Upcoming IPO: Cedaar Textile IPO opens on June 30; issue price band set at ₹130-140 apiece; check GMP

Upcoming IPO: Cedaar Textile IPO will open for subscription on Monday, June 30 and close on Wednesday, July 2. Cedaar Textile IPO price band has been fixed in the range of ₹130 to ₹140 per equity share of face value of ₹10 each. Bids can be made for a minimum of 1,000 equity shares and in multiples of 1,000 equity shares thereafter.

Cedaar Textile Limited is engaged in the production of a wide range of yarns. The company creates high-quality melange yarn utilized for home textiles, woven products, and hosiery.

Cedaar Textile serves prestigious clients in both local and global markets, providing garments to well-known fashion labels.

The production process at the company begins with the acquisition of raw materials, which are then processed by mixing various fibers such as cotton, polyester, viscose, acrylic, among others. The firm operates from a manufacturing facility spanning 48.65 acres, boasting an installed spinning capacity of 9,000 MTPA and a dyeing capacity of 1,980 MTPA.

For December 2024, the company reported robust financial results, with operating revenue of ₹1,120.3 lakhs, EBITDA of ₹195.9 lakhs, and a net profit of ₹70.6 lakhs. According to the red herring prospectus (RHP), the company's publicly listed competitors include Shiva Texyarn Ltd, which has a P/E ratio of 22.70, and Vardhman Textiles Ltd, featuring a P/E ratio of 17.03.

Cedaar Textile IPO details

Cedaar Textile IPO consists of a fresh issue of 43,50,000 equity shares, aggregating to ₹60.90 crore. There's no offer for sale (OFS) component.

The net proceeds will be allocated towards the installation of a Grid-tied Solar PV Rooftop System for in-house power generation; upgrading the equipment; fulfilling working capital needs; general corporate purposes; and expenses related to the issuance.

Fast Track Finsec Pvt Ltd serves as the book-running lead manager for the Cedaar Textile IPO, whereas Skyline Financial Services Private Ltd acts as the registrar for this offering. Nnm Securities Private Limited is the market maker for the Cedaar Textile IPO.

Cedaar Textile IPO GMP today

Cedaar Textile IPO GMP today is +9. This indicates Cedaar Textile share price was trading at a premium of ₹9 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Cedaar Textile share price is indicated at ₹149 apiece, which is 6.43% higher than the IPO price of ₹140.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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