Spunweb Nonwoven Limited’s IPO received a strong response from investors. The IPO, which opened on July 14 and closed on Wednesday, July 16, was subscribed more than 142 times on the final day. The company had set the IPO price band at ₹90 to ₹96 per share.
On the final day, the SME IPO received bids for 651.96 lakh (million) shares against the 4.22 lakh shares on offer, resulting in a 130.3 times subscription overall. The issue saw major interest from:
Retail investors, who subscribed their portion 170.42 times
Non-institutional investors (NIIs), who subscribed 216.8 times
Qualified Institutional Buyers (QIBs), who subscribed 34.38 times
Grey Market Premium and IPO Lot Details
As per grey market trends on July 16, Spunweb’s unlisted shares were trading at ₹139, which is a premium of ₹43 (44.8%) over the IPO’s upper price band of ₹96.
Investors could bid for a minimum of 2,400 equity shares, and in multiples of 1,200 shares thereafter. The IPO is entirely a fresh issue consisting of 63,51,600 equity shares.
Use of IPO Proceeds and Company Profile
Spunweb plans to use the IPO funds for the following:
₹29 crore for its own working capital needs
₹10 crore for the working capital of its wholly-owned subsidiary, Spunweb India Private Limited (SIPL)
₹8 crore for loan repayment (fully or partially) and general corporate purposes
Founded in 2015, Spunweb Nonwoven, along with SIPL, manufactures polypropylene spunbond nonwoven fabrics. These fabrics are mainly used in hygiene, healthcare, packaging, agriculture, roofing, construction, industrial, and home décor sectors.
As of FY24, the company has an installed production capacity of 32,640 metric tonnes, making it one of India’s major manufacturers in the spunbond nonwoven fabric industry.
