Nandan Terry IPO: Ahmedabad-based company files Rs 255-crore IPO papers with Sebi

Nandan Terry, part of the Chiripal group, has filed preliminary documents with markets regulator Sebi to raise Rs 255 crore through an initial public offering (IPO).

The proceeds of the public issue will be used for payment of debt, for funding working capital requirements and general corporate proposes, according to the draft red herring prospectus (DRHP).

The company may consider to raise Rs 40 crore through a pre-IPO placement. If pre-IPO round is undertaken, the issue size will be reduced.

Incorporated in 2015, Ahmedabad-based Nandan Terry is a fully vertically integrated company engaged in principle business of manufacturing terry towels and toweling products.

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Apart from manufacturing terry towels and toweling products, the company also sells the cotton yarn manufactured at its units to achieve better sales realisations.

The company's revenues from operations for the financial year 2021 stood at Rs 538.52 crore, a 25.42 per cent surge from Rs 429.39 crore in fiscal 2020, primarily due to an increase in sale of cotton yarn, towel and towelling products.

Its profit for the financial year 2021 was at Rs 23.38 crore, which increased from Rs 1.22 crore in the preceding financial year.

Holani Consultants and BOI Merchant Bankers are the book running lead managers for the issue.