Neelam Linens and Garments (India) Limited marked a strong debut on the NSE SME platform on November 18, 2024. Its shares listed at ₹40.05, reflecting a 66.87% premium over the IPO price of ₹24. This stellar performance underscores the company’s growth potential and investor confidence.

The ₹13 crore IPO, open from November 8 to November 12, saw robust demand with 91.97 times oversubscription. The issue comprised an entirely fresh offering of 54.18 lakh shares, priced between ₹20 and ₹24 per share.

Investor Interest

The IPO attracted bids for 33.16 crore shares against the 36 lakh shares offered.

• Retail investors accounted for a significant portion, with their category subscribed 57.82 times.
• Non-institutional investors (NIIs) exhibited extraordinary interest, bidding 273.47 times their allocation.
• The Qualified Institutional Buyers (QIBs) segment was subscribed 15.40 times.

This overwhelming response highlights the strong appeal of Neelam Linens' business model and market potential.

Use of IPO Proceeds

The company plans to utilize the funds for several strategic initiatives:

1. Expansion: Purchase embroidery machines to enhance production capabilities.
2. Debt Management: Prepay or repay certain borrowings.
3. Corporate Needs: Support general corporate purposes.

Additionally, Neelam Linens allocated 20% of the net offer to QIBs, while NIIs and retail investors were reserved 15% and 34%, respectively.

Company Background

Founded in 2010, Neelam Linens and Garments specializes in manufacturing and exporting soft home fashion products. Its diverse portfolio includes:

• Home Textiles: Bedsheets, pillow covers, and duvet covers.
• Towels and Rugs: Supplying premium high-thread-count products.
• Garments: Shirts and other apparel catering to discount retailers.

The company’s exports primarily target markets in the USA and Australia. It also engages in trading licenses, purchasing from exporters, and selling to importers, leveraging price margins.

Financial Performance

For the fiscal year ending March 31, 2024:

• Revenue declined slightly by 0.63%, reflecting a stable business trajectory.
• Profit After Tax (PAT) grew by 3.43%, demonstrating operational efficiency.

The company’s strong fundamentals and global footprint make it a promising addition to the SME segment.

IPO Listing and Investor Sentiment

The IPO’s oversubscription, combined with the 66.87% premium listing, reflects robust market confidence in Neelam Linens' growth potential. The favorable debut on NSE SME strengthens its position in the competitive home textiles and garment industry.

This promising start offers a strong foundation for future growth and investor returns, making Neelam Linens a company to watch in the SME sector.

The Upcoming IPOs in this week and coming weeks are NTPC Green, Lomosaic India, C2C Advanced System, Rajesh Power Services, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO are Zinka Logistics Solution (Black Buck), and Onyx Biotec.

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.