Spunweb Nonwoven Lists at 57.3% Premium After Blockbuster Subscription

The non-woven fabrics manufacturer, Spunweb Nonwoven Limited, made a stellar debut on the NSE SME platform on July 21, 2025. After closing its IPO bidding between July 14 - July 16, 2025, the company commenced trading with an impressive 57.3% premium to its issue price, delivering substantial returns to investors backed by exceptional subscription response in the textile manufacturing sector.

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Spunweb Nonwoven IPO Listing Details

Spunweb Nonwoven Limited launched its IPO at ₹96 per share with minimum investment of 2,400 shares costing ₹2,30,400. The IPO received phenomenal response with subscription of 251.32 times - NII segment leading at extraordinary 364.58 times, retail investors at 251.84 times, and QIB at 165.43 times, reflecting exceptional market appetite for specialised textile manufacturing companies.

Listing Price:  The Spunweb Nonwoven share price opened at ₹151 on NSE SME, representing a premium of 57.3% from the issue price of ₹96, delivering outstanding gains of approximately ₹1,32,000 per lot for allotted investors and demonstrating strong investor confidence in non-woven fabric solutions.

First-Day Trading Performance Outlook

Spunweb Nonwoven IPO delivered exceptional debut performance with substantial premium reflecting strong investor confidence in specialised textile companies with export-focused operations. The company, incorporated in 2015, operates as one of India's largest spunbond nonwoven fabric manufacturers with state-of-the-art facilities in Rajkot, Gujarat, serving hygiene, medical, packaging, agriculture, and construction industries across North America, Europe, and Middle East with 199 employees and advanced testing capabilities.

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹29.0 crore for funding company's working capital needs supporting operational expansion and inventory management 
• Subsidiary Investment: ₹10.0 crore for working capital requirements of wholly-owned subsidiary SIPL enhancing group capabilities 
• Debt Repayment: ₹8.0 crore for repayment of borrowings improving capital structure and reducing financial leverage 
• General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership Position: One of India's largest spunbond nonwoven fabric manufacturers with advanced technology and cleanroom manufacturing capabilities
• Export-Focused Business: Strong international presence across North America, Europe, and Middle East providing revenue diversification and growth opportunities
• Diverse Application Portfolio: Comprehensive product range serving hygiene sector (two-thirds revenue), medical, packaging, agriculture, and construction industries
• Strong Financial Performance: Revenue growth of 47% and exceptional PAT growth of 98% in FY25 with healthy ROE of 31.63% demonstrating operational efficiency

Challenges:
 

• High Debt Burden: Significant debt-to-equity ratio of 2.11 with total borrowings of ₹91.16 crore raising concerns about financial leverage
• Working Capital Intensive: Manufacturing business requiring substantial inventory and receivables management affecting cash flow dynamics
• Competitive Market Environment: Operating in competitive textile sector with established players requiring continuous innovation and cost management
• Concentration Risk: Heavy dependence on hygiene sector for two-thirds of revenue creating vulnerability to sector-specific challenges
   

Financial Performance of Spunweb Nonwoven IPO

• Working Capital Requirements: ₹29.0 crore for funding company's working capital needs supporting operational expansion and inventory management 
• Subsidiary Investment: ₹10.0 crore for working capital requirements of wholly-owned subsidiary SIPL enhancing group capabilities 
• Debt Repayment: ₹8.0 crore for repayment of borrowings improving capital structure and reducing financial leverage 
• General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements

Spunweb Nonwoven delivered 57.3% premium backed by record-breaking subscription response of 251.32 times, despite concerns over high debt levels and working capital requirements, the company's market leadership position, strong export presence, and impressive financial performance provide significant growth potential.