Neelam Linens and Garments IPO is a book built issue of Rs 13.00 crores. The issue is entirely a fresh issue of 54.18 lakh shares.
Neelam Linens and Garments IPO opens for subscription on November 8, 2024 and closes on November 12, 2024. The allotment for the Neelam Linens and Garments IPO is expected to be finalized on Wednesday, November 13, 2024. Neelam Linens and Garments IPO will list on NSE SME with tentative listing date fixed as Monday, November 18, 2024.
Neelam Linens and Garments IPO price band is set at ₹20 to ₹24 per share. The minimum lot size for an application is 6000 Shares. The minimum amount of investment required by retail investors is ₹144,000. The minimum lot size investment for HNI is 2 lots (12,000 shares) amounting to ₹288,000.
Expert Global Consultants Private Limited is the book running lead manager of the Neelam Linens and Garments IPO, while Purva Sharegistry India Pvt Ltd is the registrar for the issue. The market maker for Neelam Linens and Garments IPO is Globalworth Securities.
Refer to Neelam Linens and Garments IPO RHP for detailed information.
Neelam Linens and Garments IPO Details
| IPO Date | November 8, 2024 to November 12, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹20 to ₹24 per share |
| Lot Size | 6000 Shares |
| Total Issue Size | 5,418,000 shares (aggregating up to ₹13.00 Cr) |
| Fresh Issue | 5,418,000 shares (aggregating up to ₹13.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 14,800,000 |
| Share holding post issue | 20,218,000 |
| Market Maker portion | 276,000 shares Globalworth Securities |
Neelam Linens and Garments IPO Reservation
Neelam Linens and Garments IPO offers 54,18,000 shares. 10,32,000 (19.05%) to QIB, 7,74,000 (14.29%) to NII, 18,00,000 (33.22%) to RII and 15,36,000 (28.35%) to Anchor investors.
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 15,36,000 (28.35%) |
| Market Maker Shares Offered | 2,76,000 (5.09%) |
| QIB Shares Offered | 10,32,000 (19.05%) |
| NII (HNI) Shares Offered | 7,74,000 (14.29%) |
| Retail Shares Offered | 18,00,000 (33.22%) |
| Total Shares Offered | 54,18,000 (100%) |
Neelam Linens and Garments IPO Anchor Investors Details
Neelam Linens and Garments IPO raises Rs 3.69 crore from anchor investors. Neelam Linens and Garments IPO Anchor bid date is November 7, 2024. Neelam Linens and Garments IPO Anchor Investors list
| Bid Date | November 7, 2024 |
| Shares Offered | 1,536,000 |
| Anchor Portion Size (In Cr.) | 3.69 |
| Anchor lock-in period end date for 50% shares (30 Days) | December 13, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | February 11, 2025 |
Neelam Linens and Garments IPO Timeline (Tentative Schedule)
Neelam Linens and Garments IPO opens on November 8, 2024, and closes on November 12, 2024.
| IPO Open Date | Friday, November 8, 2024 |
| IPO Close Date | Tuesday, November 12, 2024 |
| Basis of Allotment | Wednesday, November 13, 2024 |
| Initiation of Refunds | Thursday, November 14, 2024 |
| Credit of Shares to Demat | Thursday, November 14, 2024 |
| Listing Date | Monday, November 18, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 12, 2024 |
Neelam Linens and Garments IPO Lot Size
Investors can bid for a minimum of 6000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 6000 | ₹144,000 |
| Retail (Max) | 1 | 6000 | ₹144,000 |
| HNI (Min) | 2 | 12,000 | ₹288,000 |
| Lot Size Calculator | |||
Neelam Linens and Garments IPO Promoter Holding
The Promoters of the company are Kantilal Jethva and Bhavin Jethwa.
| Share Holding Pre Issue | 74.18% |
| Share Holding Post Issue | 54.29% |
About Neelam Linens and Garments (India) Ltd
Incorporated in 2010, Neelam Linens and Garments (India) Limited is a manufacturer and exporter of high-end soft home fashion around the world. The company offers a wide range of products, including bedsheets, pillow covers, duvet covers, towels, rugs, shirts, and other garments, mainly catering to discount retail outlets.
Neelam Linens and Garments India Limited is engaged in supplying high-thread-count bedding and towel products to discount retail stores and distributors in the USA and Australia.
The Company also engages in trading licenses in the license market. In this process, the Company buys licenses from exporters and then sells them to importers, earning a margin on the price difference.
