Siddhi Cotspin IPO

Siddhi Cotspin is a global organic textile standard (GOTS) version 6.0 certified company for greige yarns, warehousing, spinning, and trading, issued by IDFL (International Down and Feather Laboratory) Laboratory and Institute, Taiwan.

The company states that it maintains strict quality control over products, processes, and raw materials, consistently meeting customer specifications.

The company claims to follow eco-friendly manufacturing methods focused on reducing waste, conserving energy, and limiting environmental impact.

The company states that high-quality cotton yarn is sourced from reliable suppliers and carefully conditioned to adjust moisture levels. This process enhances workability, improves colour vibrancy, and ensures smooth stitching. It further states that conditioned yarn is offered at competitive prices to customers who value quality, affordability, and sustainability, while also extending the lifespan of the product and reducing environmental impact.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 199.33 crore in FY23 to Rs 580.89 crore in FY24 and Rs 724.54 crore in FY25. PAT increased from Rs 6.01 crore in FY23 to Rs 12.18 crore in FY24 and Rs 13.08 crore in FY25.

An Interim Order and Show Cause Notice have been issued by the Securities and Exchange Board of India (SEBI) involving members of the company’s promoter group, Mr. Vedprakash Devkinandan Chiripal and Ms. Savitridevi Chiripal, along with several related entities such as Mauria Udyog Limited, 7NR Retail Limited, Darjeeling Ropeway Company Limited, GBL Industries Limited, and Vishal Fabrics Limited. The inquiry began after an unusual increase in the stock prices and trading volumes of these companies, along with similar trading patterns among certain market participants. SEBI suspects that groups identified as “PV Influencers” and “Off loaders” used bulk SMS campaigns and online recommendations to manipulate share prices and trading volumes, enabling some parties to profit and exit the market. Investigations also found close links between 15 involved entities, including shared contact details and coordinated trading activities.

The company’s top 10 suppliers accounted for Rs 660.39 crore (95.72 percent) of the company’s total purchases in FY25, Rs 495.22 crore (94.62 percent) in FY24, and Rs 132.64 crore (89.05 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.

The company’s top 3 customers accounted for 51.52 percent of the company’s total revenue in FY25, 61.71 percent in FY24, and 42.73 percent in FY23. The company does not have any long-term agreements with its clients, and a loss of any of these customers or a decrease in demand from them could adversely affect the company’s total operations and finances.

The company mainly manufactures and sells cotton yarn and provides yarn conditioning services. Its performance is sensitive to fluctuations in cotton yarn demand and shifts in consumer preferences, which could negatively impact operations, revenue, and financial stability.

Business operations and the manufacturing facility are based in Gujarat, with most raw materials also sourced from the state. Any disruption – social, political, or economic – could disrupt operations and negatively impact the company’s financial performance.

The company, its promoters, directors, and group companies are involved in certain legal proceedings, including some criminal and tax-related cases. Any adverse judgment in any of these cases could adversely affect the company’s business prospects.

As of FY25, the company reported total indebtedness amounting to Rs 70.82 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.