NAPS Global India Limited, a prominent wholesale importer of textile products, is set to launch its Initial Public Offering (IPO) on March 4, 2025. The company has filed for a fixed price issue of ₹ 11.88 Crores, which consists of a fresh issue of 13.20 lakh shares at a price of ₹ 90 per equity share. The subscription period will run from March 4, 2025 to March 6, 2025, with the allotment date slated for March 7, 2025 and the listing on the BSE SME expected by March 11, 2025.

At the IPO price of ₹ 90 per share, the company will have a market capitalization of ₹ 39.87 Crores. Retail investors are required to invest a minimum of ₹ 1,44,000 for 1,600 shares, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹ 2,88,000 for 3,200 shares.

Objectives of the IPO

The net proceeds from the IPO will be utilized for:

1. ₹ 919 Lakhs for funding working capital requirements.
2. ₹ 169 Lakhs for general corporate purposes.

These funds will help NAPS Global India expand its operations and streamline its supply chain, further consolidating its position as a key player in the Indian textile market.

Grey Market Premium and Subscription Status

The Grey Market Premium (GMP) for the NAPS Global India IPO is currently ₹ 0, which indicates neutral market sentiment. The GMP depends entirely on demand and supply dynamics and should not be considered a reliable measure for investment decisions.

The IPO subscription status will be available in real time after the subscription opens on March 4, 2025. As of March 6, 2025, the IPO had been subscribed 1.19 times on its final day.

Company Overview

Incorporated in March 2014, NAPS Global India specializes in the import and wholesale distribution of textile products including cotton, man-made fabrics, and garments. The company serves as a crucial supplier to garment manufacturers in Maharashtra and across other textile hubs in India.

Key Products

The company operates in two major segments:

• Fabrics: Cotton fabrics, super-soft velvet fabrics, knitted fabrics, man-made fabrics, and linen fabrics.
• Garments: Women’s tops, men’s shirts & t-shirts, and kids’ jeans.

NAPS Global India imports products from China and Hong Kong, ensuring cost-effective and quality procurement. Its supplier base is well-established, ensuring reliable fabric supply for Indian garment manufacturers.

Financial Highlights

• The company has demonstrated strong financial growth with a revenue CAGR of 88.30% from ₹ 1,334.40 Lakhs (FY 2022) to ₹ 4,731.29 Lakhs (FY 2024).
• Profit CAGR is 182.02%, increasing from ₹ 18.26 Lakhs (FY 2022) to ₹ 145.22 Lakhs (FY 2024).
• NAPS Global India boasts a high supplier concentration, with 98.83% of raw materials sourced from its top 10 suppliers in China.

Industry Insights

The global textile market was valued at USD 1,837.27 billion in 2023 and is expected to grow at a CAGR of 7.4% through 2030. The Indian textile market is poised to reach USD 350 billion by 2030, with a significant contribution from the man-made textiles segment.

Government incentives, such as the Production-Linked Incentive (PLI) Scheme and the Mega Integrated Textile Region & Apparel (MITRA) Park Scheme, further bolster the growth prospects for the industry.

Conclusion

The NAPS Global India IPO presents an opportunity to invest in a textile distributor with strong ties to key suppliers in China and Hong Kong. However, the high supplier concentration and revenue concentration risks could pose potential challenges. Despite its strong financial growth, the neutral GMP and the company's full valuation suggest that the IPO might not offer significant listing gains.

Investors looking for long-term exposure to the growing textile sector may find this IPO a viable option, but they should weigh the risks of supply chain and revenue concentration. For those seeking short-term gains, the current valuation may not provide substantial returns.

The Upcoming IPOs in this week and coming weeks are Super Iron Foundry, Paradeep Parivahan.

The Current active IPO is PDP Shipping & Projects.

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