Cedaar Textile Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹140
Per ShareLot Size
1000 Shares
Minimum Investment
₹1,40,000
Issue Size
₹60.9 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
36.3%
QIB Quota
31.56%
NII Quota
32.14%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Cedaar Textile Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
68.66%
Issue Type
Book Building - SME
ISIN
INE11J101017
About the Company
The Company offers the widest 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 being offered with sustainability as the prime focus, in 100% Organic, Recycle Fibers (Polyester & Cotton) for a Green Environment and Conservation of natural resources.
Industry Overview
India's textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capitalintensive sophisticated mills sector at the other end. The fundamental strength of the textile industry in India is its strong production base of a wide range of fibre/yarns from natural fibres like cotton, jute, silk, and wool, to synthetic/manmade fibres like polyester, viscose, nylon and acrylic. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. India's textiles industry has a capacity to produce a wide variety of products suitable for different market segments, both within India and across the world. In order to attract private equity and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.
Company History
Cedaar Textile Limited was incorporated as a private limited company namely "Cedaar Textile Private Limited" under the Companies Act, 2013 vide certificate of incorporation dated 28/09/2020 issued by Registrar of Companies, ROC Bangalore bearing registration no. 139070. Further, the Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of the Company at the Extra Ordinary General Meeting held on April 30,2024. A fresh Certificate of Incorporation consequent to conversion was issued on August 23, 2024 by the Registrar of Companies, CPC and consequently, the name of the Company was changed from "Cedaar Textile Private Limited" to "Cedaar Textile Limited". As on date of this Red Herring Prospectus, the Corporate Identification Number of the Company is U17299KA2020PLC139070.
Products & Services
- The Company offers the widest 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.
Growth Strategy
- Maintain the upward trend in financial performance by concentrating on functional and operational efficiencies.
- Increase the Production Capacity and Optimum Use of Resources.
- Energy Cost Saving and Switch to Solar Energy.
- Sustainability and Environment.
- Entering to new Segment of Products.
- Dye House Expansion.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Public issue of 43,50,000 equity shares of face value Rs. 10/- each of Cedaar Textile Limited. ("Cedaar" or the "Company" or the "Issuer") for cash at a price of Rs. 140/- per equity share ("Issue Price") including a share premium of Rs.130/- per equity share), aggregating to Rs. 60.90 crores ("the Issue"), out of which, 2,18,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 140/- per equity share aggregating to Rs. 3.05 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 41,32,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 140/- per equity share aggregating to Rs. 57.85 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 31.34% and 29.77%, respectively of the post issue paid up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Experienced and Qualified Management and Employee base.
- Strong and Consistent Financial Performance.
- Growing customer base.
- Scalable and reliable business model.
- Experienced Promoters and Senior Management with extensive domain knowledge.
- Its top ten customers contribute significant portion in the revenue of the Company. Any loss of business from one or more of them may adversely affect its revenues and profitability.
- The Company has not entered into any long-term contracts with any of its customers and we typically operate on the basis of purchase orders. Inability to maintain regular order flow would adversely impact our revenues and profitability.
- Its business depends on the company production facility situated in city of Punjab. Any loss of or shutdown of operations of the production facility on any grounds could adversely affect its business or results of operations.
- Any change in the consumer's likes, preferences or a change in their perception regarding the quality of its products may negatively affect the image and the company reputation and in turn affect its revenues and profitability.
- Its may not be able to prevent unauthorized use of the company logo as the company has not obtained/ applied for the trademark license. Consequently, its trademarks may be obtained or used by third party(ies), which may lead to the dilution of the company goodwill.