Business description – Lagnam Spintex is an ISO 9001:2015 certified company engaged in the business of manufacture of high quality yarn for domestic and export market ranging from count Ne 4 to Ne 20 which is used in Denim, Terry Towels, Bottom Wears, Home Textiles and Industrial Fabrics etc. The manufacturing facility of the company is situated at A- 53, RIICO Growth Centre, Hamirgarh of Bhilwara District in Rajasthan State and spreads over 10,000 square meters. The company has at present an installed capacity of 1,920 rotors for cotton yarn having capacity to produce16.5 tonnes per day of high quality yarn. The company has been recognised as “One Star Export House” by the Director General of Foreign Trade with a certificate valid from 2017 to 2022. Lagnam Spintex is presently exporting cotton yarns to countries like Portugal, Italy, Germany, Belgium, South Africa, Slovenia, Columbia, China, Pakistan, Bangladesh and others. It supplies to customers, who are in fields like apparel and garment industry, industrial fabrics, towels, Denims etc.
Promoters of Lagnam Spintex – Dwarka Prasad Mangal, Anand Mangal & Lagnam Infotech Solutions Private Limited
| Lagnam Spintex IPO details | |
| Subscription Dates | 4 – 7 September 2018 |
| IPO Price band | INR41 per share |
| Fresh issue | 6,000,000 shares (INR24.60 crore) |
| Offer for sale | Nil |
| Total IPO size | 6,000,000 shares (INR24.60 crore) |
| Minimum bid (lot size) | 3,000 shares |
| Face Value | INR10 per share |
| Retail Allocation | 50% |
| Listing On | NSE Emerge SME platform |
Use of funds
- Part Finance the setting up of additional cotton yarn manufacturing facility – INR22 crore
- Issue Expenses – INR2.60 crore
| Lagnam Spintex’s financial performance (in INR crore) | ||||||
| FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | ||
| Total revenue | 42.06 | 49.83 | 56.56 | 75.38 | 84.54 | |
| Total expenses | 40.30 | 47.97 | 53.38 | 69.87 | 78.82 | |
| Profit after tax | 1.45 | 1.58 | 2.08 | 3.67 | 4.68 | |
Lagnam Spintex’s Contact Details
Lagnam Spintex Limited
A-51-53, RIICO Growth Centre
Hamirgarh
Bhilwara – 311001
Phone: +91 014 82 289210
Email: [email protected]
Website: www.lagnamspintex.com
Lagnam Spintex IPO Subscription Details
| Day | Subscription (no. of times) |
| Day 1 | 0.26 |
| Day 2 | 0.58 |
| Day 3 | 1.17 |
| Day 4 | 4.72 |
Lagnam Spintex Valuation (For latest FY)
Earnings Per Share (EPS): INR4.15
Price/Earnings (P/E) ratio: 9.88
Return on Net Worth (RONW): 17.72%
Net Asset Value (NAV): INR23.42 per share
Registrar of Lagnam Spintex IPO
Bigshare Services Private Limited
E2, Ansa Industrial Estate, Sakivihar Road,
Sakinaka, Andheri (E)
Mumbai – 400 072
Phone: +91 22 4043 0200
Fax: +91 22 2847 5201
Email: [email protected]
Website: www.bigshareonline.com
Lagnam Spintex IPO Allotment Status
Lagnam Spintex IPO allotment status is now available on Bigshare Services’ website. Click on this link to get allotment status.
Listing performance of Lagnam Spintex
IPO Opening Date: 4 September 2018
IPO Closing Date: 7 September 2018
Listing Date: 18 September 2018
Listing Price on NSE SME: INR41 per share (no change from IPO price)
Closing Price on NSE SME: INR38.95 per share (down 5% from IPO price)
Spinning business has been under a huge stress in last couple of years. Moreover companies projected profitabity is based on the interest rate subsidies from government which is in my opinion not a right strategy to present the company to investors .