Neelam Linens and Garments IPO Overview

Neelam Linens and Garments is launching its IPO as a book-built issue, aiming to raise Rs 13 crore through a fresh issue of 54.18 lakh shares.

The IPO will open for subscription on November 8, 2024, and close on November 12, 2024. Investors can expect allotments to be finalized by November 13, 2024, with the company planning to list on the NSE SME platform on November 18, 2024.

The price band for Neelam Linens and Garments IPO is set between ₹20 and ₹24 per share. Retail investors can apply for a minimum lot size of 6,000 shares, requiring an investment of ₹144,000. For high-net-worth individuals (HNI), the minimum application is 12,000 shares (2 lots), totaling ₹288,000.

Expert Global Consultants Private Limited is the book-running  lead manager for the IPO, while Purva Sharegistry India Pvt Ltd serves as the registrar. Global worth Securities is appointed as the market maker for this IPO. For comprehensive details, refer to the  Neelam Linens and Garments IPO RHP.

Neelam Linens and Garments IPO Important dates

Neelam Linens and Garments IPO opens on November 8, 2024, and closes on November 12, 2024.

IPO Open Date Friday, November 8, 2024
IPO Close Date Tuesday, November 12, 2024
Basis of Allotment Wednesday, November 13, 2024
Initiation of Refunds Thursday, November 14, 2024
Credit of Shares to Demat Thursday, November 14, 2024
Listing Date Monday, November 18, 2024
Cut-off time for UPI mandate confirmation 5 PM on November 12, 2024

Neelam Linens and Garments IPO Financial Performance

Neelam Linens and Garments (India) Ltd’s revenue decreased by -0.63% and profit after tax (PAT) rose by 3.43% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 30 Jun 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets 12,050.23 12,116.76 9,967.97 7,860.13 6,467.92
Revenue 2,195.39 10,474.42 10,541.13 10,379.69 8,017.82
Profit After Tax 80.46 246.05 237.88 298.58 41.53
Net Worth 2,428.80 2,348.34 2,102.30 1,468.42 1,169.84
Reserves and Surplus 948.80 868.34 1,362.30 1,448.42 1,149.84
Total Borrowing 7,566.04 6,964.94 6,534.02 5,110.22 5,259.22

Neelam Linens and Garments IPO Key Performance Indicator

The market capitalization of Neelam Linens and Garments IPO is Rs 48.52 Cr.

KPI as of June 30, 2023.

KPI Values
ROE 2.99%
ROCE 3.84%
Debt/Equity 3.12
RoNW 3.31%
P/BV 1.46
PAT Margin (%) 3.69
Pre IPO Post IPO
EPS (Rs)  1.66 1.59
P/E (x)  14.44 15.08

Neelam Linens and Garments IPO Objectives

The company intends to utilize the proceeds of the issue to meet the following objects:

  1. Funding capital expenditure requirement of our Company towards the purchase of Embroidery Machines for expansion;
  2. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company;
  3. General corporate purposes;

Neelam Linens and Garments IPO Lot Size

Investors can bid for a minimum of 6000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 6000 ₹144,000
Retail (Max) 1 6000 ₹144,000
HNI (Min) 2 12,000 ₹288,000

Neelam Linens and Garments IPO Details

IPO Date November 8, 2024 to November 12, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹20 to ₹24 per share
Lot Size 6000 Shares
Total Issue Size 5,418,000 shares
(aggregating up to ₹13.00 Cr)
Fresh Issue 5,418,000 shares
(aggregating up to ₹13.00 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 14,800,000
Share holding post issue 20,218,000
Market Maker portion 276,000 shares
Globalworth Securities

Neelam Linens and Garments IPO Company Overview and Services

Incorporated in September 2010, Neelam Linens and Garments (India) Ltd. is a prominent player in the soft home furnishings sector, specializing in processing, finishing, and supplying products such as bedsheets, pillow covers, duvet covers, towels, rugs, doors, shirts, and other garments. The company primarily caters to discounted retail outlets, ensuring affordability for its customers.

Neelam Linens operates with a dual business model: processing and trading products, as well as selling licenses. It runs two manufacturing facilities in Bhiwandi, Thane, Maharashtra, with a daily production capacity of 4,000 sets and an extended capacity of 6,000 sets.

The company’s customer base spans both domestic and international markets. In India, major clients include Vijay Sales, Amazon, Meesho, and Amersons stores, while internationally, it serves well-known names like Tuesday Morning, TJX, Pem America, Ocean State Job Lot, LinCraft Australia, Big Lots, 99 Cents, and U.S. Polo Assn.

Neelam Linens prides itself on its competitive strengths, which include direct sales to customers through its own retail outlets, a commitment to financial improvement through operational efficiency, and a diverse product portfolio that meets customer demands. The company employs a team of 58 as of May 2024, with eight on payroll and 50 on a flexible, daily-wage basis, adapting its workforce as needed to meet production goals.

Neelam Linens and Garments IPO SWOT Analysis

Strengths

  • Established Product Line in Soft Home Furnishings: Neelam Linens offers a diverse product range, including bedsheets, towels, rugs, and garments, appealing to both domestic and international customers across retail and discount markets.
  • Direct Retail Presence: The company sells directly to customers via its retail outlets, allowing for better control over pricing, brand perception, and customer engagement.
  • Expanding Production Capacity: With a daily production of 4,000 sets and a capacity of 6,000 sets, the company is well-positioned to scale as demand grows.
  • Diverse Clientele: Neelam Linens has secured a varied domestic and international client base, including major names like Vijay Sales, Amazon, TJX, and U.S. Polo Assn., which enhances its revenue streams and reduces dependency on any single market.

