Neelam Linens and Garments IPO: Price, Date & GMP

Neelam Linens and Garments IPO-Complete Overview

Neelam Linens and Garments IPO under the SME IPO category is a book-built issue of Rs.13 crore by Neelam Linens and Garments (India) Limited and was founded in September 2010. Under the category of soft home furnishings, the company processes fabrics for products such as carpets, doors, bed sheets, pillow sheets, duvet covers, towels, and garments. Most of its clientele comprises low-end retailers.

The operations of the company can be categorized into two sections-

• Manufacturing and selling activities.

• License selling activities.

There are two owned production facilities located in Bhiwandi, Thane, Maharashtra, operated by the company.

It provides its products to both local and overseas markets. Some of its local clients are Amazon, Meesho, Amerson's stores, and Vijay Sales. In foreign countries, Tuesday Morning, TJX, Pem America, Ocean State Job Lotu, Lin Craft Australia, Big Lots, 99 cents, and U. P. A. Currently, the company can produce 4,000 sets every day with a manufacturing capacity of 6000 sets.

This Neelam Linens IPO will start on 08 November 2024, and its ‘initial public offering’ will end on 12 November 2024.

Neelam Linens and Garments IPO Overview

The Rs.13 crore new SME IPO comprises a wholly fresh issue of 54.18 lac Shares. 

This upcoming IPO date is from November 08 to November 12, 2024. Neelam Linens and Garments IPO Share price is Rs.20 to Rs.24 for each Share. 

The expected IPO listing date is Monday, 18 November 2024, and listing at NSE and SME.

Neelam Linens and Garments owner-

Bhavin Jethwa is the M.D. of the company.

If You want to apply for the IPO,  Click Here to Open a Demat Account.

How to get an IPO refund?

If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click here to learn the steps.

 

Company Financial

The company’s revenue fell by -0.63% and PAT increased by 3.43% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Category-wise Revenue Breakdown  

(Amount in lac)

 

Geography-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown  

(Amount in lac)

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing our company's capital expenditure needs for the acquisition of embroidery machines to grow.

• Payback in full or in part of some outstanding loans that the company has obtained.

• General corporate purposes.

 

Peers of Neelam Linens and Garments Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The Neelam Linens and Garments India Ltd IPO price is Rs.20 to Rs.24 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.1.66 from the last year, the resulting P/E ratio is 14.45x.

Considering the weighted EPS of Rs.1.75 for the last three years, the P/E ratio is 13.71x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is N.A.

 

IPO's Strengths 

• Investing in cheaper cloth with a higher thread count.

• A committed workforce and seasoned promoters.

• Integrated capabilities and infrastructure to provide high-quality products.
  
  

IPO’s Weaknesses

• Reliance on daily wage labor may result in inconsistent workforces and interruptions in output.

• Flexibility for price adjustments is limited when serving a price-sensitive market.

• Production's limited scalability may necessitate a large expenditure to increase capacity.

• Retaining market share is difficult in the retail industry due to fierce rivalry.

• Changes in export market regulations and economic conditions may affect sales and profitability.

 

Neelam Linens and Garments Limited IPO GMP

Neelam Linens IPO GMP today is Rs.0 as of 04 November 2024. With a price of Rs.24 per Share, the estimated IPO listing price is Rs.24 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 08 to November 12, 2024, with allotment on November 13, refund initiation on November 14, and listing on November 18, 2024.

 

Neelam Linens and Garments IPO Details

The IPO with a Face Value of Rs.10 per share offers a total issue size of 54,18,000 Shares (Rs.13 Cr).

Neelam Linens and Garments IPO Lot Details

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (6000 Shares) amounting to Rs.1,44,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (12000 Shares) amounting to Rs.2,88,000.

Neelam Linens and Garments IPO Reservation (% of Net Issue)

 

Promoters And Management of Neelam Linens and Garments Ltd.

• Kantilal Jethva

• Bhavin Jethwa
  
  

 

IPO Lead Managers

• Expert Global Consultants Private Limited.
  
  

Dividend Policy

The company has not paid dividends since its incorporation.

Conclusion

Neelam Linens and Garments IPO is raising Rs.13 crore to increase its production levels and to clear the loan liability. The company has the advantages of high-quality production and export-oriented presence but is also burdened with problems such as low wage dependence and tough market competition. Investors must compare prospects for growth against the threat of market and operational risk.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

 This blog is NOT any buy or sell recommendation. No trading advice/suggestion is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.  

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