| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹125 to ₹136 | 110 | 29th June, 2026 – 01st July, 2026 | ₹170 Cr |
Aastha Spintex Ltd
Incorporated in 2013, Aastha Spintex Limited is engaged in the manufacturing and trading of carded, combed and compact combed cotton yarns, along with cotton bales. The company operates exclusively in the business-to-business (B2B) segment, catering to textile manufacturers, yarn exporters, fabric processors and bulk purchasers. The company has established an integrated spinning and ginning manufacturing facility at Halvad, District Morbi, Gujarat, strategically located near key cotton-growing regions, enabling efficient raw material sourcing and operational advantages. The company operates a semi-automated and integrated manufacturing setup focused on the production of 100% cotton yarn in the count range of Ne 26 to Ne 40. As on date, the company has an installed capacity of 25,920 spindles comprising 15 compact ring spinning machines, along with cotton bale production capacity of 12,000 MT and cotton yarn production capacity of 7,700 MT per annum. The manufacturing operations are carried out on a continuous 24×7 basis across three shifts throughout the year, supporting operational efficiency and better capacity utilization. The company follows an integrated business model wherein by-products generated during the ginning and spinning process are monetized, supporting additional revenue generation and minimizing waste. Cotton seeds and related by-products from the ginning process are sold for applications such as oil extraction and animal feed, while cotton waste generated during spinning is supplied to non-woven fabric and open-end yarn manufacturers. The non-recoverable waste remains negligible at approximately 0.1%-0.3% of total production, reflecting efficient resource utilization. Aastha Spintex derives the majority of its revenue from the domestic market, with a strong presence in Gujarat supported by reseller M/s 7 Seas Impex. The company’s regional proximity to customers has enabled it to build long-standing relationships, better understand customer requirements and ensure efficient order execution and delivery. The company’s established customer base within Gujarat has remained a key contributor to its business growth and market positioning. The company procures cotton directly from farmers and traders during the cotton harvest season, while the ginning unit operates seasonally for approximately 6-7 months annually. During periods of shortfall or off-season, the company sources cotton bales from ginning mills and traders across Gujarat, supported by long-standing supplier relationships that ensure continuity of supply and consistent quality. Over the last three financial years, the company procured raw materials from more than 125 suppliers, reflecting a diversified procurement network and operational stability.
Objective of Aastha Spintex Ltd
The net proceeds of the fresh issue are proposed to be utilized in the following manner:
- Part payment of the purchase consideration for the acquisition of Falcon Yarns Pvt. Ltd;
- Inter-Corporate deposits for funding working capital requirement of Falcon Yarns Pvt. Ltd; and
- General Corporate Purposes.
Rationale To Aastha Spintex Ltd
Investment Rationale
Balanced growth strategy supported by capacity expansion, strategic acquisition and strong customer relationships
Aastha Spintex’s growth strategy is anchored on a balanced mix of organic capacity expansion and inorganic opportunities, provides scalability and strengthens its competitive positioning within the cotton yarn industry. On the organic front, the company expanded its installed capacity from 2 MT/day to 2.5 MT/day during FY20–FY24 through machinery upgradation, enabling higher operational efficiency, improved production capabilities and better scale utilization. Further, the company has entered into a Share Purchase Agreement (SPA) to acquire 100% stake in Falcon Yarns Pvt. Ltd., a cotton yarn manufacturer with an installed capacity of 9,757 MT per annum. Falcon Yarns reported revenue from operations of Rs. 249.44 Cr, Rs. 220.35 Cr and Rs. 228.75 Cr over the last three financial years, and the proposed acquisition is expected to strengthen the company’s manufacturing scale, product offerings and market positioning. In addition, the company benefits from long-standing relationships with key customers including M/s 7 Seas Impex and Elkins Tradelink Ltd., reflecting its established presence and execution capabilities in the yarn industry. The customer base expanded significantly to over 231 customers in FY25 from 79 and 86 customers in FY24 and FY23, respectively, while around 14 customers have remained associated with the company for more than five years. The diversified and growing customer base, coupled with better order visibility and repeat business generation, is expected to support sustained revenue growth, operational efficiencies and stronger market penetration going forward.
