Cedaar Textile Ltd IPO GMP: All You Need to Know Before Investing
The IPO market is buzzing with fresh opportunities, and one of the latest SME listings attracting investor attention is Cedaar Textile Ltd. With its upcoming IPO and a steadily rising Grey Market Premium (GMP), market participants are eager to understand whether this could be a lucrative opportunity. In this blog, we’ll dive deep into the Cedaar Textile Ltd IPO GMP, company background, issue details, market sentiment, and what it really means for investors.
What is Cedaar Textile Ltd?
Cedaar Textile Ltd is a Bengaluru-based textile company specializing in melange, fancy, and grey yarns made from blends of cotton, viscose, polyester, modal, and other sustainable fibers. Since its inception in 2020, the company has steadily grown into a recognized name in the yarn manufacturing sector. It serves both domestic and international clients, supplying yarn to garment and fabric manufacturers, including high-end fashion brands. The company’s focus on sustainable production and plans to invest in renewable energy, such as rooftop solar installation,s adds to its appeal.
Cedaar Textile Ltd IPO GMP Details
Cedaar Textile Ltd is coming up with a fresh issue of shares to raise approximately ₹60.90 crore through its SME IPO. The price band for the IPO is set between ₹130 and ₹140 per equity share. The minimum lot size for retail investors is 1,000 shares, requiring a minimum investment of ₹130,000 to ₹140,000, depending on the cut-off price.
The issue is entirely a fresh offer, with no offer for sale (OFS). The company plans to utilize the IPO proceeds for setting up solar energy systems, upgrading manufacturing machinery, meeting working capital requirements, and general corporate purposes. The shares are proposed to be listed on the NSE SME platform.
Anchor Investor Bidding Opens: June 27, 2025
IPO Opens for Subscription (Retail, NII, QIB): June 30, 2025
IPO Closes: July 2, 2025 at 5 PM
Basis of Allotment Finalized: July 3, 2025
Refunds Initiated & Share Credit to Demat: July 4, 2025
Listing Date on NSE SME (Emerge): July 7, 2025
Cedaar Textile Ltd IPO GMP: Current Sentiment
The Cedaar Textile Ltd IPO GMP has been generating healthy market chatter. As of the latest updates from the grey market, the stock is commanding a GMP of around ₹9 to ₹10. This indicates that the IPO is expected to list at around ₹149 to ₹150 per share, which is approximately 6-7% higher than the upper end of the price band.
This strong GMP reflects positive sentiment from retail and high-net-worth individuals (HNIs). While GMP is not an official metric, it is widely used by investors to gauge market interest and estimate possible listing gains.
What is Driving the GMP for Cedaar Textile Ltd?
Several factors are contributing to the growing Cedaar Textile Ltd IPO GMP, including:
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Solid Financial Performance: Cedaar Textile has reported strong revenue and profit growth in FY23–24. Revenue increased from ₹161.88 crore in FY23 to ₹191.01 crore in FY24, and net profit surged from ₹4.59 crore to ₹11.05 crore in the same period.
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Anchor Investor Confidence: The IPO secured ₹9.52 crore from anchor investors at the upper price band, signaling confidence from institutional players and further boosting the credibility of the issue.
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Growth Potential in Sustainable Textiles: The company is tapping into the rising demand for eco-friendly yarns and has plans to install solar rooftop systems for cost efficiency and green manufacturing.
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SME IPO Momentum: The SME segment has been attracting active investor interest recently, especially those companies with clean financials, scalability, and sustainability focus.
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Low Valuation Compared to Peers: The company’s IPO is coming at a relatively attractive valuation compared to other listed textile players in the SME space, which makes it more appealing to value-conscious investors.
Why Investors are Watching the GMP Closely
The Cedaar Textile Ltd IPO GMP is being closely monitored as it gives a hint of potential listing gains. For traders looking for short-term profits, a stable and rising GMP suggests the possibility of a profitable exit on the listing day. For long-term investors, GMP is an added bonus, as it shows pre-listing demand for the stock.
However, it's essential to note that the GMP is unofficial and fluctuates based on demand and supply in the grey market. It should not be the sole factor in making an investment decision, especially in SME IPOs, which are inherently more volatile and less liquid than mainboard listings.
Risks to Keep in Mind Despite Strong GMP
While the Cedaar Textile Ltd IPO GMP is encouraging, investors must also weigh the risks before applying:
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High Leverage: The company has a high debt-to-equity ratio, which could impact profitability and flexibility during adverse market conditions.
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Limited Operating History: Being a relatively new company established in 2020, Cedaar has a short track record compared to more established peers.
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SME Market Volatility: SME IPOs tend to experience sharp post-listing movements, and liquidity is often limited. It’s important to have an exit strategy if investing only for listing gains.
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GMP Speculation: GMP can sometimes be artificially inflated by market operators and may not always reflect the true market demand.
Final Thoughts on Cedaar Textile Ltd IPO GMP
The Cedaar Textile Ltd IPO GMP gives investors a positive indication of the stock’s expected listing performance. Backed by strong financials, sustainability-focused operations, and institutional interest, Cedaar appears to be a promising SME IPO in the current market. However, while GMP offers a short-term glimpse of listing demand, it is not a guaranteed predictor of success.
Investors should do their own due diligence, analyze the company’s financial health, and consider their risk appetite before investing. If you are a long-term investor looking for growth in the textile and sustainable yarn segment, Cedaar Textile Ltd could be worth considering beyond just the GMP numbers.
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