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IPO

Neelam Linens and Garments IPO GMP, Open-Close Date and Lot Size

About Neelam Linens and Garments IPO

Neelam Linens and Garments is preparing to launch a Rs 13 crore book. This issue will be a complete fresh issue of 54.18 lakh shares. The company is set to debut on NSE SME.

Retail investors need to invest a minimum of Rs 144,000. HNI investors require a minimum investment of Rs 288,000 for 12,000 shares, which is 2 lots.

Purva Sharegistry India Pvt Ltd is serving as the registrar for the issue. Expert Global Consultants Pvt Ltd is the book running lead managers in this IPO. The market maker for the same is Globalworth Securities.

Neelam Linens and Garments IPO GMP Details:

The most recent GMP of the IPO is Rs 0, as of 7th November, 2024 11:00 AM. The IPO has a price band of Rs 24. The estimated listing price for Neelam Linens and Garments is Rs 24, reflecting a potential gain of 0% per share.

Neelam Linens IPO Details

Neelam Linens and Garments IPO Opening Date and Closing Date8th November to 12th November
Face ValueRs 10 per share
Price BandRs 20 to Rs 24 per share
Lot Size6,000 Shares
Total Issue Size5,418,000 shares (aggregating up to Rs 13 Cr)
Fresh Issue5,418,000 shares (aggregating up to Rs 13 Cr)
Issue TypeBook-Built Type Issue
Listing AtNSE SME
Shareholding Pre-Issue14,800,000
Shareholding Post Issue20,218,000
Market Maker Portion276,000 Shares – Globalworth Securities
Basis of AllotmentWednesday, 13th November, 2024
Refund InitiationThursday, 14th November, 2024
Credit of Shares in DematThursday, 14th November, 2024
Listing DateMonday, 18th November, 2024
Cut-off time for UPI mandate confirmation5 PM on 12th November, 2024
Draft Red Herring ProspectusLink
Red Herring ProspectusLink

Neelam Linens and Garments Company Details

Founded in September 2010, Neelam Linens and Garments (India) Ltd has expanded in the soft furnishings and apparel markets, offering bedsheets, pillow covers, duvet covers, towels, rugs, and garments.

The company serves domestic and international clients, including Vijay Sales, Amazon, Meesho, TJX, U.S. Polo Assn, Big Lots, and Ocean State Job Lot.

Operating two manufacturing units in Bhiwandi, Thane, Maharashtra, Neelam Linens produces 4,000 units daily, with potential to scale up to 6,000 units to meet growing demand in the soft furnishings market.

Neelam Linens Lot Size, Shares, And Their Value:

ApplicationLotsSharesAmount
Retail (Min)16,000Rs 144,000
Retail (Max)16,000Rs 144,000
HNI (Min)212,000Rs 288,000

Neelam Linens and Garments shares offered:

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50.00% of the offer
Retail Shares OfferedNot less than 35.00% of the Offer
NII (HNI) Shares OfferedNot less than 15.00% of the Offer

Neelam Linens and Garments Financials:

For the period ended on 31st March, 2024 & 31st March, 2023:

Periods Ended31st Mar, 202431st Mar, 2023
AssetsRs 12,116.76 LakhRs 9,967.97 Lakh
RevenueRs 10,474.42 LakhRs 10,541.13 Lakh
Profit After TaxRs 246.05 LakhRs 237.88 Lakh
Net WorthRs 2,348.34 LakhRs 2,102.30 Lakh
Reserves and SuppliesRs 868.34 LakhRs 1,362.30 Lakh
Total BorrowingRs 6,964.94 LakhRs 6,534.02 Lakh

Should You Invest in the Neelam Linens and Garments IPO?

Financial Performance:

Revenue: The company generated Rs 2,195.39 lakh in revenue during the period ended on 30th September, 2024.

Profit After Tax (PAT): The company earned a profit of Rs 80.46 lakh after deducting taxes.

Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 2,428.80 lakh.

Financial Position:

Assets: The company’s total assets amounted to Rs 12,050.23 lakh.

Reserves and Surplus: The company has accumulated reserves and surplus of Rs 948.80 lakh.

Total Borrowing: The company has borrowed a total of Rs 7,566.04 lakh.

Neelam Linens IPO Key Performance Indicators (KPI) and their values:

The market capitalisation of Neelam Linens and Garments IPO is Rs 48.52 crore. As of 30th June 2023, KPI and their values are:

KPIValues
Return on Equity (ROE)2.99%
Return on Capital Employed (ROCE)3.84%
Return on Net Worth (RoNW)3.31%
Price to Book Value (P/BV)1.46
PAT Margin (%)3.69
Debt-to-Equity (D/E)3.12

Objectives of Neelam Linens IPO

The company plans to use the issue proceeds for three main purposes:

  • Funding the purchase of Embroidery Machines to support expansion.
  • Prepaying or repaying part of its existing borrowings.
  • General corporate purposes

Some major risks associated with the Neelam Linens and Garments IPO are:

  • The company’s focus on bedsheets makes it sensitive to demand changes. Shifts in consumer preferences can impact its operations and financial health.
  • Absence of guarantees, especially lengthy ones, for the provision of raw materials from external suppliers creates vulnerability in the form of price and supply volatility as well as warehousing concerns which impact the bottom line and overall stability.
  • In the absence of long-term contracts with clients, the company is also confronted with unpredictability in the level of orders and payment conditions. Changes in client tastes or the withdrawal of orders by clients are highly detrimental to Sales and Growth and Transacts performance.

Frequently Asked Questions (FAQs)

What is the price band of Neelam Linens and Garments’ IPO?

Price band has been fixed at Rs 20 and Rs 24 per share.

What is the retail investor quota of Neelam Linens and Garments’ IPO? 

A minimum of 35% shares shall go to the retail investors.

Where can I track Neelam Linens and Garments’ stock performance?

You can track it on Unicorn Signals after listing.

How can I apply for Neelam Linens and Garments’ Initial Public Offer?

Through your demat account or through your bank/financial institution during the IPO period.

When is the Last Date of IPO subscription for Neelam Linens and Garments?

The cut-off time is 12th November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.

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