Signals, Powered By EquityPandit
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 12th November, 2024 9:30 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 Date | 8th November to 12th November |
| Face Value | Rs 10 per share |
| Price Band | Rs 20 to Rs 24 per share |
| Lot Size | 6,000 Shares |
| Total Issue Size | 5,418,000 shares (aggregating up to Rs 13 Cr) |
| Fresh Issue | 5,418,000 shares (aggregating up to Rs 13 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 14,800,000 |
| Shareholding Post Issue | 20,218,000 |
| Market Maker Portion | 276,000 Shares – Globalworth Securities |
| Basis of Allotment | Wednesday, 13th November, 2024 |
| Refund Initiation | Thursday, 14th November, 2024 |
| Credit of Shares in Demat | Thursday, 14th November, 2024 |
| Listing Date | Monday, 18th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 12th November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
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:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 6,000 | Rs 144,000 |
| Retail (Max) | 1 | 6,000 | Rs 144,000 |
| HNI (Min) | 2 | 12,000 | Rs 288,000 |
Neelam Linens and Garments shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Neelam Linens and Garments Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 12,116.76 Lakh | Rs 9,967.97 Lakh |
| Revenue | Rs 10,474.42 Lakh | Rs 10,541.13 Lakh |
| Profit After Tax | Rs 246.05 Lakh | Rs 237.88 Lakh |
| Net Worth | Rs 2,348.34 Lakh | Rs 2,102.30 Lakh |
| Reserves and Supplies | Rs 868.34 Lakh | Rs 1,362.30 Lakh |
| Total Borrowing | Rs 6,964.94 Lakh | Rs 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:
| KPI | Values |
| 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.
Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!
