Cedaar Textile Limited, established in September 2020 and headquartered in Bangalore, is a specialized manufacturer of premium yarns including melange, solid top-dyed, and grey fancy yarns, serving both domestic and international markets. The company supplies high-quality yarns to manufacturers producing garments for leading global brands. Cedaar Textile IPO is opening on June 30, 2025, and closing on July 2, 2025. The company aims to raise ₹60.90 crore through a fresh issue of 43,50,000 equity shares with a price band of ₹130 – ₹140 per share.
₹10
₹140
₹119.00
Expert Opinions
Market sentiment for the Cedaar Textile IPO is positive, driven by the company’s focus on sustainable textile manufacturing and robust revenue growth. Cedaar Textile’s key strengths include its specialization in premium yarns and fabrics made from 100% organic and recycled fibers, a diversified product portfolio, and a growing presence in both domestic and export markets. However, the company faces risks such as volatility in raw material prices, intense industry competition, and dependence on a few key customers.
For FY 2024, the Cedaar Textile IPO reported a strong Return on Equity (ROE) of 56.06%, Return on Capital Employed (ROCE) of 26.90%, and a Net Asset Value (NAV) of ₹33.65, indicating efficient capital utilization. From a long-term investment perspective, the IPO’s proceeds aimed at modernization and working capital are expected to enhance operational efficiency and support sustainable growth in a competitive sector.
Investor Considerations
Investors considering the Cedaar Textile IPO should note the company’s strong recent performance, with FY 2024 revenue rising to ₹191.01 crore and net profit at ₹11.05 crore, reflecting robust fundamentals and efficient capital utilization. The textile sector outlook is positive, driven by demand for sustainable and premium yarns, which aligns with Cedaar Textile’s focus on organic and recycled fibers.
The Cedaar Textile IPO valuation for FY 2024 shows a Price to Book Value of 4.16, PAT margin of 5.83%, and a high debt/equity ratio of 5.79, indicating aggressive leveraging for growth. Growth prospects remain strong due to ongoing modernization and expansion plans, but risks include sector cyclicality, raw material price volatility, and high leverage. For investment horizon, short-term investors may see volatility, while long-term investors could benefit from the company’s sustainability initiatives and sector growth if risks are managed effectively.
| Date | GMP | Trend |
|---|---|---|
| 06 Jul 2025 17.08 | ₹10 | --- |
| 05 Jul 2025 10.28 | ₹10 | --- |
| 04 Jul 2025 10.38 | ₹10 | --- |
| 02 Jul 2025 16.03 | ₹10 | --- |
| 29 Jun 2025 10.54 | ₹10 | --- |
| 28 Jun 2025 13.49 | ₹10 | --- |
| 27 Jun 2025 13.24 | ₹10 | --- |
| 26 Jun 2025 12.23 | ₹10 | Up |
| 25 Jun 2025 14.36 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Cedaar Textile IPO’s listing performance. With a final GMP of ₹10, it projected a premium of 7.14% over the issue price of ₹140. However, the stock listed lower at ₹119, delivering a negative return of -15%. This resulted in a large prediction error of 22.14%, where the GMP failed to predict the correct direction and significantly overestimated the gains, reflecting low reliability in this case.
Cedaar Textile IPO Current GMP is ₹10.
Cedaar Textile IPO Expected Returns is 7.14%.
Cedaar Textile IPO estimated listing price is ₹150.