SME IPO: Shanti Spintex share price hits 5% upper circuit after listing
economictimes.indiatimes.comShanti Spintex debuted at a premium of 8.6% on the BSE SME platform after a successful IPO. The stock then rallied further to hit the upper circuit of 5% at Rs 79.8 on Wednesday.
The company offered its shares at Rs 66-70 for its Rs 31.25-crore IPO, which opened on December 19 and closed on December 21.
The IPO, which was completely a fresh equity issue of shares, saw a subscription of 27.38 times at close.
The category reserved for non-institutional investors was subscribed the most at 57 times, followed by retail investors at 22 times and institutional investors at 14.34 times.
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The company manufactures various types of denim fabrics such as power stretch spandex denim, knit denim, lightweight denim, rigid denim, over-dyed denim and flat finish 3/1 denim.
Its production facility can produce grey fabrics in various designs such as twill weave, knit dobby weave, structure dobby weave, broken twill weave and satin weave.
It also offers denim fabrics in a diverse spectrum of shades such as indigo blue, IBST, sulphur black, sulphur grey, halogen blue and ecru colour which have weights ranging from 4.50 Oz/sq yd to 14.50 Oz/sq yd.
The Indian textile and apparel industry is expected to grow at a 10% CAGR from 2019-20 to reach $190 billion by 2025-26.
India has a 4% share of the global trade in textiles and apparel.
For the period ending September 2023, the company's total income stood at 162 crore and the profit was at Rs 5.23 crore. It has contingent liabilities of Rs 79.60 lakh as on March 31, 2023.
The company intends to utilise the net proceeds of the fresh issue to meet working capital requirements and other general
