🧵 Cedaar Textile IPO – ₹60.9 Cr Yarn Biz That’s All Threads and No Chill? | EduInvesting IPO Deep Dive
Date of Publishing -
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🧠 At a Glance
Cedaar Textile is spinning its way into public markets with a ₹60.90 Cr fresh issue IPO at a price band of ₹130–₹140. The Bengaluru-based yarn maker wants to modernize its machines and install solar panels (greenwashing much?). Financials show some flash—but also a few snags. Retail investors need ₹1.4L to enter this SME bet. Let’s unravel the numbers.
1. 🪡 WTF Do They Even Do?
Incorporated in 2020 (yes, the COVID year), Cedaar Textile Ltd is a B2B yarn manufacturer.
Their core product: Melange yarn, i.e., a stylish blend of fibers that makes T-shirts look cooler and sweaters more expensive.
Product mix includes:
Melange Yarns 🧶
Solid Top-Dyed Yarns 🖌️
Grey Fancy Yarns 🪢
Fibres used: Cotton, Polyester, Viscose, Acrylic… basically the full wardrobe menu.
Operations: Based in Yelahanka, Bangalore with 583 full-time payroll employees.
2. 📊 Financials – Spinning Profits or Tangled Threads?
Metric
FY22
FY23
FY24
Revenue (₹ Cr)
220.44
161.88
191.01
PAT (₹ Cr)
7.99
4.59
11.05
EBITDA Margin
—
9.65%
15.09%
ROE
—
—
56.06%
Debt
₹121 Cr
₹137 Cr
₹146 Cr
Red flags:
Revenue dropped from ₹220 Cr (FY22) to ₹161 Cr (FY23), then rebounded slightly.
PAT doubled in FY24 — but with high borrowings. Is this margin recovery or just window dressing?
