Cedaar Textile Limited, a company known for its extensive portfolio of sustainable yarns, is launching its Initial Public Offering (IPO) from June 30 to July 2, 2025. The IPO is structured as a Book Built Issue, with a price band of ₹130 to ₹140 per equity share. This public issue will raise ₹60.90 crores through a fresh issue of 43.50 lakh shares, and there is no offer for sale component.

Cedaar Textile specializes in manufacturing and selling Melange Yarns, Solid Top Dyed Yarns, and Grey Fancy Yarns made from materials such as cotton, polyester, acrylic, viscose, Tencel, Modal, and more. The company is strongly positioned in the sustainable textile segment, offering products made from 100% organic and recycled fibres (polyester and cotton), aligning with a global green initiative and natural resource conservation.

IPO Overview

• IPO Opening Date: June 30, 2025

• IPO Closing Date: July 2, 2025

• Allotment Date: July 3, 2025

• Tentative Listing Date: July 7, 2025

• Exchange: NSE SME

• Issue Size: ₹60.90 Crores (Fresh Issue only)

• Price Band: ₹130 – ₹140 per share

• Lot Size: 1,000 shares

• Minimum Investment (Retail): ₹1,40,000

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

• Market Capitalisation at Upper Band: ₹194.30 Crores

The IPO will be managed by FAST TRACK FINSEC PRIVATE LIMITED as the Book Running Lead Manager, and SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the appointed Registrar. The Market Maker for this issue is NNM Securities Private Limited.

Grey Market Premium (GMP) and Anchor Investor Details

As of June 25, 2025, the GMP of Cedaar Textile IPO is reported to be ₹0, indicating no expected listing premium. This is often interpreted as a signal of subdued demand in the grey market, suggesting caution to investors expecting immediate gains.

Despite the lack of grey market buzz, Cedaar Textile has raised ₹10.94 crores from anchor investors, with 7,82,000 equity shares allocated at the upper band price of ₹140. This shows a certain level of confidence from institutional buyers.

Financial Performance Overview

Cedaar Textile’s financial results over the past few years reveal a mixed growth pattern:

Revenue from Operations

• FY2022: ₹22,043.72 Lakh

• FY2023: ₹16,187.94 Lakh

• FY2024: ₹19,101.24 Lakh

• 9M FY2025 (ending Dec 31, 2024): ₹11,390.67 Lakh

EBITDA

• FY2022: ₹1,829.30 Lakh

• FY2023: ₹1,726.39 Lakh

• FY2024: ₹2,952.39 Lakh

• 9M FY2025: ₹2,208.57 Lakh

Profit After Tax (PAT)

• FY2022: ₹798.63 Lakh

• FY2023: ₹458.94 Lakh

• FY2024: ₹1,105.05 Lakh

• 9M FY2025: ₹706.18 Lakh

Although there was a dip in revenue in FY23, the company showed signs of recovery in FY24 and the 9-month period of FY25. However, the trend also reveals inconsistency which could be a concern for long-term investors.

Valuation Metrics

• Pre-Issue EPS (FY24): ₹14.73

• Post-Issue EPS (FY24): ₹7.96

• Annualised EPS: ₹6.78

• Pre-Issue P/E Ratio: 9.50x

• Post-Issue P/E Ratio: 17.58x

• Annualised P/E Ratio: 20.64x

• Industry P/E Benchmark: 20.00x

• ROCE (FY24): 26.90%

• ROE / RoNW (FY24): 56.06%

These figures suggest that the Cedaar Textile IPO is fairly priced relative to its peers, though the high post-issue P/E may indicate reduced earnings impact post-dilution.

IPO Objectives and Utilisation of Proceeds

Cedaar Textile plans to utilise the IPO proceeds as follows:

1. ₹8.00 Cr – For installation of Grid-tied Solar PV Rooftop System

2. ₹17.00 Cr – For modernization of machinery to improve production efficiency

3. ₹24.90 Cr – To meet working capital requirements

4. General Corporate Purposes

5. To meet IPO-related issue expenses

The capital utilisation strategy shows focus on energy efficiency, operational modernization, and business expansion, aligning with the company’s sustainable manufacturing vision.

Allotment Procedure for Investors

The Cedaar Textile IPO allotment will be processed by SKYLINE FINANCIAL SERVICES PRIVATE LIMITED and results will be announced on July 3, 2025.

How to Check Allotment Status:

• Visit the IPO allotment page on the registrar’s website

• Select “Cedaar Textile Limited IPO”

• Enter your Application No., PAN, or DP/Client ID

• Click Submit to view status

Investors are advised to check their allotment on the same day and plan their actions accordingly.

Promoter Background and Business Strength

The promoters, Mr. Rajesh Mittal and Mr. Virender Goyal, bring with them 28 and 33 years of industry expertise respectively. The company is recognized for producing a wide variety of eco-conscious yarns, serving industries that demand organic, recycled, and specialty textile products.

The company’s emphasis on green manufacturing and customization of yarn blends makes it relevant in today’s textile ecosystem, especially in the global sustainability movement.

Investment Verdict

Though the company shows good return ratios and is aligned with the sustainability narrative, the absence of GMP activity, moderate financial performance, and mixed revenue trend warrants a cautious approach for investors seeking short-term listing gains.

Pros:

• Focused on eco-friendly yarn production

• Strong promoter experience in the textile sector

• Reasonable valuation compared to industry peers

• Anchor investor participation shows institutional confidence

Cons:

• Inconsistent revenue growth over FY22–FY24

• No GMP activity, indicating weak market buzz

• SME IPOs are often thinly traded post-listing

• Textile sector is cyclical and sensitive to raw material price swings

Final Recommendation

Given the lack of Grey Market Premium, inconsistent financial performance, and SME market risks, investors are advised to avoid Cedaar Textile IPO for listing gains. However, long-term investors with high-risk appetite may evaluate the stock further post-listing based on quarterly earnings and market sentiment.

Disclaimer:
This article is prepared purely for educational and informational purposes and does not constitute investment advice. Investors are encouraged to perform their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Investing in securities is subject to market risks.

The Upcoming IPOs in this week and coming weeks are Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Travel Food Services, Cryogenic, Crizac.

The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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