Cedaar Textile IPO will open on June 30, 2025 and close on July 2, 2025. This Book Build Issue aims to raise around ₹60.90 crores, entirely through a fresh issue, with a price band of ₹130 to ₹140 per share. The retail quota is 35%, QIB is 50%, and HNI is 15%. The IPO allotment date is July 3, 2025, and it is scheduled to list on the NSE on July 7, 2025.
Cedaar Textile reported a revenue of ₹191.01 crores in 2024, up from ₹161.88 crores in 2023, with profit rising to ₹11.05 crores in 2024 compared to ₹4.59 crores in 2023. Given this solid financial growth, the IPO appears promising for long-term investors.
Cedaar Textile IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | June 30, 2025 |
| IPO Close Date: | July 2, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹130 to ₹140 Per Share |
| Issue Size: | Approx ₹60.90 Crores |
| Fresh Issue: | Approx ₹60.90 Crores |
| Issue Type: | Book Build Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
| Anchor Investors List: | Click Here |
Cedaar Textile Company Overview, Strengths, and Risks
Cedaar Textile Limited is an Indian textile manufacturing company that specializes in producing a wide range of yarns and fabrics. The company, incorporated in 2020, focuses on sustainable practices, including the use of organic and recycled fibers, eco-friendly dyes, and solar power. Cedaar Textile is currently in the process of an Initial Public Offering (IPO) to fund its expansion, modernization, and working capital needs.
Cedaar Textile Company Overview
- Core Business: Cedaar Textile produces various types of yarns (melange, solid top-dyed, grey fancy, raw white, sweater, specialty, and cone-dyed) from cotton, polyester, viscose, acrylic, Tencel, and Modal fibers. They also manufacture fabrics (Single Jersey, Interlock, Rib, and customized solutions) and technical textiles, including Inherently Flame Retardant (IFR) yarns and fabrics.
- Market Reach: The company caters to both domestic and international markets, supplying to top-tier garment manufacturers producing for leading fashion brands.
- Sustainability Focus: A key aspect of Cedaar’s mission is sustainability, evident in their use of certified organic, BCI, and GRS-certified recycled fibers, eco-friendly dyes, a commissioned solar power plant, and an Effluent Treatment Plant (ETP) for waste management.
- Strategic Initiatives: Cedaar Textile’s business strategy includes operational efficiency, capacity expansion (especially in dyeing), green energy transition, product diversification (e.g., 100% recycled yarns), and digital transformation with R&D.
- IPO Context: The company is undergoing an IPO to raise funds for installing a solar PV rooftop system, modernizing machinery, meeting working capital requirements, and general corporate purposes.
Strengths of Cedaar Textile Company
- Diverse Product Portfolio: Cedaar Textile offers a comprehensive range of yarns and fabrics, including specialty and sustainable options, catering to various textile segments (apparel, home furnishings, technical textiles).
- Experienced Management: The company is led by an experienced team with extensive domain knowledge in the textile and apparel industry, including Mr. Rajesh Mittal (Managing Director) and Mr. Virender Goyal (Executive Director & CFO), both with decades of experience.
- Focus on Sustainability & Innovation: Cedaar’s strong emphasis on eco-friendly practices, use of recycled and organic fibers, and investment in green energy (solar power, ETP) positions them well in a growing market for sustainable textiles. They also prioritize innovation, R&D, and technology upgrades.
- Quality Assurance: The company maintains stringent quality control measures from raw material procurement to final product delivery, supported by advanced testing equipment and processes.
- Established Operations: Cedaar Textile has modern manufacturing facilities with advanced spinning and dyeing capabilities, including 6 manufacturing units and 3 value-addition units. They also have in-house design studios, product development, testing labs, and washing units.
- Growing Customer Base & Market Reach: The company has a growing customer base across domestic and international markets and a dedicated sales team for market outreach.
- Scalable Business Model: The business model is described as scalable and operationally stable, indicating potential for future growth.
