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28 Jun, 2025
Cedaar Textile Limited IPO
Cedaar Textile Limited is coming up with an SME IPO between June 30 and July 2, 2025, to raise around ₹60.90 crore by issuing 43.5 lakh fresh equity shares for ₹130 to ₹140 per share. Retail investors must invest at least ₹1,30,000 in order to participate in the IPO, which will be listed on the NSE SME platform with an application lot size of at least 1,000 shares. It is scheduled to be listed on July 7, 2025, and it should be allotted on July 3, 2025.
Company Background
Cedaar Textile Limited was incorporated in September 2020 and is based in Bengaluru, Karnataka, with its headquarters. The company was converted into a public limited company in August 2024. The company is the leader in the production of a vast variety of yarns, with a special emphasis on sustainable, organic, and recycled fibers in order to conserve the environment. It caters to the local and global markets and provides yarns that are consumed by major garment manufacturers that are affiliated with renowned fashion brands.
Operations & Product Range
Facility & Production:
Cedaar Textile has a manufacturing unit close to Ludhiana, Punjab which is equipped with modern machinery including Blow Room and Carding machines of Truszler/LMW, Draw Frame and Speed Frame of LMW, Ring Frames, Twister TFO, Autoconer and fiber/yarn dyeing machines. As of June 2025, the company has 583 employees with an approximate capacity of 70 percent in spinning and 90 percent in dyeing, which means that it can be expanded.
Brands & Market Presence:
The company manufactures different types of yarn such as Raw White Yarns, Melange Yarns, Solid Top-dyed Yarns, and Grey Fancy Yarns, which are made of fibers such as cotton, polyester, viscose, acrylic, Tencel, and modal. Cedaar Textile is also characterized by sustainable yarns that are produced using 100 percent organic fibers as well as recycled fibers. It exports more than 34 percent of its revenue to nations like Bangladesh, Australia and China, which is an indicator of its diversified market presence.
Revenue Channels
Cedaar Textile earns revenue mainly through the manufacturing and sale of various yarn products to garment manufacturers and textile companies, both locally and internationally. Its export earnings constitute a huge percentage, and more than one-third of FY24 revenue was earned from foreign markets. The firm also manufactures technical textile yarns such as Inherent Fire-Retardant (IFR) yarns that serve niche markets such as home furnishing and apparel.
Management & Shareholding
Promoters & Shareholding:
The promoters are Mr. Rajesh Mittal, Mr. Virender Goyal, Mr. Monnappa Nachappa Bachangada and Mrs. Bachangada Monnappa Saraswati. Promoters own 100 percent of equity before IPO, which will be diluted to about 68.66 percent after IPO.
Board Members:
Cedaar Textile Limited has a board of directors that includes Managing Director Rajesh Mittal, CFO Virender Goyal, Non-Executive Director Monnappa Bachangada, and independent directors Yogendra Singhal and Vinay Aggarwal. This multicultural team is highly experienced in terms of finance, operations, and corporate governance, which leads to the sustainable development of the company and its innovation within the textile industry.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Cedaar Textile Limited IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Cedaar Textile Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | June 30, 2025 to July 2, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | ₹130 to ₹140 per share |
| Lot Size | 1,000 Shares |
| Sale Type | Fresh Capital |
| Total Issue Size | 43,50,000 shares (aggregating up to ₹60.90 Cr) |
| Reserved for Market Maker | 2,18,000 shares (aggregating up to ₹3.05 Cr) |
| Net Offered to Public | 41,32,000 shares (aggregating up to ₹57.85 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 95,28,600 shares |
| Share Holding Post Issue | 1,38,78,600 shares |
| - | - |
Cedaar Textile Limited IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Mon, Jun 30, 2025 |
| IPO Close Date | Wed, Jul 2, 2025 |
| Tentative Allotment | Thu, Jul 3, 2025 |
| Initiation of Refunds | Fri, Jul 4, 2025 |
| Credit of Shares to Demat | Fri, Jul 4, 2025 |
| Tentative Listing Date | Mon, Jul 7, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 2, 2025 |
Cedaar Textile Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | ₹1,40,000 |
| Retail (Max) | 1 | 1000 | ₹1,40,000 |
| HNI (Min) | 2 | 2,000 | ₹2,80,000 |
Cedaar Textile Limited IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 68.66% |
Competitive Strength:
- ● Use of sustainable and environmentally friendly yarns that are made of 100 percent organic and recycled fibers.
- ● Vast product range to serve household textiles, woven goods, hosiery and technical textiles.
- ● Good export orientation with more than 34 percent revenue generated in international markets.
- ● Modern production plants allow for capacity increase.
- ● Fueled by seasoned promoters who believe in green energy and technological advancements.
Cedaar Textile Limited IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2024 | 222.77 | 113.91 | 7.06 | 60.7 | 120.63 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 198.23 | 191.01 | 11 | 25.24 | 146.15 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 175.84 | 161.88 | 4.59 | 14.19 | 137.01 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 154.45 | 220.44 | 7.99 | 9.6 | 121.01 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 56.06% |
| ROCE | 26.90% |
| Debt/Equity | 5.79 |
| RoNW | 56.06% |
| PAT Margin | 5.83% |
| EBITDA Margin | 15.19% |
| Price to Book Value | 4.16 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 11.6 | 7.33 |
| P/E (x) | 12.07 | 19.11 |
IPO Objectives
The company intends to utilize the IPO proceeds as follows:
- To cut down power expenses, ₹8 crore is to be spent on installing a grid-tied solar rooftop system.
- ₹17 crore for the modernization and upgrading of machinery to enhance the efficiency of production.
- To cover working capital, ₹24.9 crore has been raised.
- Remaining cash to be used for general corporate purposes and IPO expenses.
Conclusion
The IPO of Cedaar Textile Limited gives a chance to invest in a growing textile manufacturer that has a clear focus on sustainability and innovation. Being located in a strongly growing Indian textile market with a high degree of export exposure, the company intends to increase its operational efficiency and capacity with the help of the IPO proceeds. The listing on the NSE SME is an opportune time to take advantage of the increasing demand for environmentally friendly textile products.
RHP:
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Frequently asked Questions (FAQs )
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1. What are the opening and closing times for the Cedaar Textile IPO?
The first public offering (IPO) will start on June 30, 2025, and run until July 2, 2025.
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2. What is the IPO's pricing range and lot size?
The price band will be 130 to 140 per share with a minimum lot size of 1,000 shares.
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3. What is the size of the IPO?
The offering is 60.90 crore in size and consists of 43.5 lakh new equity shares.
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4. Who are the people behind Cedaar Textile Limited?
The promoters are Mr. Rajesh Mittal, Mr. Virender Goyal, Mr. Monnappa Nachappa Bachangada and Mrs. Bachangada Monnappa Saraswati.
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5. What are the main goals of the money raised from the IPO?
The proceeds will be utilized in the installation of solar rooftop systems, modernization of machinery, working capital requirements and general corporate purposes.
