The initial public offering (IPO) of Aastha Spintex, a Gujarat-based integrated textile manufacturer, opened for subscription today, June 29, 2026. The company is offering its shares in a price band of Rs 125-136 apiece, seeking to raise Rs 170 crore through a fresh issue of 1.25 crore equity shares. Investors can apply for a minimum of 110 equity shares, with the bidding window closing on July 01.
Company Profile and IPO Purpose
Established in 2013, Aastha Spintex specializes in the manufacturing and trading of carded, combed, and compact combed cotton yarns, as well as cotton bales. Its operations are centered at a semi-automated spinning and ginning facility located in Halvad, Morbi, Gujarat. The cotton bales produced are used both for captive yarn production and supplied to other spinning units, while the yarns cater to diverse textile applications, including denim, terry towels, and home textiles.
The net proceeds from the IPO are primarily earmarked for the part payment towards the acquisition of Falcon Yarns. This strategic move is expected to significantly boost Aastha Spintex's spinning capacity from 7,700 MT to 17,457 MT per annum, paving the way for future revenue growth. A portion of the funds will also be utilized for inter-corporate deposits to support working capital requirements and for general corporate purposes.
Financial Performance and Analyst Views
Aastha Spintex has demonstrated robust financial growth, with revenue reaching Rs 351.16 crore and profit after tax (PAT) surging to Rs 23.5 crore in FY25. The company's investments in solar and wind power now cover approximately 80% of its energy needs, contributing to reduced power costs and improved profitability.
- Swastika Investmart noted the business's exposure to cotton price volatility and dependence on a single manufacturing facility but highlighted the strong turnaround in revenue and PAT. They assigned a 'subscribe for long-term' rating, citing the IPO's reasonable valuation in light of its growth profile and improving margins.
- SBI Securities observed healthy financial performance, with revenue, EBITDA, and PAT growing at CAGRs of 21%, 88%, and 365% respectively between FY23-25. While acknowledging the benefits of the Falcon Yarns acquisition, SBI Securities found the issue valued at a P/E of 21.9 times (based on annualized 9MFY26 proforma earnings) to be expensive relative to peers, issuing a 'neutral' rating and advising to track post-listing performance.
- Ventura Securities also recommended 'subscribe,' emphasizing the company's focus on 100% cotton yarns and the capacity expansion potential from the Falcon Yarns acquisition, which is seen as strengthening long-term growth prospects.
For the nine months ending December 31, 2025, Aastha Spintex reported a net profit of Rs 17.56 crore on a revenue of Rs 314.02 crore.
IPO Allocation and Grey Market Premium (GMP)
The IPO allocates 20% of the issue size to Qualified Institutional Bidders (QIBs), while Non-Institutional Investors (NIIs) and retail investors will each receive 40% of the shares. Ahead of the bidding, Aastha Spintex shares were commanding a Grey Market Premium (GMP) of Rs 4-5 apiece, suggesting a potential listing gain of up to 4% for investors.
BOI Merchant Bankers and PNB Investment Services are serving as the book-running lead managers for the issue, with Bigshare Services acting as the registrar. The shares are slated for listing on both the BSE and NSE, with Monday, July 06, as the tentative listing date.