IPO Overview
Incorporated in 1985, Ashutosh Fibre Limited is engaged in the manufacturing and trading of technical textile products, primarily focusing on polypropylene (PP) spun yarns used across industrial and household applications. The company is Gujarat-based and currently operates a manufacturing facility in Petlad, Gujarat. The company operates under a business-to-business (B2B) model, supplying yarns and fabrics to industrial manufacturers, processors, and institutional buyers. Ashutosh Fibre operates across four major categories of technical textiles — Indutech, Protech, Hometech, and Mobiltech. The company has also installed a 380 KW rooftop solar-power system at its Petlad facility for captive consumption, aimed at reducing energy costs and supporting sustainability initiatives.
The company is now launching its SME IPO on the NSE SME platform. The company aims to raise ₹56.35 crore via IPO comprising entirely of a fresh issue, with no offer-for-sale component. The IPO is priced at ₹87 to ₹92 per share, with a lot size of 1,200 shares. The IPO opens on 31 August 2026 and closes on 2 September 2026, with listing expected on 7 September 2026 on the NSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME |
| Anchor Investor Date | 28 August 2026 |
| IPO Open Date | 31 August 2026 |
| IPO Close Date | 2 September 2026 |
| Allotment Date | 3 September 2026 (Expected) |
| Refund Initiation | 4 September 2026 |
| Credit to Demat | 4 September 2026 |
| Listing Date | 7 September 2026 (Tentative) |
| Price Band | ₹87 – ₹92 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,20,800 (2 lots = 2,400 shares) |
| Minimum Investment (HNI) | ₹3,31,200 (3 lots = 3,600 shares) |
| Issue Size | ₹56.35 crore |
| Fresh Issue | ₹56.35 crore (61,24,800 shares) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Anchor Investors | 17,43,600 shares (reserved) |
| Market Maker | 3,07,200 shares (reserved) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for business use.
Objects of the Issue (Fund Utilization)
The company plans to use the IPO proceeds as follows:
- Funding capital expenditure requirements towards purchase of new equipment and machinery — ₹25.51 crore
- Repayment / prepayment of existing borrowings — ₹20.00 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: Mefcom Capital Markets Ltd. and Hem Securities Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
- Market Maker: Asnani Stock Broker Pvt. Ltd.
Promoters & Management
The promoters of the company are Siddharth Prakash Patel, Abhishek Rajendrakumar Agarwal, and Prabhas Fin-Stock Pvt. Ltd. The promoters bring decades of experience in technical textile manufacturing since the company’s founding in 1985. As of March 31, 2026, the company employed 19 personnel at R&D laboratories, constituting 5.25% of its total permanent employee strength, reflecting a meaningful focus on product development and quality. The company employed approximately 169 permanent employees as of 30 June 2026.
Company Details
Ashutosh Fibre Limited is a Gujarat-based technical textile manufacturer engaged in the production and trading of polypropylene (PP) spun yarns and specialty yarns used across industrial, protective, automotive, and household applications. Running since 1985, it works across the Indutech, Protech, Hometech, and Mobiltech segments, supplying filtration, safety apparel, home furnishing, and automotive friction applications.
Sectors Served:
- Filtration & Pollution Control
- Geotextiles & Construction / Infrastructure
- Automotive Components (friction & brake pad yarns)
- Safety & Protective Equipment
- Packaging & Home Furnishing
Key Products Manufactured:
- Para Aramid-Based Spun Yarn
- High Tenacity Polyester Yarn
- Meta Aramid and FR Viscose Yarn
- 100% Polypropylene Yarn
- Modacrylic-Based Yarn
- Poly-Poly Corespun Yarn
Key Capabilities:
- Multiple spinning technologies supporting a diversified and specialized product portfolio
- In-house R&D with 19 dedicated laboratory personnel as of March 2026
- 380 KW rooftop solar power system at Petlad facility for captive consumption
Manufacturing Facility:
- Petlad, Gujarat — primary manufacturing and operations hub
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹114.97 | ₹8.51 |
| FY26 | ₹117.43 | ₹16.04 |
Key Financial Metrics
- Revenue increased by 2% and profit after tax rose by 89% between FY25 and FY26 — demonstrating a significant improvement in profitability despite modest top-line growth.
- Revenue growth remains modest, but operating margins and profitability improved significantly during FY26. Lower borrowings and higher net worth strengthened the financial structure.
- Post-IPO, repayment of ₹20 crore in borrowings is expected to reduce finance costs and further strengthen the balance sheet.
Company Strengths
- Presence across Indutech, Protech, Hometech, and Mobiltech provides access to several industrial applications, and multiple spinning technologies and a specialised product portfolio provide competitive advantages.
- Significant jump in profitability in FY26 — PAT nearly doubled despite flat revenue, indicating strong operating leverage and margin expansion.
- Four-decade-old company (est. 1985) with deep manufacturing expertise and established B2B customer relationships
- Dedicated in-house R&D team and solar power infrastructure reflecting operational efficiency and sustainability focus
- Entire IPO is a fresh issue — all funds directed towards capacity expansion and debt reduction
- Demand for technical textiles is supported by increasing use in filtration, pollution control, infrastructure, automobiles, protective clothing, and home furnishings.
Key Risks & Challenges
- One of the promoters is a company — Prabhas Fin-Stock Pvt. Ltd. — rather than only individuals, so promoter continuity depends on that entity as well.
- Demand depends on industrial and automotive activity — filtration, geotextiles, and brake pad yarns are all bought by other manufacturers, so a slowdown passes straight through.
- Polypropylene is crude oil-linked and aramid fibre is a costly specialty import, so raw material prices can move sharply.
- Manufacturing is concentrated at the Petlad unit, creating single-location risk.
- The B2B model exposes the company to industrial demand cycles and customer concentration. Raw-material price fluctuations and competition could affect margins.
- This is an SME issue — one lot is 1,200 shares at approximately ₹1.10 lakh at the upper band, and SME shares usually trade in low volume after listing.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
