N R Vandana Tex Industries Limited is a prominent player in the designing, manufacturing, and wholesale of high-quality cotton textile products such as sarees, salwar suits, and bed sheets. Recognized in the textile industry under its own brands “Vandana” and “Tanaya,” the company has carved a niche for itself by consistently delivering quality products. Their efforts earned them the “Best Debutant – Apparels” award at the Ajio Business Partnership Meet 2022, a testament to their growing reputation and product acceptance.

IPO Details and Subscription

The company’s Initial Public Offering (IPO) is a Book Built Issue amounting to ₹ 27.89 Crores, composed entirely of a fresh issue of 61.98 lakh equity shares. The IPO subscription window opened on May 28, 2025, and closes on May 30, 2025. The allotment of shares is expected by June 2, 2025, Monday, and listing is tentatively scheduled for June 4, 2025, on the NSE SME platform.

The price band for the IPO is fixed between ₹ 42 to ₹ 45 per equity share, with the market capitalization projected at approximately ₹ 104.82 Crores based on the upper price band. The lot size for retail investors is 3,000 shares, requiring a minimum investment of ₹ 1,35,000, whereas HNIs need to invest in at least two lots (6,000 shares), amounting to ₹ 2,70,000.

The book running lead manager for the IPO is Marwadi Chandarana Intermediaries Brokers Private Limited, while Cameo Corporate Services Limited serves as the registrar. Alacrity Securities Limited has been appointed as the Market Maker.

Grey Market Premium and Subscription Trend

The Grey Market Premium (GMP) currently stands at ₹ 4, implying an expected listing price of ₹ 49, indicating an 8.9% potential listing gain over the upper price band. It is important to note that GMP reflects informal market demand and should be viewed cautiously.

As of 11:00 AM on May 30, 2025, the IPO had already been subscribed 9.44 times, highlighting strong investor interest, especially on the final day of the subscription period. This robust demand reflects positive market sentiment around the company’s fundamentals and growth prospects.

Promoters and Company Background

N R Vandana Tex Industries is promoted by a seasoned leadership team:

• Narain Prasad Lohia brings over 50 years of experience in business strategy, production, and textile development.

• Prabhu Lohia has 24 years of expertise in finance and accounts within the textile sector.

• Gyanesh Lohia contributes 23 years of experience in product and financial management, market analysis, and supplier relations.

Their combined experience underpins the company’s growth trajectory and operational efficiency.

Financial Performance

The company has shown consistent growth in revenue and profitability over recent years:

The Profit After Tax (PAT) has more than doubled from ₹179.94 Lakh in 2022 to ₹859.51 Lakh in 2024, demonstrating strong earnings momentum. The EBITDA margin has improved in line with revenue growth.

Key Ratios and Valuation

• Pre-issue EPS: ₹ 5.03

• Post-issue EPS: ₹ 3.69

• Pre-issue P/E ratio: 8.95x

• Post-issue P/E ratio: 12.20x

• ROCE (FY24): 18.08%

• ROE (FY24): 26.26%

• Return on Net Worth (RoNW): 25.46%

These figures indicate that the company is fairly valued with strong profitability metrics, making it an attractive proposition for investors seeking long-term growth.

Utilization of IPO Proceeds

N R Vandana Tex Industries plans to utilize the net proceeds primarily for:

1. Working capital requirements: ₹ 16.28 Crores

2. Prepayment/repayment of loans: ₹ 5.00 Crores

3. General corporate purposes

This capital infusion aims to strengthen the company’s balance sheet and support expansion initiatives.

Investor Outlook and Recommendation

The positive Grey Market Premium, coupled with the strong subscription rate and impressive financial metrics, suggest potential listing gains for investors willing to take a moderate risk. However, prospective investors should consider market conditions and consult their financial advisors before applying.

In conclusion, the N R Vandana Tex Industries IPO offers a compelling opportunity in the cotton textile sector, backed by experienced promoters and consistent financial performance. Risk-tolerant investors may consider participating for possible listing gains.

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

The Current active IPO are 3B Films, N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals.

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