- Strong Financial Performance (Recent Trends): While there have been inconsistencies, recent financial data (e.g., as of December 2024) shows positive trends in revenue, profit after tax, and net worth.
Risks of Cedaar Textile Company
- Dependence on Raw Material Prices: The company’s profitability is sensitive to fluctuations in the prices of cotton, polyester, and other fibers, which are influenced by global and domestic market conditions.
- Working Capital Intensive: As a manufacturing company, Cedaar requires significant working capital for inventory and receivables, which can strain liquidity during periods of high raw material costs or delayed payments.
- High Competition: The yarn and fabric manufacturing segment is highly competitive and fragmented, with numerous organized and unorganized players, which can impact pricing power and market share.
- Inconsistent Financial Performance: Past financial data (e.g., inconsistent top and bottom lines for reported periods) suggests that the company has faced fluctuations in its performance.
- Customer Concentration Risk: A significant portion of the company’s revenue (e.g., over 60% from the top 10 customers until September 2024) comes from a limited number of clients. The loss of one or more major customers or a reduction in their business could adversely affect revenue and profitability.
- Lack of Long-Term Contracts: The absence of long-term contracts with customers can lead to revenue volatility and sudden order losses.
- Single Facility Dependence: The company’s business heavily relies on its production facility located in Punjab. Any operational risks such as equipment failure, power supply issues, raw material shortages, or labor disputes at this single facility could severely impact operations.
- Changing Consumer Preferences: Shifts in customer preferences or perceptions regarding quality could negatively impact the company’s brand image and sales.
- Trademark Unregistered: The lack of registered trademarks for its brand carries a risk of misuse, which could harm the company’s goodwill and reputation.
- Geopolitical Risks (Export Markets): A significant portion of Cedaar’s revenue comes from exports (e.g., Bangladesh). Political instability, trade restrictions, or logistical challenges in these markets can impact export operations, increase costs, and erode profit margins.
- High Power Dependence: The textile manufacturing process is energy-intensive. While Cedaar is investing in solar power, high dependence on power and potential supply issues could lead to cost hikes and operational disruptions.
- Dependence on Third-Party Logistics: Reliance on third-party logistics providers poses risks of delays, increased costs, and disruptions in delivery.
Cedaar Textile IPO Market Lot
The Cedaar Textile IPO has a minimum market lot of 1000 shares, requiring an application amount of ₹1,40,000.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1000 | ₹1,40,000 |
| Retail Maximum | 1 | 1000 | ₹1,40,000 |
| S-HNI Minimum | 2 | 2000 | ₹2,80,000 |
Cedaar Textile IPO Allotment & Listing Dates
The Cedaar Textile IPO will open on June 30 and close on July 2. The allotment is expected to be finalized on July 3, with the IPO listing date set for July 7.
| Type | Date |
|---|---|
| IPO Open Date: | June 30, 2025 |
| IPO Close Date: | July 2, 2025 |
| Basis of Allotment: | July 3, 2025 |
| Refunds: | July 3, 2025 |
| Credit to Demat Account: | July 3, 2025 |
| IPO Listing Date: | July 7, 2025 |
Cedaar Textile IPO: Promoters
The promoters of the company are Rajesh Mittal, Virender Goyal, Bachangada Monnappa Saraswathi, and Monnappa Nachappa Bachangada.
