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Cedaar Textile Limited IPO

Cedaar Textile Limited is a textile manufacturing company engaged in the production of high-quality yarns used in apparel, home furnishings, and technical textiles. Incorporated in 2020, the company operates a modern facility in Ludhiana, Punjab, equipped with advanced spinning and dyeing capabilities. It produces a diverse range of yarns including melange, solid-dyed, and fancy yarns made from cotton, polyester, viscose, and blended fibers.

RHP DRHP

Min Investment

₹1,40,000

Lot Size

1,000 Shares

Price Range

₹140.0

Issue Size (₹ Cr.)

₹60.90

IPO Type

NSE SME

Key Metrics

Face Value

₹ 10

GMP

₹ 10.0

Subscription

EPS

₹ 7.33

P/E Ratio

19.11 x

RoNW

56.06%

ROE

56.06%

Debt to Equity (₹ Cr.)

5.79

Timeline

IPO Open30/06/2025Monday

IPO Close02/07/2025Wednesday

Allotment03/07/2025Thursday

Refund04/07/2025Friday

Listing07/07/2025Monday

Strengths

Rapid Financial Growth The company has shown strong revenue and profit growth in recent years, reflecting rising demand for its yarn products and improved operational performance.
Diverse Yarn Portfolio Cedaar Textile offers a wide variety of yarns, including melange, solid-dyed, and fancy yarns made from natural and synthetic fibers, enabling it to serve multiple textile segments.
Focus on Sustainability The company incorporates eco-friendly practices, such as using recycled fibers, operating a captive biomass power plant, and planning solar panel installations to lower energy costs and emissions.
Export-Oriented Approach With infrastructure and certifications suited for global markets, the company supplies its yarns to international buyers, contributing to revenue diversification and foreign exchange earnings.
Strategic Investment Plan IPO funds are earmarked for capacity expansion, green energy adoption, and working capital needs—steps that aim to improve efficiency, reduce costs, and support long-term growth.

Weaknesses

Dependence on Raw Material Prices The company’s margins are sensitive to fluctuations in the prices of cotton, polyester, and other fibers, which are influenced by both domestic and global markets.
Working Capital Intensive Business As a manufacturing company, it requires significant working capital for inventory and receivables, which can strain liquidity during periods of high raw material costs or slow payments.
High Competition in the Textile Industry The yarn and fabric manufacturing segment is crowded with many organized and unorganized players, making it difficult to maintain pricing power or market share.
Limited Value-Added Offerings The company is primarily focused on yarn production and does not yet have significant backward or forward integration, such as finished fabric or branded garments.
Environmental and Compliance Risks Textile manufacturing involves energy and water usage, emissions, and waste management. Non-compliance with environmental standards could result in regulatory penalties or reputational issues.