N R Vandana Tex Industries Limited, a leading cotton textile manufacturer and wholesaler, has announced its Initial Public Offering (IPO) scheduled to open on May 28, 2025, and close on May 30, 2025. The company operates under well-known brand names Vandana and Tanaya, producing high-quality cotton sarees, salwar suits, and bed sheets. Recognized for its quality, the company was awarded Best Debutant – Apparels at the Ajio Business Partnership Meet in 2022.

This IPO is a Book Built Issue raising ₹ 27.89 Crores entirely through fresh equity shares, with a price band fixed between ₹ 42 to ₹ 45 per share. The company plans to issue 61.98 lakh shares. The market capitalization at the upper price band is approximately ₹ 104.82 Crores. The minimum lot size for the IPO is 3,000 shares, translating to a retail minimum investment of ₹ 1,35,000. High-net-worth investors (HNIs) are required to subscribe for at least two lots (6,000 shares), amounting to ₹ 2,70,000.

The lead manager for the IPO is Marwadi Chandarana Intermediaries Brokers Private Limited, while Cameo Corporate Services Limited is the registrar. The Market Maker for this issue is Alacrity Securities Limited.

IPO Subscription and GMP:
As of 5:00 PM on May 29, 2025, the IPO subscription stood at 4.60 times on the second day, indicating robust investor interest. The Grey Market Premium (GMP) is reported at ₹ 4, suggesting potential listing gains of around 8.90%, although GMP figures should be treated cautiously as they depend on unofficial market demand and supply.

Anchor Investors:
The company has secured ₹ 65.99 Crores from anchor investors at the upper price band of ₹ 45 per share, with 47.14 lakh shares allotted under the Qualified Institutional Buyers (QIB) category.

Financial Overview:
N R Vandana Tex Industries has demonstrated consistent revenue growth with operational revenues increasing from ₹ 17,719.76 Lakh in FY 2022 to ₹ 27,110.22 Lakh in FY 2024. EBITDA has grown steadily from ₹ 778.14 Lakh in FY 2022 to ₹ 1,957.94 Lakh in FY 2024. Profit after tax rose from ₹ 181.41 Lakh in FY 2022 to ₹ 859.51 Lakh in FY 2024, reflecting strong profitability and operational efficiency.

The company’s pre-issue EPS stands at ₹ 5.03 with a post-issue EPS of ₹ 3.69. The pre-issue P/E ratio is 8.95x, and the post-issue P/E ratio is 12.20x. Return ratios for FY 2024 include a ROCE of 18.08%, ROE of 26.26%, and RoNW of 25.46%, indicating a financially healthy and well-managed company.

IPO Objectives:
The net proceeds from the IPO will be primarily used for funding working capital requirements (₹ 16.28 Crores), prepayment or repayment of loans (₹ 5 Crores), and general corporate purposes.

Listing and Allotment:
The allotment is expected on or about June 2, 2025, with shares tentatively scheduled to list on the NSE SME platform on June 4, 2025. Investors can check allotment status via the registrar’s website using application number, PAN, or DP Client ID.

Conclusion:
With strong fundamentals, experienced promoters, recognized brand presence in the textile segment, and positive subscription trends, N R Vandana Tex Industries IPO presents an attractive opportunity for investors, especially those willing to take moderate risks for potential listing gains.

Disclaimer:
This IPO review is for informational and educational purposes only and should not be construed as financial advice. Investors are advised to consult with financial professionals before making investment decisions.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.