 "IPO")
Ahmedabad-based technical textile manufacturer Shri Techtex Ltd plans to raise Rs 45-50 crore through its initial public offering (IPO) to expand and grow its business.
The company has filed DRHP (draft red herring prospectus) earlier this year to launch its IPO. The shares will be listed on NSE Emerge.
It will use the issue proceeds to fuel its growth and expand margins.
The company expects to raise Rs 45-50 through the IPO, said Hanskumar Agarwal, Executive Director, Shri Techtex Ltd.
According to the objects of the proposed public issue, the proceeds will be used mainly for the construction of the factory shed (Rs 3.71 crore), commissioning of a solar plant (Rs 4.89 crore), purchase of machinery (Rs 8.34 crore), and meeting working capital requirement (Rs 13.30 crore).
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Shri Techtex is eyeing to cross Rs 100 crore-mark in revenues by FY26, riding on a direct foray into the US market, expansion in product portfolio and improved capacities.
As per the draft paper, Shri Techtex's operational revenues stood at Rs 51.17 crore in FY22 and Rs 35.21 crore in the first five months of the last fiscal year.
The profit after tax stood at Rs 8.27 crore in FY22 and Rs 6.07 crore in the first five months of FY23.
"We are now unveiling the next chapter of our journey -- eyeing to expand the scale, product portfolio and margins, thereby creating sustained value for our stakeholders. We have invested in growth assets and transiting to a public company...," Agarwal said.
The company manufactures PP non-woven fabric in various sizes and densities up to 4.5 metres in size and of 15 GSM to 800 GSM grade.
Its manufacturing facility is located at Simaj of Dholka Taluka in the Ahmedabad district of Gujarat. The manufacturing facility is spread across 41,548 square metres and installed with a 3,600 tonnes PP non-woven fabric capacity per annum.
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