Spunweb Nonwoven Limited’s SME IPO to Open on July 14; Price Band Set at ₹90–₹96 per Share

From Diapers to Crop Covers: Spunweb’s IPO Highlights Fabric Versatility

Spunweb Nonwoven’s ₹60-Crore IPO Opens July 14, Eyes Expansion Across Sectors

 

• BILKULONLINE
  
• By Rafat Quadri

Ahmedabad, July 10: Spunweb Nonwoven Limited, one of India’s leading manufacturers in the spunbond nonwoven fabric industry, is set to launch its maiden Initial Public Offering (IPO) on Monday, July 14, 2025. The SME IPO will close on Wednesday, July 16, 2025. The company has set a price band of ₹90 to ₹96 per equity share of face value ₹10 each.

The IPO is a fresh issue of up to 63,51,600 equity shares. Investors can bid for a minimum of 2,400 equity shares and in multiples of 1,200 shares thereafter. The issue is being made through the book-building process, with allocations of not more than 50% to qualified institutional buyers, a minimum of 15% to non-institutional investors, and at least 35% to retail individual investors.

IPO Objectives

• The net proceeds from the IPO will be used for:
• ₹29 crore: Working capital requirements of the Company
• ₹10 crore: Investment in wholly owned subsidiary SIPL for its working capital
• ₹8 crore: Partial or full repayment of borrowings

General corporate purposes

Spunweb Nonwoven was founded in 2015, Spunweb Nonwoven Limited and its subsidiary Spunweb India Private Limited (SIPL) manufacture polypropylene spunbond nonwoven fabrics. These fabrics are used across various sectors including hygiene, healthcare, packaging, agriculture, construction, and home furnishings.

With an installed production capacity of 32,640 MTPA as of FY24, the company is among India’s largest players in its segment. The company’s wide product portfolio includes hydrophobic and hydrophilic nonwoven fabrics, super soft and UV-treated fabrics, antistatic and FR-treated fabrics, ranging from 7 to 150 GSM, and widths of 1.6m to 3.2m in over 20 customizable colours.

Spunweb also supplies a variety of nonwoven fabric bags used in shopping, grocery, and suit covers. Its clientele includes leading names such as RGI Meditech, Millenium Babycares, Myra Hygiene, Poligof Micro Hygiene, Sekhani Industries, and Salus Products, among others.

The Morbi-based company, a leading manufacturer of spunbond nonwoven fabrics used in hygiene, healthcare, agriculture, and packaging, aims to raise funds for working capital, subsidiary investment, and debt repayment.

Chairman Jay Kagathara, Kishan Kagathara WTD, Abhay Fadadu CFO interacted with the media ahead of the issue. Vivro Financial Services is the lead manager of the IPO. Its Director Roshan Vaishnav introduced the media with the IPO and company details.

Kishan while explaining about the nature of their products, its application and financials of the company reiterated that “Our IPO is a strategic move to enhance our capital structure, invest in our subsidiary SIPL, and support our growth plans across domestic and international markets.”

He added “We take pride in being among the top manufacturers of spunbond nonwoven fabrics in India, and this offering is set to reinforce our innovation and expansion efforts.”

Financial Highlights

Spunweb posted a 52.31% rise in revenue from operations, growing from ₹148.61 crore in FY24 to ₹226.35 crore in FY25, driven by improved capacity utilization and a broader customer base. The company’s profit after tax rose from ₹5.44 crore in FY24 to ₹10.79 crore in FY25.

Domestically, the company served over 485 customers in FY25, while also catering to international clients in the USA, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, and Nigeria.

Issue Details

• Book Running Lead Manager: Vivro Financial Services Private Limited
• Registrar to the Issue: MUFG Intime India Private Limited (Link Intime)
• Market Maker: Rikhav Securities Limited

Investor Note

Potential investors are advised to read the Red Herring Prospectus dated July 4, 2025, carefully, including the risk factors detailed on page 30. The prospectus is available on SEBI’s website (www.sebi.gov.in), NSE (www.nseindia.com), and Vivro Financial Services (www.vivro.net).

(Rafat Quadri can be contacted at editorbilkul@gmail.com)

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