Aastha Spintex IPO
IPO Price Range: Not Announced Yet
IPO Status
Upcoming
Bidding Dates
Jun 29, 2026 - Jul 1, 2026
Issue Size
₹170.00 Cr
Listing Exchange
BSE
IPO Doc
Aastha Spintex IPO Application Timeline
Objectives of IPO
- Aastha Spintex Limited plans to raise ₹170 crore through its Initial Public Offering (IPO). The entire issue is a fresh issue of shares, which means there is no Offer for Sale (OFS) where existing shareholders sell their stake. In simple words, all the money raised from the IPO will go directly to the company for growth and expansion, and none of it will be received by the current promoters or shareholders. The company has outlined the following uses for these funds.
- Buying a competitor (Falcon Yarns Private Limited): Aastha Spintex will use ₹111.51 crore from the IPO proceeds to complete the acquisition of Falcon Yarns Private Limited. The total acquisition cost is ₹131.51 crore, of which ₹20 crore has already been paid using the company's own funds. This is a major growth step because the acquisition is expected to more than double its yarn manufacturing capacity, increasing it from 7,700 metric tons to 17,457 metric tons per year.
- Funding the day-to-day operations of the new company: The company will provide ₹10 crore (₹1,000 lakh) as a loan to Falcon Yarns Private Limited, which will become its subsidiary after the acquisition. This money will be used for working capital, which simply means meeting everyday business requirements such as buying raw materials, maintaining inventory, and covering operating expenses. This is particularly important in the cotton industry, where businesses often need to purchase and store raw cotton during harvesting seasons.
- General corporate purposes: The remaining funds, capped at a maximum of 25% of the total amount raised, will be used for general business needs. This may include administrative expenses, upgrading machinery, expanding operations, reducing debt, and maintaining a financial buffer for future opportunities or unexpected requirements.
Strengths and Risks
Strengths
Aastha Spintex has delivered steady revenue growth over the last year. Its revenue from operations rose by 15.19%, increasing from ₹304.86 crore in FY24 to ₹351.16 crore in FY25. This suggests that demand for the company's cotton yarn and related products continues to remain strong.
The company's net profit grew to ₹22.91 crore in FY25 from ₹16.28 crore in FY24. At the same time, its net profit margin improved from 5.34% to 6.53%. In simple terms, Aastha Spintex is not only selling more but is also keeping a larger share of every rupee it earns as profit.
One of the company's biggest advantages is its focus on renewable energy. Around 80% of its electricity needs are met through its own solar and wind power plants. As a result, it reported a 55.20% reduction in power costs during FY25, helping improve overall profitability.
Risks
Aastha Spintex depends heavily on a relatively small group of customers. In FY25, its top 10 customers contributed 59.94% of total product sales. One customer alone, 7 Seas Impex, accounted for 33.88% of sales. This means that losing a major customer or seeing a drop in orders from them could have a noticeable impact on the company's revenue.
The company also relies on a limited number of suppliers for raw materials. Its top 10 suppliers accounted for 73.05% of total purchases in FY25. If any of these suppliers face operational issues, pricing disputes, or supply shortages, it could disrupt production and affect business operations.
A large part of the business is concentrated in Gujarat. For the nine months ended December 2025, about 96.69% of revenue came from this single state. In addition, the company's only manufacturing facility is located there. As a result, any regional disruption, whether economic, regulatory, or natural, could significantly affect its operations.
How to Apply for Aastha Spintex IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Aastha Spintex IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
About Aastha Spintex
Aastha Spintex buys raw cotton directly from farmers and traders across Gujarat. At its manufacturing facility in Halvad, Gujarat, the company first cleans and processes the cotton through a step called ginning, where cotton fibers are separated from the seeds and compressed into large bundles known as cotton bales. The cotton seeds are then sold separately as a by-product. After this, the cotton is spun into yarn of different thicknesses, depending on customer requirements.
The company follows a business-to-business (B2B) model, meaning it sells its products to textile manufacturers and exporters rather than directly to consumers. These customers use the yarn and cotton bales to make products such as denim jeans, towels, shirts, and other textile goods. Cotton yarn is Aastha Spintex's largest revenue contributor, accounting for 48.47% of total product sales in FY25, while cotton bales contributed 33.55%.
Within Gujarat, Aastha Spintex sells directly to customers. For buyers in other states and export markets, the company relies heavily on a trading partner called 7 Seas Impex. This reseller was its largest customer in FY25, contributing 33.88% of total product sales. Another notable customer is Elkins Tradelink Ltd.
One of the company's key strengths is its focus on cost efficiency. It currently has an annual yarn production capacity of 7,700 metric tons. A major advantage is that around 80% of its factory's power needs are met through its own solar and wind energy facilities. This helps reduce electricity costs and supports better profit margins.
Looking ahead, Aastha Spintex is preparing for its next phase of growth. The company is acquiring Falcon Yarns Private Limited for ₹131.51 crore. Once completed, this acquisition is expected to more than double its yarn production capacity to 17,457 metric tons per year, significantly expanding its manufacturing scale and growth potential.
For more details, visit here: www.aasthaspintex.com