Neelam Linens and Garments IPO: All You Need to Know About This Exciting Investment Opportunity
The IPO market constantly evolves, with new opportunities for investors looking to diversify their portfolios. One such opportunity is the Neelam Linens and Garments IPO, which offers investors an exciting chance to be part of a well-established company in the textile and garments sector. In this article, we’ll dive deep into the key details, pricing, timeline, and more about this IPO to help you make an informed investment decision.
What is the Neelam Linens and Garments IPO?
The Neelam Linens and Garments IPO is a book-built issue with a size of ₹13.00 crores. It is entirely a fresh issue of 5,418,000 shares and will be listed on the NSE SME. Neelam Linens and Garments (India) Ltd, a prominent manufacturer and exporter of high-end soft home fashion, offers these shares to the public to raise capital for further business expansion and other corporate needs.
Key IPO Details
- IPO Open Date: November 8, 2024
- IPO Close Date: November 12, 2024
- Price Band: ₹20 to ₹24 per share
- Lot Size: 6,000 shares (minimum investment ₹144,000)
- Total Issue Size: ₹13.00 crores (5,418,000 shares)
- Listing: NSE SME
- Face Value: ₹10 per share
The minimum lot size for the IPO is 6000 shares, meaning retail investors need to invest a minimum of ₹144,000 for one lot. For HNI (High Net Worth Individuals), the minimum lot size is 12,000 shares (₹288,000).
The IPO is open for subscription until November 12, 2024, with the allotment expected to be finalized by November 13, 2024. Shares will be credited to the Demat accounts by November 14, 2024, and the listing will take place on November 18, 2024.
Neelam Linens and Garments: A Brief Overview
Neelam Linens and Garments (India) Ltd was incorporated in 2010 and has since made a name for itself in the manufacturing and export of soft home fashion products, including bedsheets, pillow covers, towels, shirts, and other garments. The company caters primarily to discount retail outlets in the USA and Australia.
Their international clientele includes well-known names like TJX, Pem America, and Tuesday Morning, while domestic clients include Amazon, Vijay Sales, and Meesho.
The company operates two manufacturing units in Mumbai, Maharashtra, and, as of June 30, 2024, employs 56 people, 8 full-time and 48 on a contract basis.
Financial Highlights
Here’s a quick look at the financial performance of Neelam Linens and Garments over the past few years:
- Revenue (FY 2023): ₹10,541.13 lakhs
- Profit After Tax (PAT, FY 2023): ₹237.88 lakhs
- Net Worth (as of March 31, 2024): ₹2,348.34 lakhs
- Total Borrowing (as of March 31, 2024): ₹6,964.94 lakhs
The company has demonstrated steady growth, with an increase in profit after tax (PAT) by 3.43% in FY 2024 compared to the previous fiscal year.
Investment Opportunity
Neelam Linens and Garments presents a promising investment opportunity, especially for those interested in the textile and garment industry. The company’s international presence and steady revenue growth make it a strong contender for long-term growth in the IPO market.
Given the low price band of ₹20 to ₹24 per share, it presents an affordable investment opportunity for retail investors looking to diversify their portfolios. Investors should evaluate the company’s financial health and future growth potential before making any investment decisions.
How do I apply for the Neelam Linens and Garments IPO?
Investors can apply for the Neelam Linens and Garments IPO through the UPI-based application process. The process involves submitting a bid for a minimum of 6000 shares (₹144,000) or multiples thereof and confirming the mandate on the UPI platform.
Steps to Apply:
- Log in to your UPI-enabled account via your bank or Demat account.
- Choose the Neelam Linens and Garments IPO from the list.
- Select the number of lots you wish to apply for.
- Confirm the bid amount and authorize the payment via UPI.
- Await allotment and listing updates.
Grey Market Premium (GMP) of Neelam Linens and Garments IPO
Before making an investment decision, it’s important to monitor the Grey Market Premium (GMP) of the Neelam Linens and Garments IPO. The GMP reflects the difference between the IPO price and its expected listing price based on market speculation. As of now, the GMP for the Neelam Linens and Garments IPO is trending at a moderate level, but it’s essential to track it closely as the listing date approaches.
To understand how GMP works, check out our article on the Grey Market Premium.
Neelam Linens and Garments IPO Timeline
Here’s a quick rundown of the key dates for the IPO:
- IPO Open Date: November 8, 2024
- IPO Close Date: November 12, 2024
- Basis of Allotment: November 13, 2024
- Initiation of Refunds: November 14, 2024
- Credit of Shares to Demat Accounts: November 14, 2024
- Listing Date: November 18, 2024
It’s crucial to keep track of these dates to ensure timely applications and follow-ups.
Who Should Invest in Neelam Linens and Garments IPO?
The Neelam Linens and Garments IPO is an attractive investment option for those looking to add textile industry exposure to their portfolios. The affordable pricing and the company’s robust international and domestic client base present an exciting growth opportunity. However, like any investment, it’s important to conduct your due diligence before proceeding.
Additionally, you can read more about IPO Flipping and OFs vs IPO Differences to understand the broader dynamics of the IPO market before making an informed decision.
Conclusion:
The Neelam Linens and Garments IPO presents a compelling investment opportunity for retail and HNI investors alike. With an affordable price band, strong client relationships, and steady financial performance, Neelam Linens is well-positioned to offer long-term growth. Ensure you stay updated on the GMP and listing date to make the most informed decision possible.
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FAQs Neelam Linens and Garments IPO:
1. What is the price band for Neelam Linens and Garments IPO?
The price band is ₹20 to ₹24 per share.
2. What is the minimum investment amount required for retail investors?
The minimum investment required is ₹144,000 for 6000 shares.
3. When will Neelam Linens and Garments IPO list on the NSE?
The listing is scheduled for November 18, 2024.
4. How do I apply for the Neelam Linens and Garments IPO?
You can apply through UPI-enabled accounts via your bank or Demat account.
5. What is the Grey Market Premium for this IPO?
The GMP is currently trending at a moderate level. Keep an eye on the market for updates.
