The Spunweb Nonwoven IPO is set to open on July 14, 2025, and will close on July 16, 2025. It is a Book Build Issue, with the company aiming to raise around ₹60.98 crores through a fresh issue of the same amount. The IPO also includes an Offer for Sale (OFS) of up to [.] equity shares having a face value of ₹10 each. The price band for the issue is fixed at ₹90 to ₹96 per share. The retail investor quota is allocated at 35%, while Qualified Institutional Buyers (QIBs) have 50%, and High Net-worth Individuals (HNIs) are allotted 15%. The IPO allotment is expected on July 17, 2025, with the company’s shares likely to list on the NSE on July 21, 2025.
Financially, Spunweb Nonwoven has shown strong growth. The company reported a revenue of ₹227.14 crores in FY 2025, up from ₹154.24 crores in FY 2024. Its net profit also nearly doubled, increasing from ₹5.44 crores in 2024 to ₹10.79 crores in 2025. Given the company’s improving financial performance and a moderate price band, the IPO appears to offer good potential. Investors may consider applying for the IPO with a long-term perspective.
Spunweb Nonwoven IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | July 14, 2025 |
| IPO Close Date: | July 16, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹90 to ₹96 Per Share |
| Issue Size: | Approx ₹60.98 Crores |
| Fresh Issue: | Approx ₹60.98 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 |
Spunweb Nonwoven IPO Market Lot
The Spunweb Nonwoven IPO has a minimum market lot of 2,400 shares, requiring an application amount of ₹2,30,400.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2,400 | ₹2,30,400 |
| Retail Maximum | 2 | 2,400 | ₹2,30,400 |
| S-HNI Minimum | 3 | 3,600 | ₹3,45,600 |
Spunweb Nonwoven IPO Allotment & Listing Dates
The Spunweb Nonwoven IPO will open on July 14 and close on July 16. The allotment is expected to be finalized on July 17, with the IPO listing scheduled for July 21.
| Type | Date |
|---|---|
| IPO Open Date: | July 14, 2025 |
| IPO Close Date: | July 16, 2025 |
| Basis of Allotment: | July 17, 2025 |
| Refunds: | July 18, 2025 |
| Credit to Demat Account: | July 18, 2025 |
| IPO Listing Date: | July 21, 2025 |
Spunweb Nonwoven IPO: Promoters
The promoters of Spunweb Nonwoven Limited are Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara.
Spunweb Nonwoven IPO Company Financial Report
The company reported a revenue of ₹227.14 crores in 2025, up from ₹154.24 crores in 2024. Its profit also grew significantly to ₹10.79 crores in 2025, compared to ₹5.44 crores in 2024.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2023 | ₹117.68 | ₹115.97 | ₹1.13 | ₹93.15 |
| 2024 | ₹154.24 | ₹146.79 | ₹5.44 | ₹106.58 |
| 2025 | ₹227.14 | ₹211.39 | ₹10.79 | ₹182.76 |
Spunweb Nonwoven IPO Valuation – FY2025
| KPI | Values |
|---|---|
| ROE: | 31.63% |
| ROCE: | 33.66% |
| EBITDA Margin: | 13.75% |
| PAT Margin: | 4.75% |
| Debt to equity ratio: | 2.11 |
| Earning Per Share (EPS): | ₹6.28 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 31.63% |
| Net Asset Value (NAV): | ₹24.31 |
Spunweb Nonwoven IPO Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| NA | – | – | – | – | – Cr. |
| NA | – | – | – | – | – Cr. |
Objects of the Issue – Spunweb Nonwoven IPO
- Funding the working capital requirements of the company
- Investment in the wholly owned subsidiary, SIPL, to fund its working capital needs
- Repayment, in full or in part, of certain borrowings availed by the company
- General Corporate Purposes
Spunweb Nonwoven Company Overview, Strengths, and Risks
Spunweb Nonwoven Limited is a prominent Indian manufacturer and supplier of polypropylene (PP) spunbond nonwoven fabrics, established in 2015. They have grown to become one of the largest production houses in India within this segment, operating five advanced production lines across two manufacturing units in Gujarat.
