are proposed to be listed on both NSE and BSE.

The company has appointed BOI Merchant Bankers Limited and PNB Investment Services Limited as the book-running lead managers, while Bigshare Services Private Limited will act as the registrar to the issue.

Aastha Spintex IPO Snapshot

Aastha Spintex Limited is preparing to launch its initial public offering (IPO) with a proposed issue size of up to ₹160 crore. The IPO will be entirely a fresh issue and conducted through the book-building route. While details on the price band, bid lot, and subscription dates are yet to be announced, the shares are proposed to be listed on both NSE and BSE. BOI Merchant Bankers and PNB Investment Services are acting as the book running lead managers, while Bigshare Services will serve as the registrar. Proceeds from the issue will be primarily used to fund the acquisition of Falcon Yarns, along with meeting general corporate requirements.

Aastha Spintex IPO Fund Utilisation

The company plans to use the net proceeds for:

• Part payment towards acquisition of Falcon Yarns Pvt Ltd – Aastha has signed an agreement to buy 100 percent stake in Falcon Yarns for ₹131.51 crore, to be paid in tranches. Out of this, ₹111.51 crore will come from IPO proceeds.
• General corporate purposes, capped at 25 percent of the total issue size as per SEBI guidelines.

Company Overview

Founded in 2013 and converted into a public company in 2025, Aastha Spintex is engaged in manufacturing and trading cotton yarns, including carded, combed, and compact combed varieties, as well as cotton bales.

Its manufacturing facility is located at Halvad, Morbi (Gujarat), spread over 65,762 sq m, equipped with 25,920 spindles, and has a rated spinning capacity of 7,700 MT per annum along with 12,000 MT per annum of ginning capacity. The company caters largely to B2B buyers in knitting and weaving segments such as denim, terry towels, shirting, home textiles, and industrial fabrics.

Aastha Spintex IPO Financial Performance (Standalone)

• Revenue from Operations (FY25): ₹351.16 crore
• Profit After Tax (FY25): ₹23.49 crore
• EPS (FY25): ₹8.50
• Net Worth (Mar 31, 2025): ₹121.63 crore
• Total Borrowings (Mar 31, 2025): ₹95.05 crore
• ROE (FY25): 23.73%

Aastha Spintex IPO Strategic Acquisition: Falcon Yarns

The IPO proceeds will largely fund the Falcon Yarns acquisition, where Aastha Spintex will acquire 3.94 crore equity shares for up to ₹131.51 crore.

• ₹10 crore already paid
• ₹10 crore due by January 1, 2026 (from internal accruals)
• ₹111.51 crore to be paid from IPO proceeds

Upon completion, Falcon Yarns will become a wholly owned subsidiary, strengthening Aastha’s scale and market reach.

Aastha Spintex IPO Key Strengths

• Integrated ginning-to-spinning facility with modern machinery
• Significant use of renewable energy (rooftop solar, ground-mounted solar, and wind power assets)
• Strong presence in Gujarat’s cotton belt with access to quality raw material
• Established long-term B2B customer relationships

Aastha Spintex IPO Risks Highlighted

• Customer concentration risk – reliance on a single reseller for out-of-Gujarat and export sales in previous years
• Raw material dependence – cotton price fluctuations could impact profitability
• Compliance lapses – past regulatory defaults, for which compounding applications have been filed
• Execution risk – challenges in the timely and smooth integration of Falcon Yarns

Aastha Spintex IPO Promoter Holding

The company’s promoters, Patel Divyang Jashwantbhai, Rasiklal Valjibhai Patel, Gothi Vivek Rasiklal, and Jashwantbhai Valjibhai Patel, collectively hold a 65.22 percent stake pre-issue. As per SEBI norms, 20 percent of post-issue capital will be locked in for three years.

REF: https://nsearchives.nseindia.com/corporate/Registration_30092025233301_AasthaSpintexDRHP.pdf

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