Spunweb Nonwoven Launches ₹60.98 Cr IPO: Key Growth Metrics and Strategic Goals Revealed
By Shishta Dutta | Published at: Jul 14, 2025 10:01 AM IST
Rajkot, 14 July 2025: Spunweb Nonwoven Limited has opened its ₹60.98 crore Initial Public Offering (IPO) today, inviting investor interest in a high-capacity manufacturer of polypropylene spunbond nonwoven fabrics. The three-day public issue runs from July 14 to July 16, with the company’s shares set to be listed on the NSE EMERGE platform under the symbol SPUNWEB.
IPO Offers Strategic Entry into Nonwoven Market Growth
The IPO consists entirely of a fresh issue of 63,51,600 equity shares, with a price range fixed between ₹90 and ₹96 per share. Retail investors will need to invest at least ₹1,15,200 at the upper band, with each lot consisting of 1,200 shares.
IPO Details
| Particulars | Details |
|---|---|
| Issue Opens | July 14, 2025 |
| Issue Closes | July 16, 2025 |
| Price Band | ₹90 – ₹96 |
| Lot Size | 1,200 shares |
| Minimum Investment | ₹2,30,400 (at upper band) (minumum 2 lots) |
| Issue Size | 63,51,600 shares (₹60.97 crore) |
| Listing Platform | NSE EMERGE (SME Segment) |
| Symbol | SPUNWEB |
Funds Target Working Capital, Debt Reduction, and Future Expansion
Spunweb plans to utilise the IPO proceeds primarily for working capital needs across its parent and subsidiary operations, debt repayment, and general corporate purposes. These allocations are expected to strengthen its operational efficiency and support future growth.
Utilisation of Proceeds
| Purpose | Allocation (₹ Cr) |
|---|---|
| Working capital (Spunweb Nonwoven Ltd) | ₹29.00 |
| Working capital (subsidiary SIPL) | ₹10.00 |
| Repayment/prepayment of certain borrowings | ₹8.00 |
| General corporate purposes | *TBD |
| Total | ₹60.97 Cr |
*Subject to finalisation based on allotment and issue price.
Spunweb’s Manufacturing Scale and Sector Demand Position It as a Key Player
Founded in 2015 and based in Rajkot, Gujarat, Spunweb Nonwoven Limited manufactures spunbond nonwoven fabrics used in critical sectors such as hygiene, medical, agriculture, packaging, and roofing. With an installed capacity of 32,640 metric tonnes, the company stands among India’s largest in this domain.
Its wholly owned subsidiary, Spunweb India Private Limited (SIPL), adds significant capacity and logistical support to the parent company’s operations.
Financial Metrics Reflect Strong Growth Trajectory
Spunweb has demonstrated steady year-on-year growth in revenue, profitability, and operational efficiency. The company’s consolidated figures for the past three financial years indicate sustained momentum, with revenue nearly doubling in the latest fiscal year.
Financial Performance (Consolidated)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations | ₹22,635.03L | ₹14,861.14L | ₹11,591.82L |
| Net Profit | ₹1,079.22L | ₹544.18L | ₹112.68L |
| EBITDA | ₹3,122.59L | ₹1,500.51L | ₹1,080.16L |
| EPS (Diluted) | ₹6.28 | ₹3.20 | ₹0.66 |
| NAV per Share | ₹24.31 | ₹15.21 | ₹12.21 |
Promoters Retain Majority Stake While Unlocking Value Through IPO
The promoter group, Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara, currently holds 81.31% of the company. Post-issue, their collective stake will be diluted, although they will continue to retain a majority shareholding.
Anchor Investors May Drive Institutional Participation
In line with SEBI guidelines, up to 60% of the Qualified Institutional Buyer (QIB) quota can be allocated to Anchor Investors. Notably, one-third of this anchor portion is reserved for domestic mutual funds, adding credibility and institutional strength to the offering.
Lead Management and Registrar Support Ensure Process Efficiency
The IPO is being managed by Vivro Financial Services Pvt Ltd as the Book Running Lead Manager, while MUFG Intime India Pvt Ltd (formerly Link Intime) is serving as the Registrar to the Issue.
Key Takeaways for Investors Eyeing the Technical Textile Sector
With India’s technical textiles industry poised for expansion, investors are closely observing this IPO for its sectoral relevance, operational scale, and export potential. Spunweb’s presence in high-demand categories like diapers, sanitary products, medical PPE, and eco-textiles strengthens its positioning in a growth-driven market. Post-IPO, the company aims to consolidate domestic demand while enhancing its export capabilities through strategic capital deployment.
Company Outlook: Focused Expansion Meets Rising Sector Demand
Spunweb Nonwoven Limited’s forward-looking strategy centres around tapping into increasing demand for technical textiles both in India and global markets. With a robust manufacturing base and disciplined capital utilisation plan, the company seeks to enhance competitiveness and deliver long-term value to shareholders.
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