Shri Techtex IPO to open on July 26, starting at Rs 54 per share

Hyderabad: Shri Techtex Limited, a fast-growing manufacturer and exporter of technical textiles will open its initial public offering (IPO) subscription on July 26 and will close on July 28, 2023. The Anchor investor book for bidding will be open one day prior to the public issue on July 25, 2023. The company has fixed the price band in the range of Rs.54 to Rs.61 per share and plans to raise Rs.45.14 crore from the issue. The issue comprises a fresh issue of 74 lakh equity shares and would be listed on the Emerge platform of the National Stock Exchange.

Out of the total issue size of 74 lakh shares, the company has allocated 35.10 lakh shares for qualified institutional buyers, and 10.56 lakh shares for non-institutional investors. For retail investors, the company has set aside 24.62 lakh shares for allocation. Beeline Capital Advisors Private Limited is the book-running lead manager to the issue, and Link Intime India Private Limited is mandated to be the registrar of the issue.

The proceeds of the issue will be used towards the construction of the factory shed (Rs.3.71 crore), commissioning of a solar plant (Rs.4.89 crore), purchase of machinery (Rs.6.31 crore), meeting working capital requirement (Rs.15.31 crore) and general corporate purpose including issue expenses. The company’s business is highly energy intensive and demands high working capital. Post the issue, the company will be able to expand its margins through value-added products, lower energy outgo, and retiring high-cost debt leading to ease of interest burden.

Commenting on the public issue, Hanskumar Agarwal, Executive Director, Shri Techtex Limited, said, “We have been on an excellent growth path and have built a robust foundation in terms of products, capacities, clientele and geographical reach in the first decade of our operations. We have invested in the growth assets and transiting to a public company-which will open a new world of ambitions for the company.”