Cedaar Textile Limited, a textile company known for its eco-friendly and diverse yarn products, has launched its Initial Public Offering (IPO) on the NSE SME platform. This Book Built Issue aims to raise ₹60.9 Crores and comprises a Fresh Issue of 43.50 lakh shares. The company, which emphasizes sustainability and green environmental practices, is offering organic, recycled cotton and polyester yarns.

The IPO subscription opened on June 30, 2025, and closes on July 2, 2025. The allotment date is expected to be July 3, 2025, with shares scheduled to list on the NSE SME on July 7, 2025.

IPO Price Band, Lot Size & Investment Requirements

The Cedaar Textile IPO price band is set at ₹130 to ₹140 per equity share, with a lot size of 1,000 shares. Retail investors are required to invest a minimum of ₹1,40,000, while HNIs must apply for a minimum of 2 lots, i.e., ₹2,80,000. At the upper band of ₹140 per share, Cedaar Textile’s market capitalisation is estimated at ₹194.30 Crores.

The IPO is being managed by FAST TRACK FINSEC PRIVATE LIMITED, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acting as the registrar. NNM Securities Private Limited is the market maker for this IPO.

Cedaar Textile GMP (Grey Market Premium) – Flat at ₹0

According to market observers, the GMP for Cedaar Textile IPO is ₹0, indicating no expected listing gains. This lack of grey market activity suggests low investor confidence or a wait-and-watch sentiment. Unlike other IPOs that display positive GMP trends closer to listing, Cedaar Textile has not generated any significant grey market momentum.

The expected listing price is ₹140, equal to the upper band of the IPO. This reflects neutral listing expectations and limited short-term upside potential.

Subscription Status and Anchor Investor Participation

As of 11:00 AM on July 2, 2025, the IPO was subscribed only 0.71 times, further pointing to lukewarm investor sentiment. Despite being open to retail and institutional investors, no segment has fully subscribed yet.

However, Cedaar Textile raised ₹10.94 Crores from anchor investors on June 29, 2025, at ₹140 per share. The company allotted 7,82,000 shares to anchors. While anchor participation does add credibility, it hasn’t translated into wider investor enthusiasm.

Allotment Status: How to Check

Investors can check their allotment status after July 3, 2025, by following these steps:

• Visit the IPO registrar’s website (Skyline Financial Services Pvt Ltd).

• Select Cedaar Textile Limited IPO from the dropdown.

• Enter your application number, PAN, or DP Client ID.

• Click Submit to view your status.

Company Overview and Promoter Background

Cedaar Textile offers a wide variety of Melange Yarns, Solid Top Dyed Yarns, Grey Fancy Yarns, and Raw White Yarns, using materials like cotton, polyester, acrylic, viscose, modal, and Tencel. The company has focused heavily on sustainability, providing organic and recycled yarns.

The company is led by:

• Mr. Rajesh Mittal (28 years of industry experience)

• Mr. Virender Goyal (33 years of experience)

Their decades of textile sector knowledge have helped position Cedaar as a promising player in value-added yarn solutions, particularly with a sustainability-driven model.

Financial Performance Overview

Cedaar Textile has posted mixed financial results over recent years. Below is a snapshot:

The company has shown recovery in FY24 after a dip in FY23, but revenues remain volatile. The 9-month performance suggests FY25 may be marginally better than FY24, though not significantly.

Key Valuation Metrics

• Pre-Issue EPS (FY24): ₹14.73

• Post-Issue EPS (FY24): ₹7.96

• Pre-Issue P/E Ratio: 9.50x

• Post-Issue P/E Ratio: 17.58x

• Industry P/E Ratio: 20.00x

• Annualised EPS (9M FY25): ₹6.78

• Annualised P/E Ratio: 20.64x

• ROCE (FY24): 26.90%

• ROE (FY24): 56.06%

• RoNW (FY24): 56.06%

While the valuation appears reasonable, the lack of growth consistency in revenues and absence of listing gains via GMP pose concerns for short-term investors.

IPO Objectives: Where Will the Funds Be Used?

The IPO proceeds will be allocated as follows:

1. ₹800.00 Lakhs for the installation of grid-tied solar PV rooftop system, enabling energy cost savings and sustainability.

2. ₹1,700.00 Lakhs for modernization of textile machinery, to improve efficiency and output quality.

3. ₹2,490.00 Lakhs for working capital requirements, crucial for managing raw material procurement and daily operations.

4. Remaining funds for general corporate purposes and issue-related expenses.

These planned initiatives are aligned with the company's strategy of upgrading infrastructure and adopting eco-conscious practices.

Cedaar Textile IPO Review & Recommendation

Despite Cedaar Textile’s commitment to sustainability and product diversity, the IPO has not generated excitement in the market. The zero GMP, low subscription, and volatile revenue patterns suggest that investors remain cautious.

While the company shows moderate profitability and fair valuation, there are clear concerns around:

• Muted market sentiment

• Inconsistent revenue trajectory

• Lack of premium in grey market

• Marginal anchor investor impact

Given these factors, investors seeking listing gains are advised to avoid the IPO. Only those with a long-term horizon, a strong belief in sustainability-focused textiles, and high risk tolerance may consider this opportunity post-listing, based on market performance.

Conclusion

The Cedaar Textile IPO, priced at ₹130–₹140 per share, may struggle to attract strong investor demand in its current form. The company’s strength in sustainable yarns, diversified product range, and experienced leadership are positives, but do not currently translate into short-term value due to flat GMP and low interest.

With subscription still below full levels and no price discovery via grey market, investors are better off watching the post-listing performance rather than investing for listing gains.

Disclaimer:
This article is for informational and educational purposes only and does not constitute financial advice or investment recommendations. Readers are encouraged to consult with certified financial advisors and conduct their own due diligence before investing in any securities. All data is based on public disclosures and market trends as of the article's publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

The Current active IPO are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

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