Spunweb Nonwoven Limited, one of India’s largest spunbond nonwoven fabric manufacturers, is opening its NSE SME IPO on July 14, 2025.

This ₹60.98 crore bookbuilding IPO is entirely a fresh issue of 63.52 lakh shares, with a price band of ₹90 to ₹96 per share.

The IPO will list on NSE SME with a tentative listing date of July 21, 2025.

Company Overview

✅ Business: Manufacturer and supplier of spunbond nonwoven fabrics used in doormats, bags, carpets, tarpaulins, medical, hygiene, packaging, agriculture, and construction sectors.

✅ Product Portfolio: Hydrophobic, Hydrophilic, UV-Treated, Laminated Fabrics.

✅ Exports: North America, Europe, Middle East, and countries like USA, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, and Nigeria.

✅ Clients: RGI Meditech, Millenium Babycares, Myra Hygiene, Poligof Micro Hygiene, Salus Products, Vyom Nonwoven, and many others.

✅ Manufacturing Facility: Rajkot, Gujarat.

✅ Employees: 199 as of May 31, 2025.

Competitive Strengths

⭐ One of India’s largest spunbond nonwoven fabric manufacturers.
⭐ Customised solutions for industry-specific requirements.
⭐ Advanced technology and quality-control processes.
⭐ Long-standing relationships with diverse domestic and export clients.
⭐ Experienced promoters and a strong management team.

IPO Details

Spunweb Nonwoven IPO Lot Size & Investment

Note: Bidding at cut-off price is not allowed in any category.

Reservation Details

IPO Timeline (Tentative)

Promoter Shareholding

✅ Promoters: Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara.

Financial Highlights

✅ Revenue growth FY24–FY25: ~47%
✅ PAT growth FY24–FY25: ~98%

Key Performance Indicators (as of Mar 31, 2025)

• ROE: 31.63%

• ROCE: 33.66%

• Debt/Equity: 2.11

• RoNW: 31.63%

• PAT Margin: 4.75%

• EBITDA Margin: 13.75%

• Price to Book Value: 3.95

• Pre-Issue EPS: ₹6.08 (P/E ~15.79x)

• Post-Issue EPS: ₹4.48 (P/E ~21.44x)

Objects of the Issue

SWOT Summary

✅ Strengths

• Leading player in spunbond nonwoven fabrics.

• Diversified client base in domestic and international markets.

• Strong revenue and profit growth.

• Advanced quality-control facilities.

⚠️ Weaknesses

• SME platform listing may limit liquidity.

• High debt levels (Debt/Equity 2.11).

✅ Opportunities

• Expanding hygiene sector demand.

• Growing exports in developed markets.

⚠️ Threats

• Commodity price fluctuations.

• Competition from other domestic/global players.

Analyst View

⭐ The IPO looks reasonably valued given strong revenue and profit growth but is priced at a higher post-issue P/E (21.44x). The SME platform can limit liquidity, and high debt remains a risk.

✅ Investors with high risk appetite may consider applying for medium-to-long term exposure to India's growing nonwoven fabric market.

Final Recommendation

✅ Short-term Listing View: Neutral to cautiously Positive (SME liquidity, strong growth but higher P/E).
✅ Medium-to-long Term View: Positive (expanding market, exports, profitability growth).
✅ Strategy: Apply only if you have high risk tolerance and believe in the sector’s long-term growth.

How to Apply and Check Allotment

How to Apply

• Via ASBA-enabled net banking or broker apps (UPI mandates before 5 PM, July 16).

How to Check Allotment (from July 17):

• Visit registrar (MUFG Intime India / Link Intime) website.

• Select "Spunweb Nonwoven IPO".

• 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.

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