Aastha Spintex IPO

About Aastha Spintex

Aastha Spintex Limited was incorporated in August 2013 in Gujarat and was converted into a public limited company in February 2025. The company is promoted by Patel Divyang Jashwantbhai, Rasiklal Valjibhai Patel, Gothi Vivek Rasiklal, and Jashwantbhai Valjibhai Patel. It operates from an integrated manufacturing facility located at Halvad, Gujarat. The company is engaged in the manufacturing and trading of cotton yarns and cotton bales. Its product portfolio includes carded, combed, and compact combed cotton yarns used across knitting and weaving applications. These products cater to end-use segments such as denim, home textiles, garments, and industrial fabrics. Operations are primarily business-to-business, supplying textile manufacturers, exporters, and bulk buyers .Aastha Spintex follows an integrated business model with spinning and ginning operations housed at a single location. This enables quality control, operational efficiency, and cost optimisation. Key strengths include an experienced promoter group, integrated infrastructure, focus on consistent quality, and long-standing relationships with customers and trade partners. 

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Financials of Aastha Spintex

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Issue size

Funds Raised in the IPO	Amount
Total issue size	160
Fresh Issue – Proceeds go to the company	160

Utilisation of proceeds

Purpose	INR crores (%)
Part payment for the acquisition of Falcon Yarns Private Limited	111.51 (69.69%)
General corporate purposes	48.49 (30.31%)

Strengths

• An integrated spinning and ginning facility enables cost and quality control.
  
• Strong promoter experience with long-standing presence in the textile sector.
  
• Focused B2B business model with established textile industry clients.
  
• Wide product range of cotton yarns serving multiple end-use segments.
  
• Consistent growth in revenue and profitability in recent years.

Risks

• High dependence on a limited number of customers and a single reseller.
  
• Exposure to volatility in raw cotton prices and supply availability.
  
• Revenue concentration in cotton yarn products increases industry cyclicality risk.
  
• Ongoing acquisition involves integration and execution risks.
  
• Capital-intensive operations with relatively high borrowings.