IPO Details
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IPO Size
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Schedule of Spunweb Nonwoven Ltd
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Spunweb Nonwoven Limited IPO
Spunweb Nonwoven Limited IPO is an IPO of up to 63,51,600 equity shares. It consists of a fresh issue of 63,51,600 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 Spunweb Nonwoven Limited IPO
- Funding the working capital requirements of the company.
- Investment in their wholly owned subsidiary, SIPL, for funding its working capital requirements.
- Repayment, in full or in part, of certain borrowings availed by the company.
- General corporate purposes.
Spunweb Nonwoven Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | - |
Fresh Issue | Up to 63,51,600 |
EPS (₹) For the year ended March 31, 2024 | 3.30 |
Spunweb Nonwoven Limited IPO Lot Size
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Investors (NIIs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
Industry Outlook
Domestic consumption of non-woven fabric in India experienced a significant increase, rising from 548 thousand tons in CY19 to 989 thousand tons in CY23, which represents a robust CAGR of 15.9%. Concurrently, revenue from this sector grew from USD 14,690 crores in CY19 to USD 26,700 crores in CY23, reflecting a CAGR of 16.1%. Looking ahead, domestic consumption of non-woven fabric is projected to grow at a CAGR of 11.2% from CY24 to CY29. The overall forecast for the non-woven industry is optimistic, with global sales projected to grow at a CAGR of 5.1% from CY 2024-29, characterised by robust growth driven by diverse applications across various sectors, including healthcare, hygiene, medical, automotive, construction, and agriculture.
Company Information
Spunweb Nonwoven Limited, along with their wholly owned subsidiary, Spunweb India Private Limited (SIPL), are engaged in the business of manufacturing of polypropylene spunbond nonwoven fabrics primarily used in industries such as hygiene, healthcare, packaging, agriculture, and others (including roofing & construction, industrial, and home furnishing). They are one of the largest manufacturers of spunbond nonwoven fabric industry in India, with an installed production capacity of 32,640 MT as of FY24 (Source: CareEdge Report).
Spunweb Nonwoven Ltd Strengths
They are one of the largest manufacturers of spunbond nonwoven fabrics in India.
They provide tailored spunbond nonwoven fabric manufacturing for industry-specific needs.
Advanced spunbond technology, along with cleanroom technology for the manufacturing process.
Risks of Spunweb Nonwoven Limited IPO
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The company and SIPL are dependent on limited number of suppliers for supply of raw materials, and they have not made any long-term supply arrangement or agreement with their suppliers. In an eventuality where their suppliers are unable to deliver them the required materials, at a competitive price, in a time-bound manner, it may have a material adverse effect on their business operations and profitability. The majority of their raw materials are sourced from a few key suppliers. Discontinuation of the operations of such suppliers may adversely affect their ability to source raw materials at a competitive price.
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They are exposed to competition from both domestic and international manufacturers and new entrants, and consequent pricing pressures could have a material adverse effect on their business growth and prospects, financial condition, and results of operations.
The nonwoven fabric industry is highly competitive, and they face intense competition from the existing domestic and international manufacturers with a significant market presence and new entrants. These competitors offer a variety of products, utilise advanced technologies, and have larger production capacities, which may impact their business growth and results of operations.
The production of hygiene and health-related products is subject to a wide range of regulatory and industry standards. These regulations are designed to ensure the safety and quality of products as well as to protect the health and well-being of end users. Compliance with these standards is essential, and any deviation could result in serious consequences, which, among other things, include product recalls, regulatory penalties, and damage to their reputation.
All Financial Information about Spunweb Nonwoven
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Spunweb Nonwoven Private Limited | Fiberweb India Limited |
|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 1,480.3 | 859.9 |
EBITDA Margin | 9.8% | 13.3% |
PAT Margin | 4.0% | 8.5% |
Anchor Investor Information
The Anchor Investor Bid/Issue Period will open one Working Day prior to the Bid/Issue Opening Date
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Vivro Financial Services Private Limited
Registrar for the IPO is MUFG Intime India Private Limited
Business Model
The company earns its revenue by offering the following products:
- Hydrophobic nonwoven fabric, hydrophilic nonwoven fabric, super-soft nonwoven fabric, UV treated fabric, antistatic nonwoven fabric and FR treated. They are also engaged in supply of various types of nonwoven fabric bags.
Company Growth Trajectory
Their revenue from operations has grown from ₹113.82 crores in fiscal 2022 to ₹148.61 crores in fiscal 2024, registering a CAGR of 14.27% over the last three years. Their EBITDA has grown from ₹6.39 crores in fiscal 2022 to ₹15.01 crores in fiscal 2024, registering a CAGR of 53.25%. Their PAT has grown from ₹3.33 crores in fiscal 2022 to ₹5.44 crores in fiscal 2024, registering a CAGR of 27.82%. During the nine-month period ended December 31, 2024, their revenue from operations, EBITDA, and profit after tax further increased to ₹157.10 crores, ₹20.48 crores, and ₹7.29 crores, respectively.
Company Market Position
The company is one of the largest manufacturers in the spunbound nonwoven fabric industry in India, catering to domestic and international markets, with an installed production capacity of 32,640 MT as of FY24 (Source: CareEdge Report).In the domestic market, they have catered to more than 280, 400, 450, and 500 customers during fiscal 2022, fiscal 2023, fiscal 2024 and the nine-month period that ended December 31, 2024. In the international market, they have catered to more than 10, 15, 20, and 20 customers during fiscal 2022, fiscal 2023, fiscal 2024 and the nine-month period that ended December 31, 2024, respectively. The customers are based in countries such as the United States of America, United Arab Emirates, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, and Nigeria.
Spunweb Nonwoven Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 113.822 | 115.918 | 148.61 |
Profit Before Tax (₹ crores) | 0.0471 | 0.0171 | 0.0745 |
Net profit / (loss) (₹ crores) | 3.331 | 1.127 | 5.442 |
EBITDA (₹ crores) | 6.389 | 10.802 | 15.005 |
EPS (₹) | 2.02 | 0.68 | 3.30 |
Spunweb Nonwoven Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 4.705 | 1.708 | 7.447 |
Net Cash from Operating Activities (₹ crores) | 14.784 | 17.109 | 9.943 |
Net Cash from Investing Activities (₹ crores) | (39.006) | (6.458) | (4.3917) |
Net Cash from Financing Activities (₹ crores) | 24.022 | (10.675) | (5.478) |
Cash and Cash Equivalents (₹ crores) | 0.121 | 0.097 | 0.171 |
How To Check Allotment Status of Spunweb Nonwoven Limited 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 MUFG Intime India 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 Spunweb Nonwoven 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 MUFG Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Spunweb Nonwoven Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Spunweb Nonwoven Ltd IPO FAQs
What is the Spunweb Nonwoven Limited IPO?
The Spunweb Nonwoven Limited IPO has an issue size of up to 63,51,600 equity shares. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Spunweb Nonwoven Limited IPO?
MUFG Intime India Private Limited is the registrar for this IPO.
Where can I read more about Spunweb Nonwoven Limited business?
You may read more about Spunweb Nonwoven Limited and its IPO from the company’s draft red herring prospectus (DRHP) here.
