Siddhi Cotspin Ltd IPOSIDDHICOTS

The IPO opens on 19 Sept 2025 & closes on 23 Sept 2025.

Siddhi Cotspin Ltd was incorporated on November 23, 2015, as 'Siddhi Cotspin Private Limited', a Private Company, pursuant to a Certificate of Incorporation dated November 23, 2015, issued by the Assistant Registrar of Companies, Ahmedabad. Company converted into a Public Limited on January 29, 2024, and a fresh Certificate of Incorporation dated February 12, 2024 was issued by the Registrar of Companies, Ahmedabad, recording the Change in Company name as 'Siddhi Cotspin Limited'. The Company is primarily engaged in manufacturing and selling of Cotton Yarns. It has set up a Greenfield project of manufacturing value added and specialty cotton yarn at Taluka Dholka, District Ahmedabad, Gujarat, with a total spinning capacity of 29,376 spindles. There are 18 Ring Frames of 1632 spindles each. The installed unit is capable of producing cotton yarn including value added yarns. Their current capacity for producing Cotton Yarn is 90,11,850 Kgs. The Company is manufacturing various value added cotton yarns like Compact Carded Hosiery, Compact Combed Hosiery, Compact Carded Weaving, Compact Comb Weaving, Carded Weaving, Combed Weaving, Carded Hosiery, Combed Hosiery, Eli KW, Eli CW, Slub Yarn, Siro Slub Yarn, CSY-Lycra-Core Spin Yarn (Spandex), TFO Yarn - Double etc. Manufacturing facility is equipped with modern and automatic plant and machinery. The level of advancement determines the productivity of machines and labour, which in turn, determines the production and profitability of Company. Since technology is a crucial aspect of cotton yarn industry. The experienced team of technicians and operators ensure that every batch of cotton yarn produced meets the highest quality parameters. The Company is proposing the Public Issue aggregating 6468000 Equity Shares comprising 4944000 Fresh Issue equity shares and 1524000 thru' Offer for Sale.

Siddhi Cotspin Ltd IPO will close on 23 Sept 2025.

<ul><li>Experienced Promoter and Management Team.</li><li>Quality Standards.</li><li>Strong and diversified supplier base for sourcing raw materials.</li><li>Optimal Utilization of Resources.</li><li>Long-standing relationships with our customers.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Navin Saraogi</td> <td>8752858</td> <td>44.97</td> <td>8098056</td> <td>33.18</td> </tr> <tr> <td>2</td> <td>Aansh Rajesh Bindal</td> <td>7902167</td> <td>40.6</td> <td>7902167</td> <td>32.38</td> </tr> </tbody> </table>

