IPO Overview
Shreedhar Spinners operates as a B2B-focused cotton yarn manufacturer, engaged in the production of compact spun cotton yarn across counts ranging from Ne 12s to Ne 32. Its manufacturing facility is located in the Amravati textile park in Maharashtra. The company has a production capacity of ~5,500 MT supported by 18,240 spindles and operates continuously (~24×7, ~360 days), enabling high asset utilisation and consistent output. The company leverages modern spinning technologies and advanced quality control systems, including contamination sorters and USTER testing equipment, to ensure product consistency across applications such as apparel, denim, home textiles, and industrial fabrics.
The company is now launching its SME IPO on the NSE SME Emerge platform. Shreedhar Spinners IPO is a book-building issue, raising around ₹31 crores comprising a fresh issue of shares with face value of ₹10 each. The price band is fixed at ₹50 to ₹53 per share, with a minimum bid of 4,000 shares requiring an investment of around ₹2,12,000. The IPO opens on 23 June 2026 and closes on 25 June 2026, with listing expected on NSE SME on 1 July 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME Emerge |
| IPO Open Date | 23 June 2026 |
| IPO Close Date | 25 June 2026 |
| Allotment Date | 29 June 2026 (Expected) |
| Listing Date | 01 July 2026 (Tentative) |
| Price Band | ₹50 – ₹53 per share |
| Face Value | ₹10 per share |
| Lot Size | 4,000 shares |
| Minimum Investment (Retail) | ₹2,12,000 (approx) |
| Issue Size | ₹31 crore |
| Fresh Issue | ₹31 crore (entire issue) |
| 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% |
| Market Maker | Reserved Portion |
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 go directly to the company for working capital and capacity expansion.
Objects of the Issue (Fund Utilization)
The company proposes to utilize net proceeds from the issue towards funding incremental working capital requirements (₹21.04 crore) and purchase of machineries into the existing manufacturing facility at Amravati, Maharashtra (₹4.73 crore), with the remainder for general corporate purposes.
- Funding incremental working capital requirements — ₹21.04 crore
- Purchase of machineries for existing manufacturing facility (Amravati) — ₹4.73 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Marwadi Chandarana Intermediaries Brokers Pvt. Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Promoters & Management
The promoters of Shreedhar Spinners are Shreedhar Cotsyn Private Limited, Dharmendra Mohandas Goyal, Vishal Agarwal, and Varesh Goyal.
Company Details
Shreedhar Spinners’ business model is centred on supplying to textile manufacturers, exporters, and traders, with a strong emphasis on customised yarn solutions tailored to specific client requirements (count, strength, twist).
Sectors Served:
- Apparel
- Denim
- Home Textiles
- Industrial Fabrics
Key Capabilities:
- Production capacity of ~5,500 MT supported by 18,240 spindles, with continuous (~24×7, ~360 days) operations enabling high asset utilisation and consistent output.
- Modern spinning technologies and advanced quality control systems, including contamination sorters and USTER testing equipment.
- Customized yarn solutions based on count, strength, and twist requirements
Manufacturing Facility:
- Amravati Textile Park, Maharashtra
Strategic Location Advantage:
The company benefits from its strategic location in Maharashtra’s cotton belt and an experienced promoter background.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹134.43 | ₹3.42 |
| FY26 | ₹146.55 | ₹6.17 |
Key Financial Metrics
- Revenue grew from ₹134.43 crore in FY25 to ₹146.55 crore in FY26, while PAT nearly doubled from ₹3.42 crore to ₹6.17 crore.
- Financial performance has improved with PAT rising significantly during FY2026.
- At the upper price band of ₹53, the valuation appears reasonable.
Company Strengths
- Established production facility with strong relationships across the textile value chain.
- Strategic location in Maharashtra’s cotton belt, reducing raw material logistics costs.
- Significant improvement in PAT and overall profitability in FY26
- Continuous (24×7) operations enabling high capacity utilization
- Advanced quality control infrastructure including USTER testing equipment, ensuring consistent product quality.
- Entire IPO is fresh issue — funds directly support working capital and machinery expansion
Key Risks & Challenges
- The business remains highly working-capital intensive and carries substantial debt on its balance sheet.
- Recent textile-sector SME IPOs have witnessed mixed to weak post-listing performance.
- High dependence on cotton yarn pricing cycles and raw cotton cost fluctuations
- SME IPO liquidity risk — limited secondary market trading volumes
- Significant portion of net proceeds going toward working capital rather than capacity expansion
- Textile sector cyclicality and exposure to export market fluctuations
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.
