Spunweb Nonwoven IPO Subscribed 8.37 Times on Day 1 as Retail Demand Leads the Way

Mumbai, 14 July 2025: Spunweb Nonwoven Ltd’s IPO opened to a strong start on Day 1 of bidding, with an overall subscription of 8.37 times by 6:03 PM. The company received an overwhelming response from retail and non-institutional investors, despite no participation from qualified institutional buyers (QIBs) on the opening day. The ₹60.98 crore public issue will remain open for subscription until 16 July 2025, with listing expected on NSE SME on 21 July 2025.

Retail Investors Drive Subscription Amid Zero QIB Bids

Retail investor enthusiasm dominated the Day 1 subscription:

• The retail category (Individual Investors bidding for 2 lots) was subscribed 13.30 times, with 2,80,65,600 shares bid against 21,10,800 shares offered.
• The non-institutional investors (NII) segment saw a subscription of 8.06 times, with 72,90,000 bids for 9,04,800 shares.
• However, QIBs stayed away, recording 0.00 times subscription for 12,06,000 shares.
• In total, the issue received 12,587 applications, amounting to bids for 3,53,55,600 shares, valued at ₹339.41 crore.

Spunweb Nonwoven IPO Structure and Offer Size

The public issue comprises a fresh issue of 63,51,600 equity shares, aggregating up to ₹60.98 crore, with the following allocation:

• Retail investors: 21,10,800 shares (46.46%)
• Qualified Institutional Buyers: 12,06,000 shares (26.55%)
• Non-Institutional Investors (NII): 9,04,800 shares (19.92%)
• Market Maker (Rikhav Securities): 3,21,600 shares (7.08%)

The IPO is being offered in the price band of ₹90 to ₹96 per share. The lot size is 1,200 shares, requiring a minimum investment of ₹2,16,000 for retail investors. HNIs must invest in a minimum of 3 lots (3,600 shares) amounting to ₹3,45,600.

Use of Proceeds to Support Growth and Reduce Debt

The company plans to deploy the IPO proceeds towards:

• ₹29 crore to fund the working capital requirements of Spunweb Nonwoven Ltd
• ₹10 crore to support the working capital of wholly owned subsidiary SIPL
• ₹8 crore for partial repayment of borrowings
• Remaining funds for general corporate purposes

These planned allocations aim to strengthen the company’s operational efficiency, support its expanding order book, and improve its debt profile.

Company Overview: Specialised in Nonwoven Fabrics with Global Reach

Spunweb Nonwoven Ltd is engaged in the manufacture and supply of nonwoven, laminated, and UV-treated nonwoven fabrics, widely used in:

• Hygiene products (major contributor to revenue)
• Medical, agriculture, packaging, construction, and home furnishing applications
• Products such as doormats, tarpaulins, bags, and carpets

With advanced testing and inspection facilities—like Universal Tensile Testing and Rewet Properties Testing—the company maintains a high standard of quality. It exports to North America, Europe, and the Middle East, with over two-thirds of its revenue derived from hygiene-sector clients.

Lead Manager, Registrar, and Market Maker for the Issue

• Vivro Financial Services Pvt. Ltd. is the book-running lead manager.
• MUFG Intime India Pvt. Ltd. (Link Intime) is serving as the registrar.
• Rikhav Securities Ltd is the appointed market maker for the issue.

Important IPO Dates and Allotment Schedule

• IPO Subscription Period: 14 July – 16 July 2025
• Basis of Allotment Finalisation: 17 July 2025
• Tentative Listing Date on NSE SME: 21 July 2025

Investors and market watchers now await further updates as the IPO enters its second day, with focus shifting to QIB participation. If the momentum continues, Spunweb Nonwoven IPO may see oversubscription across all categories before closure

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