Neelam Linens and Garments IPO Highlights
Neelam Linens and Garments is going to launch its IPO. Its opening date is 6 November 2024. It will close on 8 November 2024. This is going to be a book-built issue. Through its first public offering (IPO), the company aims to collect about ₹13 crores. The IPO will be a completely fresh issue of 5418000 equity shares having a face value of ₹10 per share. The price band of Neelam Linens and Garments IPO is between ₹20 to ₹24
Neelam Linens and Garments (India) Limited, established in 2010 and based in Mumbai, specializes in manufacturing and exporting high-quality bedding and towels. It supplies major retailers in the USA, Australia, and the Far East countries.
Neelam Linens and Garments IPO Detail
| IPO Opening and Closing Date | November 6, 2024 to November 8, 2024 |
| IPO Price Range | ₹20 to ₹24 Per Share |
| Face Value of Share | ₹ 10 Per Share |
| Net Issue Size Offered | 5418000 Equity Shares amounting up to ₹13 Cr. |
| Fresh Issue | 5418000 Equity Shares amounting up to ₹13 Cr. |
| Offer For Sale | N/A |
| Listing at | NSE SME |
| Issue Type | Book Built Issue IPO |
| Retail Allocation | 10% |
| IPO DRHP | Click Here |
| IPO RHP | Click Here |
Neelam Linens and Garments IPO, Tentative Date Schedule
| IPO Opening Date | 8 November, 2024 |
| IPO Closing Date | 12 November, 2024 |
| Allotment Date | 13 November, 2024 |
| Refund Initiation | 14 November, 2024 |
| Credit of Shares in Demat Account | 14 November, 2024 |
| Listing Date | 18 November, 2024 |
The Neelam Linens and Garments IPO will open on 8 November 2024 and it will close on 12 November 2024. The allotment of Neelam Linens and Garments IPO will be finalized on 13 November 2024. The listing date of Neelam Linens and Garments IPO on NSE SME is fixed as 13 November 2024.
Neelam Linens and Garments IPO GMP Today
Neelam Linens and Garments IPO GMP today is ₹00 as of 10 November 2024.
Neelam Linens and Garments IPO Financials
| Period | 31 December, 2023 | Financial Year 2023 | Financial Year 2022 | Financial Year 2021 |
| Total Assets | ₹11348.44 | ₹9967.97 | ₹7860.13 | ₹6467.92 |
| Total Revenue | ₹6078.18 | ₹10541.13 | ₹10379.69 | ₹8017.82 |
| Total Expense | ₹59.55 | ₹102.11 | ₹99.90 | ₹79.90 |
| EBTIDA | ₹5.024 | ₹65.25 | ₹59.36 | ₹18.64 |
| Profit After Tax | ₹102.99 | ₹237.88 | ₹298.58 | ₹41.53 |
| Company’s Net Worth | ₹2205.28 | ₹2102.3 | ₹1468.42 | ₹1169.84 |
| Total Reserve & Surplus | ₹725.28 | ₹1362.3 | ₹1448.42 | ₹1149.84 |
Company’s Financial Performance Indicators
| Key Performance Indicators | Value |
| ROCE | 13.64% |
| ROE | 13.32% |
| Price to Book Value | * |
| Total Borrowings (% of Total Capital) | % |
| Return on Net Worth | 11.32% |
| Debt Equity Ratio | 3.11% |
| After-Tax Profit Margin (%) | % |
| Net Asset Value | ₹14.58 |
Lot Size for Different Category of Investors:
| Application | Lot | Number of Shares | Amount (in ₹) |
| Retail Investor (Min. Lot) | 1 | 6000 | ₹44000 |
| Retail Investor (Max Lot) | 1 | 6000 | ₹144000 |
| HNI (Min Lot) | 2 | 12000 | ₹288000 |
Retail investors are eligible to submit bids for a minimum of one lot, containing 6000 shares, amounting to ₹144000. On the other hand, HNI can apply for a minimum of 2 lots comprising of 12000 shares amounting to ₹288000.
