IPO Overview
Aastha Spintex Limited was incorporated in August 2013 as a private limited company and converted to a public limited company in February 2025. The company manufactures and distributes carded, combed, and compact combed cotton yarns and cotton bales from a single integrated manufacturing facility spread across 65,762 sq. metres on the Halvad Maliya Highway in Halvad, Morbi district, Gujarat. Its yarn products are used across knitting and weaving applications covering a wide range of end-uses, including denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, and home textiles.
The company is launching its mainboard IPO, aiming to raise ₹170 crore through a 100% fresh issue of equity shares. The 100% book-built issue comprises only a fresh issue of equity shares, with no offer-for-sale component. The face value of each share is ₹10, and the price band is set between ₹125–₹136 per share. The IPO opens on 29 June 2026 and closes on 1 July 2026, with listing expected on both BSE and NSE around 6 July 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 25 June 2026 |
| IPO Open Date | 29 June 2026 |
| IPO Close Date | 01 July 2026 |
| Allotment Date | 02 July 2026 (Expected) |
| Refund Initiation | 03 July 2026 |
| Credit to Demat | 03 July 2026 |
| Listing Date | 06 July 2026 (Tentative) |
| Price Band | ₹125 – ₹136 per share |
| Face Value | ₹10 per share |
| Lot Size | 110 shares |
| Minimum Investment (Retail) | ₹14,960 (1 lot = 110 shares) |
| Minimum Investment (sNII) | ₹2,09,440 (14 lots = 1,540 shares) |
| Minimum Investment (bNII) | ₹10,02,320 (67 lots = 7,370 shares) |
| Issue Size | ₹170 crore |
| Fresh Issue | 1,25,00,000 shares (₹170 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue, meaning no promoter exit. All funds will go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire ₹170 crore raised is via fresh issue and will be utilized directly by the company for acquisition, expansion, and corporate purposes.
Objects of the Issue (Fund Utilization)
The company intends to utilise the net proceeds from the fresh issue towards part payment of the purchase consideration for the acquisition of Falcon Yarns Private Limited. The IPO is not merely about refinancing existing operations — the Falcon acquisition represents a 2.3x capacity expansion that is already funded and underway.
- Part payment of purchase consideration for acquisition of Falcon Yarns Private Limited
- Capacity expansion (via Falcon integration)
- General corporate purposes
Note: The Falcon Yarns acquisition is the dominant use of IPO funds and makes this less of a conventional capacity-expansion story and more of a consolidation play in the cotton yarn sector.
Lead Managers & Registrar
- Book Running Lead Managers: BOI Merchant Bankers Limited and PNB Investment Services Limited
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
- Email: [email protected]
- Phone: +91 226 263 8200
Promoters & Management
The promoters are Patel Divyang Jashwantbhai, Rasiklal Valjibhai Patel, Gothi Vivek Rasiklal, and Jashwantbhai Valjibhai Patel. Pre-issue promoter holding is 74.23%, which is expected to reduce to 53.21% after the issue.
Patel Divyang Jashvantbhai is the Chairman and Managing Director of Aastha Spintex.
Company Details
Established in the year 2013, Aastha Spintex Ltd. specializes in the production and distribution of carded, combed, and compact combed cotton yarns and bales. It operates from a single integrated manufacturing facility in Halvad, Morbi district, Gujarat, spread across 65,762 sq. metres.
Sectors / End-Use Applications:
- Denim
- Terry Towels
- Shirting & Sheeting
- Sweaters, Socks, Bottom Wear
- Home Textiles
Key Capabilities:
- Integrated Spinning and Ginning Plant — modern infrastructure ensures operational efficiency and cost-effectiveness.
- Renewable energy-powered manufacturing, making operations sustainable and lowering operational costs.
- 80% renewable energy cost advantage that compounds with every tariff hike.
- Strong relationships with important customers enabling steady demand and consistent revenue flow.
Manufacturing Facility:
- Single integrated plant — Halvad Maliya Highway, Halvad, Surendranagar/Morbi, Gujarat
- Semi-automated spinning and ginning facility
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
| FY23 | ₹239.69 | ₹1.06 | ₹11.60 |
| FY24 | ₹305.67 | ₹16.29 | ₹34.25 |
| FY25 | ₹352.17 | ₹22.92 | ₹46.36 |
Key Financial Metrics
- 22x profit growth in two years — one of the most striking PAT growth stories among recent IPOs.
- EBITDA margins widened from 4.85% to 13.37%, adding 854 basis points in just two years.
- Return on Equity (ROE) stands at 23.73%, with Return on Capital Employed (ROCE) at 19.12% — both best-in-class among listed spinning peers (compared to Ambika Cotton’s ROE of 7.46%, Lagnam Spintex’s 10.64%, and Pashupati Cotspin’s 9.44%).
- Debt-to-equity ratio improved from 1.35 to 0.78 — indicating simultaneous deleveraging alongside growth.
Company Strengths
- Integrated Spinning and Ginning Plant with modern infrastructure ensuring operational efficiency and cost-effectiveness.
- Strong customer relationships enabling steady demand and consistent revenue flow.
- Renewable energy-powered manufacturing making operations sustainable and lowering operational costs.
- Exceptional profit growth (22x in two years) with significantly widened EBITDA margins.
- Best-in-class return ratios (ROE ~23.73%, ROCE ~19.12%) compared to listed peers.
- Strong external tailwinds from China+1 diversification trends and government policy support for the textile sector.
- Deleveraging balance sheet while simultaneously scaling operations — a rare combination in mid-cap manufacturing.
Key Risks & Challenges
- Heavy dependence of the company on 7 Seas Impex for exporting and selling products outside Gujarat, posing a significant concentration risk.
- Integration risks — the planned use of IPO funds for the acquisition of Falcon Yarns Private Limited can pose financial and integration risks.
- The textile sector remains cyclical, and cotton prices are globally volatile — both can directly affect margins.
- The Falcon integration will need close execution; any delays or missteps could affect the projected capacity benefits.
- Geographic concentration risk — single manufacturing facility located entirely in Gujarat.
- Grey Market Premium is unofficial and volatile — it can reverse on pricing news or subscription data, and should not be solely relied upon for investment decisions.
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.
