NAPS Global India Limited IPO

NAPS Global India Limited, a wholesale importer of textiles and a key player in Maharashtra’s garment manufacturing supply chain, is set to launch its IPO on the BSE SME platform. Here’s a concise overview of the key details and highlights for investors and readers:

 

IPO Snapshot

• IPO Dates: March 4, 2025, to March 6, 2025
• Listing Date: Tentatively on March 11, 2025 (BSE SME)
• Price per Share: ₹90
• Face Value: ₹10 per share
• Total Issue Size: 13.20 lakh shares (₹11.88 crores)
• Lot Size: 1,600 shares (Minimum investment: ₹1,44,000 for retail investors)

Key Dates

• Allotment Finalization: March 7, 2025
• Refunds Initiation: March 10, 2025
• Demat Credit: March 10, 2025
• Listing: March 11, 2025

 

Company Overview

Incorporated in March 2014, NAPS Global India Limited is a wholesale importer of textiles, including cotton fabrics, super-soft velvet fabrics, knitted fabrics, and linen fabrics. The company also supplies garments like women’s tops, men’s shirts, T-shirts, and kids’ wear.

Key Highlights:

• Supplier Network: Strong supplier network in China and Hong Kong.
• Pan-India Operations: Supplies fabrics to garment manufacturers across India.

 

Financial Highlights (Restated Consolidated)

Restated financials ensure accuracy and compliance with accounting standards. Here’s a snapshot of the company’s financial performance:

Period Ended	31 Dec 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Crore)	15.94	11.73	6.52	4.63
Revenue (₹ Crore)	52.83	47.88	26.01	13.48
Profit After Tax (₹ Crore)	1.53	1.45	0.27	0.18
Total Borrowings (₹ Crore)	1.68	–	0.12	0.22

IPO Objectives

The net proceeds from the IPO will be utilized for:

1. Funding working capital requirements.
2. General corporate purposes.

Final Verdict

Listing Gains Perspective:

• The IPO could offer moderate listing gains due to its SME status and growing revenue. However, the high valuation (P/E of 19.49x) may limit significant upside.

Long-Term Perspective:

• The company’s strong supplier network and growing revenue are positives, but its small scale raise concerns.

• Dependence on Imports: Reliance on imported fabrics exposes the company supply chain risks.
• Currency Fluctuations: Changes in exchange rates can impact costs.
• Supply Chain Disruptions: Geopolitical tensions, trade restrictions, or logistical issues could disrupt supply

Investors should wait for post-listing performance and improvement in financial metrics before considering it for long-term investment.

Disclaimer: This blog post is for informational purposes only. Please consult your financial advisor before making any investment decisions.

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                                                                                                                                                                Equity Research Analyst