SME IPO: Cedaar Textile issue to open on Jun 30; sets price band at Rs 130-140/ share

New Delhi: Cedaar Textile, a manufacturer of organic yarn products, on Sunday said it has fixed a price band of Rs 130-140 per share for its nearly Rs 61 crore initial share sale.

The company's public issue will hit the capital markets on June 30 and conclude on July 2. The shares will be listed on the NSE's SME platform Emerge, the company said in a statement.

At the upper-end of the price band, the company is going to fetch around Rs 60.90 crore from the issue.

The initial public offering (IPO) is entirely a fresh issue of up to 43.50 lakh equity shares, according to the red herring prospectus (RHP).

Proceeds from the fresh issue to the tune of Rs 8 crore will be used for the installation of 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 the household textile, woven goods, and hosiery.

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

Fast Track Finsec is the sole book running lead manager, and Skyline Financial Services is the registrar for the IPO.