Neelam Linens shares list at 67% premium over IPO price on NSE SME platform

The shares of Neelam Linens and Garments debuted on the NSE SME platform at a premium of 66.9% on Monday. The stock listed at Rs 40.05 as against an issue price of Rs 24. Ahead of the listing, the company's shares traded with a GMP of Rs 14.

The net proceeds from the public offer will be used for funding capital expenditure requirements of the company, repayment of debt and general corporate purposes.

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


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

Neelam entered the apparel industry by starting an in-house production of men’s and women’s fashion apparel since 2023. It 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 Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach $190 billion by 2025-26. The Rs
10,683 crore ($1.44 billion) PLI scheme is expected to be a major boost for textile manufacturers

For the period ended June 2024, the company clocked total revenues of Rs 21.79 crore and net profit of Rs 80 lakh.