Cedaar Textile Limited, a prominent yarn manufacturer offering sustainable textile solutions, is all set to launch its SME IPO on the NSE SME platform. Known for its wide range of Melange Yarns, Top-Dyed Yarns, and Fancy Yarns, Cedaar Textile emphasizes eco-friendly and recycled fibres in its product line.

IPO Details

Company Overview

Cedaar Textile Limited specializes in manufacturing:

• Raw White and Melange Yarns

• Solid Top Dyed and Fancy Grey Yarns

• Fibres in Cotton, Polyester, Acrylic, Viscose, Tencel, Modal

• Organic and Recycled Fibres for a greener environment

The company’s strong focus on sustainable manufacturing aligns well with global environmental goals. Their wide customer base covers both domestic and international markets.

Promoters & Leadership

The company is promoted by:

• Mr. Rajesh Mittal – 28 years in the textile industry

• Mr. Virender Goyal – 33 years of industry experience

Both promoters bring rich experience and operational excellence in yarn production and textile business strategies.

Financial Performance (₹ in Lakh)

📈 The company shows stable and improving profitability, though revenue fluctuated slightly in FY22–FY24, which may indicate cyclical demand patterns.

Valuation Metrics

✅ Moderate valuation based on post-issue P/E, strong RoNW and ROE, suggest the IPO is fairly priced in terms of fundamentals.

Grey Market Premium (GMP)

• Current GMP: ₹0

• Expected Listing Gain: 0.00%

⚠️ No premium in the grey market indicates neutral to weak demand, which may reflect broader market caution or subdued investor sentiment.

Note: GMP is unofficial and should not be used as the sole basis for investment decisions.

Strengths

• Wide and eco-friendly product portfolio

• Established customer base across multiple geographies

• Strong financial growth and profitability

• Experienced promoters with deep industry knowledge

Risks & Concerns

• Textile industry is cyclical, subject to demand swings

• GMP suggests muted listing gains

• SME IPO risk: Less liquidity and higher volatility

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  Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult with certified financial advisors and read all documents carefully before making investment decisions. Market conditions are subject to change.

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