Spunweb Nonwoven Ltd IPOSPUNWEB

The IPO opens on 14 Jul 2025 & closes on 16 Jul 2025.

Spunweb Nonwoven Limited was incorporated as 'Spunweb Nonwoven Private Limited' in Rajkot, Gujarat dated August 06, 2015, with the Registrar of Companies, Gujarat. Subsequently, Company was converted into a Public Limited Company and the name of the Company was changed to 'Spunweb Nonwoven Limited'. A fresh Certificate of Incorporation upon conversion from a Private Limited to Public Limited Company dated September 06, 2024, was issued by the Registrar of Companies, Central Processing Centre. Spunweb Nonwoven is one of the largest manufacturers in spunbond nonwoven fabric industry in India, with an installed production capacity of 32,640 MT as of FY24. The product portfolio consists of hydrophobic nonwoven fabric, hydrophilic nonwoven fabric, super soft nonwoven fabric, UV treated fabric, antistatic nonwoven fabric and FR treated fabric. Company is a comprehensive solution provider for all types of PP spunbond nonwoven fabrics manufactured using advanced spunbond technology. In the healthcare and hygiene industry, products are used in the production of sanitary pads, diapers, and other hygiene products, meeting the increasing demand for personal care solutions. In medical industry, nonwoven fabrics are integral to manufacturing of masks, surgical caps and protective suits, supporting the global healthcare system in maintaining hygiene and safety. Company also serve the packaging industry by providing eco-friendly nonwoven fabrics for shopping bags and wrappers, contributing to the growing emphasis on reusable packaging solutions. Fabrics play a crucial role in agriculture and they are used for fruit, vegetable and crop cover for protection , supporting environmentally friendly farming practices. The Company installed and commissioned 3.2 SS Spunbond nonwoven production line in 2016; installed 1.6 SS Spunbond nonwoven production line in 2018; commissioned 2.6 SS Spunbond nonwoven production line in 2020; installed 0.5 MW rooftop solar system in 2021; commissioned 3.2 SS Spunbond nonwoven production line in 2022; installed 3.2 SSS Spunbond nonwoven production line in 2023; installed 0.6 MW rooftop solar system further in 2024 and has installed further 0.435 MW rooftop solar system in 2024. The Company has acquired 100% equity share capital in Spunweb India Private Limited, making it a wholly owned subsidiary of the Company in 2024. Company is planning to come out with an Initial Public Offering by allotting 63,51,600 fresh issue of equity shares of face value Rs 10/- each.

Spunweb Nonwoven Ltd IPO will close on 16 Jul 2025.

<ul><li>The Company is one of the largest manufacturers of spunbond nonwoven fabrics in India.</li><li>The Company provides tailored spunbond nonwoven fabric manufacturing for industry specific needs.</li><li>Long standing association with different consumers in diverse industries and geographies.</li><li>Advanced spunbond technology along with cleanroom technology for manufacturing process.</li><li>Experienced Promoters supported by a strong management and execution team.</li><li>The Company ensures consistency in quality and service standards</li><li>Consistent financial performance.</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>Jay Dilipbhai Kagathara</td> <td>7029716</td> <td>39.6</td> <td>7029716</td> <td>29.16</td> </tr> <tr> <td>2</td> <td>Kishan Dilipbhai Kagathara</td> <td>7403935</td> <td>41.71</td> <td>7403935</td> <td>30.72</td> </tr> <tr> <td>3</td> <td>Dilipbhai Hansrajbhai Kagathar</td> <td>434548</td> <td>2.45</td> <td>434548</td> <td>1.8</td> </tr> <tr> <td>4</td> <td>Prabhaben Dilipbhai Kagathara</td> <td>433310</td> <td>2.44</td> <td>433310</td> <td>1.8</td> </tr> <tr> <td>5</td> <td>Charulata Jay Kagathara</td> <td>374220</td> <td>2.11</td> <td>374220</td> <td>1.55</td> </tr> <tr> <td>6</td> <td>Bediya Jinal Mansukhbhai</td> <td>16880</td> <td>0.1</td> <td>16880</td> <td>0.07</td> </tr> <tr> <td>7</td> <td>Kriva Jay Kagathara</td> <td>16880</td> <td>0.1</td> <td>16880</td> <td>0.07</td> </tr> </tbody> </table>

