Neelam Linens and Garments Ltd

About the Company:

Neelam Linens and Garments Ltd operate as a soft home furnishing company based out of Maharashtra, India, extending our services to a global clientele, including USA, Australia and Far East.

Company specialize in the processing, finishing and supplying of bedsheets, Pillow cover, Duvet Cover, Towels, Rugs, Doher, Shirts & Garments predominantly for discounted retail outlets.

Company sources surplus or slightly imperfect fabric from the domestic market, applying value-added services such as designing, digital printing, dyeing, stitching, embroidery, and other enhancements. Subsequently, we distribute these refined products to discounted retail outlets in diverse countries.

Company also earns revenue from sale of import licenses. An import license is a governmental authorization required for the importation of goods that are not freely importable.

Company’s Revenue from Import License:

Company also earns revenue from sale of import licenses. An import license is a governmental authorization required for the importation of goods that are not freely importable. Licenses of this form restrict the number of items entering a country to exactly the requirements of those products and the country’s customs regulations.

The government primarily offers the licenses as a financial incentive to exporters, and once granted, they become commodities. Import licenses, which grant the holder the right to import goods that may be restricted or regulated, are considered a service when they are sold or transferred.

The sale of license business of the Company can be bifurcated into two parts, i.e. sale of the import license received from the government as an incentive and trading of the import license available in the market.

The below table depicts the bifurcation of Sale of License into two parts i.e. Sale of License received from government as incentive and Sale of License from trading:(in Lakhs)

Company’s Manufacturing Units:

Company operate out of our manufacturing operations out of two units. Unit 1 is located at Gala No. 103, 104, 105, 106, 107 First Floor, Prithvi Complex Building No A-3, Old Agra Road, Bhiwandi, Thane- 421302, Maharashtra, India and Unit 2 occupies 2nd Floor of the same complex with Gala No. 201, 202, 203, 204, 205, 206, 207 and 208.

Company’s manufacturing units are strategically located with availability of transportation, which facilitates convenient transportation of our products.

Company Purchases higher quality thread count fabric at lower price.

Fine lines begin with higher thread count, to get higher thread count one requires high quality of the cotton that depends on the length of the individual fibers. High thread count bedding is used in all the western countries as it is the status symbol for the riches, as the higher the count the better the fabric.

By procuring surplus or slightly imperfect fabric in bulk from our suppliers, we benefit from advantageous pricing, allowing us to acquire these materials at a reduced cost. This strategic sourcing enables us to offer modified and customized products to our customers at discounted prices.

Company’s ability to obtain these fabrics at a lower expense translates into significant cost savings, which we pass on to our customers, ensuring that they can enjoy high-quality, tailor-made products at affordable rates.

Geographical spread of Revenues: (in Lakhs)

Company’s Capacity and Capacity utilization:

Management Team:

Mr. Kantilal Jethva (Designation: Whole-time director)
Mr. Bhavin Jethwa (Designation: Managing Director)

Objectives of the Issue:

Fresh Issue: (Rs.13 cr)

Funding capital expenditure requirement of our Company towards purchase of Embroidery Machines for expansion.
Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company.
General corporate purposes.

Fund Utilization:

Particulars	Amount (Rs. in Crores)
Funding capital expenditure requirement of our Company towards purchase of Embroidery Machines for expansion	5.57 cr
Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company	4 cr

Financials of the Company:

(in Crores)	FY 22	FY 23	FY 24	Upto 30th June 24
Revenue	103.7	105.4	104.74	21.95
Net Profit	2.98	2.37	2.46	0.80

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
Neelam Linens and Garments (India) Limited	10	1.66	14.45	10.48%	15.87
Loyal Textile Mills Ltd	10	(-89.17)	N.A	(-14.78%)	603.31
Bannari Amman Spinning Mills Ltd	5	(-3.18)	N.A	(-6.91%)	58.55

IPO Details:

Details	Info
Issue Opens on	8th November 2024
Issue Closes on	12th November 2024
Issue Price	Rs.20-24
Face Value	Rs.10
Minimum Lot	6000 Shares
Minimum Investment	Rs.1,44,000
Issue Constitutes	26.79 %
Issue Size	Rs. 13 cr
Market Cap	Rs.48.52 cr
Listing at	NSE SME
Equity Shares Offered (Fresh)	54,18,000 (Rs.13 cr)
Equity Shares Prior to the Issue	1,48,00,000
Equity Shares after the Issue	2,02,18,000

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)	Debt Equity Ratio (D/E)
1.66	14.45	10.48%	15.87	2.97

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Important Dates:

Finalization of Basis of Allotment	on or Before 13th November 2024
Initiation of Refunds	on or Before 14th November 2024
Credit of Equity Shares:	on or Before 14th November 2024
Listing Date:	on or Before 18th November 2024

Company Contact Info:
Neelam Linens and Garments Ltd 446-447, 4th Floor, Shah & Nahar Industrial Estate Sitaram Jadav Marg, Lower Parel, Delisle Road, Mumbai- 400013, Maharashtra, India. Telephone: +91 22 2494 2454 Email: compliance@neelamgarments.com Website: www.neelamgarments.com

Registrar to the Issue:
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED Unit No. 9, Ground Floor, Shiv Shakti Industrial Estate, J. R. Boricha Marg, Lower Parel (E) Mumbai – 400011, Maharashtra, India E-mail ID: support@purvashare.com Website: www.purvashare.com