N R Vandana Tex Industries Limited, a well-known name in the cotton textile industry through its brands “Vandana” and “Tanaya”, is all set to launch its Initial Public Offering (IPO). The IPO will open for subscription on May 28, 2025, and close on May 30, 2025. This issue is a Book Built Issue with a total size of ₹27.89 Crores, comprising entirely a fresh issue of 61.98 lakh equity shares. The IPO is a significant event for the textile sector and SME IPO investors alike.

The company, known for its high-quality cotton sarees, salwar suits, and bed sheets, operates under its in-house labels and has been awarded “Best Debutant – Apparels” by Ajio Business Partnership Meet – 2022. The shares are proposed to be listed on the NSE SME platform, with a tentative listing date of June 4, 2025.

IPO Details and Price Band

The price band for the IPO has been set at ₹42 to ₹45 per equity share. At the upper band of ₹45, the company’s post-issue market capitalization will stand at approximately ₹104.82 Crores. The lot size for the IPO is 3,000 shares, translating to a minimum investment of ₹1,35,000 for retail investors. High-Net-Worth Individuals (HNIs) are required to apply for a minimum of 2 lots, totaling an investment of ₹2,70,000.

The book running lead manager for the issue is Marwadi Chandarana Intermediaries Brokers Private Limited, while Cameo Corporate Services Limited will act as the registrar. Alacrity Securities Limited is appointed as the market maker.

N R Vandana Tex Industries IPO GMP Today

As of May 24, 2025, the Grey Market Premium (GMP) of N R Vandana Tex Industries IPO is expected to be around ₹4 per share, indicating a listing price of approximately ₹49, which translates to an 8.90% premium over the upper issue price of ₹45. However, investors should understand that GMP is an unofficial metric, driven by demand and supply dynamics in the grey market, and should not be the sole basis for investment decisions.

Financial Performance of N R Vandana Tex Industries

The company has shown consistent financial growth in recent years. The revenues from operations have increased from ₹17,719.76 Lakh in FY22 to ₹22,021.22 Lakh in FY23, and further to ₹27,110.22 Lakh for the period ending December 31, 2024. Likewise, EBITDA grew from ₹778.14 Lakh in FY22 to ₹1,395.92 Lakh in FY23 and stood at ₹1,957.94 Lakh for the nine months ending Dec 2024.

Profit After Tax (PAT) has also risen significantly, reaching ₹859.51 Lakh for the nine months ending Dec 2024, from ₹429.40 Lakh in FY24, ₹179.94 Lakh in FY23, and ₹181.41 Lakh in FY22.

The key performance metrics indicate:

• Pre-issue EPS (FY24): ₹5.03

• Post-issue EPS (FY24): ₹3.69

• Pre-issue P/E ratio: 8.95x

• Post-issue P/E ratio: 12.20x

• ROCE (FY24): 18.08%

• ROE (FY24): 26.26%

• RoNW (FY24): 25.46%

These figures reflect a strong financial foundation and promising returns for shareholders.

Objective of the IPO

The net proceeds from the IPO will be utilised for the following objectives:

1. ₹1,628.00 Lakh for working capital requirements

2. ₹500.00 Lakh for prepayment or repayment of existing loans

3. The remaining funds will be allocated to general corporate purposes

This indicates that the company is focused on expanding operations and improving its capital structure.

Promoters and Leadership

N R Vandana Tex Industries is promoted by Narain Prasad Lohia, a veteran with over five decades of experience in the textile industry. Prabhu Lohia brings 24 years of financial and industry experience, and Gyanesh Lohia contributes with 23 years of expertise in product, financial management, and market analysis. Their collective leadership adds significant credibility and assurance for prospective investors.

IPO Subscription Status and Timeline

• IPO Opens: May 28, 2025

• IPO Closes: May 30, 2025

• Allotment Finalization: June 2, 2025

• Listing on NSE SME: Tentatively on June 4, 2025

Investors will be able to check their allotment status from June 2, 2025, on the registrar’s official website. Here’s how to do it:

1. Go to the IPO allotment page

2. Select N R Vandana Tex Industries Limited IPO

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

4. Click submit to view allotment details

This process ensures a smooth and transparent way for investors to know their IPO application result.

IPO Review and Recommendation

Given the solid financials, well-established brand presence, strategic objectives, and a reasonably priced issue, N R Vandana Tex Industries Limited IPO shows moderate listing gains potential with GMP of ₹4. However, since the company operates in a highly competitive textile sector, and considering the nature of SME IPOs, the risk appetite of the investor must be considered.

For risk-tolerant investors, particularly those looking for short-term listing gains, this IPO may be a worthwhile bet. However, conservative investors may consider watching the post-listing performance before entering.

Conclusion

The N R Vandana Tex Industries IPO offers an opportunity to invest in a growing textile company with a proven track record, sound financials, and plans for expansion. With a modest GMP, strong promoter background, and strategic use of funds, the IPO is likely to attract considerable attention in the NSE SME segment.

As always, investors should conduct their own due diligence, evaluate their risk tolerance, and consult financial advisors before making any investment decisions.

This IPO aligns well with the current market sentiment, and the listing on June 4, 2025, will offer further insight into investor confidence and market dynamics for SME stocks.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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