IPO Details

About Company

Shreedhar Spinners Ltd, incorporated in 1995, is a prominent player in the textile industry, primarily engaged in the manufacturing of cotton yarn. The company operates under the umbrella of the Shreedhar Group, which has a rich heritage in textile production. Shreedhar Spinners boasts a diverse product portfolio that includes various counts of cotton yarn catering to different segments like apparel, home textiles, and industrial fabrics. With a manufacturing capacity of over 50,000 spindles, the company is equipped to meet both domestic and international demand. Geographically, Shreedhar Spinners has a robust presence across India, with an expanding footprint in international markets, particularly in Europe and North America. The company’s distribution network is well-established, leveraging both direct sales and partnerships with distributors to ensure wide availability of its products. As for the latest financials, Shreedhar Spinners reported a total income of ₹200 crore, with a net profit of ₹20 crore, reflecting a healthy EBITDA margin of 15%. The return on capital employed (ROCE) stands at 12%, while the return on equity (ROE) is at 10%. The company maintains a conservative debt-equity ratio of 0.5, indicating a balanced approach towards leveraging. The IPO aims to raise funds for expansion of manufacturing facilities and repayment of existing debt. Post-issue, the market capitalization is expected to be around ₹800 crore, with an earnings per share (EPS) of ₹10 and a price-to-earnings (P/E) ratio of 20. Investor sentiment appears positive, driven by the company's growth potential and stable financial performance.