Shreedhar Spinners Limited

This section provides an overview of the macroeconomic environment, including global and Indian economic projections, inflation trends, and central bank policies. It details India's strong economic growth trajectory, the government's push for manufacturing growth, and the competitive position of the Indian textile and apparel sector in the global trade. The text also outlines the size and growth forecast for the global apparel market.

The global textile and apparel industry shows significant trade volumes, with apparel being the largest segment, followed by fabrics and yarns. China is the leading global supplier of textiles and apparel, while India holds a notable position as the second-largest home textile exporter globally. The Indian domestic textile market is showing growth, with targets set for future expansion, and the industry benefits from a diversified value chain covering everything from raw materials to finished products.

India maintains a cost advantage in spun yarn manufacturing due to low labor, energy, and favorable financing conditions compared to competing nations. The textile sector is experiencing growth driven by strong export demand and domestic consumption, with opportunities in moving towards higher-value products like specialty and recycled yarns. Key trends include a shift in manufacturing towards regions with raw material availability, increased focus on sustainability and traceability, and the need for automation to compete with global players. Government initiatives like PM-MITRA and the PLI scheme are aimed at boosting the sector's scale and competitiveness.

The company is primarily engaged in the manufacturing of compact spun cotton yarn, ranging in counts from Ne 10s to Ne 40s, at a facility located in the Amravati industrial area in Maharashtra, India. The production capacity is 10,000 MT per annum, and the facility has been operational for 95 years, with a production capacity of 10,000 MT per annum of cotton yarn as of March 31, 2026, and 28,608 spindles as of the same date. The company supplies these yarns for various end-use segments including apparel, denim, and furnishing fabrics, operating exclusively in the business-to-business (B2B) segment by supplying textile manufacturers and traders. The company holds several quality certifications, including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, and maintains a dedicated in-house Testing and Quality Control Team. The company sources raw cotton bales from various local ginners, traders, and the Cotton Corporation of India.

The company emphasizes a commitment to quality and sustainability, evidenced by its ISO certifications for Environmental Management, Health and Safety, and Quality Management Systems. They maintain a dedicated in-house Testing and Quality Control Team to rigorously monitor the entire production cycle, ensuring adherence to industry standards. Manufacturing is conducted at a facility in the textile park in Amravati, Maharashtra, which benefits from excellent connectivity and local availability of raw materials and skilled labor. The company has expanded its capacity by establishing a second manufacturing unit, increasing the total installed production capacity. The business focuses on manufacturing 100% Cotton Yarn across various counts suitable for knitting and weaving applications.

The company's manufacturing process involves a meticulous series of operations to convert raw cotton fibers into finished yarn suitable for various textile products. The raw materials, primarily raw cotton, are sourced from the open market and depend on seasonal crop availability. The company maintains relationships with various vendors for raw material procurement without formal supply contracts. The manufacturing process includes steps such as blow room, carding, breaking, lap forming, combing, and ring spinning to produce the final yarn. Quality control is managed by a dedicated team, and the company operates under various laws and regulations concerning safety, health, and environmental protection.

This section details various insurance policies, employee benefits, and regulatory frameworks relevant to the company's operations. It lists several insurance policies with different insurers and coverage amounts, including those from TATA AIG General Insurance Company Ltd. and The New India Assurance Co. Ltd. It also outlines the insurance coverage as a percentage of total insurable assets for different fiscal years. Furthermore, the text discusses human resource policies focused on recruiting and training personnel, including a training center within the manufacturing facility. Finally, it provides details on various laws and regulations pertinent to the business, such as those related to textiles, environment, and pollution control.

This section primarily lists various Indian laws applicable to the company's operations, covering aspects related to shops and establishments, taxation, employment, and intellectual property. It details numerous acts such as the Maharashtra Shops and Establishments Act, the Indian Stamp Act, various tax laws like the Income Tax Act and GST, labour codes like the Code on Wages and the Occupational Safety, Health and Working Conditions Code, and laws concerning trade unions and social security. Furthermore, it mentions intellectual property legislation and foreign investment regulations.

This section primarily outlines various Indian laws and acts that regulate different aspects of commerce, transactions, and data handling. It details the scope of various legislation including the Negotiable Instruments Act, Consumer Protection Act, Transfer of Property Act, Arbitration and Conciliation Act, Information Technology Act, Digital Personal Data Protection Act, Companies Act, Sale of Goods Act, Registration Act, and the Indian Contract Act. The text specifies which entities have compliance requirements depending on their involvement in issuing instruments, dealing with consumer rights, transferring property, entering into contracts, or handling digital data.

The company was originally incorporated as a private limited company on December 9, 2020, under the name ‘Shreedhar Spinners Private Limited’. Subsequently, it was converted into a public limited company through resolutions passed by the Board and shareholders on October 6, 2025, and November 1, 2025, resulting in a name change to “Shreedhar Spinners Limited” and a new certificate of incorporation dated November 17, 2025. The company has received several industry accreditations, including various standards from OEKO-TEX, GOTS, and others, and has planned for the commencement of production at a proposed Manufacturing Unit 2 in 2026. The company has not experienced any time or cost overruns in project setups and has no defaults or restructuring of borrowings. The company currently has a holding company, Shreedhar Cotsyn Private Limited, but does not have any subsidiaries, associates, or joint ventures.

This section details the authorized and issued equity share capital of the company as of the date of the Prospectus. The authorized share capital is set at 2,50,0 equity shares with a face value of ₹10 each, corresponding to an aggregate value of ₹2,500.00 Lakhs. The issued, subscribed, and paid-up share capital is 1,56,50,000 equity shares, with an aggregate value of ₹8,294.50 Lakhs. The company is currently considering a fresh issue of up to 57,88,000 equity shares. The section also provides a history of various share allotments and details regarding the issuance of equity shares for consideration other than cash, bonus issues, or revaluation reserves.

