N R Vandana Tex Industries Limited has launched its Initial Public Offering (IPO) to raise ₹27.89 Crores through a fresh issue of 61.98 lakh equity shares. The company operates in the cotton textile sector, primarily designing, manufacturing, and wholesaling premium-quality cotton sarees, salwar suits, and bed sheets. Their products are marketed under the well-known brand names “Vandana” and “Tanaya”, which have earned recognition for quality and design. The company was recently awarded “Best Debutant – Apparels” by the Ajio Business Partnership Meet in 2022, reflecting its strong presence and growth potential in the textile industry.

IPO Issue Details

The IPO subscription window opens on May 28, 2025, and closes on May 30, 2025. Investors can apply for shares in lots of 3,000 shares, with the price band fixed between ₹42 and ₹45 per equity share. Retail investors must invest a minimum of ₹1,35,000 (1 lot), while High-Net-Worth Individuals (HNIs) must apply for at least 2 lots (6,000 shares), amounting to ₹2,70,000.

The company’s market capitalization at the upper price band of ₹45 per share will be approximately ₹104.82 Crores. The shares are set to be listed on the NSE SME platform, with allotment expected by June 2, 2025, and tentative listing by June 4, 2025.

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 (GMP) and Listing Gains

Currently, the Grey Market Premium is ₹4 over the IPO price, implying a potential listing gain of about 8.90%. GMP is an unofficial indicator based on demand and supply in the unorganized market and should be considered informational only. The company’s consistent financial growth supports positive market sentiment.

IPO Subscription Status (Live Update)

As of 10:30 AM on the opening day (May 28, 2025), the IPO is subscribed 0.40 times, indicating moderate investor interest early in the subscription period. Investors can track the subscription status live on the NSE website.

Anchor Investors

Before the IPO opens to the public, N R Vandana Tex Industries raised ₹65.99 Crores from anchor investors at ₹45 per share, allotting 47,14,200 shares from the Qualified Institutional Buyers (QIB) portion. Anchor investors are institutional players who show confidence in the company’s prospects.

Company Overview and Financial Performance

Vandana Saree, the flagship business of the company, focuses on high-quality cotton textile products with established brand equity. The company is promoted by a team with deep industry experience:

• Narain Prasad Lohia: Over five decades in textile business strategy and production.

• Prabhu Lohia: 24 years in finance, accounts, and textiles.

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

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

The pre-issue EPS stands at ₹5.03, with a post-issue EPS of ₹3.69 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is 8.95x, and post-issue P/E ratio rises to 12.20x. The company also boasts a strong Return on Capital Employed (ROCE) of 18.08%, Return on Equity (ROE) of 26.26%, and Return on Net Worth (RoNW) of 25.46% for FY24, indicating efficient capital utilization and profitability.

IPO Objectives

The net proceeds from the IPO will be used primarily for:

1. Funding working capital requirements: ₹16.28 Crores

2. Prepayment or repayment of existing loans: ₹5 Crores

3. General corporate purposes

How to Check IPO Allotment Status

Investors can verify their allotment status from June 2, 2025, onwards on the registrar’s website:

• Go to the IPO allotment status page.

• Select “N R Vandana Tex Industries Limited” from the dropdown.

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

• Submit to view allotment details.

Final Thoughts

N R Vandana Tex Industries’ IPO offers investors an opportunity to participate in a growing textile company with strong brand presence and steady financial growth. The positive GMP and solid fundamentals suggest attractive listing gains for investors willing to take moderate risk in the SME market. Given the experienced promoter group and clear usage of IPO proceeds for working capital and debt reduction, this IPO is worth considering for investors seeking exposure to India’s cotton textile sector.

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, Aegis Vopak Terminals, Schloss Bangalore.

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