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05 August 2023

Shri Techtex Limited IPO: Weaving Innovation and Sustainability

Introduction:

Incorporated in 2011, Shri Techtex Limited has emerged as a leading manufacturer of Polypropylene (PP) Non-Woven Fabric, catering to a diverse range of industries. The company's commitment to quality and innovation has positioned it as a key player in the market, serving ecological applications and industries where disposable or single-use products are essential.

Diverse Applications:

Shri Techtex specializes in manufacturing Polypropylene (PP) Non-Woven Fabric, which finds extensive use in various sectors such as organic farming, healthcare, hospitals, nursing homes, home furnishing, vehicle upholstery seat fabrication, and ecological packaging. The versatile fabric also caters to industrial and consumer goods, reflecting its adaptability and wide-ranging applications.

Transformation and Expansion:

From its inception as a Partnership Firm engaged in industrial trading activity, Shri Techtex evolved into a company manufacturing Polypropylene (PP) Non-Woven Fabric on a job-work basis. With an eye on expansion and diversification, the company is poised to introduce new products such as PP Tufted Fabric (Artificial Grass) and PP Multifilament Yarns. The specialized machinery for these products is anticipated to be operational by October 2023, offering additional avenues for growth.

Manufacturing Excellence:

Shri Techtex's manufacturing prowess is showcased at its state-of-the-art facility in Simaj, Ahmedabad. Boasting a sprawling area of 41548 sq. meters, the facility holds a manufacturing capacity of 3600 MT PP non-woven fabric per annum. The company's commitment to quality and precision underpins its impressive client base that extends across Gujarat, Tamil Nadu, West Bengal, and international markets like the USA, Taiwan, Canada, Denmark, and China.

IPO Insights:

Shri Techtex Limited's IPO, structured as a Book Built Issue, aims to raise Rs. 45.14 Crores. The IPO price range is set at Rs. 54 to Rs. 61 per share, with the subscription window open from July 26, 2023, to July 28, 2023. The anticipated listing date on NSE SME is August 4, 2023.

Promoter Vision:

The company's promoters, Mr. Hanskumar Ramakant Agarwal and Mrs. Shradha Hanskumar Agarwal, drive its vision of innovation, sustainability, and expansion.

Financial Snapshot:

Shri Techtex Limited's financial performance reflects its upward trajectory over the years:

Financial Year Ended | Total Assets (₹ Lakhs) | Total Revenue (₹ Lakhs) | Profit After Tax (₹ Lakhs) | Net Worth (₹ Lakhs)

Financial Information

31-Mar-20	1,766.65	1,625.73	447.23	808.49
31-Mar-21	4,652.15	4,021.58	1,265.68	2,075.69
31-Mar-22	5,282.41	5,182.15	826.56	2,099.47
31-Mar-23	7,386.45	5,807.58	910.63	2,981.50

Expert Opinion:

The company's entry into a competitive market and fluctuations in its profit margins over time warrants cautious consideration. Despite reasonable pricing, investors are advised to carefully evaluate the company's growth prospects and sustainability. Investors with a long-term perspective and comprehensive understanding may find potential in this IPO.

In Conclusion:

Shri Techtex Limited's IPO offers investors an opportunity to support a company that has demonstrated innovation and growth potential in the manufacturing of Polypropylene (PP) Non-Woven Fabric. Aspiring investors should delve into the comprehensive insights shared above, which encompass industry overview, financial snapshot, and expert opinion, to make informed decisions.

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