What's covered under the Article

N R Vandana Tex Industries Limited is a prominent player in the cotton textile sector, engaged in the designing, manufacturing, and wholesale distribution of premium cotton textile products. Their product portfolio includes a variety of high-quality cotton sarees, salwar suits, and bed sheets, marketed under the well-recognized brands “Vandana” and “Tanaya.” The company has earned industry recognition, notably receiving the “Best Debutant – Apparels” award at the Ajio Business Partnership Meet in 2022, underscoring its strong market presence and quality focus.

IPO Details and Subscription Timeline

The company has launched a Book Built Issue (BBI) IPO raising ₹27.89 Crores through a fresh issue of 61.98 lakh equity shares. The IPO opens for subscription on May 28, 2025, and closes on May 30, 2025. The shares are slated to list on the NSE SME platform with an expected allotment finalization date of June 2, 2025, and a tentative listing date of June 4, 2025.

The IPO price band is fixed between ₹42 to ₹45 per equity share, valuing the company at a market capitalization of approximately ₹104.82 Crores at the upper price band. The minimum lot size is 3,000 shares, requiring retail investors to invest at least ₹1,35,000, while High-Net-Worth Individuals (HNIs) must subscribe to a minimum of two lots (6,000 shares), amounting to ₹2,70,000.

Key Market Participants

• Book Running Lead Manager: Marwadi Chandarana Intermediaries Brokers Private Limited

• Registrar: Cameo Corporate Services Limited

• Market Maker: Alacrity Securities Limited

Grey Market Premium and Subscription Update

The Grey Market Premium (GMP) for the IPO is currently estimated at ₹4, indicating a potential listing gain of nearly 8.90%. However, investors are cautioned that the GMP is unofficial and depends on unregulated demand and supply. As of the final day of subscription on May 30, 2025, the IPO was subscribed nearly 94 times, reflecting strong investor interest.

Financial Performance Highlights

The company’s revenue from operations has shown robust growth over recent years, with figures of ₹17,719.76 Lakh in FY22, ₹19,560.16 Lakh in FY23, ₹22,021.22 Lakh in FY24, and ₹27,110.22 Lakh for the nine months ended December 31, 2024. Similarly, EBITDA increased steadily from ₹778.14 Lakh in FY22 to ₹1,957.94 Lakh for the period ended December 2024.

Profit after tax also improved significantly, reaching ₹859.51 Lakh for the nine months ended December 2024 compared to ₹181.41 Lakh in FY22. The company’s pre-issue EPS stands at ₹5.03, with a post-issue EPS of ₹3.69. The valuation metrics include a pre-issue P/E ratio of 8.95x and a post-issue P/E of 12.20x, with strong returns on capital employed (18.08% ROCE) and equity (26.26% ROE).

IPO Objectives

The net proceeds from the IPO are planned to be used primarily for:

1. Working capital requirements - ₹1,628 Lakh

2. Loan prepayment or repayment - ₹500 Lakh

3. General corporate purposes

Promoter Background

The company is promoted by seasoned professionals with extensive experience in the textile industry:

• Narain Prasad Lohia with over five decades in business strategy and production

• Prabhu Lohia with 24 years in finance and textile operations

• Gyanesh Lohia with 23 years in product and financial management and supplier relations

IPO Allotment Process

Investors can check the allotment status on or after June 2, 2025, by visiting the registrar’s website and submitting their application number, PAN, or DP client ID.

Expert Review and Recommendation

Given the company's steady financial growth, strong market position in the cotton textile segment, and a reasonable valuation, the IPO presents an attractive opportunity. The estimated listing gains backed by a ₹4 GMP suggest potential upside for investors.

However, this IPO may be best suited for investors with moderate to high risk appetite, given market dynamics and SME platform listing risks.

Disclaimer

This IPO review is for educational and informational purposes only and does not constitute financial advice. Investors should conduct independent due diligence and consult with financial advisors before making investment decisions. Past performance does not guarantee future results.

The Upcoming IPOs in this week and coming weeks are Ganga Bath Fittings, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films

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