Shri Techtex IPO: The Ahmedabad-headquartered textile manufacturer and exporter Shri Techtex will open for the subscription of its Initial Public Offering for 74 lakh equity shares on SME platform of the National Stock Exchange — Emerge on July 26 and will close on July 28, according to a company release. The anchor investor book will be open one day before the date of listing, that is, tomorrow July 25, 2023.
According to the release, the company has fixed the price band in the range of Rs 54 and Rs 61 per share and is looking to raise Rs 45.14 crore from the issue at the upper price band. Beeline Capital Advisors will be the head of the underwriting process while Link Intime India will act as the registrar to the issue.
Of the total 74 lakh shares to be issued, the company has allocated 35.1 lakh shares for Qualified Institutional Buyers (QIBs) and 10.56 lakh shares to Non-Institutional Investors while 24.62 lakh shares are to be allocated to retail investors.
The company plans to utilise the sum raised from the IPO for the construction of a factory shed (Rs 3.71 crore), commissioning of a solar plant (4.89 crores), purchase of machinery (Rs 6.31 crore), meeting the working capital requirement (Rs 15.31 crore), and other corporate expenses including expense issue.
Techtex works in manufacturing Polypropylene (PP) non-woven fabric in various sizes and densities up to 4.5m in size and 15 GSM to 800 GSM. The product is mostly useful in single-use industries like hospitals, organic farming, healthcare, nursing homes, mattress and furniture. The manufacturing facility is located in Simaj of Dholka taluka in Ahmedabad, which produces 3600 MT PP non-woven fabric every year. The company plans to expand its installed capacity by 1200 tonnes per year and add 24 lakh square meters in the expansion of the facility.
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Hanskumar Agarwal, Executive Director, Shri Techtex Limited said, “We have been on an excellent growth path and have built a robust foundation in terms of products, capacities, clientele and geographical reach in the first decade of our operations. We have invested in the growth assets and transiting to a public company – which will open a new world of ambitions for the company.”