Aastha Spintex, a leading manufacturer of cotton yarn and cotton bales, plans to raise ₹170 crore through an .
The price band has been fixed in the range of ₹125-₹136 a share. It will open for subscription on Monday and close on Wednesday. The shares will be listed on the NSE and BSE platforms.
The net proceeds from the IPO will be used for acquisition of Falcon Yarns Pvt Ltd, inter-corporate deposits for funding the working capital requirement of Falcon Yarns and for general corporate purposes.
The book-running lead managers to the issue will be BOI Merchant Bankers and PNB Investment Services, while Bigshare Services has been appointed as the Registrar.
Patel Divyang Jashvantbhai, promoter, Chairman and Managing Director, Aastha Spintex said over the years, the company has built a significant foundation in the cotton yarn manufacturing industry through operational excellence and customer satisfaction. The integrated manufacturing operations, supported by sustainable (renewable) energy initiatives, have enabled the company to strengthen its market presence and deliver consistent performance, he said.
The proposed IPO will further accelerate our growth strategy by supporting the acquisition of Falcon Yarns and enhancing manufacturing capabilities, he added
Ripal M Tandel, Managing Director, BOI Merchant Bankers said the company has established a significant presence in the cotton yarn manufacturing segment through its integrated operations, established raw material procurement network, focus on quality, and efficient manufacturing processes.
The company has demonstrated consistent growth while strengthening its position across the textile value chain, said Tandel.
Mohammad Abid Siddiqui, Managing Director & CEO, PNB Investment Services said the company is now entering a new phase of development with its proposed public issue. The proceeds of the issue are proposed to be used, among other things, towards the acquisition of Falcon Yarns, which is expected to increase the scale of operations of the combined business, he added.