Cedaar Textiles IPO

About Cedaar Textile IPO

Cedaar Textile Limited IPO is an IPO of TBA. It consists of a fresh issue of up to 43,50,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Cedaar Textile IPO

• Installation of a grid-tied solar PV rooftop system for captive evacuation.
• Modernisation of machinery.
• Meeting working capital requirements.
• General corporate purposes.
• Issue-related expenses

Industry Outlook

The fundamental strength of the textile industry in India lies in its strong production base, encompassing a wide range of fibres and yarns, from natural fibres like cotton, jute, silk, and wool, to synthetic or man-made fibres such as polyester, viscose, nylon, and acrylic. Natural fibres used in the technical textile industry include cotton, jute, silk, and coir. Cotton is the most important natural fibre used in India. The country is the largest producer of cotton globally, accounting for about 22% of the world’s cotton production. Gujarat, Andhra Pradesh, and Maharashtra are the leading cotton-producing states. India is also the second-largest producer of man-made fibres globally. The key man-made fibres and filaments used as raw materials in the technical textile industry are viscose, polyester, nylon, acrylic/modacrylic, and polypropylene. Key polymers used as raw materials include HDPE (High-Density Polyethylene), LDPE (Low-Density Polyethylene), LLDPE (Linear Low-Density Polyethylene), and PVC (Polyvinyl Chloride). Viscose is an important raw material for Clothtech and also finds application in the manufacture of wipes (Hometech) due to its high absorbency. Polyester is one of the most widely used synthetic fibres in both conventional and technical textiles. It is used in the form of either Polyester Staple Fibre (PSF) or Polyester Filament Yarn (PFY). Over the long term, with major importing regions experiencing economic recovery, coupled with rising consumption driven by growth in the blended and non-cotton segments of the industry, the overall production of PSF, in volume terms, is estimated to grow at a CAGR of 1.5% to 2.5% between fiscals 2024 and 2028.

Company Information

Cedaar Textile Limited offers the widest range of raw white yarns, melange yarns, solid top-dyed yarns, and grey fancy yarns in cotton, polyester, acrylic, viscose, tencel, modal, and other fibres. All yarns are offered with sustainability as the prime focus, using 100% organic and recycled fibres (polyester and cotton) for a green environment and the conservation of natural resources. Their focus is on innovation, customer orientation, R&D, technology upgradation, digitalisation, ERP, continuous improvement, and moving towards green energy. They manufacture and sell products such as yarn, technical textile IFR, fabrics, and dyed yarn.

Risks of Cedaar Text IPO

• There is a huge dependency on cotton in this industry.
• Labour laws are not very favourable.
• Power and interest rates, as well as indirect taxes, are high.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Fast Track Finsec Private Limited

Registrar for the IPO is Skyline Financial Services Private Limited

Business Model

The company earns its revenue by manufacturing quality melange yarn for use in household textiles, woven goods, and hosiery.

Company Growth Trajectory

Net revenue from operations for the period ended September 30, 2024, stood at ₹78.153 crores, whereas in the financial year 2023-24, it stood at ₹189.684 crores, which is almost equivalent to 41.20% of the revenue from operations registered in the full financial year 2023-24. Other income for the period ended September 30, 2024, stood at ₹1.575 crores, whereas in the financial year 2023-24, it stood at ₹1.329 crores, which represents 1.98% and 0.70% of the total income of the corresponding periods, respectively. The restated profit after tax for the period ended September 30, 2024, stood at ₹5.084 crores, whereas in the financial year 2023-24, it stood at ₹11.050 crores, which represents 6.80% and 5.78% of the total income of the corresponding periods, respectively.

Company Market Position

The company exports products to various countries, including Australia, Bangladesh, Chile, China, Egypt, Hong Kong, Indonesia, Italy, Kenya, South Korea, Morocco, and others. A major portion of their revenue, as evidenced by the export revenue percentage over the past few years (33.71% for the stub period ending on 30th September 2024, 36.00% for the year ending 31st March 2024, 36% for 31st March 2023, and 59% for 31st March 2022), comes from international markets. Their team, through their vast experience owing to timely and quality delivery of services, plays an instrumental role in creating and expanding a work platform for it.

How To Check Allotment Status of Cedaar Textile IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Skyline Financial Services Private Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Cedaar Textile Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Skyline Financial Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Cedaar Textile Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Cedaar Textile IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.