Weaknesses

  • Reliance on Daily Wage Workforce: With only eight employees on payroll and 50 working on a daily wage basis, the company may face challenges in ensuring consistent quality and efficiency due to turnover or skill variability.
  • Limited Manufacturing Locations: Operating from only two facilities in Maharashtra could expose the company to regional disruptions and may limit its flexibility in scaling production geographically.
  • Dependence on Discount Retailers: Serving primarily discounted retail outlets may put pressure on profit margins, limiting the company’s ability to price its products at premium levels.

Opportunities

  • Growth in Home Furnishings Market: The increasing demand for affordable home furnishings presents an opportunity for Neelam Linens to capture a larger market share, especially as more consumers seek budget-friendly products.
  • Expansion of Manufacturing Capacity: By expanding its production capacity to 6,000 sets daily, the company can meet higher demand, explore new markets, and increase overall revenue.
  • Increased Direct-to-Consumer Sales: Further development of direct retail channels could boost brand loyalty and profitability by reducing reliance on third-party retailers and discount channels.
  • International Market Expansion: With established international clients, Neelam Linens has a strong foundation to further penetrate global markets, enhancing its brand reputation and revenue potential.

Threats

  • Intense Competition in Home Furnishing Industry: The soft furnishings and garment sectors are highly competitive, with numerous established players both domestically and internationally, which could limit Neelam Linens’ market share growth.
  • Vulnerability to Market Fluctuations: As a supplier to discount retailers, Neelam Linens may be sensitive to economic downturns, which could reduce consumer spending on non-essential items.
  • Supply Chain Risks: Operating from a limited number of manufacturing units and relying on a daily wage workforce could make the company vulnerable to production disruptions, labor shortages, or material supply chain issues.
  • Margin Pressure: The emphasis on discounted retail markets may continue to limit pricing flexibility, potentially impacting profit margins in the face of rising raw material and operational costs.

Neelam Linens and Garments IPO GMP Details

Neelam Linens and Garments SME IPO last GMP is ₹0, last updated Nov 5th 2024. With the price band of 24.00, Neelam Linens and Garments SME IPO’s estimated listing price is ₹24 (cap price + today’s GMP).The expected percentage gain/loss per share is 0.00%.

**The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates (sub2), nor do we recommend trading in grey market.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
12-11-2024 Close 24.00 ₹0  — ₹24 (0%) 12-Nov-2024
11-11-2024 24.00 ₹0  — ₹24 (0%) 11-Nov-2024
10-11-2024 24.00 ₹0  — ₹24 (0%) 10-Nov-2024
09-11-2024 24.00 ₹0  — ₹24 (0%) 9-Nov-2024
08-11-2024 Open 24.00 ₹0  — ₹24 (0%) 8-Nov-2024

What is IPO GMP?

The grey market premium (GMP) reflects the unofficial trading price of an IPO before its listing, offering insights into its potential market performance. A positive GMP indicates that the IPO may yield profits, while a negative GMP suggests a possible discount upon listing. However, it’s essential to recognize that IPO GMP can be highly volatile. Therefore, investors should not make decisions solely based on the GMP but should thoroughly assess all relevant factors before investing.

Want to Raise money for your company through SME IPO? Read More

Neelam Linens and Garments IPO subscription status 

Neelam Linens and Garments IPO subscribed 11.97 times. The public issue subscribed 19.50 times in the retail category, 1.01 times in QIB, and 9.08 times in the NII category by November 12, 2024.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)* Total Application
Anchor Investors 1 15,36,000 15,36,000 3.69 –
Market Maker 1 2,76,000 2,76,000 0.66 –
Qualified Institutions 1.01 10,32,000 10,44,000 2.51 1
Non-Institutional Buyers*** 9.08 7,74,000 70,26,000 16.86 268
Retail Investors 19.50 18,00,000 3,51,00,000 84.24 5,850
Total ** 11.97 36,06,000 4,31,70,000 103.61 6,119

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

  • ***: Market Maker portion is not included to NII/HNI.

Neelam Linens and Garments IPO Subscription Details (times)

Date QIB NII* Retail Total
Day 1
Nov 8, 2024		 0.00 0.94 5.04 2.72
Day 2
Nov 11, 2024		 1.01 4.57 15.28 8.90
Day 3
Nov 12, 2024		 1.01 9.08 19.50 11.97

Neelam Linens and Garments IPO Allotment status 

The allotment status of Neelam Linens and Garments IPO is expected to be available on November 13, 2024.

Neelam Linens and Garments IPO allotment status is not available at this time. Neelam Linens and Garments IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Neelam Linens and Garments (India) Ltd IPO allotment status.

To check Neelam Linens and Garments IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Purva Sharegistry India Pvt Ltd either by phone or email. Investors can call on +91-022-23018261/ 23016761 or send an email with all relevant details to support@purvashare.com.

Neelam Linens and Garments IPO Prospectus

Neelam Linens and Garments IPO Registrar

Purva Sharegistry India Pvt Ltd
Phone: +91-022-23018261/ 23016761
Email: support@purvashare.com
Website: https://www.purvashare.com/investor-service/ipo-query

Neelam Linens and Garments IPO Lead Managers

  1. Expert Global Consultants Private Limited

Lead Manager Reports

  • IPO Lead Manager Performance Summary
  • IPO Lead Manager Performance Tracker

Neelam Linens and Garments IPO Contact Details

Neelam Linens and Garments (India) Ltd
446-447, 4th Floor,
Shah & Nahar Industrial Estate Sitaram Jadav Marg
Lower Parel, Delisle Road, Mumbai- 400013
Phone: +91 2224942454
Email: compliance@neelamgarments.com
Website: http://neelamgarments.com/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.