Spunweb Nonwoven IPO Subscribed 45.19 Times by Day 2; Retail Investors Lead with Overwhelming Demand

Mumbai, 15 July 2025: Spunweb Nonwoven Limited’s Initial Public Offering (IPO) witnessed a robust response from investors across categories, with the overall subscription reaching an impressive 45.19 times by the end of Day 2. The public issue, which opened on July 14, 2025, has seen particularly strong interest from retail and non-institutional investors, underscoring investor confidence in the company’s growth potential and niche product offerings.

Individual Investors Oversubscribe Their Quota 66.74 Times

Retail investor participation has emerged as the standout element in Spunweb Nonwoven’s IPO performance so far. The individual investors’ portion, particularly those applying for two lots (2,400 shares), has been subscribed 66.74 times. This strong demand highlights the faith retail participants have placed in the company’s business model, export strength, and future prospects.

Non-Institutional Investor Segment Posts 52.93 Times Subscription

Non-institutional investors also showed remarkable enthusiasm, subscribing their allocated quota 52.93 times. This segment—often driven by high-net-worth individuals and sophisticated investors—has bid for nearly 4.79 crore shares against an allocation of just over 9 lakh shares. The demand from this category reflects a positive outlook toward the company’s niche operations in the nonwoven fabric industry.

Qualified Institutional Buyers Show Early Momentum

Qualified Institutional Buyers (QIBs) have been more measured in their participation, subscribing 1.66 times as of Day 2. Institutional interest is often seen building closer to the final day of bidding, suggesting a likely uptick in QIB demand ahead of the closing date. Four applications have been recorded from institutional investors so far, indicating the beginning of momentum in this category.

Total Applications Cross 65,000 Amid Growing Investor Interest

The total number of applications received by the end of Day 2 stood at 65,031, a clear indication of growing retail interest. The IPO has attracted attention for its balanced valuation and strong fundamentals, with the total bid amount reaching ₹1,831.40 crore. This compares to the ₹60.98 crore size of the fresh issue, showcasing significant oversubscription.

IPO Size, Pricing and Important Dates

Spunweb Nonwoven’s IPO comprises a fresh issue of 63.52 lakh equity shares and is entirely a fresh capital offering. The price band has been fixed at ₹96 per share, with a lot size of 1,200 shares. Retail investors are required to apply for at least two lots, amounting to ₹2,16,000, while high-net-worth investors must apply for a minimum of three lots, totalling ₹3,45,600.

The IPO will close on July 16, 2025. The allotment is expected to be finalised on July 17, 2025, with a tentative listing date of July 21, 2025, on the NSE SME platform.

Purpose of the Issue: Funding Growth and Reducing Debt

Spunweb Nonwoven intends to utilise the IPO proceeds primarily to fund its working capital requirements, allocate capital to its wholly owned subsidiary SIPL, and partially repay existing borrowings. A portion of the funds will also be earmarked for general corporate purposes, reinforcing the company’s operational flexibility and strategic growth plans.

A Glimpse into Spunweb Nonwoven’s Operations

Spunweb Nonwoven Limited is known for its high-quality, nonwoven fabrics used in diverse applications such as doormats, bags, carpets, and tarpaulins. The company manufactures standard nonwoven, laminated, and UV-treated fabrics and operates advanced testing facilities, including Universal Tensile and Rewet Properties Testing.

Its exports span across North America, Europe, and the Middle East. A major portion of revenue comes from the hygiene sector, with the remainder coming from the medical, packaging, construction, and agriculture industries. The company’s strict quality control processes and strong global client base have contributed to its reputation in the nonwoven fabric market.

Market Maker, Lead Manager and Registrar

Rikhav Securities Limited is the designated market maker for this issue. Vivro Financial Services Private Limited is acting as the book-running lead manager, while MUFG Intime India Private Limited (Link Intime) serves as the registrar.

With interest from retail and non-institutional investors, Spunweb Nonwoven’s IPO has captured the attention of the market. As the issue moves into its final subscription day, investor sentiment suggests high expectations from the company’s upcoming listing and operational performance.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations