Sahaj Fashions Limited was incorporated on May 20, 2011, and is involved in manufacturing fabric used for various purposes, such as garments, home furnishings, industrial applications, etc. The company has decent experience in manufacturing cotton suiting fabric and shirting fabric apart from polyester-based and cotton-polyester blended fabrics. The company operates through a manufacturing facility located at Kishangarh, Rajasthan.
The company mainly earns revenue through a B2B (business-to-business) model whereby customers buy the fabric to sell them further or produce suitings, shirtings, trousers, blazers, etc. In the past few years, the company witnessed decent growth in the net profit on the back of ample demand for cotton suiting fabric in global and domestic markets.
India is the second-largest producer of textiles and garments globally, with a 4% share of the global trade in textiles and apparel. In addition, India is the largest cotton producer in the world, with a contribution of 23%. The company might get benefit in export space as ready-made garment exports are likely to witness a CAGR of 12-13% by 2027.
Sahaj Fashions Limited IPO Details
Sahaj Fashions IPO Date
Sahaj Fashions Limited is a fresh issue and offer-for-sale IPO comprising 46,52,000 shares. It is a fixed price Issue IPO. Retail investors can bid for the Sahaj Fashions Limited IPO. The issue will open on August 25th, 2023, and close on August 29th, 2023.
Sahaj Fashions IPO Price Band
The price range of the IPO has been fixed at ₹30 per share.
Sahaj Fashions IPO Lot Size
The Sahaj Fashions Limited IPO lot size is 4,000 shares, and the minimum investment will be ₹1,20,000.
Sahaj Fashions IPO Objectives
The objectives of Sahaj Fashions Limited IPO are listed below:
- For working capital requirements including margin money,
- For the prepayment/repayment of certain secured borrowings.
- For general corporate purposes and offer expenses.
Peer Details
Some of the major peers of Sahaj Fashions Limited include the following:
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Arvind Limited
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RSWM Limited
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Vardhman Textiles Limited
Strengths and Opportunities
- The company uses machines from Japan and Germany for production as it operates in an industry where machinery technology plays a key role.
- The foundation of the textile business model is a repeat order, where the company has performed exceptionally. This was backed by its initiatives for customer satisfaction.
- The company carries out its business growth with the help of a diversified product portfolio. This would support the business in maintaining growth in the event of falling numbers from a particular product.
- The future plans for the business include expanding through investments in new Airjet facilities to serve the shirting market and exporting grey shirting materials.
Risks and Threats
- The company’s whole business is fully dependent on a single facility. The revenue growth could be adversely impacted by any slowdown or shutdown due to any unforeseen event.
- The business has no long-term contracts with its suppliers or clients, so the loss of one or more of them or a decline in their demand for its goods could have a negative impact on our operations, financial position, and cash flow.
- The company is highly reliant on third parties for logistics related to the delivery of its products.
- The company possesses a high volume of inventory, which could affect the business growth moving forward.
How To Check the Allotment Status of the Sahaj Fashions Limited IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Validate with an OTP
- Enter your application number, DP ID, and PAN number into the app.
- Click on ‘Submit’
Contact Details of Sahaj Fashions Limited
Registered office: Shree Bhawan Ajmer Road, Madanganj, Kishangarh 305801, Rajasthan, India
Phone: +91 9462788792
E-mail: cfo@sahajfashions.in
IPO Financials
| Particulars | Period Ending on Feb, 28th 2023 (₹ lakh) | Year ending on March, 31st 2022 (₹ lakh) |
|---|---|---|
| Total Income | 9,101.07 | 8,698.36 |
| Profit After Tax (PAT) | 289.75 | 41.90 |
| Fixed Asset Turnover Ratio (x) | 11.04 | 9.50 |
| Debt Equity Ratio (x) | 2.33 | 2.95 |
| Current Ratio (x) | 1.62 | 1.62 |
