₹69 Crore Siddhi Cotspin IPO Opens Today; Price Band Set at ₹102–₹108

Mumbai, 19 September 2025: Gujarat textile mill owner Siddhi Cotspin Limited opened its ₹69 crore Initial Public Offering (IPO) today. The book-built issue will remain open until 23 September 2025. The share price has been fixed between ₹102 and ₹108. The company’s equity shares will list on the NSE Emerge platform on 26 September 2025.

Formed in 2015 and converted to a public company in 2024, Siddhi Cotspin Limited operates a greenfield project in Dholi, Ahmedabad. The business is engaged in cotton and value-added yarns with a specific focus on eco-friendly production processes.

Strong Market Debut as Siddhi Cotspin Plans to Raise ₹69 Crore IPO

Siddhi Cotspin IPO is fully a fresh issue proposed for financing working capital needs and expanding the business. The minimum lot size will be 1,200 shares and will entail an investment of ₹1,22,400 at the lower band. After the issue, public shareholding will increase to 34.44% from 14.43% of the pre-issue level, while promoter holding will decrease to 65.56% from 85.57%.

Financial Performance Reflects Revival with FY25 Net Profit of ₹284 Lakh

Siddhi Cotspin reported revenues of ₹1,09,359 lakh in FY25, almost on par with FY23, a recovery from ₹87,470 lakh in FY24. Net profit stood at ₹284 lakh in FY25, improving from ₹199 lakh in FY24 but below ₹347 lakh in FY23.

EBITDA remained steady at ₹10,709 lakh in FY25 compared to ₹10,633 lakh in FY24, although margins varied. EBITDA margin declined to 9.78% in FY25 compared to 12.15% in FY24, although PAT margin rose slightly to 2.60% in FY25 from 2.27% in FY24. The results indicate continuous operational efficiency but ongoing stress on profitability due to volatility in input costs.

Promoter Group Holding Deteriorates as Public Shareholding Increases After IPO

Promoter holding is now concentrated with promoters Navin Saraogi (44.97%) and Aansh Rajesh Bindal (40.60%). Upon listing of the IPO, promoter holding will be diluted to 65.56%, reflecting higher public shareholding. This structural shift expands ownership but decreases promoter control by nearly 20 percentage points.

Key Strengths: Advanced Spinning Capacity and Addition of Renewable Power

• 9,376 spindle tuition facility.
• Annual production capacity of 90.12 lakh kg of cotton yarn and 135.80 lakh kg value-added yarn.
• Environment-friendly operations supported by renewable energy installations.
• Experienced leadership with Managing Director Navin Saraogi, having over 20 years’ experience in the business.

The company’s position in value-added yarns aligns with emerging demand in upscale textiles, offering diversification from traditional cotton yarn.

Key Risks: SEBI Proceedings, Customer Dependence and Pressure on Margins

The company has pending litigation with the Securities and Exchange Board of India (SEBI) against the entities of the promoter group that could create reputational risks. Additionally, customer concentration and reliance on raw cotton suppliers are operational risks. Margin pressure is a concern because the profitability is exposed to volatility in raw material prices and competition from larger textile players.

Siddhi Cotspin’s IPO marks a significant development in the textile sector with a focus on expanding public shareholding and facilitating sustainable production processes. While company finance shows a turnabout in FY25, risks such as margin volatility, regulatory cases, and client concentration continue to be key factors impacting its operating trajectory.

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