Shreedhar Spinners Lists at ₹54.40, Up 7.74%

Shreedhar Spinners Ltd, incorporated in December 2020 as a cotton yarn manufacturing company engaged in production of 100% compact spun cotton yarn with counts ranging from Ne 10s to Ne 40s operating modern spinning facility in Amravati Textile Park, Maharashtra with installed capacity of 10,000 MT per annum and 28,608 spindles manufacturing yarn for knitting and weaving applications catering to apparel, denim, terry towels, shirting, bed linen, sweaters, socks, furnishing fabrics, and industrial textiles operating exclusively in B2B segment strategically located in cotton-rich Vidarbha region with ISO certifications employing 164 personnel, made a positive debut on NSE SME on Wednesday, July 1, 2026. The Shreedhar Spinners share price opened at ₹54.40 representing premium of 2.64% from issue price of ₹53.00, hit upper circuit at ₹57.10 (up 7.74%).

Shreedhar Spinners Listing Details

Shreedhar Spinners launched its fresh issue IPO at ₹51-53 per share with minimum investment of 4,000 shares costing ₹2,12,000 raising ₹30.68 crore including ₹8.58 crore from anchor investors. The IPO received decent response with subscription of 6.70 times - NII strong at 14.58 times, retail at 5.71 times, QIB at 2.51 times, total applications of 3,470.

First-Day Trading Performance

Listing Price: Shreedhar Spinners stock price opened at ₹54.40 representing premium of 2.64% from issue price, hit upper circuit at ₹57.10 (up 7.74%), with VWAP at ₹54.63. The positive listing delivered gains for IPO investors with turnover of ₹17.16 crore, traded volume of 31.42 lakh shares, delivery of 100%, and market capitalisation of ₹122.41 crore against pre-IPO market cap of ₹113.62 crore.

Growth Drivers and Challenges

Growth Drivers:

Strategic Location: Manufacturing facility in cotton-rich Vidarbha region ensuring raw material availability from local ginners, traders, and Cotton Corporation of India with cost-efficient production and timely order fulfilment capabilities.

Modern Infrastructure: 28,608 spindles with 10,000 MT per annum capacity supported by ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications with dedicated in-house quality control and testing facilities.

Challenges:

High Leverage: Debt/equity of 3.89 with total borrowings of ₹115.90 crore against net worth of ₹29.76 crore.

Marginal Revenue Growth: Revenue growing only 9% from ₹134.43 crore in FY25 to ₹146.55 crore in FY26 and 16% over 2 years.

PAT Sustainability: PAT jumped 81% from ₹3.42 crore in FY25 to ₹6.17 crore in FY26 while revenue grew only 9%.

Utilisation of IPO Proceeds

Working Capital: ₹21.04 crore for funding incremental working capital requirements.

Capital Expenditure: ₹4.95 crore for purchase of machineries into existing manufacturing facility at Amravati, Maharashtra.

General Corporate Purposes: Residual amounts.

Financial Performance

Revenue: ₹146.55 crore for FY26, growth of 9% from ₹134.43 crore in FY25.

Net Profit: ₹6.17 crore in FY26 representing 81% growth from ₹3.42 crore in FY25 and ₹3.35 crore in FY24, with post-IPO EPS of ₹2.88 and P/E of 18.41x. Investors tracking Shreedhar Spinners share price should note 6.70x subscription with 3,470 applications, high debt/equity of 3.89 indicating elevated leverage, EBITDA margin of 12.04% and PAT margin of 4.22%, and 8% listing gains at upper circuit for cotton yarn manufacturer strategically located in Vidarbha region.