Cedaar Textile IPO SME: Check IPO Date, Live Subscription and Key Details
Cedaar Textile Limited, incorporated in September 2020, is engaged in the manufacturing and sale of various types of yarns, technical textiles, fabrics, and dyed yarns. Their product portfolio includes Raw White Yarns, Melange Yarns, Solid Top-dyed Yarns, and Grey Fancy Yarns in cotton, polyester, acrylic, viscose, Tencel, Modal, and other fibers. Melange yarn is specifically used in household textiles, woven goods, and hosiery. The company emphasizes sustainability by using organic, recycled, and blended fibers, eco-friendly dyes, and operates a solar power plant and Effluent Treatment Plant (ETP).
Min Investment
₹140000
Price Range
₹130.00-140.00
Issue Size
₹57.85 Cr
IPO Type
NSE SME
Key Metrics
Check Live GMP
Face Value
₹10
EPS
7.33
P/E Ratio
19.11
RoNW
56.06%
ROE
56.06%
Debt to Equity
5.79
Timeline
IPO Opens
30 Jun
IPO Closes
2 Jul
Allotment
3 Jul
Listing
7 Jul
IPO Objectives
- Installation of Grid-tied Solar PV Rooftop System for Captive evacuation.
- Modernization of the Machines.
- To meet working capital requirements.
- General Corporate Purpose.
- Issue Expenses.
Strengths
- Focus on Sustainability, Quality, Innovation, and Technology: Emphasizes the use of organic, BCI, and GRS-certified recycled fibers, eco-friendly dyes, and has commissioned a solar power plant and Effluent Treatment Plant (ETP) for waste management, aligning with global trends.
- Strong Industry Relationships: Serves top-tier domestic and international customers, including garment manufacturers for renowned fashion brands, indicating a strong market presence and client trust.
- Integrated Sourcing, Production & Delivery: Operates a fully integrated production process from raw material procurement to finished goods, enhancing efficiency, quality control, and reducing lead times.
- Diversified Product Portfolio: Offers a wide range of yarns (Raw White, Melange, Solid Top-dyed, Grey Fancy, Sustainable Yarns), fabrics (Single Jersey, Interlock, Rib Fabrics), and technical textiles (IFR Yarns and Fabrics), catering to multiple end-use segments.
- Experienced Promoters and Management Team: Led by individuals with over 28-33 years of experience in the textile industry, providing strong leadership and operational expertise.
Weaknesses
- Inconsistency in Top and Bottom Lines: The company has shown fluctuations in revenue and profit after tax (PAT) over the reported periods (e.g., revenue decline from FY22 to FY23, and from FY24 to 9M FY25), raising concerns about consistent performance.
- High Level of Borrowings and Debt-to-Equity Ratio: The company has a considerable amount of borrowings (₹120.63 crore as of Dec 31, 2024) and a high debt-to-equity ratio of 5.79 (FY24), which may lead to higher interest obligations and impact its liquidity position.
- Working Capital Intensive Business: The textile manufacturing industry typically requires significant working capital for inventory and operations, which can strain cash flow.
- High Revenue Dependence on Top Customers: Significant revenue reliance on a few key clients (top 10 customers contribute over 60% of revenue), which increases business risk if any major client is lost or reduces orders.
- Concentration of Operations: The entire operations are largely concentrated in Ludhiana, Punjab (though the registered office is in Bangalore), making it vulnerable to regional disruptions like social unrest, natural disasters, or service breakdowns.
Financial Performance
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 222.77 | 198.23 | 175.84 | 154.45 |
| Revenue (₹ Cr.) | 113.91 | 191.01 | 161.88 | 220.44 |
| PAT (₹ Cr.) | 7.06 | 11.05 | 4.59 | 7.99 |
| Net Worth (₹ Cr.) | 60.7 | 25.24 | 14.19 | 9.6 |
Peer Comparison
| Company | P/B Ratio | P/E Ratio | RONW (%) | Net Worth (₹ Cr.) |
|---|---|---|---|---|
| Cedaar Textile Limited | 4.16 | 19.11 | 56.06 | 60.7 |
| Shiva Texyarn Ltd. | 1.91 | 21.5 | 8.89 | 123 |
| Vardhman Textiles Ltd. | 1.47 | 16.47 | 8.93 | 9188 |
Subscription Details
Daily Bids Status
| Date | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.00x | 0.00x | 37.88x |
| NII | 0.22x | 0.14x | 5.03x |
| RII | 0.06x | 0.45x | 9.58x |
| Total | 0.11x | 0.26x | 12.18x |
Overall Subscription Statistics
| Category | Shares Offered | Shares Bid | Bid Amount (₹ Cr) |
|---|---|---|---|
| QIB | 5,22,000 | 1,97,71,000 | 276.79 |
| NII | 13,28,000 | 66,75,000 | 93.45 |
| RII | 15,00,000 | 1,43,73,000 | 201.22 |
| Total | 33,50,000 | 4,08,19,000 | 571.47 |
Company Details
- KSSIDC Plot No B-34, Industrial Estate, Yelahanka New Town, Bangalore Urban, Karnataka-560064, India
- +91 9815610607
- Info@cedaartextile.com
- https://cedaartextile.com/
Registrar Details
- Skyline Financial Services Private Ltd
- 02228511022
- ipo@skylinerta.com
- https://www.skylinerta.com/ipo.php