Neelam Linens and Garments (India) IPO
- IPO Date08 Nov, 2024 to 12 Nov, 2024
- Listing Date18 Nov, 2024
- Face Value₹10 per share
- Issue Price₹20 to ₹24 per share
- Lot Size6000 Shares
- Minimum Investment₹1,44,000
- Listing AtNSE SME
- Total Issue Size54,18,000 Shares
(aggregating up to ₹13.00 Cr) - Fresh Issue54,18,000 Shares
(aggregating up to ₹13.00 Cr)
- Offer for Sale-
- Issue TypeBook Built Issue IPO
- Share holding pre issue1,48,00,000
- Shareholding post issue2,02,18,000
IPO Dates
Closing Date
12 Nov, 2024
Initiation of Refunds
14 Nov, 2024
Listing Date
18 Nov, 2024
08 Nov, 2024
Opening Date
13 Nov, 2024
Basis of Allotment
14 Nov, 2024
Credit of Shares
Neelam Linens and Garments (India) Lot Size
Investors can bid for a minimum of 6000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 6000 | ₹1,44,000 |
| HNI (Min) | 2 | 12000 | ₹2,88,000 |
| Retail (Max) | 1 | 6000 | ₹1,44,000 |
Neelam Linens and Garments (India) Promoter Holding
The Promoters of the company are Kantilal Jethva and Bhavin Jethwa.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 74.18% | 54.29% |
Neelam Linens and Garments (India) COMPANY INFORMATION
Neelam Linens and Garments IPO is a book built issue of Rs 13.00 crores. The issue is entirely a fresh issue of 54.18 lakh shares. Neelam Linens and Garments IPO opens for subscription on November 8, 2024 and closes on November 12, 2024. The allotment for the Neelam Linens and Garments IPO is expected to be finalized on Wednesday, November 13, 2024. Neelam Linens and Garments IPO will list on NSE SME with tentative listing date fixed as Monday, November 18, 2024. Neelam Linens and Garments IPO price band is set at ₹20 to ₹24 per share. The minimum lot size for an application is 6000 Shares. The minimum amount of investment required by retail investors is ₹144,000. The minimum lot size investment for HNI is 2 lots (12,000 shares) amounting to ₹288,000. Expert Global Consultants Private Limited is the book running lead manager of the Neelam Linens and Garments IPO, while Purva Sharegistry India Pvt Ltd is the registrar for the issue. The market maker for Neelam Linens and Garments IPO is Globalworth Securities. Refer to Neelam Linens and Garments IPO RHP for detailed information.
Incorporated in September 2010, Neelam Linens and Garments (India) Ltd is a soft home furnishing company. It processes, finishes, and supplies bedsheets, pillow covers, duvet covers, towels, rugs, doors, shirts, and garments. The company mainly serves discounted retail outlets.
The company's business can be divided into two parts
- Processing and trading of products
- Sale of licenses
The company has two manufacturing units situated in Bhiwandi, Thane, Maharashtra.
The company sells its products to domestic and international customers. Its domestic customers include Vijay Sales, Amazon, Meesho, and Amersons stores. Its international clients include stores like Tuesday Morning, TJX, Pem America, Ocean State Job Lot, LinCraft Australia, Big Lots, 99 Cents, and U.S. Polo Assn.
The company currently manufactures 4000 sets per day and its capacity to manufacture is 6000 sets per day.
Competitive Strength:
- Selling directly to customers through its own retail stores.
- Enhance financial performance by concentrating on operational and functional efficiencies.
- Enhanced product portfolio to meet customer needs.
- Improving & maintaining functional efficiencies
As of May 15, 2024, the company employs 58 people. Eight of them are on payroll, while 50 work for daily wages as needed.
Neelam Linens and Garments (India) IPO
IPO Overview and Key Highlights
Neelam Linens and Garments (India) Limited is offering its Initial Public Offering (IPO) of up to 54,18,000 equity shares with a face value of Rs 10 each. The IPO consists entirely of a fresh issue with no Offer for Sale (OFS). Proceeds from the issue are intended for general corporate purposes, working capital, and expansion initiatives. The shares are set to be listed on the NSE Emerge Platform?
Key IPO Details
- Type of Issue: 100% Book Built Issue
- Total Issue Size: 54,18,000 Equity Shares
- Face Value: Rs 10 per share
- Offer Opens: November 8, 2024
- Offer Closes: November 12, 2024
- Listing Exchange: NSE Emerge Platform.
Company Overview
Founded in 2010, Neelam Linens and Garments (India) Limited specializes in the manufacturing and retail of premium linens, home textiles, and garments. The company has a strong presence in the Indian market and focuses on innovative designs, quality products, and customer satisfaction. The promoters, Kantilal Jethva and Bhavin Jethwa, have extensive experience in the textile and garment industry?.
Financial Overview
The company has experienced consistent growth, driven by increasing demand for premium home textiles and garments in India. The IPO proceeds aim to bolster the company’s capital structure and enhance its operational capabilities.
Key Strengths of Neelam Linens and Garments (India)
- Strong Market Presence: The company has established a solid reputation in the home textiles and garment sector.
- Experienced Leadership: The promoters bring significant expertise, ensuring effective management and growth strategies.
- Growing Demand for Premium Products: Rising consumer demand for high-quality linens and garments supports the company’s growth potential?.
IPO Pros and Cons
Pros
- Market Growth: The Indian textiles and garments market is expanding, presenting growth opportunities for the company.
- Fresh Issue Proceeds: All funds raised will directly contribute to the company’s expansion and working capital needs.
- Emerging Platform Listing: Listing on NSE Emerge offers visibility and access to a broader investor base?
Cons
- Dependence on Domestic Market: The company relies heavily on the Indian market, which could limit growth during economic downturns.
- Competitive Industry: The textile and garments sector is highly competitive, with numerous players vying for market share.
- First Public Issue: As this is the company's first IPO, there is uncertainty regarding post-listing performance?
Risk Factors
Investors should evaluate the following risks:
- Economic Sensitivity: The textile industry is highly sensitive to economic fluctuations, which could affect consumer spending on premium products.
- Regulatory Risks: Changes in textile industry policies or import/export regulations could impact operations.
- Competition: The company faces intense competition from both domestic and international players
Conclusion
The Neelam Linens and Garments (India) Limited IPO offers investors an opportunity to participate in the growth of a premium textile and garment company. With experienced leadership and a growing market, the company is well-positioned for success. However, investors should carefully assess risks, including market dependency and competition, before making investment decisions.
FAQs About Neelam Linens And Garments (India) Ipo
Neelam Linens and Garments (India) IPO will open on 08 Nov, 2024 and close on 12 Nov, 2024. Investors must apply within this period to participate.
The Neelam Linens and Garments (India) IPO price band is set between ₹20.00 and ₹24.00 per share. The minimum lot size is 6000, requiring an investment of at least ₹144000.00.
The Neelam Linens and Garments (India) IPO shares are expected to be listed on 18 Nov, 2024, subject to regulatory approvals and final allotment.
You can track your Neelam Linens and Garments (India) IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Neelam Linens and Garments (India) IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.