Cedaar Textile Limited IPO

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Core Business Activities:

Cedaar Textile Limited was originally incorporated on September 28, 2020. The company operates across three key segments:

a) Yarns: This includes Melange Yarns, Solid Top Dyed Yarns, Grey Fancy Yarns, Raw White Yarns (NE 16s to NE 40s), Sweater Yarns (2/20 Ne to 2/40 Ne), Specialty Yarns, Cone Dyed Yarns (capacity: 4 MT/day), and Sustainable Yarns made from organic, recycled, and blended fibers.

b) Fabrics: Cedaar offers Single Jersey, Interlock, and Rib Fabrics, along with customized fabric solutions developed through job work arrangements.

c) Technical Textiles: The company produces IFR (Inherently Flame Retardant) Yarns and Fabrics, and multi-blend yarns used in industrial, protective wear, home furnishings, and women’s and children’s apparel.

These products cater to both domestic and international markets, particularly top-tier garment manufacturers producing for leading fashion brands.

Sustainability Focus:

Sustainability is central to Cedaar’s mission. The company emphasizes:

– Use of Organic, BCI, and GRS-Certified Recycled Fibers
– Adoption of eco-friendly dyes and fabrics
– Commissioning of a solar power plant
– Effluent Treatment Plant for waste management

Business Strategy:

i) Operational Efficiency: Focus on cost optimization, lean production, and improved supply chain management.
ii) Capacity Expansion: Investment in new machinery and technology upgrades to increase output, especially in dyeing operations.
iii) Green Energy Transition: Shifting to solar power to manage rising energy costs and reduce environmental impact.
iv) Product Diversification: Expansion into 100% recycled yarns and fabric dyeing to meet growing global demand.
v) Digital Transformation & R&D: Incorporation of ERP systems, automation, and continuous process innovation.

Objects of the Cedaar Textile Limited IPO:

The Company intends to utilize the net proceeds of the Issue for the following purposes: 1. Installation of Grid-tied Solar PV Rooftop System for Captive evacuation (₹8 cr) 2. Modernization of the Machines (₹17 cr) 3. To meet Working Capital Requirement (₹24.90 cr) 4. General Corporate Purposes.

Cedaar Textile Limited IPO Details:

Open Date: Jun 30 2025
Close Date: Jul 02 2025
Total Shares: 43,50,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 60.90 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 130-140 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

1. Mr. Rajesh Mittal (Managing Director):
An MBA in Marketing from IGNOU and a graduate of Kurukshetra University, Mr. Mittal brings over 28 years of experience in the textile industry, including roles at Vardhman Textiles and MR Fabrics & Apparels. As Managing Director, he leads marketing, business development, and strategic decision-making. 2. Mr. Virender Goyal (Executive Director & CFO):
A B.Tech (Textile Chemistry) graduate from Maharishi Dayanand University, Mr. Goyal has 33 years of experience in engineering, project execution, and business strategy. Formerly associated with Epic Group and Maral Overseas, he now oversees production, finance, and technology at Cedaar Textile. 3. Mr. Monnappa Nachappa Bachangada (Non-Executive Director):
With 30 years of entrepreneurial experience, Mr. Monnappa is the founder of Cotton World (est. 1995), known for children's wear. He contributes to Cedaar Textile’s product development, financial planning, and strategic expansion.

Financials of Cedaar Textile Limited IPO:

Particulars 9M FY2024-25 FY 2023-24 FY 2022-2023 FY 2021-2022
Revenue from Operations 112.02 189.68 160.24 217.4
EBITDA 19.58 28.81 15.63 15.25
EBITDA Margins 17.49% 15.19% 9.76% 7.02%
PAT 7.06 11.05 4.58 7.98
PAT Margins 6.30% 5.83% 2.86% 3.67%
ROCE 18.21% 26.90% 15.91% 18.22%
Debt to Equity Ratio(In Times) 1.99 5.79 9.66 12.61
Operating Cash Flows 10.98 4.85 -1.96 -15.42

Comparison With Peers:

Companies Revenue (in cr) EBITDA Margins PAT Margins D/E Ratio MCap (in cr) P/E
Cedaar Textile Limited(FY24) 189.68 15.19% 5.83 5.79 194.3 17.58
Shiva Texyarn Limited(FY25) 323 34% 3.65% 0.78 266 22.6
Vardhman Textiles Limited(FY25) 9785 13.00% 9.06% 0.13 14,447 16.3
NOTE: Forward P/E is 20.64 on the basis of FY 25

Lead Manager of Cedaar Textile Limited IPO:

  1. Fast Track Finsec Private Limited

Registrar of Cedaar Textile Limited IPO:

  1. Skyline Financial Services Private Ltd

Discussion on Cedaar Textile Limited IPO:

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