Neelam Linens and Garments IPO is set to raise ₹13 crore through a fresh issue of 54.18 lakh shares. The IPO is open for subscription from November 8, 2024, and will close on November 12, 2024. The tentative listing date for the IPO is November 18, 2024, on the NSE SME platform.

• Issue Size: ₹13 crore (entirely fresh issue).
• Price Band: ₹20 to ₹24 per share.
• Lot Size: 6000 shares per lot.
• Minimum Retail Investment: ₹144,000 (6000 shares at ₹24 per share).
• HNI Minimum Investment: 2 lots (12,000 shares) amounting to ₹288,000.
• Lead Manager: Expert Global Consultants Private Limited.
• Registrar: Purva Sharegistry India Pvt Ltd.
• Market Maker: Globalworth Securities.

Objectives of the Neelam Linens and Garments IPO

The proceeds from this issue will be utilized for the following purposes:

1. Capital Expenditure: To purchase embroidery machines for the company's expansion plans.
2. Repayment of Debt: To prepay or repay certain outstanding borrowings.
3. General Corporate Purposes: For the company’s day-to-day operational needs.

About Neelam Linens and Garments (India) Ltd

Incorporated in April 2011, Neelam Linens and Garments is involved in the manufacturing and supply of linens and garments. The company offers a wide range of products, including bed sheets, towels, and other textile-based items, primarily to the hospitality and retail sectors.

The company plans to expand its operations by acquiring embroidery machines to enhance its product offerings and scale production. The funds raised will be pivotal for improving its operational capabilities and boosting its growth prospects.

Financial Performance and Strengths

Neelam Linens and Garments has made significant strides in the linen and garment sector. Some of its competitive strengths include:

1. Diverse Product Range: The company manufactures a variety of linen products for domestic and international markets.
2. Customer-Centric Approach: Focused on meeting customer needs through personalized solutions.
3. Expansion Plans: With the purchase of new machines, the company aims to increase its production capacity and serve a broader market.
4. Established Network: Although the company's customer base is concentrated in Maharashtra, it provides services across India.

Investment Insights

The IPO price band of ₹20 to ₹24 per share suggests a modest investment opportunity. However, the relatively small issue size and focused business operations in the linen and garment sector mean that the company may not experience the same level of volatility seen in larger IPOs.

Grey Market Premium (GMP): Currently, no significant grey market activity is observed . As the issue is smaller in size, it might attract more niche investors looking for specific sector exposure.

Conclusion: Investment Recommendation

Neelam Linens and Garments IPO presents an opportunity for investors to invest in a specialized textile manufacturing company with expansion plans. Given the modest size of the IPO and the company’s focus on growth through new technology acquisition, it could appeal to investors interested in small-cap textile companies.

However, investors should carefully consider the sector’s growth and the company’s expansion strategy before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Neelam Lines and Garments, Rosmerta Digital, NTPC Green, Avanse Financial and Zinka Logistics.

The Current active IPO is Sagility India Limited, Swiggy, ACME Solar Holdings and Niva Bupa Health .

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.