Ahmedabad based Shri Techtex’s IPO opens on Wednesday

AHMEDABAD: City-based Shri Techtex Limited, a manufacturer and exporter of technical textiles, will open for subscription on July 26 and close on July 28, 2023. The Anchor investor book for bidding opened today.

The company has fixed the price band in the range of Rs. 54 to Rs. 61 per share and plans to raise Rs 45.14 crore from the issue (at the upper price band). The issue comprises a fresh issue of 74 lakh equity shares and would be listed on the Emerge platform of the National Stock Exchange.
Beeline Capital Advisors Private Limited is the Book Running Lead Manager to the issue and Link Intime India Private Limited is mandated to be the Registrar to the issue.

The company manufactures PP non-woven fabric in various sizes and densities up to 4.5 meters in size and 15 GSM to 800 GSM. Non-woven fabric is more ecological for certain applications, especially in fields and industries where disposable or single-use products are important, such as organic farming, hospitals, health care, nursing homes, home furnishing, vehicle upholstery seat fabrication, Mattress & furniture covering, an ecological packaging, industrial and consumer goods. Its manufacturing facility is located at Simaj of Dholka Taluka in the Ahmedabad District of Gujarat and offers proximity to near about transport hubs. The manufacturing facility is spread across 41,548 sq. meters and installed with a 3600 MT PP non-woven fabric capacity per annum.
The company is planning for expansion by adding new products in the technical textile. The machinery will further increase installed capacity to manufacture additional 1200 tonnes per year and 24 lakh sq. meters with this expansion.
Of the total issue size of 74 lakh shares, the company has allocated 35.10 lakh shares for Qualified Institutional Buyers and 10.56 lakh shares for Non-Institutional Investors. For Retail Investors, the company has set aside 24.62 lakh shares for allocation.
The proceeds of the issue will be used towards the construction of the factory shed (Rs 3.71 crore), commissioning of a solar plant (Rs 4.89 crore), purchase of machinery (Rs 6.31 crore), meeting Working Capital Requirement (Rs 15.31 crore) and General Corporate Purpose including Issue Expenses. The company’s business is highly energy intensive and demands high working capital. Post the issue, the company will be able to expand its margins through value-added products, lower energy outgo and retiring high-cost debt leading to ease of interest burden.