Company Overview:
- Core Business: Manufacturing and supplying polypropylene spunbond nonwoven fabrics.
- Product Portfolio: Their fabrics come in various types (hydrophobic, hydrophilic, super soft, UV treated, antistatic, flame-retardant) and specifications (widths of 1.6m, 2.6m, 3.2m; weights from 7 to 150 GSM) and over 20 colors, with customization options.
- Applications: Their products cater to diverse industries, including:
- Hygiene: Diapers, sanitary pads, underpads. (This sector accounts for approximately two-thirds of their revenue).
- Healthcare: Face masks, PPE kits, surgical gowns, disposable medical items.
- Packaging: Shopping bags, grocery bags, suit cover bags.
- Agriculture: Fruit covers, crop covers.
- Others: Roofing, construction, industrial applications, home furnishings.
- Market Presence: Spunweb serves a wide range of domestic clients across India (over 485 customers in FY25) and is expanding its international footprint, exporting to over 20 countries, including the US, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, and Nigeria.
- Manufacturing Capacity: As of FY24, they boast an installed production capacity of 32,640 metric tonnes per annum.
- Technology & Quality: They utilize advanced spunbond-spunbond (SS) and spunbond-spunbond-spunbond (SSS) technology, and maintain high-quality standards through stringent checks, in-house R&D, and cleanroom HVAC systems. They are ISO 9001:2015 certified.
- Leadership: Mr. Jay D. Kagathara is the Chairman, Promoter, and Managing Director.
- Financial Performance (as of March 31, 2025):
- Revenue: ₹227.14 crores (increased from ₹154.24 crores in FY24 and ₹117.68 crores in FY23)
- Profit After Tax (PAT): ₹10.79 crores (increased from ₹5.44 crores in FY24 and ₹1.13 crores in FY23)
- Return on Equity (ROE): 31.63%
- Return on Capital Employed (ROCE): 33.66%
- Debt-to-Equity Ratio: 2.11
- EBITDA Margin: 13.75%
- PAT Margin: 4.75%
- Business Model: Fully-integrated B2B manufacturing model with direct sales to clients, allowing for better control over pricing and customer feedback. They recently acquired Spunweb India Private Limited (SIPL) in December 2024 to enhance capacity and achieve raw material synergy.
Strengths:
- Leading Market Position: Spunweb claims to be one of the largest manufacturers in the spunbond nonwoven fabric industry in India, with substantial installed production capacity (32,640 MTPA as of FY24).
- Diverse Product Portfolio & Applications: Their wide range of fabric types, widths, GSMs, and customization options allows them to cater to various high-growth sectors like hygiene, healthcare, packaging, and agriculture.
- Advanced Technology & Quality Control: Investment in cutting-edge spunbond technology, cleanroom HVAC systems, and rigorous quality checks ensures high-quality, reliable, and consistent products. They are ISO 9001:2015 certified.
- Strong Financial Performance: Consistent and significant growth in revenue and profit after tax, indicating financial stability and efficient operations.
- Diversified Customer Base: A large and growing domestic customer base, combined with an expanding international presence, reduces reliance on any single market.
- Experienced Management: Led by experienced promoters and a strong management team.
- Backward Integration: The acquisition of SIPL provides additional capacity and promotes raw material synergy and procurement efficiencies.
- Sustainability Initiatives: Installation of rooftop solar projects demonstrates a commitment to reducing environmental impact and contributing to power self-sufficiency.
- High Demand Industries: Their focus on high-demand sectors like hygiene and medical, driven by increasing awareness and government initiatives (e.g., Swachh Bharat Mission), provides a strong tailwind for growth.
