Neelam Linens and Garments India Ltd IPO: Issue dates, price and lot size 

Neelam Linens and Garments is set to launch its highly anticipated IPO, offering investors a fresh opportunity to participate in its growth journey. The IPO, structured as a book-built issue, opens for subscription in early November and is scheduled to list on prominent stock exchanges later in the month. This IPO comprises a fresh issue, signalling the company’s aim to strengthen its financial foundation and support its expansion goals. 

With its price band announced, investors have the chance to engage in this offering through specified lot sizes tailored to retail, HNI, and institutional categories. As Neelam Linens and Garments prepares for public participation, potential investors can evaluate its track record and financial position to make informed decisions, adding a valuable opportunity to their IPO investment portfolio.

Neelam Linens and Garments India Ltd IPO details

Neelam Linens and Garments India Ltd is presenting an opportunity for investors to join its growth journey. The IPO seeks to raise ₹13 crore through a fresh issue of shares, with plans to list on the NSE SME platform. Here’s an overview of the key details for this IPO:

Neelam Linens and Garments India Ltd IPO timeline (Tentative)

Here is the key schedule for the IPO process, from the opening date to the expected listing on the stock exchange. For those applying through UPI, remember the cut-off time for mandate confirmation to ensure your application is successfully submitted: 

Neelam Linens and Garments India Ltd review

Neelam Linens and Garments India Ltd, established in September 2010, is a Maharashtra-based company specialising in soft home furnishings and apparel. Known for being the first Indian company to introduce high-thread-count bedding, Neelam Linens manufactures and supplies a variety of products, including bedsheets, pillow covers, duvet covers, towels, rugs, and even shirts. Their customer base spans both domestic and international markets, with well-known clients including Vijay Sales, Amazon, and U.S. Polo Assn. in India and global retailers like TJX and LinCraft Australia.

The company operates out of two manufacturing units in Bhiwandi, Thane, with a production capacity of 4,000 sets per day, expandable to 6,000. It also generates revenue through the sale of import licences, which help it import goods that require government authorisation. Neelam Linens’ revenues have shown strong growth, reflecting a solid foothold in the soft furnishings market as it continues to expand its presence locally and internationally.

Neelam Linens and Garments India Ltd: Financials

Neelam Linens and Garments India Ltd's financial performance highlights a growth trend in assets and net worth, alongside some fluctuations in revenue and profit after tax. The table below presents the company's restated standalone financial information for the financial years ending March 31 for 2022, 2023, and 2024: 

Neelam Linens and Garments India Ltd strengths and weaknesses

As Neelam Linens and Garments India Ltd prepares for its IPO, it's essential to evaluate both its strengths and weaknesses. Understanding these aspects can provide investors with valuable insights into the company's potential for growth and the challenges it may face in the competitive textile industry.

• Strengths: Neelam Linens and Garments India Ltd has several strengths that enhance its competitive edge in the textile market. Its direct retail sales model fosters strong customer relationships and brand loyalty, while a focus on operational efficiencies improves financial performance. The company’s diverse product portfolio meets various customer needs, and its emphasis on high-quality thread count fabrics ensures superior offerings. Led by an experienced team of promoters and managers, Neelam Linens benefits from strong strategic guidance and strong infrastructure. 
• Weaknesses: Neelam Linens faces notable challenges, including a low-interest coverage ratio that raises concerns about its ability to manage debt obligations effectively. This situation could signal potential financial instability to investors. Additionally, there are indications that the company might be capitalising on interest costs, which further complicate its financial health and reduce transparency. Such practices may obscure the company's true financial position, potentially impacting investor confidence.

Should you invest in Neelam Linens and Garments India Ltd?

Investing in Neelam Linens and Garments India Ltd presents both opportunities and challenges. The company's direct retail sales model enhances customer engagement and brand loyalty. At the same time, its focus on operational efficiency and a diverse product portfolio positions it well in the competitive textile market. Additionally, sourcing high-quality fabrics reflects a strong commitment to product excellence.

However, investors should always remain cautious due to the company’s low interest coverage ratio, which raises concerns about its ability to manage debt effectively. The possibility of capitalising interest costs also suggests potential transparency issues in its financial reporting.

While Neelam Linens has strengths that could drive growth, its weaknesses necessitate careful consideration. Investors must assess their risk tolerance before deciding, especially as they weigh this investment against other upcoming IPOs in the market.

FAQs

1. What is the expected listing date for the Neelam Linens and Garments India Ltd IPO SME?

The Neelam Linens and Garments India Ltd IPO SME is expected to be listed on the NSE SME platform on November 18, 2024.

2. What is the price band for the Neelam Linens and Garments India Ltd IPO?

The price band for the Neelam Linens and Garments India Ltd IPO is set between ₹20 and ₹24 per share. 

3. How can I participate in the Neelam Linens and Garments India Ltd IPO?

Investors can participate in the Neelam Linens and Garments India Ltd IPO by applying through their brokerage accounts during the subscription period from November 8 to November 12, 2024.

4. What is the GMP (Grey Market Premium) for the Neelam Linens and Garments India Ltd IPO?

The Neelam Linens and Garments India Ltd IPO GMP can vary based on market sentiment and demand prior to the listing.