Cedaar Textile Limited IPO gets strong response from investors; records 12.26 times subscription

By PNI Admin On Jul 2, 2025

Cedaar Textile Limited The Initial Public Offer (IPO) received strong response from investors as it recorded 12.26 times subscription until the final day of bidding, garnering bids worth over ₹574 crore. The Bangalore-based organic yarn producer aimed to raise ₹60.90 crore from the offer that was floated between June 30 – July 02, 2025.

While the Qualified Institutional Buyer (QIB) portion of the issue was subscribed 37.88 times, the NII quota was subscribed 5.04 times and the Retail Individual Investors (RII) quota was subscribed 9.73 times, bringing the overall subscription to 12.26 times till the final day of bidding on Wednesday, July 02, 2025

The price band of the issue is fixed at ₹130 to ₹140 per Equity Share with a face value of ₹10 apiece. The IPO comprises a fresh issue of 43.5 Lakh Equity Shares with a face value of ₹10/- through the book-building route. The minimum lot size for the application is 1,000 Equity Shares. The company is proposed to be listed on NSE Emerge.

Fast Track Finsec Private Limited is the Book Running Lead Manager, and Skyline Financial Services Private Limited is the Registrar to the offer.

The company intends to utilise ₹8 crore of the total IPO proceeds for the installation of Grid-tied Solar PV Rooftop System for Captive evacuation, ₹17 crore for the modernization of the machines, and ₹24.9 crore to meet working capital requirements. The remaining capital will be used for general corporate purposes and issue expenses.

The Bangalore-headquartered company manufactures and sells products like Yarn, Technical Textile IFR, Fabrics, and Dyed Yarn. It is specialised in the manufacturing of Quality Melange Yarn for use in the household textile, woven goods, and hosiery. It operates a manufacturing unit in Akbarpur Channa, Near Ludhiana, Punjab, that features a variety of machines, including Blow Room and Carding equipment from Truszler/LMW, Draw Frame and Speed Frame from LMW, Ring Frames from LMW, Twister TFO, Autoconer, and Fiber/Yarn Dyeing machines.

Cedaar Textile offers a wide range of Raw White Yarns, Melange Yarns, Solid Top dyed Yarns, and Grey Fancy Yarns in Cotton, Polyester, Acrylic, Viscose, Tencel, Modal, and other Fibers. All Yarns are offered with sustainability as the prime focus, in 100% Organic, Recycle Fibers (Polyester & Cotton) for a Green Environment and Conservation of natural resources.

The company is promoted by the first-generation entrepreneurs Mr. Rajesh Mittal, Mr. Virendar Goyal, Mr. Bachangada Nachappa Monnappa and Mrs. Bachangada Monnappa Saraswati. With a combined experience of 116 years in the textile industry, they have been instrumental in the growth strategy of the company.