The company’s international clients include Tuesday Morning, TJX, Pem America, Occean State Job Lot, LinCraft Australia, Big Lots, 99 Cents, and U. S. Polo Assign. The company’s domestic client includes Vijay Sales, Amazon, Meesho, and Amersons store.
The company operates two manufacturing units located in Mumbai, Maharashtra. As of June 30, 2024, the company had an employee base of 56 employees, out of that fixed employees are 8 and 48 are called on a contract basis.
Competitve Strengths:
- Purchase of higher quality thread count fabric at a lower price.
- Experienced promoters and dedicated employee base.
Neelam Linens and Garments (India) Ltd Financial Information (Restated Consolidated)
Neelam Linens and Garments (India) Ltd’s revenue decreased by -0.63% and profit after tax (PAT) rose by 3.43% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 12,050.23 | 12,116.76 | 9,967.97 | 7,860.13 | 6,467.92 |
| Revenue | 2,195.39 | 10,474.42 | 10,541.13 | 10,379.69 | 8,017.82 |
| Profit After Tax | 80.46 | 246.05 | 237.88 | 298.58 | 41.53 |
| Net Worth | 2,428.80 | 2,348.34 | 2,102.30 | 1,468.42 | 1,169.84 |
| Reserves and Surplus | 948.80 | 868.34 | 1,362.30 | 1,448.42 | 1,149.84 |
| Total Borrowing | 7,566.04 | 6,964.94 | 6,534.02 | 5,110.22 | 5,259.22 |
| Amount in ₹ Lakhs | |||||
Key Performance Indicator
The market capitalization of Neelam Linens and Garments IPO is Rs 48.52 Cr.
KPI as of June 30, 2023.
| KPI | Values |
|---|---|
| ROE | 2.99% |
| ROCE | 3.84% |
| Debt/Equity | 3.12 |
| RoNW | 3.31% |
| P/BV | 1.46 |
| PAT Margin (%) | 3.69 |
Check Neelam Linens and Garments IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 1.66 | 1.59 |
| P/E (x) | 14.44 | 15.08 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of June 30, 2024 that is available in RHP.
Objects of the Issue (Neelam Linens and Garments IPO Objectives)
The company intends to utilize the proceeds of the issue to meet the following objects:
- Funding capital expenditure requirement of our Company towards the purchase of Embroidery Machines for expansion;
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company;
- General corporate purposes;
Neelam Linens and Garments IPO Review (Avoid)
[Dilip Davda] The company is engaged in a highly competitive and fragmented segment of processing and trading in home furnishings and related services. It is also dealing in sale of import licenses. The company posted static but inconsistent financial performances so far. Its debt equity ratio of 3.12 as of June 30, 2024 raises major concern. Based on FY25 super annualized earnings, the issue appears fully priced. There is no harm in skipping this “High Risk/Low Return” offer. Read detail review…
Neelam Linens and Garments IPO Subscription Status (Bidding Detail)
The Neelam Linens and Garments IPO is subscribed 1.27 times on November 8, 2024 12:53:59 PM (Day 1). The public issue subscribed 2.41 times in the retail category, 0.00 times in the QIB category, and 0.29 times in the NII category. Check Day by Day Subscription Details (Live Status) Reload Subscription
| Category | Subscription (times) | Shares Offered | Shares bid for | Total Application |
|---|---|---|---|---|
| QIB | 0.00 | 10,32,000 | 0 | 0 |
| NII* | 0.29 | 7,74,000 | 2,22,000 | 17 |
| Retail | 2.41 | 18,00,000 | 43,44,000 | 724 |
| Total | 1.27 | 36,06,000 | 45,66,000 | 741 |
*Market Maker portion is not included to NII/HNI.
Neelam Linens and Garments IPO Prospectus
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Neelam Linens and Garments (India) Ltd Contact Details
Neelam Linens and Garments (India) Ltd
446-447, 4th Floor,
Shah & Nahar Industrial Estate Sitaram Jadav Marg
Lower Parel, Delisle Road, Mumbai- 400013
Phone: +91 2224942454
Email: compliance@neelamgarments.com
Website: http://neelamgarments.com/
Neelam Linens and Garments IPO Registrar
Purva Sharegistry India Pvt Ltd
Phone: +91-022-23018261/ 23016761
Email: support@purvashare.com
Website: https://www.purvashare.com/investor-service/ipo-query