Cedaar Textile IPO Opens June 30: Key Details on Price Band, Lot Size, and Listing

Bangalore, June 26: Cedaar Textile Limited is set to launch its SME Initial Public Offering (IPO) on Monday, June 30, 2025. The company aims to raise funds through a fresh issue of equity shares, with the public issue set to close on Wednesday, July 2, 2025. The IPO offers 43.50 lakh equity shares at a price band of ₹130 to ₹140 per share, and will be listed on the NSE Emerge platform.

IPO Snapshot

This book-built issue is entirely a fresh issue of equity shares. Investors should note the following key dates:

Company Profile: Specialisation in Sustainable Yarns

Founded in 2020 and headquartered in Bengaluru, Cedaar Textile Limited has carved a niche in the textile manufacturing sector. The company specialises in the production of a diverse range of yarns, including:

• Raw white yarn
• Melange yarn
• Solid top-dyed yarn
• Fancy grey yarns

Cedaar Textile works with a wide array of fibres, such as cotton, polyester, viscose, acrylic, tencel, and modal. A significant focus of the company is on sustainable manufacturing, offering yarns made from 100% organic and recycled fibres (including recycled polyester and cotton) to promote environmental conservation. The company supplies its yarns to leading garment manufacturers who cater to renowned global fashion brands, both domestically and internationally.

The company’s leadership consists of promoters Mr. Rajesh Mittal, Mr. Virender Goyal, Mr. Monnappa Nachappa Bachangada, and Mrs. Bachangada Monnappa Saraswati. Post-issue, their combined shareholding will be 68.66%.

Financial Performance (as per Restated Financials)

Cedaar Textile has demonstrated robust financial growth, particularly in recent periods. Key financial metrics for FY24 and as of December 31, 2024, are as follows:

• Total Income (FY24): ₹19,101.24 lakh
• Profit After Tax (PAT) (FY24): ₹1,105.05 lakh
• Net Worth (Dec 31, 2024): ₹6,069.74 lakh
• Earnings Per Share (EPS) (FY24): ₹14.73
• Return on Equity (ROE) (FY24): 43.78% (approx.)
• Total Assets (Dec 2024): ₹22,276.70 lakh

The company has shown consistent financial performance, with PAT rising to ₹11.05 crore in FY24 from ₹4.59 crore in FY23, despite a slight decrease in revenue from ₹161.88 crore in FY23 to ₹191.01 crore in FY24. The operational efficiency is reflected in its EBITDA margin of 15.19% in FY24.

IPO Utilisation and Promoter Holding

The proceeds from the IPO are earmarked for several strategic initiatives aimed at enhancing efficiency and capacity:

• Installation of grid-tied rooftop solar PV systems: This move underscores the company’s commitment to green energy and will help reduce energy consumption costs, addressing its high power dependency.
• Modernization of dyeing machinery: This will likely improve product quality, reduce turnaround times, and potentially expand the range of dyeing capabilities.
• Meeting working capital requirements: Essential for funding day-to-day operations, inventory management, and smooth business flow.
• General corporate purposes and issue expenses.

The pre-issue promoter holding stands at 100%, which will decrease to 68.66% post-issue. Fast Track Finsec Private Limited is the Lead Manager for the IPO, with Skyline Financial Services Pvt Ltd serving as the Registrar.

Lead Manager & Registrar

• Lead Manager: Fast Track Finsec Private Limited
• Registrar: Skyline Financial Services Pvt Ltd

What to Watch For?

Investors evaluating Cedaar Textile’s IPO should consider the following:

• Export Exposure: Over 34% of the company’s FY24 revenue came from exports to countries such as Bangladesh, Australia, and China, indicating a diversified revenue stream and exposure to international market dynamics.
• Capacity Utilisation: The company currently operates at 70% capacity for spinning and 90% for dyeing, suggesting room for growth in spinning and efficient utilisation in dyeing.
• Unsecured Loans: The presence of some unsecured loans from promoters, which are repayable on demand, might be a point to monitor.
• Market Dynamics: The Indian textile and apparel industry is experiencing robust growth driven by rising global demand, government support, and a growing preference for sustainable products, positioning Cedaar Textile to capitalise on these trends.

With its strong presence in specialised and sustainable yarns, Cedaar Textile’s IPO offers investors an opportunity to participate in India’s growing textile manufacturing sector, particularly within the value-added and eco-friendly segments. The IPO opens on June 30, with a tentative listing date of July 4 on NSE Emerge.

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