<ul><li>There is an Interim Order/Show Cause Notice passed by the Securities and Exchange Board of India (SEBI) involving Mr. Vedprakash Devkinandan Chiripal and Ms. Savitridevi Chiripal part of the company Promoter Group, alongwith other entities viz. Mauria Udyog Limited, 7NR Retail Limited, Darjeeling Ropeway Company Limited, GBL Industries Limited, and Vishal Fabrics Limited which may impact its Promoter's reputation and in turn affecting the company is business operations and the value of its shares.</li><li>The company does not own its registered office.</li><li>Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.</li><li>Its business is vulnerable to variations in demand for cotton yarn and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.</li><li>The Company has not entered into any fixed or long term contracts with its customers and the company will operates on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact its revenues and profitability.</li><li>The company does not maintain long-term contracts with its third-party suppliers, and its business may be adversely affected by a shortfall in supply, or increase in price of materials.</li><li>Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of SEBI ICDR Regulations 2018.</li><li>The company faces competition, including from other large and established competitors, and the company may fail to compete successfully against existing or new competitors, which may reduce the demand for its Product which may lead to reduced prices, operating margins, profits and further result in decline in revenue.</li><li>Its business is operating under various laws which require the company to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.</li><li>Its operations are subject to high working capital requirements. The company's inability to maintain an optimal level of working capital required for its business may impact the company's operations adversely.</li><li>There is an Interim Order/Show Cause Notice passed by the Securities and Exchange Board of India (SEBI) involving Mr. Vedprakash Devkinandan Chiripal and Ms. Savitridevi Chiripal part of its Promoter Group, alongwith other entities viz. Mauria Udyog Limited, 7NR Retail Limited, Darjeeling Ropeway Company Limited, GBL Industries Limited, and Vishal Fabrics Limited which may impact its Promoter's reputation and in turn affecting the company's business operations and the value of its shares.</li><li>The Company's logo is not registered as of the date of this Draft Red Herring Prospectus. Its may be unable to adequately protect the company's intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights which could have a material adverse effect on its business, results of operations and financial condition.</li><li>Orders placed by customers may be delayed, modified, cancelled or not fully paid for by its customers, which may have an adverse effect on the company's business, financial condition and results of operations.</li><li>Any failure in its quality control processes may have an adverse effect on its business, results of operations and financial condition.</li><li>Its continued operations at the company's manufacturing facility is critical to its business and any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing facility, may have a material adverse effect on its business, results of operations, financial condition and cash flows.</li><li>In its restated financials as at December 31, 2023, the company has a contingent liability related to export commitments. Failure to meet these commitments under the Export Promotion Capital Goods (EPCG) scheme may result in the imposition of penalties.</li><li>Its inability to collect receivables and default in payment from its customers could result in the reduction of the company profits and affect its cash flows.</li><li>Any failure on its part to effectively manage the company's inventory may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.</li><li>Under-utilization of its manufacturing capacities and an inability to effectively utilize the company existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.</li><li>The company has issued Equity Shares during the preceding one year at a price that is below the Offer Price.</li><li>In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.</li><li>Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.</li><li>Changes in technology may render its current technologies obsolete or require the company to make substantial investments.</li><li>The company is heavily dependent on its Promoters, Key Managerial Personnel and Senior Management Personnel for the continued success of its business through their continuing services and strategic guidance and support.</li><li>Its success depends on the company's ability to attract and retain its key management personnel. If the company is unable to do so, it would adversely affect its business and results of operations.</li><li>The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.</li><li>Its business operations are majorly concentrated in a particular geographical region and any adverse developments affecting its operations in this region could have a significant impact on the company's revenue and results of operations.</li><li>Adverse publicity regarding its product could negatively impact the company.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.</li><li>Dependence upon third party transportation services for supply and transportation of its product are subject to various uncertainties and risks, and delays in delivery may result in rejection of product by customer.</li><li>The average cost of acquisition of Equity Shares by its Promoters could be lower than the Offer price.</li><li>The company has not received NOC from one of its lenders for undertaking the initial public offer of equity shares. </li><li>Failure to effectively manage labour or failure to ensure availability of sufficient labour could affect the business operations of the Company.</li><li>Its contingent liabilities as stated in the company's Restated Financial Statements could affect its financial condition.</li><li>The Promoter-Directors hold 85.57% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.</li><li>Its Promoter, Director and Promoter Group members/entities have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/ Directors and thereby, impact its business and operations.</li><li>The Company has unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans may adversely affect its cash flows.</li><li>The company may faces foreign exchange risks that could adversely affect its results of operations and cash flows.</li><li>Its Promoter Group Entities are engaged in a similar line of business. Any conflict of interest in future may occur between the business of its promoter group entities and it which may adversely affect its business, prospects, results of operations and financial condition.</li><li>The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Offer proceeds may delay the implementation schedule.</li><li>The Objects of the offer for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.</li><li>Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.</li><li>Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.</li><li>The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.</li><li>The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.</li><li>The company will continue to be controlled by its Promoters after the completion of the Offer.</li><li>The Offer price of its Equity Shares may not be indicative of the market price of the company's Equity Shares after the Offer and the market price of its Equity Shares may decline below the Offer price and you may not be able to sell your Equity Shares at or above the Offer Price.</li><li>The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.</li><li>Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company's Equity Shares.</li><li>Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.</li><li>The company cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which the company operates contained in the Draft Red Herring Prospectus.</li><li>There are outstanding legal proceedings involving the Company, Promoters, Directors, and Group Companies. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.</li><li>The company does not own the premises in which the company is Registered Office and Corporate Office are located and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect the company operations.</li><li>The company is primarilies dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on the company is business operations and financial conditions.</li><li>Substantial portion of the company is revenues has been dependent upon few customers, with which its does not have any firm commitments. The loss of any one or more of the company is major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.</li><li>Its business is vulnerable to variations in demand for cotton yarn and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.</li><li>The Company has not entered into any fixed or long term contracts with its customers and its will operate on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact the company revenues and profitability.</li><li>The company does not maintain long-term contracts with the company is third-party suppliers, and its business may be adversely affected by a shortfall in supply, or increase in price of materials.</li><li>The company is Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of SEBI ICDR Regulations 2018.</li><li>The company is face competition, including from other large and established competitors, and its may fail to compete successfully against existing or new competitors, which may reduce the demand for the company is Product which may lead to reduced prices, operating margins, profits and further result in decline in revenue.</li><li>The company is operations are concentrated in the state of Gujarat and any adverse developments affecting Gujarat could have an adverse effect on its business, results of operations and financial condition.</li><li>Its business is operating under various laws which require it to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and the company is inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for our business operations could materially and adversely affect its business, prospects, results of operations and financial condition.</li><li>The company is operations are subject to high working capital requirements. its inability to maintain an optimal level of working capital required for the company is business may impact its operations adversely.</li><li>The Company's logo is not registered as of the date of this Red Herring Prospectus. Its may be unable to adequately protect the company is intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights which could have a material adverse effect on the company business, results of operations and financial condition.</li><li>The Company has unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans may adversely affect the company cash flows.</li><li>There are certain discrepancies and non - compliance noticed in some of the company financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.</li><li>Orders placed by customers may be delayed, modified, cancelled or not fully paid for by the company customers, which may have an adverse effect on its business, financial condition and results of operations.</li><li>Any failure in the company quality control processes may have an adverse effect on its business, results of operations and financial condition.</li><li>Its continued operations at the company is manufacturing facility is critical to its business and any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of the company is manufacturing facility, may have a material adverse effect on its business, results of operations, financial condition and cash flows.</li><li>In the company is restated financials as at March 31, 2025, the company has a contingent liability related to export commitments. Failure to meet these commitments under the Export Promotion Capital Goods (EPCG) scheme may result in the imposition of penalties.</li><li>The company is inability to collect receivables and default in payment from its customers could result in the reduction of the company profits and affect its cash flows.</li><li>Any failure on the company is part to effectively manage its inventory may result in an adverse effect on the company is business, revenue from manufacturing operations and financial condition.</li><li>Under-utilization of the company is manufacturing capacities and an inability to effectively utilize its existing manufacturing capacities could have an adverse effect on the company business, future prospects and future financial performance.</li><li>In addition to regular remuneration, other benefits and expense reimbursement our Promoters, Directors, key managerial personnel or senior management hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. the Company in future may enter in related party transactions subject to necessary compliances.</li><li>The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.</li><li>Changes in technology may render the company is current technologies obsolete or require it to make substantial investments</li><li>the company has heavily dependent on its Promoters, Key Managerial Personnel and Senior Management Personnel for the continued success of our business through their continuing services and strategic guidance and support.</li><li>the company is success depends on its ability to attract and retain the company key management personnel. If its unable to do so, it would adversely affect the company is business and results of operations.</li><li>The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on the company is business and results of operations.</li><li>Its business operations are majorly concentrated in a particular geographical region and any adverse developments affecting the company is operations in this region could have a significant impact on its revenue and results of operations.</li><li>Adverse publicity regarding its product could negatively impact it.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.</li><li>Dependence upon third party transportation services for supply and transportation of the company is product are subject to various uncertainties and risks, and delays in delivery may result in rejection of product by customer.</li><li>The average cost of acquisition of Equity Shares by its Promoters could be lower than the Offer price.</li><li>Failure to effectively manage labour or failure to ensure availability of sufficient labour could affect the business operations of the Company.</li><li>Its contingent liabilities as stated in our Restated Financial Statements could affect the company is financial condition.</li><li>The Promoter- Directors hold 85.57% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.</li><li>The company is Promoter, Director and Promoter Group members/entities have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/ Directors and thereby, impact the company is business and operations.</li><li>Its may face foreign exchange risks that could adversely affect the company is results of operations and cash flows.</li><li>The company is Promoter Group Entities are engaged in a similar line of business. Any conflict of interest in future may occur between the business of the company is promoter group entities and it which may adversely affect its business, prospects, results of operations and financial condition.</li><li>The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Offer proceeds may delay the implementation schedule.</li><li>The Objects of the offer for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence our profitability adversely.</li><li>Information relating to the company is production capacities and the historical capacity utilization of its production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.</li><li>Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.</li><li>The company is subject to restrictive covenants under its credit facilities that limit the company is operational flexibility.</li><li>The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.</li><li>The company will continue to be controlled by its Promoters after the completion of the Offer.</li><li>The Offer price of the company is Equity Shares may not be indicative of the market price of its Equity Shares after the Offer and the market price of the company is Equity Shares may decline below the Offer price and you may not be able to sell your Equity Shares at or above the Offer Price.</li><li>The company is ability to pay dividends in the future will depend upon the company is future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete</li><li>Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.</li><li>Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.</li><li>The company is cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which we operate contained in the Red Herring Prospectus.</li><li>Certain data mentioned in this Red Herring Prospectus has not been independently verified.</li><li>The requirements of being a public listed company may strain our resources and impose additional requirements</li><li>The company has not commissioned an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data available from the online source.</li><li>The Company may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect the trading price of the Equity Shares.</li></ul>