Cedaar Textile IPO Company Financial Report
The company reported revenue of ₹191.01 crores in 2024, compared to ₹161.88 crores in 2023. It also reported a profit of ₹11.05 crores in 2024, up from ₹4.59 crores in 2023.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹220.44 | ₹202.14 | ₹7.99 | ₹154.45 |
| 2023 | ₹161.88 | ₹144.62 | ₹4.59 | ₹175.84 |
| 2024 | ₹191.01 | ₹160.87 | ₹11.05 | ₹198.23 |
| December 2024 | ₹113.91 | ₹92.45 | ₹7.06 | ₹222.77 |
Cedaar Textile IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 56.06% |
| ROCE: | 26.90% |
| EBITDA Margin: | 15.19% |
| PAT Margin: | 5.83% |
| Debt to equity ratio: | 5.79 |
| Earning Per Share (EPS): | ₹14.73 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 56.06% |
| Net Asset Value (NAV): | ₹33.65 |
Cedaar Textile IPO Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Shiva Texyarn Limited | 1.94 | (26.34) | 2.02% | 94.78 | – Cr. |
| Vardhman Textiles Limited | 7.59 | 24.22 | 2.45% | 304.49 | – Cr. |
Cedaar Textile IPO Peer Group Comparison
- Installation of Grid-tied Solar PV Rooftop System for captive evacuation
- Modernization of the machines
- Meeting working capital requirements
- General corporate purposes
- Issue expenses
Cedaar Textile IPO Review
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Cedaar Textile IPO Registrar
Skyline Financial Services Private Ltd
Phone: 02228511022
Email: ipo@skylinerta.com
Website: https://www.skylinerta.com/ipo.php
Cedaar Textile IPO Lead Managers aka Merchant Bankers
- Fast Track Finsec Pvt Ltd
Company Address
Cedaar Textile Limited
KSSIDC Plot No B-34
Industrial Estate,
Yelahanka New Town,
Bangalore Urban, Karnataka, 560064
Phone: +91 9815610607
Email: Info@cedaartextile.com
Website: https://cedaartextile.com/
FAQs – Cedaar Textile IPO
The Cedaar Textile IPO will open for subscription on June 30, 2025, and close on July 2, 2025. The allotment of shares is expected to be finalized on July 3, 2025, and the IPO listing on the NSE SME platform is scheduled for July 7, 2025. Refunds will be initiated on July 4, 2025, and shares will be credited to demat accounts on July 4, 2025.
The price band for the Cedaar Textile IPO is set at ₹130 to ₹140 per equity share.
The minimum lot size for the Cedaar Textile IPO is 1000 shares. At the upper end of the price band (₹140), the minimum investment amount for retail investors is ₹1,40,000. For S-HNI, the minimum investment is 2 lots (2000 shares) amounting to ₹2,80,000.
Cedaar Textile has shown strong recent financial growth. In 2024, the company reported a revenue of ₹191.01 crores, an increase from ₹161.88 crores in 2023. Their profit after tax significantly rose to ₹11.05 crores in 2024 from ₹4.59 crores in 2023. For the nine months ending December 31, 2024, they reported revenue of ₹113.91 crores and profit of ₹7.06 crores.
Key strengths include a diverse product portfolio (yarns, fabrics, technical textiles), an experienced management team, a strong focus on sustainability and innovation (using organic/recycled fibers, eco-friendly dyes, and solar power), robust quality assurance, modern manufacturing facilities, a growing customer base, and a scalable business model.
Risks include raw material price volatility, the business being working capital intensive, high competition in the textile market, potential inconsistencies in financial performance, customer concentration risk, lack of long-term contracts, dependence on a single manufacturing facility, and exposure to geopolitical risks in export markets. Additionally, their trademark is currently unregistered.
The promoters of Cedaar Textile Limited are Rajesh Mittal, Virender Goyal, Bachangada Monnappa Saraswathi, and Monnappa Nachappa Bachangada.
The Cedaar Textile IPO shares will be listed on the NSE SME platform.
The company intends to utilize the IPO proceeds (approximately ₹60.90 crores) for key initiatives including the installation of a Grid-tied Solar PV Rooftop System for captive evacuation, modernization of machinery, meeting working capital requirements, and general corporate purposes, along with covering issue expenses.
Sustainability is central to Cedaar Textile’s operations. They emphasize the use of certified organic, BCI (Better Cotton Initiative), and GRS-certified recycled fibers, adopt eco-friendly dyes, operate a commissioned solar power plant, and utilize an Effluent Treatment Plant (ETP) for waste management.
