Aastha Spintex IPO expected soon: A look at issue details, objectives and financials

The initial public offering of cotton yarn and cotton bale manufacturer Aastha Spintex is expected to open soon for subscription.

The proposed initial share sale is solely a fresh issuance of ₹160 crore with no offer for sale (OFS) component.

The net proceeds from the issue will be used for part payment of the purchase consideration for the acquisition of Falcon Yarns Pvt Ltd and corporate general purposes.

"In addition, we expect to achieve the benefit of listing of our equity shares on the stock exchanges and enhancement of our company’s visibility and brand image amongst our existing and potential customers and creation of a public market for our equity shares in India," Aastha Spintex said in its draft red herring prospectus (DRHP).

The company's shares will be listed on the National Stock Exchange (NSE) and the BSE.

BOI Merchant Bankers and PNB Investment Services are the issue's book-running lead managers, while Bigshare Services is the registrar.

About Aastha Spintex

Aastha Spintex manufactures and trades carded, combed and compact combed cotton yarns and cotton bales. The firm's cotton bales are used both for captive production of cotton yarns and for supply to other spinning units, and the cotton yarns are utilised in both knitting and weaving applications, serving an array of end-use segments and products, including terry towels, denim, shirting, sweaters, socks, sheeting, home textiles, bottom wear and industrial fabrics.

The company produces 100% cotton yarns in counts ranging from Ne 26 to Ne 40 which includes combed, carded and combed compact varieties.

It operates exclusively in the business-to-business (B2B) segment, supplying its products to buyers like textile manufacturers, bulk purchasers, yarn exporters and fabric processors.

Aastha Spintex financials