The Issue type of Siddhi Cotspin Ltd is Book Building - SME.

The minimum application for shares of Siddhi Cotspin Ltd is 2400.

The total shares issue of Siddhi Cotspin Ltd is 6468000.

Initial public offer of 64,68,000 equity shares of face value of Rs. 10/- each of Siddhi Cotspin Limited ("SCI" or the "Company" or the "Offer or") for cash at a price of Rs. 108/- per equity share including a share premium of Rs. 98/- per equity share (the "offer price") aggregating to Rs. 69.85 crores ("the offer") comprising of a fresh issue 49,44,000 equity shares aggregating to Rs. 53.40/- crores (the "fresh issue") and an offer for sale of 15,24,000 equity shares by promoter selling shareholder- Navin Saraogi and selling shareholder - Vineeta Vishal Chiripal aggregating to Rs.16.46/- crores ("offer for sale"), of which 3,24,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 108/- per equity share including a share premium of Rs. 98/- per equity share aggregating to Rs. 3.50 crores will be reserved for subscription by market maker to the offer (the "market maker reservation portion"). The offer less the market maker reservation portion i.e. net offer of 61,44,000 equity shares of face value of Rs. 10/- each at a price of Rs. 108/- per equity share including a share premium of Rs. 98/- per equity share aggregating to Rs. 66.36 crores is herein after referred to as the "net offer". The offer and the net offer will constitute 26.50% and 25.17%, respectively, of the post offer paid up equity share capital of the company.