Reserve Quota for Different Category of Investors
| Shares Reserved for Institutional Investors | 50% of the Total Issue |
| Shares Reserved for Non-Institutional Investors | 15% of the Total Issue |
| Shares Reserved for Retail Individual Investors | 35% of the Total Issue |
Cash Flow Generated by the Company
| Net Cash Flow | 31 December, 2023 | For the Year Ended March 2023 | For the Year Ended March 2022 | For the Year Ended March, 2021 |
| Cash From Operating Activities | ₹179.88 | ₹-1112.49 | ₹582.15 | 1972.50 |
| Cash from Investing Activities | ₹111.52 | ₹-290.41 | ₹-78.86 | -716.68 |
| Cash From Financing Activities | ₹208.90 | ₹1373.64 | ₹-452.55 | ₹2291.28 |
| Net Increase/Decrease in Cash & Cash Equivalents | ₹82.49 | -29.26 | 50.74 | -1035.45 |
Product Wise Revenue Generation
| Product | For Period Ended December 31, 2023 | Year Ended 2023 | Year Ended 2022 | Year Ended 2021 |
| Bed Sheets | ₹3390.01 | ₹5120.95 | ₹6982.13 | ₹5333.20 |
| Pillow Pairs | ₹294.78 | ₹353.63 | ₹521.71 | ₹497.48 |
| Towel | ₹75.98 | ₹78.34 | ₹121.17 | ₹136.01 |
| Hand Towel/ Napkin | ₹22.32 | ₹42.53 | ₹92.61 | ₹77.98 |
| Shirts/T-Shirts | ₹15.67 | – | – | – |
| RoDTEP Duty Credit Scrips/Import Licenses | ₹2123.36 | ₹4760.86 | ₹2435.05 | ₹1774.95 |
| Total | ₹5922.12 | ₹10356.30 | ₹10152.67 | ₹7819.71 |
Geography Wise Revenue
| Countries/Region | For The Period Ended 31 December, 2023 | Financial Year 2023 | Financial Year 2022 | Financial Year 2021 |
| Domestic Sales | ₹3157.58 | ₹6683.12 | ₹5512.83 | ₹3909.27 |
| USA | ₹2718.00 | ₹3488.95 | ₹4639.84 | ₹3766.22 |
| Australia | ₹5922.12 | ₹184.24 | – | ₹144.22 |
| Burundi (Africa) | – | ₹10.31 | – | – |
| Total | 5922.12 | ₹10356.30 | ₹10152.67 | ₹7819.71 |
Objectives of The Proposed IPO
- Repaying or prepaying of borrowings.
- Capital Expenditure.
- General Corporate Purposes
Peer Group Comparative Analysis
| Company | EPS (₹) | P/E | Face Value (₹) |
| Bannari Amman Spinning Mills Limited | -3.49 | Not applicable (losses in FY 2023) | 72.07 |
| Loyal Textile Mills Limited | 5.91 | 111.24 | 748.0 |
Average PE Ratio of Industry
| P/E Ratio Metrics | P/E Ratio |
| Highest P/E Ratio | 91.06 |
| Lowest P/E Ratio | Nil |
| Average P/E Ratio | 45.53 |
Neelam Linens and Garments IPO Strengths and Weaknesses
Strengths:
- The company maintains high standards of corporate governance and transparency.
- strong and diversified customer base
- the company has a team of experienced and dedicated employees
- The company supports sustainability through employee trainings, water recycling, saving energy, attracting socially conscious investors.
Weaknesses:
- High dependency on regular and favorable financing.
- The company has unsecured loans
- Contingent liabilities may badly affect company’s financial stability.
- Issuing new shares will dilute the stack of existing shareholders
- Higher dependency on promoters and directors. Their stack selling can adversely impact the operations.
Management & Promoter Group of Neelam Linens and Garments IPO Ltd
- Bhavin Kantilal Jethwa
- Kantilal Jivram Jethva
| Promoters Shareholding Pre-Issue | 14800000 Shares |
| Promoters Shareholding Post- Issue | 20218000 Shares |
Company’s Dividend Policy
The company has not paid any dividends from the last two financial years
Lead Managers of This IPO
Expert Global Consultants Private Limited
Registrar of Neelam Linens and Garments IPO
Purva Sharegistry (India) Private Limited.
Phone: +91-22-2301 2518 / 6761
Email: support@purvashare.comWebsite: www.purvashare.com
Contact Details of Neelam Linens and Garments Limited
Neelam Linens and Garments (India) Ltd
446-447, 4th Floor,
Shah & Nahar Industrial Estate, Sitaram Jadav Marg
Lower Parel, Delisle Road, Mumbai- 400013
Phone: +91 2224942454
Email: compliance@neelamgarments.com
Website:www.neelamgarments.com
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Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Nisus Finance Services IPO, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an IPO or any other securities to make sure that it suits your financial plans and risk tolerance.
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