Shanti Spintex Limited IPO

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  1. Company Background:
    • Incorporated in 2010, the company initially started as a fabrics trading concern in the fiscal year 2014-15.
  2. Fabric Weaving Unit:
    • In 2016, the company established a fabric weaving unit at Dholi – Integrated Spinning Park, Dholka, Ahmedabad.
    • The Dholi unit houses 96 airjet looms with an annual installed capacity of weaving 1,92,72,000 meters of denim fabrics.
  3. Weaving Process:
    • Describes the weaving process as the conversion of yarn into fabrics using airjet looms, where compressed air inserts the weft yarn into the warp yarn to create raw fabrics (grey fabrics).
  4. Product Range:
    • Manufactures various types of denim fabrics, including power stretch spandex denim, knit denim, light-weight denim, rigid denim, overdyed denim, and flat finish 3/1 denim.
    • Offers fabrics in different designs such as twill weave, knit dobby weave, structure dobby weave, broken twill weave, and satin weave.
    • Provides denim fabrics in a spectrum of shades with weights ranging from 4.50 Oz/sq. yd to 14.50 Oz./sq. yd. and widths from 62” (157cm) to 78” (198 cm).
  5. Yarn and Procurement:
    • Utilizes diverse types of yarns such as cotton yarn, ring yarn, viscose yarn, slub yarn, cotton spandex, polyester spandex, tencel, lyocell, procured from the domestic market.
    • Directly procures grey fabrics from the market, which undergo finishing processes before being sold to customers.
    • Outsourcing yarn dyeing and grey fabrics finishing processes to third parties.
  6. Customer Base:
    • Currently, derives almost 100% of revenue from customers in Gujarat, including manufacturers, wholesalers, or traders.
  7. Renewable Energy Initiatives:
    • In November 2022, commissioned a 2 MW wind energy power plant in the village Likhala, Taluka Savarkundla, District Amreli, Gujarat.
    • Outsourced operations and maintenance of the Wind Farm to a third party.
    • Recently installed an 852 kW rooftop solar plant at the Dholi unit to reduce power costs and promote environmental sustainability.
  8. Management and Promoters:
    • Initially founded by Amit Bindal, Sanjay Bindal, and Rajesh Bindal.
    • In 2014, Mr. Bharat Bhushan Agarwal and Mr. Rikin Agarwal took over as the existing promoters.
    • The existing promoters bring extensive experience (43 years and 9 years) in the textile industry, contributing to the company’s growth through knowledge, industry contacts, and decision-making skills.

Objects of the Shanti Spintex Limited IPO:

The company proposes to utilize the funds which are being raised through the Fresh Issue, towards funding the following objects: 1. To meet Working Capital requirements 2. General Corporate Purposes.
DRHP of Shanti Spintex Limited IPO
RHP of Shanti Spintex Limited IPO

Shanti Spintex Limited IPO Details:

Open Date: Dec 19 2023
Close Date: Dec 21 2023
Total Shares: 4,464,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 31.25 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 66 - 70 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 27 2023

Promoters And Management:

Bharat Bhushan Omprakash Agarwal is the Chairman, Whole Time Director & CFO of the Company. He has been on the Board since 2014. He is a visionary entrepreneur and has played a pivotal role in expanding business operations of the Company. He has a work experience of over 43 years in the textile industry and has completed his Higher Secondary + 1 education from Marwari Vidhyalaya High School, Mumbai in year 1978. He currently looks after the overall administration and finance operations of the Company. Under his guidance, the Company has witnessed continuous growth. Rikin Bharatbhushan Agarwal is the Managing Director of the Company. He has been on the Board since 2014. He has completed his Bachelor of Commerce in 2011 from H. L. Institute of Commerce, Ahmedabad, Gujarat. He has an experience of around 9 years in the textile industry. He is currently looking after the production and marketing function of the Company. Bhavik Rameshbhai Talati is the Non-Executive Director of the Company. He has an experience of around 24 years in the textile industry. He has completed his Diploma in Textile Manufacturing Technology from R.C. Technical Institute, Ahmedabad in 1999.

Financials of Shanti Spintex Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 11,280 25,491 37,033 16,232
Other Income 14 36 38 6
Total Revenue 11,294 25,527 37,071 16,238
Cost of material consumed 8,193 22,326 33,289 14,486
Changes in Inventories 165 -127 -1,073 -482
Employee benefits expenses 201 219 255 109
Other Expenses 1,591 1,882 2,397 986
EBITDA 1,144 1,226 2,203 1,139
Depreciation & Amortisation 409 408 452 236
Finance Cost 267 241 337 185
EBIT 735 817 1,751 903
OPM (%) 10.13% 4.80% 5.94% 7.01%
PBT 469 577 1414 718
Tax 131 90 401 194
PAT 338 487 1013 524
NPM (%) 2.99% 1.91% 2.73% 3.23%
No.of Shares 168.88 168.88 168.88 168.88
EPS 1.99 2.88 5.99 3.10

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Shanti Spintex Limited 370 10 5.99 11.7 70 118
Jindal Worldwide Ltd 2,070 116 5.77 95.0 321 6,433
R&B Denims Limited 263 15 2.13 25.3 42.5 297
Manomay Tex India Limited 699 13 7.18 23.8 164 296
United Polyfab Gujarat Ltd 653 5 2.62 27.3 102 213
* All the data is as per FY23.

Lead Manager of Shanti Spintex Limited IPO:

  1. Hem Securities Limited

Registrar of Shanti Spintex Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Shanti Spintex Limited Sub Plot 1, Unit 1, Survey No. 297, Dholi Integrated Spinning Park Limited, Dholi, Dholka, Ahmedabad – 382 240, Phone: +91-98258 01039 Email: info@shantispintex.com Website: https://www.shantispintex.com/

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