Shares of Neelam Linens and Garments (India) were trading at Rs 38.05 on the NSE, a premium of 58.54% compared with the issue price of Rs 24.
The scrip was listed at Rs 40.05, a premium of 66.88% over the initial public offer (IPO) price. The stock was currently frozen at its lower limit of 5% compared to its listing price.The counter hit a high of Rs 40.05 and a low of Rs 38.05. About 16.02 lakh shares of the company changed hands at the counter.
Neelam Linens and Garments (India)'s IPO was subscribed 85.50 times. The issue opened for bidding on 8 November 2024 and it closed on 12 November 2024. The price band of the IPO was set at Rs 20 to Rs 24 per share.
The IPO comprised fresh issue of 54,18,000 equity shares. The promoter and promoter group shareholding diluted to 54.29% from 74.18% pre-issue.
The company intends to utilize the net proceeds to meet capital expenditure requirement of the company towards purchase of embroidery machines for expansion, prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and general corporate purpose.
Ahead of the Neelam Linens and Garments (India) on 7 November 2024, raised Rs 3.68 crore from anchor investors. The board allotted 15.36 lakh shares at Rs 24 per share to 2 anchor investors.
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Neelam Linens and Garments (India) specializes in the processing and trading of soft home furnishings and related products, as well as the sale of import licenses. The company serves a global clientele, including customers in the USA, Australia, and the Far East. It processes and supplies products such as bedsheets, pillow covers, duvet covers, towels, rugs, and garments, primarily for discounted retail outlets. By sourcing surplus fabrics locally, the company adds value through services like digital printing, dyeing, and embroidery before distributing the finished products worldwide.
In addition to its core business, the company generates revenue from the sale of import licenses. These government-issued authorizations regulate the import of restricted goods and can be sold or transferred, making them a valuable service in international trade. As of 30 June 2024, the company has 56 employees.
The company recorded revenue from operations of Rs 21.79 crore and net profit of Rs 0.80 crore for the period as of 30 June 2024.
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