Sihora Industries shares list at 6% premium over IPO price on BSE SME platform

Shares of Silhora Industries listed at a 6% premium over the IPO price on Friday. The stock opened at Rs 70 on the BSE SME platform against its issue price of Rs 66.

The Rs 10.56 crore IPO, which was entirely a fresh issue of 16 lakh shares, received a lukewarm response from investors. The issue was subscribed 1.27 times overall, with the retail investor portion booked 1.37 times and the non-institutional category 1.18 times. The total number of applications received stood at just 301, reflecting limited investor enthusiasm for the textile maker.

Sihora Industries manufactures and sells narrow woven fabrics, lace, digitally printed fabrics, zippers, elastics, and other textile products. The company’s manufacturing unit in Surat, Gujarat, integrates modern textile processes such as weaving, digital printing, embroidery, dyeing, and finishing. It caters to both fashion and industrial textile markets and plans to expand into technical textiles and specialized zippers.


Financially, Sihora Industries has shown sharp improvement in profitability despite its small scale. For FY25, it reported a total income of Rs 15.06 crore and a profit after tax of Rs 1.87 crore, up 214% from the previous year.

However, despite healthy financial growth, the IPO valuation appears expensive. The post-issue price-to-earnings ratio stands at nearly 33 times, higher than most peers in the fragmented textile segment.

The company plans to use the IPO proceeds mainly for buying new machinery (Rs 2 crore), repaying loans (Rs 2.58 crore), and meeting working capital needs (Rs 3.5 crore).

With no premium in the grey market and a modest subscription response, the listing may remain muted. Market participants expect the stock to open near its issue price, with post-listing performance depending on how quickly the company can scale up production and expand its market share in the competitive textile space.