Spunweb Nonwoven Limited, a prominent name in the nonwoven fabric industry, has launched its Initial Public Offering (IPO) as a Book Built Issue worth ₹60.98 Crores. The entire issue is a Fresh Issue of 63.51 lakh shares. Based in Morbi, Gujarat, Spunweb is one of the largest manufacturers of PP (Polypropylene) spunbond nonwoven fabric in India, operating five modern production lines across two advanced facilities.

The IPO opens on July 14, 2025, and closes on July 16, 2025. The price band is set between ₹90 to ₹96 per equity share, and at the upper band, the market capitalization of the company will reach approximately ₹231.39 Crores. The lot size is 1,200 shares, and retail investors must invest in at least two lots, totaling 2,400 shares, which comes to a minimum investment of ₹2,30,400.

The IPO is managed by Vivro Financial Services Private Limited as the book running lead manager, with MUFG Intime India Private Limited (formerly Link Intime) serving as the registrar. Rikhav Securities Limited has been appointed as the market maker for this IPO.

Anchor Investment & GMP Overview:

Ahead of the public offering, Spunweb Nonwoven raised ₹17.31 Crores from Anchor Investors, allotting 18,03,600 equity shares at ₹96 per share. This indicates confidence from institutional investors.

As of July 10, 2025, the Grey Market Premium (GMP) stands at ₹20, signaling an expected listing price of ₹116, which reflects a potential gain of 20.83%. While GMP is not officially regulated, it reflects market sentiment and gives a rough idea of listing day expectations.

Live Subscription Status:

As of 11:30 AM on July 15, 2025, Spunweb Nonwoven’s IPO was subscribed 14.63 times on the second day, indicating strong retail and institutional interest. With a solid GMP and aggressive bidding, the IPO is heading toward full subscription ahead of its closing day.

How to Check Spunweb IPO Allotment:

The allotment for the IPO is expected to be finalized on Thursday, July 17, 2025, and shares are likely to be listed on the NSE SME platform on Monday, July 21, 2025.

Steps to check IPO allotment:

• Visit the official registrar website

• Choose Spunweb Nonwoven Limited IPO from the dropdown

• Enter PAN, application number, or DP Client ID

• Submit and view the allotment result

Objectives of the IPO:

Spunweb Nonwoven plans to utilize the net proceeds from the IPO as follows:

1. ₹2,900.00 Lakhs for working capital requirements of the company

2. ₹1,000.00 Lakhs for investment in wholly owned subsidiary SIPL to support its working capital

3. ₹800.00 Lakhs for repayment or prepayment of existing borrowings

4. The remaining will be used for general corporate purposes

These allocations aim to strengthen the company’s financial position, improve liquidity, and fuel expansion through subsidiary support and debt reduction.

Company Overview and Promoter Strength:

Spunweb stands out as a leading manufacturer of polypropylene spunbond nonwoven fabric, catering to a wide array of industries. Their two high-tech manufacturing units are equipped with automated production systems and labs that ensure quality compliance and innovation in production.

The business is steered by promoters Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara, both of whom have played a pivotal role in expanding production capacity and building customer relationships. Supporting them is Yashpalsinh Ghanshyamsinh Dasondi, General Manager – Operations, with over 18 years of experience, and Abhaykumar Narshibhai Fadadu, CFO, with 9+ years in finance and accounts.

Financial Performance:

Spunweb Nonwoven has shown robust revenue and profitability growth over the last three financial years:

• Revenue from Operations:

  • FY25: ₹22,713.95 Lakh

  • FY24: ₹15,424.12 Lakh

  • FY23: ₹11,768.01 Lakh

• EBITDA:

  • FY25: ₹3,201.51 Lakh

  • FY24: ₹2,063.49 Lakh

  • FY23: ₹1,256.35 Lakh

• Profit After Tax (PAT):

  • FY25: ₹1,079.22 Lakh

  • FY24: ₹544.18 Lakh

  • FY23: ₹112.68 Lakh

The CAGR of profit and revenue underscores the growth potential and effective cost management by the company.

Valuation Metrics:

• 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 metrics suggest that Spunweb Nonwoven IPO is fairly priced, especially when compared to industry peers. The return ratios are healthy, indicating strong operational efficiency and investor value creation.

Investment Recommendation:

With a solid financial track record, growth-oriented objectives, and a bullish GMP, the Spunweb Nonwoven IPO appears to offer listing gain potential. However, it is best suited for risk-tolerant investors due to market volatility and the SME platform’s nature.

We recommend that risky investors may consider applying for listing gains, keeping in mind the strong subscription numbers and expected premium.

Disclaimer: The information provided in this IPO review is purely for educational and informational purposes. It should not be considered as investment advice or a recommendation to buy/sell securities. Investors are advised to consult with financial advisors and consider their own risk profile before making investment decisions. All data is sourced from publicly available information as of the publishing date and is subject to change.

The Upcoming IPOs in this week and coming weeks are Savy Infra, Monika Alcobev, NSDL.

The Current active IPO are Anthem Biosciences, Spunweb Nonwoven.

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