The NAPS Global India Limited IPO is a significant event for investors looking to tap into the growing textile industry. With its wholesale import and distribution model of cotton and man-made fabrics sourced primarily from China and Hong Kong, NAPS Global plays a pivotal role in the garment manufacturing supply chain in Maharashtra. This IPO presents an opportunity for investors to buy shares in a company deeply involved in the textile trade.

NAPS Global India IPO Details

NAPS Global India Limited is offering a Fixed Price Issue amounting to ₹ 11.88 crores, consisting of 13.20 lakh fresh equity shares. The subscription period for this IPO opened on March 4, 2025, and will close on March 6, 2025. For those interested in investing, the lot size of the IPO is set at 1,600 shares. Investors will need to purchase shares at a price of ₹ 90 per equity share, bringing the total investment for retail investors to ₹ 1,44,000 (for one lot). High-net-worth individuals (HNIs) must purchase two lots (6,000 shares), costing ₹ 2,88,000.

The market capitalization of NAPS Global India at the IPO price of ₹90 per share will stand at ₹39.87 crores. This pricing indicates the valuation of the company at the time of listing and gives investors a glimpse into the potential for growth in the textile sector.

IPO Subscription and Allotment Details

As of March 5, 2025, at 11:00 AM, the live subscription status indicates that the IPO has been subscribed 0.30 times on the second day of the subscription period. While this is a relatively modest number, the figures are expected to pick up as the closing date nears. The allotment of shares will be finalized on or about Friday, March 7, 2025, and investors can check their allotment status online by visiting the Registrar’s website.

For those unfamiliar with the allotment process, here’s how to check your status:

• Go to the IPO allotment status page.
• Select NAPS Global India Limited IPO from the dropdown list.
• Enter the application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

Grey Market Premium (GMP) and Expected Listing

The Grey Market Premium (GMP) of the NAPS Global India IPO stands at ₹ 0 as of now, indicating no significant premium for the shares before listing. The listing date is expected to be on or about March 11, 2025, when the shares will be listed on the BSE SME platform. The absence of a strong GMP suggests that the stock may not see a substantial increase in price on its debut.

Key Objectives of the NAPS Global India IPO

The net proceeds from this IPO will be used to meet the company’s working capital requirements, amounting to ₹ 919 lakh, and for general corporate purposes, estimated at ₹ 169 lakh. This fund allocation reflects NAPS Global's strategy to bolster its financial position and continue expanding its operations in the competitive textile import industry.

Financial Overview of NAPS Global India Limited

Founded in March 2014, NAPS Global India has been involved in textile import and distribution for garment manufacturers across India. The company has shown strong financial growth, with revenues increasing from ₹ 1,348.42 lakh in FY 2022 to ₹ 5,283.38 lakh in FY 2024. The EBITDA and Profit After Tax (PAT) have also demonstrated consistent growth, with a PAT of ₹ 153.43 lakh for FY 2024. These figures showcase NAPS Global's solid financial health and potential for future growth.

In terms of valuation, the company’s pre-issue earnings per share (EPS) stands at ₹ 6.96, with a post-issue EPS of ₹ 3.28 for FY 24. The pre-issue P/E ratio is 12.93x, and the post-issue P/E ratio is 27.45x, which is relatively higher than the industry average of 15x. Investors should take note of these ratios when considering the IPO for investment.

Company Leadership

The leadership of NAPS Global India comprises Pankaj Jain, the Chairman and Managing Director, who brings over a decade of experience in the garment and textile trading sector. Ronak Mistry, the Whole-time Director and CFO, has expertise in financial management and business expansion, further solidifying the company's prospects.

IPO Review and Investment Recommendations

While NAPS Global India Limited has shown consistent growth in revenue and profitability, the IPO GMP indicates that there may not be immediate listing gains. The P/E ratio is slightly higher than the industry average, which might suggest that the IPO is fully priced. Therefore, investors seeking quick listing gains may want to reconsider their approach. Based on the financial performance and valuation metrics, we recommend that investors approach the NAPS Global India IPO with caution, especially if they are looking for long-term investments.

This IPO offers an interesting opportunity to be part of a growing textile distribution company, but as with any investment, thorough research and careful consideration are essential.

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