Aastha Spintex IPO: Textile Maker’s Rs 170 Cr Public Issue Opens This Week: Should You Apply?

Aastha Spintex's initial public offering is scheduled to open for subscription on June 29. The subscription window will close on July 1. Ahead of the opening of the bidding window, the company’s shares are trading with a modest grey market premium. Here is a look at some of the key details of the company's public issue, which investors should know before applying:

Aastha Spintex IPO: Grey Market Premium (GMP)

In the unregulated grey market, early indicators show muted to steady trading sentiments for the textile maker’s public issue. Aastha Spintex IPO GMP currently hovers around Rs 4 to Rs 5 per share over the upper band. The mild premium hints at an estimated initial listing price near Rs 140 to Rs 141 apiece, indicating a listing with a 4 per cent premium, marking a tepid debut.

Aastha Spintex IPO: Price Band and Lot Size

The price band for the Aastha Spintex IPO has been fixed in the range of Rs 125 to Rs 136 per share. Retail investors can apply for the issue by bidding for a minimum of 110 shares or 1 lot, totalling an investment of Rs 14,960 at the upper end of the price band.

On the other hand, High Net worth Individuals (HNIs) can place bids by applying for a minimum of 14 lots or 110 shares amounting to Rs 2,09,440 for the small HNI category, and 67 lots or 7,370 shares for the big HNI category, amounting to Rs 10,02,320.

Aastha Spintex IPO: Offer Size and Selling Shareholders

Aastha Spintex plans to raise Rs 170 crore through its public issue. The company's public offering is entirely a fresh issue of up to 12.5 million shares aggregating up to Rs 170 crore. There is no offer for sale portion in this public issue. Thus, there are no promoters selling shareholders or institutional investors selling shareholders paring their shares.

Aastha Spintex IPO: Key Financials

According to the Aastha Spintex Red Herring Prospectus (RHP), the company recorded a total revenue from operations of Rs 314.02  crore and a profit of Rs 17.56  crore for the nine-month period ended December 31, 2025. The net worth of the company stood at Rs 153.18 crore in the same period.

The textile manufacturer's total income for the fiscal year ended March 31, 2025, stood at Rs 352.17 crore compared to Rs 305.67 crore in the preceding fiscal year, indicating an increase of more than 15 per cent. The profit of the company was Rs 22.92 crore for the fiscal year ended March 31, 2025, compared to a net profit of Rs 16.29 crore in the preceding fiscal, indicating an increase of more than 40 per cent.

Aastha Spintex: Business Model

Aastha Spintex is engaged in the business of manufacturing and trading carded, combed and compact combed cotton yarns and cotton bales. The products made by the textile firm are used by other spinning units, and the cotton yarns produced are used in both knitting and weaving applications, which are ultimately used to create denim apparel, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. The company generates a significant part of its revenue from the sale of cotton yarn, cotton bales, the sale of cotton seeds and cotton waste by-products generated during spinning cycles.

Aastha Spintex: Competitors

According to the Red Herring Prospectus, the company has mentioned several peer companies in the same line of business for comparison. These listed peers include Ambika Cotton Mills, Lagnam Spintex , and Pashupati Cotspin.

Aastha Spintex IPO: Should You Apply?

Ahead of the opening of the bidding window later this week, investors who are interested in investing in the IPO should know the key strengths and risks related to the company’s public issue:

Aastha Spintex: Key Risks

• The company disclosed in its draft papers that it has filed compounding applications due to past non-compliances under the Companies Act, 2013, and might be subject to penalties or adverse regulatory action.

• The company is dependent on a single reseller, 7 Seas Impex, for a majority of its cotton yarn sales outside Gujarat and export markets, which accounted for 58.23 per cent of its total cotton yarn sales in Fiscal 2025.

• The company's operations are dependent on a single integrated manufacturing facility at Halvad, Morbi, Gujarat; any localised disruption, fire, or machinery breakdown can directly halt production.

Aastha Spintex: Key Strengths

• The company operates a well-integrated, semi-automated ginning and spinning hub in Gujarat.

• The business has heavily integrated renewable energy setups, featuring rooftop solar, ground-mounted solar, and wind plants that meet a major portion of captive power consumption and protect production margins.

• The company claims to have an experienced management team anchored by experienced promoters.

Aastha Spintex IPO: Objective

The textile maker plans to use the net proceeds from the fresh issue to fund the balance payment of the purchase consideration for the acquisition of Falcon Yarns Private Ltd. The capital will also be used to provide inter-corporate deposits for funding the working capital requirements of Falcon Yarns, as well as for general corporate purposes.