The Aastha Spintex IPO, priced in the range of ₹125-136 per equity share, will remain open for public subscription until 1 July. The Aastha Spintex IPO lot size has been fixed at 110 equity shares and in multiples thereof. Aastha Spintex IPO opened on 29 June.
As per the issue structure, up to 20% of the net offer has been reserved for Qualified Institutional Buyers (QIBs), not less than 40% for Non-Institutional Investors (NIIs), and at least 40% for retail investors.
The Aastha Spintex IPO allotment is expected to be finalised on 2 July. Refunds to unsuccessful applicants and the credit of shares to successful investors’ demat accounts are likely to take place on 3 July. The Aastha Spintex share listing is tentatively scheduled for 6 July on the BSE and NSE.
Aastha Spintex is engaged in the manufacturing and trading of carded, combed and compact combed cotton yarns, along with cotton bales and related by-products. The company operates an integrated spinning and ginning facility in Halvad, Gujarat’s Morbi district.
Aastha Spintex IPO GMP today
Aastha Spintex IPO GMP today is +5.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Aastha Spintex share was ₹141.5 apiece, which is 4.04% higher than the IPO price of ₹136.
Considering grey market activity over the past 21 sessions, the IPO GMP is trending upward today, indicating a promising listing. The minimum GMP recorded is ₹0.00, whereas the maximum GMP is ₹5.50, as reported by experts.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Aastha Spintex IPO Subscription Status
Aastha Spintex IPO subscription status was 88% on day 1, so far. The retail portion is subscribed 41%, and NII portion has been booked 1.38x, QIBs portion received 80% bids.
The company has received bids for 1,19,18,390 shares against 1,36,00,000 shares on offer at 17:00 IST, according to BSE data.
Aastha Spintex IPO Review
Brokerage views on the Aastha Spintex IPO remain mixed, with analysts acknowledging the company’s strong earnings growth and expansion plans while flagging valuation and execution risks.
Swastika Investmart has assigned a ‘Subscribe’ rating for medium- to long-term investors. The brokerage highlighted the company’s sharp financial turnaround, with revenue rising from ₹239 crore in FY23 to ₹351 crore in FY25, while net profit jumped from ₹1 crore to ₹23 crore over the same period.
According to Swastika, the proposed acquisition of Falcon Yarns is expected to more than double Aastha Spintex’s spinning capacity from 7,700 metric tonnes to 17,457 metric tonnes per annum, providing a significant boost to future revenue growth. It also noted that the company’s investments in solar and wind power, which now meet nearly 80% of its energy requirements, are likely to reduce power costs and support margins.
However, the brokerage cautioned that the business remains exposed to cotton price volatility, dependence on a single manufacturing facility, and customer concentration through a reseller network outside Gujarat. At 18.78 times FY25 earnings, Swastika believes the IPO is reasonably valued considering the company’s growth profile and improving profitability.
SBI Securities, on the other hand, has maintained a ‘Neutral’ rating on the issue. The brokerage noted that Aastha Spintex follows an integrated business model, manufacturing cotton bales that are consumed in-house to produce cotton yarn for textile manufacturers, exporters, and bulk buyers.
SBI Securities highlighted the company’s robust financial performance, with revenue, EBITDA, and profit after tax growing at CAGRs of 21%, 88%, and 365%, respectively, between FY23 and FY25. It believes the acquisition of Falcon Yarns will help expand manufacturing capacity, diversify the customer base and strengthen the company’s market position.
However, the brokerage said the IPO is expensively valued at 21.9 times annualised 9MFY26 pro forma earnings on a post-issue basis compared with listed peers. As a result, it prefers to monitor the company’s execution and post-listing performance over the next few quarters before turning constructive on the stock.
Aastha Spintex IPO Detail
The ₹170-crore Aastha Spintex IPO is a 100% fresh issue of equity shares, with no offer-for-sale (OFS) component.
The company intends to utilise ₹111.51 crore from the net proceeds to fund the acquisition of Falcon Yarns Private Limited, while ₹10 crore will be used to support the acquired company’s working capital requirements. The balance proceeds will be deployed for general corporate purposes.
BOI Merchant Bankers Limited and PNB Investment Services Limited are the book-running lead managers to the issue.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