Strategically located manufacturing facility supported by renewable energy infrastructure and expansion potential
The company’s manufacturing facility is strategically located at Halvad, District Morbi, Gujarat, one of the key cotton-growing regions in the state, providing proximity to raw material suppliers, logistics infrastructure and skilled labour availability. The location benefits from strong connectivity through established road, rail and port networks, enabling efficient procurement and distribution operations. The manufacturing facility spans a total land area of ~65,762 sq. m, of which only 46.22% is currently utilized as built-up area, while the remaining vacant land provides significant scope for future capacity expansion and operational scale-up. In addition, the company has developed a strong renewable energy infrastructure to support sustainable and cost-efficient manufacturing operations. The company currently operates a 1 MW rooftop solar power unit, a 4 MW ground-mounted solar power plant and a 2.7 MW wind power plant, substantially reducing dependence on conventional grid power and mitigating energy cost volatility. The integrated renewable energy setup enhances operational efficiency and cost competitiveness and strengthens the company’s sustainability profile and long-term manufacturing viability.
Valuation of Aastha Spintex Ltd
Aastha Spintex is engaged in the manufacturing and trading of carded, combed and compact combed cotton yarns along with cotton bales. The company follows an integrated business model wherein cotton bales are utilized for captive consumption as well as supplied to other spinning units, while cotton yarn caters to diversified applications across knitting and weaving segments including denim, terry towels, shirting, sheeting, sweaters, socks, home textiles and industrial fabrics. The company has established a strong customer base in Gujarat, supported by long-standing customer relationships and regional market presence, which has remained a key growth driver for the business. The company continues to focus on improving operational efficiencies through investments in modern spinning infrastructure and advanced quality control systems, including in-house testing laboratories. Further, the proposed acquisition of Falcon Yarns Private Limited through a SPA is expected to enhance the company’s manufacturing scale, diversify its customer base and strengthen its market positioning within the domestic cotton yarn industry. Industry tailwinds also remain favorable, with the Indian textile industry estimated at USD 195.4 bn in CY25 and expected to reach USD 623.3 bn by CY35P, implying a CAGR of 12.3%. On the financial front, the company has demonstrated healthy growth momentum, with Revenue, EBITDA and PAT registering CAGR of 21%, 88% and 365%, respectively, during FY23-FY25, supported by improving operational performance and margin expansion. While the company derives a significant portion of its revenue from Gujarat and undertakes sales outside the state and export operations through a reseller network, which may result in geographical concentration and dependence on intermediary channels, we believe the company’s integrated business model, improving operational scale, acquisition-led expansion strategy and favourable industry dynamics position it well to capitalize on the growing demand opportunities within the domestic textile sector going forward. At the upper price band of Rs. 136, the issue is valued at a P/E of 17.6x based on annualized FY26 earnings. We thus, recommend a “SUBSCRIBE” rating from a medium to long-term perspective.
What is the Aastha Spintex Ltd IPO?
The initial public offer (IPO) of Aastha Spintex Ltd offers an early investment opportunity in. A stock market investor can buy Aastha Spintex Ltd IPO shares by applying in IPO before All Aastha Spintex Ltd shares get listed at the stock exchanges. An investor could invest in Aastha Spintex Ltd for short term listing gain or a long term.
How to apply for the Aastha Spintex Ltd IPO through StoxBox?
To apply for the Aastha Spintex Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Aastha Spintex Ltd IPO open?
Aastha Spintex Ltd IPO is opening on 29th June 2026. Apply Now
What is the lot size of the Aastha Spintex Ltd IPO?
The Lot Size of Aastha Spintex Ltd 110 equity shares. Login to your account now.
When is the Aastha Spintex Ltd IPO allotment date?
The allotment Date for Aastha Spintex Ltd IPO is 02nd July 2026. Login to your account now.
When is the Aastha Spintex Ltd IPO listing date?
The listing Date for Aastha Spintex Ltd is 06th July 2026. Login to your account now
What is the minimum investment required for the Aastha Spintex Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,960 Login to your account now
What is the maximum investment allowed for Aastha Spintex Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,94,480 Login to your account now
What are the risks associated with investing in the Aastha Spintex Ltd IPO?
- The company is significantly dependent on 7 Seas Impex for majority of its sales outside Gujarat and exports, and any adverse development in this arrangement could materially and adversely affect the company’s business, results of operations and financial condition.
- The company’s continued operations are dependent on a single manufacturing facility and are critical to its business, and any disruption could materially and adversely affect the company’s results of operations, cash flows, and financial condition.
- The company remains dependent on a limited number of suppliers for procurement of raw cotton and cotton bales, which constitute its key raw materials. Any disruption in supply availability or adverse volatility in cotton prices may impact raw material procurement, operating margins and overall financial performance.
When will the Aastha Spintex Ltd IPO shares be credited to my Demat account?
The Aastha Spintex Ltd will be credited to the account on allotment date which is 02nd July 2026. Login to your account now
Where can I find the Aastha Spintex Ltd IPO prospectus?
The prospectus of Aastha Spintex Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
