Cedaar Textile Limited is a prominent Indian textile manufacturer known for offering a wide range of premium yarns with a strong focus on sustainability. The company is bringing its ₹60.9 crore book-built IPO to the NSE SME platform, providing investors a chance to participate in India’s growing demand for eco-friendly, high-quality yarns.

Company Overview

Cedaar Textile specialises in manufacturing:

• Melange Yarns

• Solid Top Dyed Yarns

• Grey Fancy Yarns

• Raw White Yarns

These are produced from fibres such as cotton, polyester, acrylic, viscose, Tencel, and Modal.

Key Feature:

Cedaar Textile places sustainability at the core of its operations by offering 100 percent organic and recycled fibres to promote a green environment and conservation of natural resources.

IPO Details

• Total Issue Size: ₹60.9 Crores (entirely fresh issue of 43.50 lakh shares)

• Price Band: ₹130 to ₹140 per share

• Market Capitalisation (at ₹140): ₹194.30 Crores

Key Dates:

• Subscription Opens: June 30, 2025

• Closes: July 02, 2025

• Allotment Date: Expected July 03, 2025

• Listing Date (NSE SME): Tentative July 07, 2025

Investment Requirements

• Lot Size: 1,000 shares

• Retail Minimum Investment: ₹1,40,000

• HNI Minimum Investment: 2 lots (2,000 shares) amounting to ₹2,80,000

These terms ensure compliance with SME listing norms, aimed at attracting serious investors.

Lead Managers and Registrars

• Book Running Lead Manager: FAST TRACK FINSEC PRIVATE LIMITED

• Registrar: SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

• Market Maker: NNM Securities Private Limited

Their involvement supports the smooth execution and credibility of the IPO process.

Management and Promoter Expertise

Promoters:

• Mr. Rajesh Mittal: 28 years of industry experience

• Mr. Virender Goyal: 33 years of industry experience

Their leadership ensures:

• Efficient production systems

• Strong supplier and customer relationships

• Deep market knowledge

Product Range and Sustainability Focus

Cedaar Textile’s product line includes:

• Melange Yarns

• Solid Top Dyed Yarns

• Grey Fancy Yarns

• Raw White Yarns

These are crafted using organic and recycled fibres to support environmental conservation.

The company’s strategy aligns with global trends toward sustainable textile production, giving it a market differentiation advantage.

Financial Performance and Growth

Revenue from Operations:

• Period ended Dec 31, 2024: ₹11,390.67 Lakh

• FY24: ₹19,101.24 Lakh

• FY23: ₹16,187.94 Lakh

• FY22: ₹22,043.72 Lakh

EBITDA:

• Period ended Dec 31, 2024: ₹2,208.57 Lakh

• FY24: ₹2,952.39 Lakh

• FY23: ₹1,726.39 Lakh

• FY22: ₹1,829.30 Lakh

Profit After Tax:

• Period ended Dec 31, 2024: ₹706.18 Lakh

• FY24: ₹1,105.05 Lakh

• FY23: ₹458.94 Lakh

• FY22: ₹798.63 Lakh

These numbers indicate steady financial growth with some cyclical variations common in the textile sector.

Valuation Metrics

• Pre-issue EPS: ₹14.73

• Post-issue EPS: ₹7.96

• Pre-issue P/E Ratio: 9.50x

• Post-issue P/E Ratio: 17.58x

• Industry P/E Ratio: 20.00x

• Annualised EPS: ₹6.78

• Annualised P/E Ratio: 20.64x

Return Metrics:

• ROCE: 26.90%

• ROE: 56.06%

• RoNW: 56.06%

These numbers suggest the IPO is reasonably priced relative to industry averages.

Grey Market Premium (GMP)

• Current GMP: ₹0

• Indicates no expected listing gains at the moment.

Investor Note:

• GMP is unregulated and reflects grey market sentiment.

• The absence of GMP suggests neutral market interest pre-listing.

Competitive Advantages

• Wide and diverse product range across natural and synthetic fibres.

• Focus on sustainability with organic and recycled materials.

• Experienced management with decades in the textile industry.

• Strong market understanding and production expertise.

These advantages position Cedaar Textile well in India’s competitive textile industry.

Risks and Considerations

• Highly cyclical industry with demand linked to fashion and consumer trends.

• Fluctuating raw material prices can impact margins.

• Export dependence subject to global trade dynamics.

• SME listing risks, including lower post-listing liquidity.

Investors should balance these risks with the growth opportunities.

Analyst Recommendations

Given the current GMP at 0 percent and the company’s steady but not spectacular growth, analysts suggest:

• Cautious investors may prefer to wait and watch.

• Long-term investors should evaluate the company’s sustainability strategy and market position.

• The IPO is reasonably valued but near-term listing gains appear unlikely.

Conclusion

Cedaar Textile Limited’s IPO provides investors an opportunity to invest in a sustainability-focused textile manufacturer with a strong domestic and export presence.

Strengths:

• Diverse yarn portfolio.

• Strong sustainability commitment.

• Experienced promoters.

• Reasonable valuation relative to industry peers.

However:

• GMP indicates no immediate listing gains.

• Investors should carefully assess market risks, cyclical nature of demand, and SME liquidity constraints before applying.

Overall, this IPO may suit investors looking for long-term exposure to the textile industry with a sustainability focus, but not those seeking quick listing gains.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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