Aastha Spintex Limited

Aastha Spintex Limited was incorporated in 2013 and operates a semi-automated, integrated spinning and ginning manufacturing facility at Halvad, Morbi, Gujarat, with a spinning capacity of 7,700 MT per annum and ginning capacity of 12,000 MT per annum, achieving capacity utilisation above 95% in spinning during FY25.

The company manufactures carded, combed and compact combed cotton yarns in counts ranging from Ne 26 to Ne 40, used across denim, shirting, sheeting, home textiles, towels, knitwear, socks and industrial fabric applications. It also produces and trades cotton bales, both for captive yarn production and supply to other spinning units, along with cotton yarn waste reused within the textile ecosystem. The company serves over 230 B2B customers including textile manufacturers, exporters and fabric processors, and has invested in 7.7 MW of renewable energy capacity through solar and wind assets, meeting around 80% of its power requirements. As of December 31, 2025, the company had 205 employees and promoters Patel Divyang Jashwantbhai, Rasiklal Valjibhai Patel, Gothi Vivek Rasiklal and Jashwantbhai Valjibhai Patel hold 74.23% pre-IPO stake.

The issue is entirely a fresh issue aggregating to ₹170 Cr, with the price band yet to be declared, listing on both BSE and NSE mainboard with a tentative listing date of July 6, 2026.

Proceeds are earmarked for part payment of the purchase consideration for acquiring Falcon Yarns Private Limited and funding its working capital through inter-corporate deposits, though the stated objective amounts (₹1,215.10 Cr) substantially exceed the total issue size of ₹170 Cr, suggesting the acquisition is being funded through a combination of this IPO, debt and other financing arrangements that should be verified against the final RHP. At current financials, FY25 RoE stands at 23.21% and RoCE at 18.89%, though both metrics declined sharply in 9M FY26 (RoE to 12.80%, RoCE to 12.13%), alongside a high Debt/Equity ratio of 0.79. Key strengths include integrated ginning-and-spinning infrastructure, strong renewable energy adoption reducing power costs, and an established customer base of 230+ B2B clients; key risks include the unresolved acquisition funding structure, declining margins in the most recent period, and weak recent listings across the textile sector with peers like Shree Ram Twistex (-31.35%), Yajur Fibres (-23.99%) and Harikanta Overseas (-16.74%) all posting steep listing-day losses.