Risks:
- Dependency on Key Suppliers: A majority of their raw materials are sourced from a few key suppliers, making them vulnerable to supply disruptions, price fluctuations (especially in polypropylene granules), and competitive pricing pressures from these suppliers.
- Working Capital Management: Despite sanctioned working capital, fluctuations in raw material costs, receivables, and credit terms could lead to a working capital deficit and liquidity crunch. The company has also shown negative cash flows from investing and financing activities in recent years.
- Competition: The nonwoven industry is highly competitive, with both domestic and international manufacturers and new entrants, leading to potential pricing pressures that could impact profitability.
- Customer Concentration: While they have a diversified base, the loss of a substantial portion of business from any major customers could significantly impact operations and financial performance.
- Capacity Utilization: While capacity utilization has improved (73.24% in FY25), there’s still room for further optimization, and underutilization could impact profitability.
- Regulatory Compliance: Past instances of delays and discrepancies in filing certain forms with the Registrar of Companies and non-compliance of Section 173 (1) of the Companies Act could lead to regulatory actions and penalties.
- Operational Risks:
- Power Supply: Dependence on adequate and uninterrupted power supply at a reasonable cost.
- Factory Shutdowns: Operating risks associated with manufacturing facilities, and unforeseen events leading to shutdowns could reduce sales.
- Logistics & Transportation: Any failure or delay in transportation and logistics arrangements could materially affect the business.
- Labor Relations: As a labor-intensive industry, strikes, work stoppages, or increased wage demands could adversely affect operations.
- Public Health Crises: Events like pandemics can disrupt operations and create fluctuating demand.
- Maintaining Standards: Strict hygiene and health standards in certain product categories require consistent adherence to quality.
- IPO-Specific Risks: As a first public issue, there’s no formal market for their equity shares, and there’s no assurance of sustained trading or price stability post-listing.
In conclusion, Spunweb Nonwoven appears to be a fundamentally sound company with strong growth potential in a rising industry, particularly driven by the hygiene and healthcare sectors. However, investors should carefully consider the associated risks, especially those related to raw material price volatility, working capital management, and intense competition.
Spunweb Nonwoven IPO Review
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Spunweb Nonwoven IPO Registrar
MUFG Intime India Private Limited
Phone: +91-22-4918 6270
Email: spunweb.ipo@linkintime.co.in
Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Spunweb Nonwoven IPO Lead Managers aka Merchant Bankers
- Vivro Financial Services Private Limited
Spunweb Nonwoven Company Address
Spunweb Nonwoven Limited
Survey No.109(2), N.H. 27
Near Wankaner Boundry Post at Jalida,
Village Rangpar, Wankaner
Rajkot, Gujarat, 363621
Phone: +91-87 5894 4844
Email: cs@spunweb.in
Website: https://www.spunweb.com/
FAQs about Spunweb Nonwoven IPO
The Spunweb Nonwoven IPO opens on July 14, 2025, and closes on July 16, 2025
The IPO Price Band is fixed at ₹90 to ₹96 per equity share.
The minimum lot size for retail investors is 2,400 shares.
The IPO aims to raise approximately ₹60.98 crores, entirely through a fresh issue of shares.
The allotment is expected to be finalized on July 17, 2025.
The shares are expected to be listed on the NSE SME platform.
The promoters are Jay Dilipbhai Kagathara and Kishan Dilipbhai Kagathara.
The main objectives are to fund working capital requirements for the company and its subsidiary (SIPL), repay certain borrowings, and for general corporate purposes.
Spunweb Nonwoven has shown strong financial growth, with revenue increasing from ₹117.68 crores in FY23 to ₹227.14 crores in FY25, and net profit rising from ₹1.13 crores to ₹10.79 crores in the same period.
Given the company’s improving financial performance and its strong position in the high-demand nonwoven fabric industry, investors may consider applying for the IPO with a long-term perspective. However, it’s essential to consider the associated risks, such as dependency on key suppliers, working capital management, and intense competition.
