Milan Ginning files DRHP for IPO
By Shishta Dutta | Updated at: Jan 12, 2026 02:37 PM IST
Mumbai, 01 July 2025: Milan Ginning has filed its Draft Red Herring Prospectus (DRHP) with the BSE SME platform. The company intends to raise up to ₹7,600 lakh through a fresh equity issue, alongside an Offer for Sale (OFS) of 3,72,500 equity shares by its promoters, Mohmmadhasnein Husenali Narsinh and Husenali Yusufali Narsinh.
IPO Structure Reflects Strategic Capital Deployment and Partial Exit by Promoters
| Component | Details |
|---|---|
| Fresh Issue | Up to ₹7,600 lakh |
| Offer for Sale | 3,72,500 equity shares |
| Promoter Sellers | Mohmmadhasnein Husenali Narsinh and Husenali Yusufali Narsinh |
| Equity Face Value | ₹10 per share |
| Book Running Lead Manager | PNB Investment Services Limited |
| Registrar | KFin Technologies Ltd |
| Listing | BSE SME Platform under Regulation 229(2), SEBI ICDR Regulations |
Reservation Details Suggest Balanced Participation Across Investor Categories
| Category | Reservation |
|---|---|
| Market Maker Portion | [●] equity shares |
| QIB Portion | Not more than 50% of net offer |
| NII Portion | Not less than 15% |
| Retail Investors | Not less than 35% |
Fresh Issue Proceeds to Fuel Expansion into Textile Dyeing and Working Capital
Milan Ginning Pressing Limited plans to use the funds raised through the fresh issue to support its business growth and diversify operations. The company’s proposed investment in its subsidiary, MAH Textiles LLP, will back a ₹9,000 lakh dyeing and printing unit project. This initiative will be supported by a ₹5,200 lakh loan and ₹380 lakh promoter contribution.
| Purpose | Allocation (₹ lakh) |
|---|---|
| Investment in subsidiary MAH Textiles LLP for new dyeing & printing unit | ₹3,420 |
| Working capital needs | ₹2,480 |
| General corporate purposes | [●] |
| Total Net Proceeds | [●] |
The ₹9,000 lakh project of MAH Textiles LLP will be partly financed via a ₹5,200 lakh loan and ₹380 lakh promoter infusion. The unit is projected to go live by July 2026.
Promoters Set to Comply with SEBI Norms as Stake Reduces Post IPO
Currently, the promoters collectively hold 88.02% of the pre-issue capital. Post-offer, they will meet the minimum 20% lock-in requirement as mandated by SEBI ICDR Regulation 236. Notably, equity shares offered through OFS will not be subject to the lock-in period.
| Promoter Seller | Shares Offered in OFS | WACA (₹) |
|---|---|---|
| Mohmmadhasnein Husenali Narsinh | 1,86,250 | ₹2.76 |
| Husenali Yusufali Narsinh | 1,86,250 | ₹4.73 |
Financial Performance Indicates Growth Momentum and Margin Stability
Milan Ginning Pressing has demonstrated revenue growth and stable profit margins over the past few financial years. In 9M FY25, the company reported revenue of ₹66,468.52 lakh and a PAT of ₹792.08 lakh.
| (₹ in lakh) | 9M FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Ops | 66,468.52 | 90,188.41 | 68,275.02 |
| PAT | 792.08 | 1,151.11 | 641.44 |
| EBITDA Margin | 2.49% | 2.37% | 2.10% |
| PAT Margin | 1.19% | 1.28% | 0.94% |
| Net Worth | 4,840.08 | 4,052.76 | 2,688.88 |
Contingent Liabilities & Litigations
- Total contingent liabilities as of Dec 31, 2024: ₹300.82 lakh (including LC discounting and tax demand).
- Subsidiary MAH Textiles LLP has pending statutory approvals for its project. Regulatory and internal audit gaps have been disclosed in detail across 87 risk factors.
Company Overview
Milan Ginning Pressing Limited is a cotton processing and trading firm headquartered in Surendranagar, Gujarat. The company specialises in converting raw cotton into cotton bales and yarn and is now expanding into textile dyeing through its subsidiary, MAH Textiles LLP. The equity shares are proposed to be listed on the BSE SME.
Established in 1995 and based in Gujarat, Milan Ginning Pressing Limited is engaged in the manufacturing and trading of cotton bales, yarn, and by-products. It operates one facility in Limbdi and exports significantly to Bangladesh (over 70% of export revenue in 9M FY25).
For further IPO updates, allotment status, and market debut news, stay tuned.
REF: https://www.bsesme.com/download/309971/SME_IPO InPrinciple/DRHPMilanGinningPressingLimitedFinal_20250630215620.pdf
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