Spunweb Nonwoven, based in Morbi, Gujarat, is among India’s leading manufacturers of polypropylene (PP) spunbond nonwoven fabric. With five advanced production lines spread across two modern manufacturing units, the company has built a robust infrastructure capable of maintaining high-quality standards. Their state-of-the-art laboratories and modern technology make Spunweb a standout name in the Indian nonwoven textile industry.

Let’s explore the complete details of the Spunweb Nonwoven Limited IPO, from its subscription trends, financials, allotment status, to its listing potential and GMP. This detailed guide will help investors evaluate whether this IPO is worth considering.

IPO Overview and Key Dates

The Spunweb Nonwoven IPO is a Book Built Issue of ₹60.98 Crores. This consists entirely of a fresh issue of 63.51 lakh equity shares. The price band for the IPO is set at ₹90 to ₹96 per share. The issue opened for public subscription on July 14, 2025, and closed on July 16, 2025.

• Allotment Date: July 17, 2025 (Thursday)

• Expected Listing: July 21, 2025 (Monday)

• Listing Platform: NSE SME

The lot size for retail investors is 1,200 shares, with a minimum investment of 2 lots (2,400 shares) requiring ₹2,30,400 at the upper band.

Vivro Financial Services Private Limited is the Book Running Lead Manager, while MUFG Intime India Private Limited is the Registrar. Rikhav Securities Limited is the Market Maker.

Anchor Investment and Subscription Details

Spunweb successfully raised ₹17.31 Crores from Anchor Investors by allocating 18,03,600 equity shares at the upper band price of ₹96. This reflects strong institutional interest even before the IPO opened to the general public.

On the final day of subscription, the IPO saw an overwhelming response from investors, with a subscription rate of 233.35 times, reflecting strong demand across all investor categories. Such numbers suggest confidence in the company’s fundamentals and listing prospects.

Grey Market Premium (GMP) Analysis

The Grey Market Premium (GMP) of Spunweb Nonwoven IPO stands at ₹20, translating to a 20.83% premium over the upper band issue price of ₹96. Hence, the expected listing price is ₹116 per share.

However, investors should remember that GMP is part of the unofficial and unregulated grey market, and price discovery is not guaranteed. GMP data is informational only and should not be the sole factor in making investment decisions.

Use of IPO Proceeds

The company plans to utilise the net proceeds for the following objectives:

• ₹29 Crores: To fund working capital requirements of the company.

• ₹10 Crores: To invest in wholly owned subsidiary SIPL, for its own working capital needs.

• ₹8 Crores: For repayment of certain borrowings.

• Remaining Amount: For general corporate purposes.

This deployment strategy signals the company’s intention to strengthen operational capacity and reduce financial leverage.

Financial Performance Snapshot

Spunweb Nonwoven has shown consistent and impressive growth over the last three fiscal years:

Revenue from Operations:

• FY25: ₹22,713.95 Lakhs

• FY24: ₹15,424.12 Lakhs

• FY23: ₹11,768.01 Lakhs

EBITDA:

• FY25: ₹3,201.51 Lakhs

• FY24: ₹2,063.49 Lakhs

• FY23: ₹1,256.35 Lakhs

Profit After Tax (PAT):

• FY25: ₹1,079.22 Lakhs

• FY24: ₹544.18 Lakhs

• FY23: ₹112.68 Lakhs

This demonstrates a compounded growth rate, driven by rising demand, efficiency improvements, and operational expansion.

Key Financial Ratios (FY24)

• Pre-Issue EPS: ₹6.28

• Post-Issue EPS: ₹4.48

• Pre-Issue P/E: 15.28x

• Post-Issue P/E: 21.44x

• ROCE: 33.66%

• ROE: 31.63%

• RoNW: 31.63%

These healthy ratios reflect efficient capital utilisation, a strong return profile, and balanced valuation.

Management and Leadership

• Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara, the company promoters, have played a key role in scaling operations and maintaining customer trust.

• Yashpalsinh Ghanshyamsinh Dasondi, General Manager – Operations, brings over 18 years of industry experience.

• Abhaykumar Narshibhai Fadadu, CFO, has more than nine years of financial expertise, ensuring fiscal discipline and compliance.

This diverse and experienced leadership team provides the backbone for the company’s strong execution capabilities.

How to Check IPO Allotment Status

Investors can check their Spunweb IPO allotment status using these simple steps:

1. Visit the registrar's website (MUFG Intime India Pvt Ltd).

2. Select Spunweb Nonwoven Limited IPO from the dropdown.

3. Enter your application number, PAN, or DP Client ID.

4. Click Submit to see your allotment result.

The status will be available from July 17, 2025, onwards.

Should You Apply?

Given the company’s robust financials, reasonable valuation, and strong demand indicated by 233x subscription, risk-tolerant investors may consider applying for listing gains. The 20.83% GMP further indicates bullish sentiment ahead of the listing.

However, those looking for long-term investments should wait and watch post-listing price stability and quarterly performance before making decisions.

Conclusion

The Spunweb Nonwoven IPO is turning out to be one of the most talked-about SME IPOs of 2025, with a record subscription and strong investor response. Its listing on July 21 could be a significant moment for SME investors on the NSE.

If you're a retail or HNI investor with a short-term goal, the listing pop could be rewarding. But for long-term investors, tracking the company's performance in the first two quarters post-listing will provide better clarity.

As always, invest wisely, stay informed, and ensure decisions align with your risk profile and financial goals.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, TSC India, Patel Chem Specialities, Monarch Surveyors & Engineering Consultants, TSC India, Swastika Castal, Savy Infra, NSDL.

The Current active IPO are Monika Alcobev.

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