Cedaar Textile's Rs 61-cr IPO gets 12.26 times subscription

New Delhi, Jul 2 (PTI) Cedaar Textile, a manufacturer of organic yarn products, on Wednesday said its initial public offer has received a strong response from investors as it recorded a 12.26 times subscription on the final day of bidding.

The company's initial share sale got bids for more than 4.12 crore equity shares against 36.70 lakh shares on offer, as per the NSE data.

"The qualified institutional buyer (QIB) portion of the issue was subscribed 37.88 times, the NII quota was subscribed 5.04 times and the retail individual investors (RII) subscribed 9.73 times, bringing the overall subscription to 12.26 times on the final day of bidding on Wednesday," the company said in a statement.

Cedaar Textile collected Rs 9.52 crore from anchor investors.

The price band for the initial public offering (IPO) has been fixed at Rs 130-140 per share. The IPO is entirely a fresh issue of up to 43.50 lakh equity shares.

Proceeds from the fresh issue to the tune of Rs 8 crore will be used for the installation of a grid-tied solar PV rooftop system for captive evacuation, Rs 17 crore for the modernisation of the machines, and Rs 24.9 crore to meet working capital requirements.

The remaining capital will be used for general corporate purposes and issue expenses, as per the RHP.

The Bengaluru-headquartered company manufactures and sells products like yarn, technical textile IFR, fabrics, and dyed yarn. It is specialised in the manufacturing of quality melange yarn for use in household textiles, woven goods, and hosiery.

For the nine-month period ended December 31, 2024, Cedaar Textile posted a revenue of Rs 113.91 crore and a profit after tax of Rs 7.06 crore.

The shares will be listed on the NSE's SME platform Emerge. PTI HG HG BAL BAL