A Maharashtra-based compact spun cotton yarn manufacturer plans to raise Rs 28.63 crore via the NSE SME platform.
June 22, 2026
Shreedhar Spinners Ltd., a manufacturer of 100% compact spun cotton yarn, opens for subscription on June 23 with the issue closing on June 25. The company is listing on the NSE SME Emerge platform. All proceeds are a fresh issue flowing entirely to the company.
What the Company Does
Incorporated in December 2020 and operating from the MIDC Textile Park in Amravati, Maharashtra, Shreedhar Spinners manufactures compact spun cotton yarn in counts ranging from Ne 10s to Ne 40s. Its fully integrated spinning facility has an installed capacity of 10,000 metric tonnes per annum supported by 28,608 spindles. The Amravati location provides a natural advantage — it sits within the cotton-rich Vidarbha belt, enabling efficient raw material sourcing. The company uses compact ring spinning technology with machinery sourced from India, Italy, and Switzerland, producing yarn used in knitting and weaving applications across apparel, denim, shirting, bed linen, terry towels, socks, and furnishing fabrics.
The company sells through a B2B model to textile manufacturers, exporters, traders, and fabric processors across seven states. In FY26, it served 42 customers, of whom 72.50% were repeat clients — indicating meaningful customer stickiness.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 23, 2026 |
| Issue Closes | June 25, 2026 |
| Listing | NSE SME Emerge (July 1, 2026) |
| Price Band | Rs 51 – Rs 53 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 28.63 crore (100% Fresh Issue) |
| Lot Size | 2,000 shares (min 2 lots = 4,000 shares) |
| Min. Retail Investment | Rs 2,12,000 |
| BRLM | Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Market Maker | Mansi Share & Stock Broking Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 126.14 | 134.27 | 146.55 |
| EBITDA | 13.41 | 13.11 | 17.62 |
| EBITDA Margin | 10.63% | 9.76% | 12.03% |
| PAT | 3.35 | 3.41 | 6.17 |
| PAT Margin | 2.66% | 2.54% | 4.22% |
| RoCE | — | — | 9.34% |
Revenue has grown modestly — around 9% in FY26 over FY25. Profits were essentially flat from FY24 to FY25 before jumping 81% in FY26 — a pattern the analyst notes as a FY25 setback in the bottom line following accounting adjustments. PAT margins remain thin at around 4%, which is characteristic of the commodity yarn segment. Average RoNW in FY26 stood at 20.74%. The company has no listed domestic peers, removing any market-based valuation anchor.
Risks to Consider
Cotton price volatility is the primary structural risk — as the single largest input, any spike in raw material costs directly squeezes thin margins. The company was incorporated only in December 2020, giving it a short operating track record. PAT margins around 4% leave very little cushion in a commoditised segment. Promoter shares are pledged — a concern for investor confidence. Revenue remains concentrated in Maharashtra and a handful of states.
Analyst View
Analysts note the company posted marginal growth in its top lines for the reported periods, but the sudden boost in the bottom line for FY26 raises eyebrows and concern over sustainability. With no listed peers, the company is attempting to extract a fancy price for the IPO. The issue appears aggressively priced based on its overall financial data. Only well-informed or cash-surplus investors may consider parking moderate funds for the long term.