Neelam Linens and Garments Limited is set to launch its IPO from November 8 to November 12, 2024, aiming to raise approximately ₹13 crore through a fresh issue of equity shares priced between ₹20 and ₹24 each. As a prominent player in India’s soft furnishings and apparel market, the company has established a strong foothold since its inception in 2010. Neelam Linens focuses on producing high-quality textiles and garments, catering to both domestic and international markets.
₹15
₹24
₹40.05
Expert Opinions
The Neelam Linens and Garments IPO is generating cautious market sentiment, reflecting investor interest in the growing home textiles sector. As a company established in 2010, Neelam has built a solid reputation in soft furnishings, showcasing strengths such as a diverse product portfolio and efficient operational management. The planned IPO aims to raise ₹13 crore, which will be utilized for purchasing advanced embroidery machines and repaying debt, indicating a focus on enhancing production capabilities.
However, potential risks and challenges include reliance on a limited number of suppliers and customers, which could impact revenue stability. The valuation analysis places the IPO price band between ₹20 and ₹24 per share, suggesting a modest entry point for investors. Despite recent profitability concerns, the long-term investment perspective remains optimistic as the home textiles market is projected to grow significantly.
Investor Considerations
Investors considering the Neelam Linens and Garments IPO should evaluate several key factors. The company performance and fundamentals indicate a steady growth trajectory, with a focus on soft furnishings and apparel since its establishment in 2010. The company operates two manufacturing units in Bhiwandi, producing up to 4,000 units daily, with plans to scale production further. The sector outlook is promising, as the Indian home textiles market is projected to grow at around 12% annually, driven by increasing consumer demand for quality products.
The IPO valuation, targeting ₹13 crore through a fresh issue of shares priced between ₹20 and ₹24, presents an attractive entry point for investors. Growth prospects are bolstered by plans to expand product offerings and enhance manufacturing capabilities through the acquisition of advanced embroidery machines. However, potential risk factors include reliance on a limited product range and external suppliers, which could impact profitability. A long-term investment horizon is advisable, given the company’s strategic position within a growing market and its commitment to operational efficiency.
| Date | GMP | Trend |
|---|---|---|
| 15 Nov 2024 11.34 | ₹15 | Up |
| 14 Nov 2024 12.45 | ₹10 | --- |
| 13 Nov 2024 12.09 | ₹10 | Up |
| 12 Nov 2024 17.19 | ₹2 | Up |
| 11 Nov 2024 11.18 | ₹00 | --- |
| 10 Nov 2024 12.35 | ₹00 | --- |
| 09 Nov 2024 11.13 | ₹00 | --- |
| 08 Nov 2024 10.49 | ₹00 | --- |
| 07 Nov 2024 10.22 | ₹00 | --- |
| 05 Nov 2024 12.02 | ₹00 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting Neelam Linens and Garments’ listing performance. The GMP of ₹15 predicted a substantial premium of 62.50% over the issue price, and the stock actually delivered a similar gain of 66.88%. With a minimal prediction error of just 2.69%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Neelam Linens and Garments IPO Current GMP is ₹15.
Neelam Linens and Garments IPO Expected Returns is 62.5%.
Neelam Linens and Garments IPO estimated listing price is ₹39.