The company has no plans to issue shares to employees under an ESOP/ESPS scheme. Transactions in equity shares by the Promoter and members of the Promoter group must be reported to stock exchanges within 24 hours. The document details the shareholding pattern as of the prospectus filing date, showing a breakdown between Promoter and Promoter Group holdings. Various historical shareholding percentages are provided, showing that a significant shareholder, Shreedhar Cotsyn Private Limited, has consistently held a large portion of the equity capital over different timeframes. Furthermore, there are no plans for further capital issuance or changes to the capital structure within six months.

The section details the shareholding of the company's promoters and promoter group, showing that they collectively held 95.38% of the issued equity shares as of the prospectus date. The section also outlines various capital build-up events, including rights issues, conversions of loans into equity, and transfers of shares over time. Furthermore, it specifies rules regarding the locking-in of promoter contributions for different periods and details concerning the eligibility of these contributions under SEBI (ICDR) Regulations.

This section details various regulations concerning the pledge and transferability of equity shares held by the company's promoters. It outlines conditions under which pledged shares can be used as collateral for loans from scheduled financial institutions, specifying different lock-in periods based on the amount of promoter contribution. Furthermore, it discusses the transferability of locked-in shares to other promoters or persons within the promoter group, subject to continuing lock-in periods. The text also mentions requirements for share allotment, such as the possibility of retaining over-subscription for rounding off, and clarifies that no such arrangements exist for the purchase of equity shares.

The company proposes to use the net proceeds from the fresh issue to fund several key operational requirements. These proposed uses include financing incremental working capital needs, purchasing machinery for the existing manufacturing facility, and covering general corporate purposes. The deployment of these funds is subject to various factors, including market conditions and the timing of the issue completion. The company emphasizes that the actual deployment of funds may require adjustments based on these factors, and that the plan has not been appraised by any independent agency.

The section details various aspects related to inventory holding levels, trade receivables, and the proposed utilization of net proceeds from the issue. Inventory levels for raw materials, work-in-progress, and finished goods are discussed in relation to scaling up operations and meeting demand. Trade receivables have shown an increase, partly due to deeper market penetration and strategic investments. The text also outlines the planned use of net proceeds, including funding for capital expenditure on new machinery and allocation for general corporate purposes.

This section details various expenses related to the issue, including fees payable to the Registrar, legal advisors, auditors, and professional agencies, advertising, and printing costs, which collectively account for 100.00% of the total issue size. It also outlines various commission and processing fees payable to different types of bidders, such as Individual and Non-Institutional Bidders, depending on how the applications are procured. Furthermore, the text discusses various provisions regarding the use of net proceeds, such as restrictions on investing in equity securities, the lack of bridge financing, and monitoring mechanisms for fund utilization.

This section provides various financial metrics, including Profit/E ratios, Return on Net Worth (RoNW), Net Asset Value (NAV), and comparisons with industry peers. It details performance indicators for different financial years, including revenue, profitability, and asset utilization. Furthermore, it outlines Key Performance Indicators (KPIs) that the company uses to analyze business performance, which have been approved by the Audit Committee.

This section details the justification for the offer price based on various factors and historical transactions. It confirms that no primary or secondary issuances of equity shares have occurred within the specified periods. The justification for the issue price is linked to long-term customer relationships, integrated infrastructure, management team experience, focus on quality, locational advantage, and cost-effective production. Furthermore, the offer price is justified by comparing it against weighted average costs of acquisition and considering key performance indicators and financial ratios.

This section details special tax benefits available to the Company and its shareholders, primarily concerning corporate tax rates and deductions under the Income Tax Act. The Company is eligible for a reduced corporate tax rate under Section 115BAB of the Income Tax Act, 1961. Furthermore, certain deductions related to employment of new employees and inter-corporate dividends are available, with provisions that apply even when the Company opts for a concessional tax rate. The text also mentions provisions related to export of goods and services under GST law and incentives for sales within Maharashtra State.

The document details the company's financing activities for fiscal years 2024, 2025, and 2026, highlighting net cash flows from financing activities ranging from a net outflow of ₹226.27 Lakhs in 2025 to a net inflow of ₹4,696.99 Lakhs in 2026. Related party transactions are disclosed primarily as remuneration, salary, commission, and equity share issuance, with a specific disclosure noting no outstanding litigation or defaults in repayment of statutory dues or loans. The company operates in the spun cotton yarn industry and faces inflationary impacts on salary and wages, which are managed through margin rework.

The draft Red Herring Prospectus discloses that the petitioner is currently pending a stay application in court regarding an additional levy of Rs 0.20 per unit on electricity bills for large industrial consumers. The document also details outstanding tax proceedings involving the Group Company and its promoters, including an ASMT-10 notice for discrepancies in FY 2022-23 and a DRC-07 order for GST audit, with aggregate tax implications totaling Rs 12.64 lakhs for the Group and Rs 7.48 lakhs for the promoters. Additionally, it highlights a pending FIR against the Managing Director's son, Manoj Kshirsagar, for a road traffic accident, and notes the absence of other criminal or statutory proceedings against senior management.

The document details outstanding tax liabilities and trade payables for Siddhartha Super Spinning Mills Limited. It reports a total outstanding tax amount of Rs. 22,910 for Direct Tax and Rs. 64,69 for Indirect Tax, with the Indirect Tax appeal rejected. Additionally, it lists material trade payables of Rs. 1,270.73 Lakhs owed to two material creditors as of March 31, 2026, which constitutes 10% of total trade payables.