Schedule of Neelam Linens and Garments
| Issue open date | 08 Nov 2024 |
| Issue close date | 12 Nov 2024 |
| UPI mandate deadline | 12 Nov 2024 (5 PM) |
| Allotment finalization | 13 Nov 2024 |
| Refund initiation | 14 Nov 2024 |
| Share credit | 14 Nov 2024 |
| Listing date | 18 Nov 2024 |
| Mandate end date | 27 Nov 2024 |
| Lock-in end date for anchor investors (50%) | 28 Dec 2024 |
| Lock-in end date for anchor investors (remaining) | 11 Feb 2025 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Neelam Linens and Garments
Neelam Linens and Garments (India) Limited, incorporated in 2010, specializes in processing and supplying home furnishings such as bedsheets, pillow covers, duvet covers, towels, and garments. The company’s manufacturing units are located in Bhiwandi, Thane, Maharashtra, and its daily production capacity is 4,000 sets, which can be expanded to 6,000 sets.
The company also engages in the sale and trading of import licenses through government incentive programs, serving clients in domestic and international markets, including the USA, Australia, and the Far East.
Financials of Neelam Linens and Garments
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹13 crores |
| Fresh Issue | ₹13 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Funding for Embroidery Machine Expansion | 5.57 (42.85%) |
| Repayment of Borrowings | 4.00 (30.77%) |
| General corporate purposes | 3.43 (26.38%) |
Strengths
- Sources surplus high-thread-count fabric at reduced costs, offering price advantages.
- Infrastructure investments aim to improve product quality and meet growing demand.
- Promoters’ experience in textiles aids in identifying market trends and customer needs.
Risks
- Reliance on bedsheets makes the business sensitive to demand changes.
- Limited suppliers could disrupt raw material availability.
- Revenue concentration on a few customers increases risks.
- High working capital needs may strain cash flow.
- Unsecured loans recall may affect liquidity.
- Inventory errors risk overstocking or understocking.