Aastha Spintex IPO Subscribed 88% on Day One; Issue Remains Open Until July 1

₹170-crore public issue records strong response from non-institutional investors as proceeds earmarked for acquisition, working capital and corporate purposes.

Textile manufacturer Aastha Spintex Ltd recorded 88 per cent subscription on the opening day of its initial public offering (IPO), with investors bidding for 1,19,18,390 shares against the 1,36,00,000 shares available, according to data released by the National Stock Exchange (NSE).

The ₹170-crore IPO witnessed the strongest participation from the non-institutional investors (NII) category, which was subscribed 1.38 times.

The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 80 per cent, while the retail investor category recorded 41 per cent subscription on the first day.

The public issue, priced in the ₹125–136 per equity share band, will remain open for subscription until July 1.

IPO Proceeds and Acquisition Plans

According to the company, the funds raised through the IPO will be utilised towards part payment for the acquisition of Falcon Yarns Pvt Ltd, funding the working capital requirements of the acquired company through inter-corporate deposits, and meeting general corporate purposes.

"The proposed IPO will further accelerate our growth strategy by supporting the acquisition of Falcon Yarns Private Ltd and enhancing our manufacturing capabilities," Aastha Spintex Promoter Chairman and Managing Director Patel Divyang Jashvantbhai said.

Company Operations

Aastha Spintex manufactures and trades carded, combed and compact combed cotton yarns, cotton bales and related by-products from its integrated spinning and ginning facility located at Halvad in Gujarat's Morbi district.

BOI Merchant Bankers and PNB Investment Services are the book-running lead managers for the issue.

The company's shares are tentatively scheduled to be listed on the BSE and NSE on July 6.