Nitin Spinners IPO
Nitin Spinners IPO — date, price band, lot size & details 2006
Nitin Spinners listed on 2 Feb 2006 at ₹30, 42.9% above the ₹21 issue price.
Nitin Spinners is a Rajasthan based maker of combed and carded cotton yarn and knitted fabrics. Its total income was Rs 81.74 crore in FY2005.
Stock price
Nitin Spinners is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 06 Jan 2006
- Close 12 Jan 2006
- Allotment 24 Jan 2006
- Refund/credit TBA
- Listing 02 Feb 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 6 to 12 Jan, 2006 |
|---|---|
| Price Band | ₹18 – ₹21 |
| Face Value | ₹10 |
| Lot Size | 300 Shares |
| Issue Size | ₹49 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | Bigshare Services Private Limited |
| Min Investment | ₹ 6,300 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 300 shares at the ₹21 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 300 | ₹6,300 |
| Retail (max) | 31 | 9,300 | ₹1,95,300 |
| S-HNI (min) | 32 | 9,600 | ₹2,01,600 |
| S-HNI (max) | 158 | 47,400 | ₹9,95,400 |
| B-HNI (min) | 159 | 47,700 | ₹10,01,700 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 60.50 crore in FY2003 to Rs 81.74 crore in FY2005.
- 02Profit after tax rose from Rs 1.09 crore in FY2004 to Rs 2.88 crore in FY2005, and was Rs 3.00 crore in six months to September 2005.
- 03Net worth doubled from Rs 20.99 crore in FY2003 to Rs 42.36 crore in September 2005.
- 04Its promoters had brought in Rs 900.00 lakh for the project.
Risks · 5
- 01Profit after tax was thin at Rs 2.88 crore on income of Rs 81.74 crore in FY2005.
- 02An excise appeal was pending against it in a duty evasion case, after a 2004 acquittal, and it had faced penalties from regulators.
- 03Cotton prices drive its costs; profit was only Rs 1.21 crore in FY2003.
- 04Yarn is a commodity, and the Rs 49 crore issue was large next to its net worth.
- 05Promoter group holding fell from 99.99% before the issue to 53.35% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Nitin Spinners offer document.
| Metric | 30 Sep 2005 | 31 Mar 2005 | 31 Mar 2004 | 31 Mar 2003 |
|---|---|---|---|---|
| Total Income | 49.68 | 81.74 | 65.69 | 60.50 |
| Profit After Tax | 3.00 | 2.88 | 1.09 | 1.21 |
| NET Worth | 42.36 | 31.63 | 29.03 | 20.99 |
| Reserves and Surplus | 15.55 | 12.63 | 9.55 | 6.99 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Nitin Spinners RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Nitin Spinners IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹1.65 | ₹1.47 |
| P/E Ratio (x) | 12.75 | 14.28 |
| Market Cap at Offer Price (₹ Cr) | ₹38.18 | ₹42.86 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹21 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹150.00 Cr of the issue is earmarked to named objects.
About the company
It makes combed and carded cotton yarn in single and multifold forms, and knitted fabrics such as single jersey, rib and interlock.
The central excise department in Jodhpur had appealed against an order acquitting the company and some of its then directors in a duty evasion case.
The IPO was Rs 49 crore and was entirely a fresh issue at Rs 21, the top of the Rs 18 to Rs 21 band, with a face value of Rs 10.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Nitin Spinners IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
IDBI Capital Markets & Securities Ltd.
42 issues handledBest listing: Route Mobile (+104.9%). Weakest: Bharat Dynamics (-13.6%).
Standard Chartered Securities (India) Ltd
24 issues handledBest listing: Vivimed Labs (+87.1%). Weakest: Abhishek Mills (-14.9%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Nitin Spinners?
The current Grey Market Premium is ₹0.
What is the Nitin Spinners IPO price band?
₹18 to ₹21, on a face value of ₹10.
When is the allotment?
The basis of allotment is 24 January 2006, with listing on 2 February 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — Bigshare Services Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
