Neelam Linens and Garments (India) Limited is coming up with an IPO with a fresh issue of 54,18,000 shares worth INR 13 crores. The company aims to fund embroidery machine purchases, repay borrowings, and support general corporate purposes.
Neelam Linens and Garments IPO – Important Dates
| Neelam Linens and Garments (India) Limited IPO Date | November 8, 2024 to November 12, 2024 |
| Neelam Linens and Garments (India) Limited IPO Listing Date | November 18, 2024 |
| Neelam Linens and Garments (India) Limited IPO Price | INR 20-24 per share |
| Neelam Linens and Garments (India) Limited IPO Lot Size | 6000 Shares |
| Neelam Linens and Garments (India) Limited IPO Total Issue Size | INR 13 crores |
| Neelam Linens and Garments (India) Limited IPO Basis of Allotment | November 13, 2024 |
| Neelam Linens and Garments (India) Limited IPO Initiation of Refunds | November 14, 2024 |
| Neelam Linens and Garments (India) Limited IPO Credit of Shares to Demat | November 14, 2024 |
| Neelam Linens and Garments (India) Limited IPO Issue Type | Book Built Issue IPO |
| Neelam Linens and Garments (India) Limited IPO Listing At | NSE SME |
Read more about Neelam Linens IPO GMP
Neelam Linens IPO – Company Profile
Neelam Linens and Garments (India) Limited is a Maharashtra-based soft home furnishing company specializing in processing and trading home textiles and fashion apparel. They source surplus fabrics, add value through enhancements, and distribute globally to discounted retail outlets.
The company generates revenue by selling import licenses to importers, including government-issued RODTEP and ROSCTL incentives. They also trade market-available licenses, providing regulated import rights at discounted rates.
The company enhances textile industry competitiveness by trading import licenses, purchasing from exporters, and reselling to importers for a margin. This process is facilitated by brokers connecting buyers and sellers.
Neelam Linens and Garments (India) Ltd IPO Fundamental Analysis
Neelam Linens and Garments (India) Limited’s financial analysis reveals a mixed performance. Revenue has grown, but declining profitability, EPS, RoNW, and inventory turnover raise concerns. Increased assets and equity indicate growth, with strengthened liquidity but reduced debt reliance.
- Revenue Trend: The revenue increased from ₹10,152.67 lakhs in March 2022 to ₹10,356.30 lakhs in March 2023. The revenue for the current year’s 3-month period ending June 2024 is INR 2,179.26 lakhs.
- Equity and Liabilities: Both equity and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly decreased from ₹298.57 lakhs in March 2022 to ₹80.46 lakhs by June 2024. This decline in profitability could be a source of concern among investors.
- Earnings per Share (EPS): The diluted EPS has reduced from ₹2.20 in March 2022 to ₹0.54 by June 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 20.33% to 3.31%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Neelam Linens and Garments IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 June 2024 |
| Revenue (₹ in lakhs) | 10,152.67 | 10,356.30 | 2,179.26 |
| Equity (₹ in lakhs) | 1,468.42 | 2,102.29 | 2,428.8 |
| Expenses (₹ in lakhs) | 9,990.01 | 10,211.39 | 2,074.38 |
| Profit and Loss After Tax (₹ in lakhs) | 298.57 | 237.87 | 80.46 |
| Diluted EPS only (₹) | 2.20 | 1.65 | 0.54 |
| Return on Net Worth (%) | 20.33 | 11.31 | 3.31 |
| NAV per Equity Share (₹) | 734.21 | 28.41 | 16.41 |
| Total Assets (in lakhs) | 7,860.13 | 9,967.97 | 12,050.23 |
| Total Liabilities (in lakhs) | 5,431.33 | 7,865.68 | 9,621.43 |
| Debt Equity Ratio | 3.48 | 3.11 | 3.12 |
| Current Ratio (in times) | 1.64 | 1.87 | 1.90 |
| Inventory Turnover Ratio | 2.97 | 2.36 | 1.91 |
Neelam Linens IPO Peer Comparison
Neelam Linens and Garments (India) Limited shows modest metrics compared to more prominent players like Loyal Textile Mills and Bannari Amman Spinning Mills. Despite its smaller scale, Neelam maintains profitability, whereas peers face negative earnings or lower returns.
| Company | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | Book Value (₹ in lakhs) |
| Neelam Linens and Garments (India) Limited | 10,233.91 | 10 | – | 1.66 | 10.48 | 15.87 |
| Loyal Textile Mills Limited | 93,918.71 | 10 | – | (89.17) | (14.78) | 603.31 |
| Bannari Amman Spinning Mills Limited | 92,351.88 | 5 | – | (3.18) | (6.91) | 58.55 |
Neelam Linens and Garments (India) Ltd IPO Objective
Neelam Linens and Garments (India) Limited’s main objective is to fund capital expenditures for embroidery machine expansion and reduce outstanding borrowings, strengthening financial stability and supporting future growth initiatives.
- Funding capital expenditure requirement of the company towards the purchase of Embroidery Machines for expansion: The company intends to utilize INR 5.57 crores from net proceeds to purchase embroidery machines, enhancing production quality and capacity at its current processing unit in Bhiwandi, Thane, for textile and garment products.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by their company: The company plans to utilize INR 4 crores from net proceeds to repay select loans, reducing debt, lowering servicing costs, and enhancing leverage capacity for future growth and expansion opportunities based on strategic criteria.
