Tea Post Files Draft Papers for IPO...
14 Jun, 2025
Kolkata-based textile company, NR Vandana Tex Industries Limited, is planning to raise 27.89 crores through its IPO from the SME segment. The company is expected to launch its IPO on May 28, 2025, selling 61.89 lakh equity shares for 42 to 45 rupees each. The company is a manufacturer and wholesaler specializing in cotton sarees, salwar suits, and bed sheets. This endeavor looks promising for investors centered in the SME sector.
The company has set aside 45 lakh shares for institutional investors so they can take part a day earlier - May 27, 2025. The shares will then be open for public subscription from May 28 - May 30, 2025. The public will also allot different shares, and on June 2, 2025, the Vandana Tex Industries shares will list on the NSE and then are expected to trade for the first time around June 4, 2025 NSE Emerge platform.
NR Vandana Tex Industries operates primarily in the cotton textile manufacturing sector, focusing on the production and wholesale distribution of cotton sarees, salwar suits, and bed sheets under its well-known brands “Vandana” and “Tanaya.” The company’s business model is predominantly B2B, with a strong distribution network comprising 1,397 wholesalers and B2B e-commerce platforms across India.
This extensive network enables the company to efficiently reach a wide customer base, ensuring steady demand and market presence. The company’s commitment to quality and design innovation has earned it recognition within the industry, including the prestigious “Best Debutant – Apparels” award at the Ajio Business Partnership Meet in 2022. This accolade underlines NR Vandana Tex Industries’ growing reputation in the competitive textile market.
The funds raised through the IPO will be primarily deployed to meet the company’s working capital requirements, which are vital for sustaining and expanding its manufacturing and distribution operations. Additionally, a portion of the proceeds will be used for repayment or prepayment of existing loans, which will help reduce the company’s debt burden and improve its financial health. The remaining funds will be allocated towards general corporate purposes, which may include business expansion, marketing, and other strategic initiatives.
The NR Vandana Tex Industries IPO is the fifth SME public issue scheduled to open in the upcoming week, joining other companies such as Blue Water Logistics, Astonea Labs, Nikita Papers, and Neptune Petrochemicals. This surge in SME IPOs reflects growing investor appetite for smaller, high-growth companies listed on specialized platforms like NSE Emerge.
The IPO is managed by Marwadi Chandarana Intermediaries Brokers, who are acting as the book-running lead managers. Cameo Corporate Services Limited has been appointed as the registrar for the issue, handling investor applications and allotments.
NR Vandana Tex Industries has demonstrated healthy financial metrics, including a return on equity (ROE) of 17.54% and a return on capital employed (ROCE) of 13.82%. While the company carries a debt-to-equity ratio of 2.43, the planned repayment of loans through IPO proceeds is expected to improve its leverage position.
The company’s focus on expanding its product portfolio and strengthening its distribution channels positions it well to capitalize on the growing demand for quality cotton textiles in India and potentially in export markets.
NR Vandana Tex Industries’ IPO presents an exciting opportunity for investors looking to gain exposure to the cotton textile sector through a well-established SME player. With a strong distribution network, recognized brands, and a clear plan to utilize IPO proceeds for growth and debt reduction, the company is poised for expansion in a competitive market. Investors are advised to carefully review the company’s prospectus and financials before applying, keeping in mind the risks and rewards associated with SME IPO investments.
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