The Rs 170 crore Aastha Spintex IPO is in its final day of bidding and is drawing solid investor interest so far. The issue has been subscribed 3.06 times overall, with bids for 4.16 crore shares against 1.36 crore shares on offer, reflecting healthy demand. The Retail Individual Investors (RII) portion was subscribed at 1.73 times, with 54.40 lakh shares reserved for the category.
The Grey Market Premium (GMP) is indicating a potential ~5% listing gain if market sentiment holds steady. Based on the prevailing GMP, the stock is expected to debut at around Rs 142, compared with the upper end of the price band at Rs 136.
The public issue, worth Rs 170 crore, is an entirely fresh issue of equity shares with no offer-for-sale (OFS) component. The IPO is priced in the Rs 125–Rs 136 per share band and closes for subscription on July 1. The company’s shares are proposed to be listed on both the BSE and NSE.
The company plans to deploy the IPO proceeds to acquire Falcon Yarns, meet working capital requirements, and support general corporate purposes.
Aastha Spintex IPO Subscription Status
Retail Individual Investors (RIIs):
The retail category was subscribed 1.73 times, with bids for 54.40 lakh shares reserved for individual investors.
Non-Institutional Investors (NIIs):
The NII segment emerged as the strongest contributor, recording a subscription of 5.41 times against 54.40 lakh shares on offer.
Qualified Institutional Buyers (QIBs):
The institutional portion was subscribed 1.04 times, with bids for 27.20 lakh shares allocated to this category.
Aastha Spintex IPO GMP Today
The Grey Market Premium (GMP) for the Aastha Spintex IPO is currently hovering around 5%, indicating the possibility of modest listing gains if sentiment remains stable. Based on the prevailing GMP, the stock is expected to list around Rs 142, compared with the upper price band of Rs 136.
The Grey Market Premium (GMP) is an unofficial indicator based on grey market activity. It is speculative in nature and should not be considered an official benchmark or a guarantee of listing performance.
About Aastha Spintex
Gujarat-based Aastha Spintex is engaged in the manufacturing of cotton spun yarn and operates an integrated spinning facility in Halvad. The company's product portfolio includes carded, combed and compact cotton yarn, catering to the weaving, knitting, hosiery and garment manufacturing industries across domestic as well as international markets.
On the financial front, Aastha Spintex has delivered robust growth over the past three financial years. Its total income increased to Rs 352.2 crore in FY25 from Rs 239.7 crore in FY23, while net profit surged to Rs 22.9 crore from Rs 1.1 crore during the same period. The company reported a return on equity (RoE) of 12.8%, with the IPO priced at a P/E multiple of around 18.8x FY25 earnings.
A key growth driver is the proposed acquisition of Falcon Yarns, which is expected to expand the company's annual spinning capacity from nearly 7,700 metric tonnes (MT) to 17,457 MT, strengthening its production capabilities and supporting future revenue growth.
Despite its growth prospects, the company faces certain risks, including volatility in cotton prices, reliance on a single manufacturing facility, and customer concentration through a major reseller outside Gujarat. In the long run, increasing demand for synthetic fibres could also impact the cotton yarn business.
Brokerage View
Swastika Investmart has recommended a "Subscribe" rating for investors with a medium- to long-term investment horizon. According to the brokerage, the proposed acquisition of Falcon Yarns is likely to more than double the company's spinning capacity, creating a strong platform for future growth.
The brokerage also highlighted Aastha Spintex's improving profitability and its focus on renewable energy. Nearly 80% of the company's energy requirements are met through solar and wind power, a move expected to lower production costs and improve operational efficiency. At a valuation of around 18.8x FY25 earnings, Swastika Investmart believes the IPO is reasonably priced considering the company's growth potential.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
