Aastha Spintex shares had a lackluster stock market debut, opening at Rs 130 each on both the BSE and NSE, lower than the IPO price of Rs 136. This represented a 4.41% discount for investors who participated in the public offering.
Despite the initial weak performance, investor sentiment improved shortly after trading commenced. The stock surged to its upper circuit limit of 5%, bouncing back from early losses and indicating robust demand in the secondary market.
Post-listing, the company’s market capitalization reached Rs 598.13 crore. Aastha Spintex’s Rs 170-crore IPO was oversubscribed by 4.64 times at the close of the bidding period last week. The IPO was priced between Rs 125 and Rs 136 per share.
The IPO solely comprised a fresh issue of equity shares without any offer-for-sale (OFS) component by existing shareholders. Aastha Spintex specializes in manufacturing and trading various cotton products and operates an integrated spinning and ginning facility in Halvad, Gujarat.
The company plans to utilize Rs 111.51 crore from the net IPO proceeds for acquiring Falcon Yarns Private Limited. Additionally, Rs 10 crore is earmarked for fulfilling the acquired company’s working capital needs, with the remaining funds allocated for general corporate purposes. BOI Merchant Bankers Limited and PNB Investment Services Limited served as the book-running lead managers for the IPO.
Aastha Spintex Limited, a Gujarat-based textile firm, focuses on producing contamination-controlled cotton yarn and bales, catering mainly to the B2B sector by supplying products to fabric manufacturers, weavers, and knitting units.