<ul><li>Our Company and SIPL are dependent on limited number of suppliers for supply of raw materials and we have not made any long-term supply arrangement or agreement with our suppliers. In an eventuality where our suppliers are unable to deliver us the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on our business operations and profitability. The Majority of our raw materials are sourced from few key suppliers. Discontinuation of the operations of such suppliers may adversely affect our ability to source raw materials at a competitive price.</li><li>Our Company derive revenue from diversified customers whereas SIPL derives a significant portion of our revenue from a limited number of customers. Our inability to acquire new customers or loss of all or a substantial portion to any of our major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on our business, results of operations, cash flows and financial condition.</li><li>Underutilization of the installed capacities at our Company and SIPL may impact adversely on our growth and future profitability.</li><li>We have significant working capital requirements and the objects of the Issue include funding working capital requirements of our Company and our wholly owned subsidiary SIPL, which is based on certain assumptions and estimates. Any failure in arranging adequate working capital for our operations may adversely affect our business, results of operations, cash flows and financial conditions.</li><li>We derive a significant portion of our revenue from operations from domestic sales which exposes us to risks specific to Indian geographies and market.</li><li>Our Company has negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flow could adversely impact our business, financial condition and results of operations.</li><li>We are exposed to competition from both domestic and international manufacturers and new entrants and consequent pricing pressures could have a material adverse effect on our business growth and prospects, financial condition and results of operations.</li><li>Majority of our customers operate in the hygiene and packaging sectors. Factors that adversely affect these sectors within these sectors may adversely affect our business, results of operations and financial condition.</li><li>Inventories and trade receivables form a major part of our current assets. Our inability to maintain a balance between optimum inventory levels and our product offering at our factory and failure to manage trade receivables may adversely affect our business, results of operations and financial condition.</li><li>Public health crises, such as pandemics, may disrupt operations and create fluctuating demand for hygiene and healthcare products, adversely impacting our business operations and financial performance.</li><li>Stringent hygiene and health standards in the manufacturing of products such as diapers, sanitary pads, under pads, surgical gowns, face masks, PPE kits, and other disposable medical products could adversely affect our operations if the required quality standards are not consistently met.</li><li>Any failure to protect our intellectual property rights could adversely affect our competitive position, business, financial condition and results of operation.</li><li>Our success in large part depends upon our KMPs, SMP and other employees with technical expertise and if we are unable to recruit and retain such qualified and skilled employees, our business and our ability to operate or grow our business may be adversely affected.</li><li>We are dependent on credit facilities from banks to fund our business operations. Any event where we are unable to obtain, renew or enhance credit limits from the banks, or repay such facilities obtained, would affect our financial position and credit standing.</li><li>Our business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Unavailability of such adequate and uninterrupted supply of electrical power may significantly impact on our business and results of operation.</li><li>We appoint contract labour for carrying out our operations and we may be held responsible for payment of wages of such workers, if the independent contractors through whom such workers are hired default on their payment obligations. Such obligations could have an adverse impact on our results of operations, cash flows and financial condition.</li><li>We are dependent on third party transportation providers for the supply and distribution of our products. Any failure or delay in such transportation and logistics arrangements could materially affect our business, our operations and financial condition.</li><li>Fluctuations in the price of our primary raw material i.e., polypropylene granules, may adversely impact our financial performance and profitability.</li><li>Geopolitical conflicts and global disruptions in oceanic trades could adversely impact our supply chain, operational costs, and delivery timelines.</li><li>Our inability to procure and/or maintain adequate insurance cover in connection with our business may adversely affect our results of operations, cash flows and financial condition.</li><li>Our factories are subject to operating risks. Any shutdown of our existing factories or other production problems caused by unforeseen events may reduce sales and adversely affect our business, cash flows, results of operations and financial condition.</li><li>There have been some instances of delay and discrepancies with respect to filing of certain forms with the Registrar of Companies and instances of non-compliance of Section 173 (1) of the Companies Act in the past, which may be subject to regulatory actions and penalties.</li><li>Our industry is labour intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by our employees.</li><li>Certain sections of this Draft Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by us exclusively connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risk.</li><li>The security of our IT systems may fail and adversely affect our business, operations, financial condition and reputation.</li><li>Our funding requirements and the proposed deployment of Net Proceeds have not been appraised by a financial institution or a bank or any other independent agency and deployment of funds raised through this Issue shall not be subject to monitoring by any monitoring agency.</li><li>Any variation in the utilisation of our Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>Certain of our Promoters and Directors may have interests in entity, which is in businesses similar to ours and this may result in conflict of interest with us.