- General corporate purposes: The company will deploy the balance of funds for general corporate purposes, including business development initiatives, operational expenses such as salaries, rent, insurance, repairs, taxes, and other routine or urgent business needs.
Neelam Linens and Garments IPO Risks And Challenges
Neelam Linens and Garments (India) Limited’s risk includes vulnerability to demand fluctuations, reliance on external suppliers without long-term contracts, and uncertainties in customer relationships, which can significantly affect profitability and operational stability.
- The company’s primary focus on bedsheets makes it vulnerable to demand fluctuations. Changes in consumer preferences can significantly impact business performance, affecting both operational outcomes and financial stability.
- The company depends on external suppliers for raw materials without long-term contracts and experiences impacts from price changes, supply variability, and storage requirements, all of which affect profitability and operational stability.
- The company lacks long-term customer arrangements and faces uncertainty in order volumes and payment terms. Changes in customer preferences or order cancellations can significantly impact sales, growth prospects, and overall financial performance.
Neelam Linens and Garments (India) Ltd IPO – Industry & Market Potential
India’s nominal GDP for FY24 is estimated at US$ 2.07 trillion, with a projected real GDP growth of 7.6%. The country hosts 113 unicorns, focusing on renewable energy and aiming for Net Zero emissions by 2070.
In Q2 FY24, India’s economic growth remained strong, with capital expenditure projected to increase significantly in future years. CPI-C inflation decreased to 5.02%, reflecting government actions and improved economic activity, contributing to a positive economic outlook.
India is the second-largest textile producer and sixth-largest exporter globally, with textile exports projected to reach $65 billion by FY26. The industry, contributing 2.3% to GDP, is set to grow at a 10% CAGR through 2026.
Neelam Linens IPO – Type of Offer
Neelam Linens and Garments (India) Limited is coming up with an IPO with a fresh issue of 54,18,000 shares worth INR 13 crores. The company aims to fund embroidery machine purchases, repay borrowings, and support general corporate purposes.
Neelam Linens and Garments IPO Offer Size
The offer size of Neelam Linens and Garments (India) Limited is INR 13 crore, consisting of a fresh issue of 54,18,000 shares worth INR 13 crores. The company aims to fund embroidery machine purchases, repay borrowings, and support general corporate purposes.
Neelam Linens IPO Allotment Structure
Neelam Linens and Garments (India) Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 192,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 192,000 shares, are reserved for market makers.
Read more about Neelam Linens IPO Allotment Status
How to apply for Neelam Linens and Garments (India) IPO?
To apply for the Neelam Linens and Garments (India) Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Neelam Linens and Garments (India) Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Neelam Linens and Garments (India) Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Neelam Linens and Garments (India) IPO Day 1 Subscription Status
How do you check Neelam Linens and Garments (India) IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Neelam Linens and Garments (India) Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Neelam Linens and Garments (India) Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Neelam Linens and Garments (India) Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Neelam Linens and Garments (India) Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Neelam Linens and Garments (India) IPO Day 2 Subscription Status
Neelam Linens and Garments (India) Ltd IPO Offer Registrar
The registrar for the Neelam Linens and Garments (India) Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
C- 101, 1st Floor, 247 Park, L.B.S Marg,
Vikhroli (West), Mumbai – 400083,
Maharashtra, India
Telephone: +91 810 811 4949,
Email: [email protected]
Website: www.linkintime.co.in
Read more about Neelam Linens and Garments (India) IPO Day 3 Subscription Status
Neelam Linens and Garments IPO – FAQs
1.What is the allotment date of the Neelam Linens and Garments IPO?
The allotment date of Neelam Linens and Garments (India) Limited is November 13, 2024.
2.What is the price band of the Neelam Linens and Garments IPO?
The price brand of the issue is INR 20-24 per share.
3.What is the size of the Neelam Linens and Garments IPO?
The offer size of Neelam Linens and Garments (India) Limited is INR 13 crore, consisting of a fresh issue of 54,18,000 shares worth INR 13 crores. The company aims to fund embroidery machine purchases, repay borrowings, and support general corporate purposes.
4.What is the listing date of the Neelam Linens and Garments IPO?
The listing date of Neelam Linens and Garments (India) Limited is November 18, 2024.
5.Where is the Neelam Linens and Garments IPO Getting Listed?
The Neelam Linens and Garments (India) Limited is getting listed on National Stock Exchange (NSE) and Small Medium Exchange (SME).
6. What Are The Open And Close Dates Of The Neelam Linens IPO?
The open and close dates for Neelam Linens and Garments (India) Limited are November 8, 2024 and November 12, 2024 respectively.
7. How To Apply For Neelam Linens and Garments (India) Ltd IPO in Alice Blue?
To apply for the Neelam Linens and Garments (India) Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Neelam Linens and Garments (India) Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Neelam Linens and Garments (India) Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
8.Who are the Book Runners for the Neelam Linens and Garments IPO?
The Book Runner for Neelam Linens and Garments (India) Limited is EXPERT GLOBAL CONSULTANTS PRIVATE LIMITED.
