Spunweb Nonwoven Limited, a leading manufacturer of spunbond nonwoven fabrics in India, is launching its Initial Public Offering (IPO) on July 14, 2025. This SME IPO will raise ₹60.98 crore through a fresh issue of 63.52 lakh shares and is set to list on the NSE SME platform.

This detailed article will explain everything you need to know about Spunweb Nonwoven IPO, including price band, lot size, reservation details, company background, competitive strengths, financials, and key reasons investors are watching this issue closely.

Spunweb Nonwoven IPO Details

The Spunweb Nonwoven IPO is a book-building issue entirely consisting of a fresh issue worth ₹60.98 crore.

Issue Structure:

• Fresh Issue: 63.52 lakh shares worth ₹60.98 crore.

• No Offer for Sale component.

Price Band: ₹90 to ₹96 per share.

• The lower end at ₹90 provides slightly better entry pricing, while ₹96 is the upper ceiling.

Face Value: ₹10 per share.

Listing Exchange: NSE SME.

• This means it is specifically for small and medium enterprises, offering investors exposure to an emerging manufacturing company in India.

Subscription Window and Timeline

• IPO Open Date: Monday, July 14, 2025.

• IPO Close Date: Wednesday, July 16, 2025.

• Allotment Date (Tentative): Thursday, July 17, 2025.

• Refund Initiation: Friday, July 18, 2025.

• Credit of Shares to Demat: Friday, July 18, 2025.

• Tentative Listing Date: Monday, July 21, 2025.

• UPI Mandate Cut-off Time: 5 PM on July 16, 2025.

This timeline is typical for SME IPOs, providing a quick turnaround from close of bidding to listing.

Lot Size and Investment Requirements

Lot Size: 1,200 shares per lot.

• Minimum bid for retail investors is 2 lots (2,400 shares).

• Minimum investment amount at upper band ₹96 = ₹2,30,400.

sNII Minimum Investment:

• 3 lots (3,600 shares) = ₹3,45,600.

bNII Minimum Investment:

• 9 lots (10,800 shares) = ₹10,36,800.

Key Note:

• Bidding at cut-off price is not allowed for any category.

• Bidders must select their price within the ₹90–₹96 band.

This higher minimum ticket size reflects typical SME IPO rules aimed at serious investors.

Reservation Details

The IPO offers clear category-wise reservation:

• QIB: Not more than 50% of the net issue.

• Retail Investors: Not less than 35% of the offer.

• NII: Not less than 15% of the net issue.

Market Maker Reservation:

• 3,21,600 shares worth ₹3.09 crore reserved for Rikhav Securities Limited.

Net Issue to Public:

• 60,30,000 shares aggregating to ₹57.89 crore.

These reservations ensure broad-based participation while also ensuring liquidity via a market maker.

Anchor Investors

Anchor Investor Portion:

• Raised ₹0.00 crore from anchor investors.

• Bid Date: July 11, 2025.

• Shares Offered: 0.

This indicates the IPO is purely relying on public and institutional demand without pre-committed anchor backing.

Company Background – Spunweb Nonwoven Limited

Incorporated in 2015, Spunweb Nonwoven Limited is engaged in manufacturing and supplying spunbond nonwoven fabrics used in diverse applications.

Key Product Segments:

• Hydrophobic Fabric.

• Hydrophilic Fabric.

• UV-Treated Fabric.

Applications:

• Doormats, bags, carpets, tarpaulins.

• Hygiene sector products.

• Medical, packaging, agriculture, construction industries.

Key Customers:

• RGI Meditech Private Limited.

• Millenium Babycares Limited.

• Sekhani Industries Private Limited.

• Myra Hygiene Products Private Limited.

• Poligof Micro Hygiene (India) Private Limited.

• Salus Products Private Limited.

Export Markets:

• North America, Europe, Middle East.

• Countries include USA, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, Nigeria.

Manufacturing Facility:

• Located in Rajkot, Gujarat.

• Equipped with state-of-the-art testing including Universal Tensile Testing and Rewet Properties Testing.

Competitive Strengths

• One of India's largest manufacturers of spunbond nonwoven fabrics.

• Ability to customise products for industry-specific requirements.

• Advanced technology and cleanroom manufacturing.

• Long-term relationships with diverse clients across industries and geographies.

• Strong quality control systems with testing, inspection, analysis.

• Experienced Promoters with industry expertise.

Spunweb’s business model is built around product quality, customisation, and consistent delivery, which have driven its export-led growth.

Financial Performance

Spunweb Nonwoven has demonstrated strong growth in recent years.

Revenue:

• FY25: ₹227.14 crore.

• FY24: ₹154.24 crore.

• Growth: ~47% YoY.

Profit After Tax (PAT):

• FY25: ₹10.79 crore.

• FY24: ₹5.44 crore.

• Growth: ~98% YoY.

Assets:

• FY25: ₹182.76 crore.

• FY24: ₹106.58 crore.

EBITDA:

• FY25: ₹31.23 crore.

• FY24: ₹15.01 crore.

Net Worth:

• FY25: ₹43.15 crore.

• FY24: ₹25.09 crore.

Debt:

• FY25: ₹91.16 crore.

• FY24: ₹48.33 crore.

Key Performance Indicators (FY25):

• ROE: 31.63%.

• ROCE: 33.66%.

• Debt/Equity: 2.11.

• PAT Margin: 4.75%.

• EBITDA Margin: 13.75%.

• Price to Book Value: 3.95.

Shareholding Pattern

• Pre-Issue Promoter Holding: 88.50%.

• Post-Issue Holding: Dilution from fresh capital not specifically given, but reduced by total issue size.

Promoters:

• Jay Dilipbhai Kagathara.

• Kishan Dilipbhai Kagathara.

They remain actively involved in managing operations and strategy.

Use of IPO Proceeds

As this is entirely a fresh issue, proceeds will be used to:

• Meet working capital needs.

• Enhance manufacturing capacity.

• General corporate purposes.

• Improve balance sheet strength.

This growth-oriented use of funds aligns with the company’s goal to expand in India and abroad.

Why Investors Are Watching This IPO

Sector Opportunity:

• Nonwoven fabrics are in demand across hygiene, medical, agriculture, packaging sectors.

• Export market growth remains strong.

Company Strengths:

• Proven export capabilities.

• Customised manufacturing.

• Advanced testing and quality control.

Financial Health:

• Impressive revenue and PAT growth.

• Consistent margin expansion.

Risks:

• High debt level (Debt/Equity 2.11).

• SME platform listing has less liquidity.

• Competition from domestic and international players.

Investors should weigh these strengths against risks, considering the industry growth potential and company’s performance track record.

Conclusion

Spunweb Nonwoven IPO offers investors a chance to participate in India’s growing technical textiles sector.

With a ₹60.98 crore issue, reasonable price band of ₹90–₹96, and strong financial growth, the IPO is positioned to attract investors seeking exposure to a fast-growing manufacturer with significant export reach.

While retail investors must manage the higher SME lot size requirement, the company’s consistent growth, competitive advantages, and clear expansion plans make this IPO an intriguing opportunity.

As always, investors should carefully evaluate the offer document, company financials, and personal risk appetite before subscribing.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries,  Anthem Biosciences.

The Current active IPO are Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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