</li><li>There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on our financial condition and cash flows.</li><li>We have entered, and will continue to enter, into related party transactions which may involve conflicts of interest. Further, our Promoters, Promoter Group, Directors, Key Managerial Personnel and Relatives of Key Managerial Personnel have interests in us other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>Any delays and/or defaults in customer payments could result an increase of working capital investment and/or reduction of our Company's profits, thereby affecting our operation and financial condition.</li><li>Corporate office of our Company is not owned by us and is occupied by us on leave and license basis. Our inability to renew leave and license agreement or any adverse impact on the title or ownership rights of our owners in relation to these premises may impede our operations.</li><li>We are subject to risks arising from exchange rate fluctuations which may adversely impact our results of operations and cashflows.</li><li>Our business requires us to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect our business operations. We require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of our business. Some of the approvals are required to be obtained by our Company and any failure or delay in obtaining the same in a timely manner may adversely affect our operations.</li><li>If we are unable to raise additional capital, our business, operations, prospects or financial results may be materially and adversely affected.</li><li>Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures which may adversely affect our cash flows, business results of operations and financial condition.</li><li>Our Promoters and the Promoter Group will jointly continue to retain majority shareholding in our Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.</li><li>As we continue to grow, we may not be able to effectively manage our growth and the increased complexity of our business, which could negatively impact our brand and financial performance.</li><li>Our ability to pay dividends in the future will depend on a number of factors, including our profit after tax for the respective fiscal year, our capital requirements, our financial condition, our cash flows and applicable taxes, including payment of dividend distribution tax.</li><li>We could be harmed by employee misconduct that are difficult to detect and any such incidences could adversely affect our financial conditions, results of operations and reputation.</li><li>Some of our loan agreements contain restrictive covenants which may adversely affect our business results of operations and financial condition.</li><li>The average cost of acquisition of Equity shares by our Promoters may be lower than the Issue price.</li><li>We are subject to the risk of fraud, theft, embezzlement by our employees and customers, employee negligence or similar incidents may adversely affect our results of operations and financial condition.</li><li>We have presented certain supplemental information of our performance and liquidity which is not prepared under or required under Indian GAAP.</li><li>Our historical performance is not indicative of our future growth or financial results, and we may not be able to sustain our historical growth rates or effectively execute our strategies, which may adversely affect our business and financial results.</li><li>Public health crises, such as pandemics, may disrupt operations and create fluctuating demand for hygiene and healthcare products, adversely impacting our business operations and financial performance.</li><li>Stringent hygiene and health standards in the manufacturing of products such as diapers, sanitary pads, under pads, surgical gowns, face masks, PPE kits, and other disposable medical products could adversely affect our operations if the required quality standards are not consistently met.</li><li>Any failure to protect our intellectual property rights could adversely affect our competitive position, business, financial condition and results of operation.</li><li>Our success in large part depends upon our KMPs, SMP and other employees with technical expertise and if we are unable to recruit and retain such qualified and skilled employees, our business and our ability to operate or grow our business may be adversely affected.</li><li>We are dependent on credit facilities from banks to fund our business operations. Any event where we are unable to obtain, renew or enhance credit limits from the banks, or repay such facilities obtained, would affect our financial position and credit standing.</li><li>Our business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Unavailability of such adequate and uninterrupted supply of electrical power may significantly impact on our business and results of operation</li><li>We appoint contract labour for carrying out our operations and we may be held responsible for payment of wages of such workers, if the independent contractors through whom such workers are hired default on their payment obligations. Such obligations could have an adverse impact on our results of operations, cash flows and financial condition.</li><li>We are dependent on third party transportation providers for the supply and distribution of our products. Any failure or delay in such transportation and logistics arrangements could materially affect our business, our operations and financial condition.</li><li>Fluctuations in the price of our primary raw material i.e., polypropylene granules, may adversely impact our financial performance and profitability.</li><li>We are subject to risks arising from exchange rate fluctuations which may adversely impact our results of operations and cashflows.</li><li>Geopolitical conflicts and global disruptions in oceanic trades could adversely impact our supply chain, operational costs, and delivery timelines.</li><li>Our inability to procure and/or maintain adequate insurance cover in connection with our business may adversely affect our results of operations, cash flows and financial condition.</li><li>Any material decrease in the portion of revenue derived from the sale of Hydrophobic Nonwoven Fabric and Super Soft Nonwoven Fabric could have an adverse impact on our financial performance and overall business stability.</li><li>Our factories are subject to operating risks. Any shutdown of our existing factories or other production problems caused by unforeseen events may reduce sales and adversely affect our business, cash flows, results of operations and financial condition.