The Neelam Linens and Garments IPO is a book-built issue aiming to raise ₹13.00 crore through a fresh issue of 54.18 lakh shares. The IPO opened for subscription on November 8, 2024, and will close on November 12, 2024. The allotment of shares is expected to be finalized on November 13, 2024, with a tentative listing date on the NSE SME set for November 18, 2024. Priced within a band of ₹20 to ₹24 per share, the minimum investment for retail investors starts at ₹144,000 for one lot of 6000 shares, while high-net-worth individuals (HNI) can invest in a minimum of two lots, totaling 12,000 shares at an investment of ₹288,000. This IPO offers investors an opportunity in the textiles sector within the SME segment, presenting a low-entry price point and appealing to both retail and HNI investors.
Neelam Linens and Garments Overview
Incorporated in 2010, Neelam Linens and Garments (India) Limited is a global manufacturer and exporter of soft home fashion products, offering items like bedsheets, towels, rugs, and garments. The company mainly serves discount retail stores in markets such as the USA and Australia, supplying high-thread-count bedding and towels. Additionally, it trades licenses by buying from exporters and selling to importers.
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Neelam Linens’ international clients include brands like Tuesday Morning, TJX, and U.S. Polo Assign, while domestic clients include Vijay Sales, Amazon, and Meesho. Operating from two manufacturing units in Mumbai, the company employs 56 people, including 8 permanent staff and 48 contract-based employees as of June 30, 2024.
| IPO Name | Neelam Linens and Garments |
|---|---|
| IPO Open Date: | November 8, 2024 |
| IPO Close Date: | November 12, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹20 to ₹24 Per Share |
| Issue Size: | Approx ₹13 Crores, 5,418,000 Equity Shares |
| Fresh Issue: | Approx ₹13 Crores, 5,418,000 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
IPO Lot Size
Investors in the Neelam Linens and Garments IPO can bid for a minimum of 6000 shares and then in multiples of 6000 shares. Here’s a summary of the minimum and maximum investment requirements for retail investors and HNI:
| Category | Shares | Amount (₹) |
|---|---|---|
| Retail (Minimum) | 6,000 | ₹144,000 |
| HNI (Minimum) | 12,000 | ₹288,000 |
| Retail (Maximum) | 6,000 | ₹144,000 |
| HNI (Maximum) | Varies as per bidding |
Neelam Linens and Garments GMP
| Date | IPO Price | GMP | GMP Movement | Sub2 Sauda Rate | Estimated Listing Price | Lot Size | Minimum Investment Amount | Subscription Status | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| 11-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | 8.90x | 11-Nov-2024 20.30 |
| 10-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | 7.35x | 10-Nov-2024 22:32 |
| 09-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | 5.89x | 9-Nov-2024 22:31 |
| 08-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | 3.56x | 8-Nov-2024 22:25 |
| 07-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 7-Nov-2024 22:23 |
| 06-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 6-Nov-2024 22:23 |
| 05-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 5-Nov-2024 22:26 |
| 04-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 4-Nov-2024 22:32 |
| 03-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 3-Nov-2024 22:31 |
| 02-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 2-Nov-2024 23:30 |
| 01-11-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 1-Nov-2024 23:28 |
| 31-10-2024 | ₹24.00 | ₹0 | No Change | -- | ₹24 (0%) | 6000 | ₹144,000 | -- | 31-Oct-2024 6:02 |
Financial Information
| Period Ended | June 30, 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 12,050.23 | 12,116.76 | 9,967.97 | 7,860.13 | 6,467.92 |
| Revenue | 2,195.39 | 10,474.42 | 10,541.13 | 10,379.69 | 8,017.82 |
| Profit After Tax | 80.46 | 246.05 | 237.88 | 298.58 | 41.53 |
| Net Worth | 2,428.80 | 2,348.34 | 2,102.30 | 1,468.42 | 1,169.84 |
| Reserves and Surplus | 948.8 | 868.34 | 1,362.30 | 1,448.42 | 1,149.84 |
| Total Borrowing | 7,566.04 | 6,964.94 | 6,534.02 | 5,110.22 | 5,259.22 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 2.99% |
| ROCE | 3.84% |
| Debt/Equity | 3.12 |
| RoNW | 3.31% |
| P/BV | 1.46 |
| PAT Margin (%) | 3.69 |
IPO Subscription Status
As of November 11, 2024, at 7:29:59 PM (Day 2), the Neelam Linens and Garments IPO has been subscribed 8.90 times overall. The public issue saw strong interest across categories, with the retail category subscribed 15.28 times, the Qualified Institutional Buyers (QIB) category at 1.01 times, and the Non-Institutional Investors (NII) category at 4.57 times.
| Category | Subscription (times) | Shares Offered | Shares bid for | Total Application |
|---|---|---|---|---|
| QIB | 1.01 | 10,32,000 | 10,44,000 | 1 |
| NII* | 4.57 | 7,74,000 | 35,40,000 | 181 |
| Retail | 15.28 | 18,00,000 | 2,75,10,000 | 4,585 |
| Total | 8.9 | 36,06,000 | 3,20,94,000 | 4,767 |
Neelam Linens and Garments IPO Promoter Holding
The promoters of Neelam Linens and Garments (India) Limited are Kantilal Jethva and Bhavin Jethwa. Their shareholding in the company will decrease from 74.18% pre-issue to 54.29% post-issue following the IPO.
Anchor Investors Details
| Bid Date | November 7, 2024 |
|---|---|
| Shares Offered | 1,536,000 |
| Anchor Portion Size (In Cr.) | 3.69 |
| Anchor lock-in period end date for 50% shares (30 Days) | December 13, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | February 11, 2025 |
Neelam Linens shares list at 66% premium on NSE SME
Shares of Neelam Linens and Garments made an impressive debut on the NSE SME platform, listing at ₹40 per share—a premium of 66.7% over the IPO offer price of ₹24. The company’s IPO, a book-built issue worth ₹13 crore, included a fresh issue of 54.2 lakh shares.
The bidding for Neelam Linens’ IPO opened on November 8 and concluded on November 12, with the allotment finalized on November 13. The price band for the issue was set between ₹20 and ₹24 per share.
The IPO witnessed an overwhelming subscription rate of 91.97 times, reflecting strong investor demand. Retail investors subscribed 57.8 times, Qualified Institutional Buyers (QIBs) 15.4 times, and Non-Institutional Investors (NIIs) a staggering 273.5 times.
This robust listing highlights the market’s confidence in Neelam Linens’ growth potential and its prospects within the SME sector.
Conclusion
In conclusion, the Neelam Linens and Garments IPO, offering 54.18 lakh shares at a price band of ₹20 to ₹24, has seen strong investor interest with significant subscriptions in both retail and institutional categories. With a focus on high-quality textiles and an established international clientele, the company is poised for growth. The IPO, which closes on November 12, 2024, and lists on the NSE SME on November 18, 2024, presents an opportunity for investors to participate in a promising business expansion.