Shri Techtex Ltd IPO

Shri Techtex was incorporated in 2011 and is involved in the manufacturing of Polypropylene (PP) Non-Woven Fabric. They have a manufacturing facility situated at Simaj of Dholka Taluka in Ahmedabad, Gujarat. 

Since FY 2011, as a partnership firm, Shri Techtex were involved in the industrial trading activity in chemicals, packaging materials, polymers, and other allied products. Later upon conversion of the Partnership Firm to a company, Shri Techtex continued manufacturing on a job-work basis. However, as a result of demerger w.e.f. April 01, 2021, the business of contract manufacturing was transferred to the resultant company Aurum Fabritech Private Limited. After the demerger, to date, the company is in the business of manufacturing Polypropylene (PP) Non-Woven Fabric.

Shri Techtex Limited IPO Details

Shri Techtex is a 100% fresh IPO worth ₹45.14 crore. The issue comprises 74,00,000 shares and is priced at ₹54 - ₹61 per share. Retail investors can bid for the Shri Techtex Limited IPO, which will open on July 26, 2023. Shri Techtex Limited’s IPO will list on the NSE exchange on August 7, 2023.

Shri Techtex Limited IPO Objectives 

The objectives of Shri Techtex Limited's IPO are listed below:

• To fund the construction of the factory shed 
• To purchase machinery 
• For the commissioning of the solar plant 
• To meet the working capital requirements of the company
• To meet the general corporate purposes
• To meet the public issue expenses

Noteworthy Highlights of Shri Techtex Ltd

• In the last 3 years, Shri Techtex Ltd derived its primary revenue from exports from the USA, Canada, Taiwan, China and Denmark. And their domestic sales are primarily from West Bengal, Tamil Nadu and Gujarat. 
• Shri Techtex is in plans for expansion by adding new business lines like manufacturing of Hot melt Coating Lamination and PP Multifilament Yarn. And these new machinery are expected to be ready by April 2024. 

Peer Details

Garware Technical Fibers Limited and Shubham Polyspin Limited are a few of Shri Techtex’s listed peers in the market.

Shri Techtex Ltd. Financials

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Strengths

1. The revenue of the company increased from ₹3,946.76 on March 31, 2021, to ₹5,692.39 on March 31, 2023.

2. The gross profit of the company is ₹2,086.39 on March 31, 2023, which is high compared to its listed peer Shubham Polyspin Limited’s gross profit ₹901.78 during the same period.

Risks

1. The PAT of the company dropped from ₹1,265.68 on March 31, 2021, to ₹910.63 on March 31, 2023.

2. The company doesn’t hold any long-term contracts with any of the clients/customers that can guarantee business.