</li><li>There have been some instances of delay and discrepancies with respect to filing of certain forms with the Registrar of Companies and instances of non-compliance of Section 173 (1) of the Companies Act in the past, which may be subject to regulatory actions and penalties.</li><li>Our industry is labour intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by our employees.</li><li>Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by us exclusively connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risk.</li><li>The security of our IT systems may fail and adversely affect our business, operations, financial condition and reputation.</li><li>Our funding requirements and the proposed deployment of Net Proceeds have not been appraised by a financial institution or a bank or any other independent agency.</li><li>Any variation in the utilisation of our Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>Certain of our Promoters and Directors may have interests in entity, which is in businesses similar to ours and this may result in conflict of interest with us.</li><li>There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on our financial condition and cash flows.</li><li>We have entered, and will continue to enter, into related party transactions which may involve conflicts of interest. Further, our Promoters, Promoter Group, Directors, Key Managerial Personnel and Relatives of Key Managerial Personnel have interests in us other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>If we are unable to establish and maintain an effective internal controls and compliance system, our business and reputation could be adversely affected.</li><li>Our ability to access capital at attractive costs depends on our credit ratings. Non-availability of credit ratings or a poor rating may restrict our access to capital and thereby adversely affect our business and results of operations.</li><li>Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may affect our cash flows</li><li>There are outstanding litigation proceedings involving our Company, our Directors, our Promoters and our Subsidiaries. Any adverse decision in such demand may render us liable to liabilities/penalties and may adversely affect our business, results of operations and financial condition.</li><li>Any delays and/or defaults in customer payments could result an increase of working capital investment and/or reduction in our Company's profits, thereby affecting our operation and financial condition.</li><li>Corporate office of our Company is not owned by us and is occupied by us on leave and license basis. Our inability to renew leave and license agreement or any adverse impact on the title or ownership rights of our owners in relation to these premises may impede our operations.</li><li>Our business requires us to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect our business operations. We require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of our business. Some of the approvals are required to be obtained by our Company and any failure or delay in obtaining the same in a timely manner may adversely affect our operations.</li><li>If we are unable to raise additional capital, our business, operations, prospects or financial results may be materially and adversely affected.</li><li>Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures which may adversely affect our cash flows, business results of operations and financial condition.</li><li>Our Promoters and the Promoter Group will jointly continue to retain majority shareholding in our Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.</li><li>As we continue to grow, we may not be able to effectively manage our growth and the increased complexity of our business, which could negatively impact our brand and financial performance.</li><li>Our ability to pay dividends in the future will depend on a number of factors, including our profit after tax for the respective fiscal year, our capital requirements, our financial condition, our cash flows and applicable taxes, including payment of dividend distribution tax.</li><li>We could be harmed by employee misconduct that are difficult to detect and any such incidences could adversely affect our financial conditions, results of operations and reputation.</li><li>Some of our loan agreements contain restrictive covenants which may adversely affect our business results of operations and financial condition.</li><li>The average cost of acquisition of Equity shares by our Promoters may be lower than the Issue price. The average cost of acquisition of Equity Shares for our Promoters may be lower than the Issue Price. The details of the average cost of acquisition of Equity Shares held by our Promoters as on the date of the Red Herring Prospectus is set out below:</li><li>We are subject to the risk of fraud, theft, embezzlement by our employees and customers, employee negligence or similar incidents may adversely affect our results of operations and financial condition.</li><li>None of our Directors/ Promoters have prior experience of being a Director of a listed company.</li><li>Changing market trends and evolving customer requirements may impact our business, revenue and profitability.</li><li>We are subject to counterfeit, cloned and pass-off products, which may reduce our sales and harm the brand reputation and goodwill of our Company.</li><li>We have presented certain supplemental information of our performance and liquidity which is not prepared under or required under Indian GAAP</li></ul>

The Issue type of Spunweb Nonwoven Ltd is Book Building - SME.

The minimum application for shares of Spunweb Nonwoven Ltd is 2400.

The total shares issue of Spunweb Nonwoven Ltd is 6351600.

Initial public issue of upto 63,51,600 equity shares of face value of Rs.10/- each of Spunweb Nonwoven Limited (formerly known as Spunweb Nonwoven Private Limited), ("Spunweb" or the "Company" or the "Issuer") for cash at a price of Rs. 96 /- per equity share including a share premium of Rs. 86/- per equity share (the "Issue Price") aggregating to Rs.60.98 crores ("the Issue"), of which 3,21,600 equity shares of face value of Rs.10/- each for cash at a price of Rs. 96/- per equity share including a share premium of Rs. 86/- per equity share aggregating to Rs.3.09 crores was reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 60,30,000 equity shares of face value of Rs.10/- each at a price of Rs. 96 /- per equity share including a share premium of Rs. 86 /- per equity share aggregating to Rs.57.89 crores is hereinafter referred to as the "Net Issue". the issue and the net issue constituted 26.35% and 25.02%, respectively, of the post issue paid up equity share capital of ther company.