The Spunweb Nonwoven IPO has certainly been creating a buzz in the stock market, and for good reason. This offering, which launched on July 14, 2025, has caught the attention of investors, and the first-day response has been nothing short of massive. Not only is there heavy demand from retail investors, but the grey market premium (GMP) has also shown significant growth. The company, a leader in nonwoven fabric production, is shaking things up in the SME IPO space. But what exactly does this mean for investors, and why is this IPO causing such a stir?
Spunweb Nonwoven IPO Update
| Key Feature | Details |
|---|---|
| IPO Price Band | ₹90-₹96 per share |
| Issue Size | Fresh issue of |
| Subscription Status (Day 1) | ~2.8x overall (as of early PM), Retail ~10.5x, NII ~6x |
| Grey Market Premium (GMP) | ₹35 (approx. 36% above the upper price band) |
| Listing Date | Expected July 21, 2025 |
| SME Segment | Listed on NSE SME Exchange |
| Key Sector | Nonwoven fabrics used in hygiene, medical, agriculture, and packaging |
The Spunweb Nonwoven IPO has garnered significant attention due to its strong financials, impressive demand in the grey market, and the overall growth potential of the nonwoven fabric industry. With a solid Day 1 response and the strong likelihood of a positive listing, this IPO presents a unique opportunity for both retail and institutional investors.
However, as with any investment, especially in the SME segment, investors should carefully consider their risk tolerance and investment horizon before committing. The IPO market continues to offer exciting opportunities, and Spunweb Nonwoven is one to watch closely.
What Is Spunweb Nonwoven?
Before we dive into the details of the IPO, let’s get a quick understanding of what Spunweb Nonwoven does. The company is one of the leading manufacturers of nonwoven fabrics, a critical material used in several industries like hygiene, medical, agriculture, and packaging. Nonwoven fabrics are incredibly versatile and are used in products ranging from face masks and diapers to crop covers and industrial applications.
As the demand for technical textiles rises globally—driven by increased demand for hygiene products and medical-grade PPE—the prospects for nonwoven fabric manufacturers like Spunweb are looking strong. Spunweb has a competitive edge with its established infrastructure and production capacity, allowing it to meet the increasing demand across diverse sectors.
The IPO Journey: From Grey Market Buzz to Day 1 Demand
Spunweb Nonwoven’s IPO kicked off on July 14, and the numbers coming out of the gate were impressive. As of Day 1, the issue has seen overwhelming interest. The overall subscription rate stood at an impressive 2.8x, with retail investors jumping in at a rate of over 10x. This kind of demand isn’t surprising, given the growing appeal of SMEs in India’s stock market.
One of the standout features of this IPO has been the grey market premium (GMP). As of Day 1, the GMP has been quoted at around ₹35 above the upper price band, which indicates a strong demand and signals a likely positive listing. In simple terms, the GMP is what traders in the grey market are willing to pay for the IPO shares before they officially hit the market. A higher GMP often suggests that the stock is likely to open at a premium price when it lists.
What Is Grey Market Premium (GMP)?
If you’re new to the concept of GMP, it refers to the price at which IPO shares are bought and sold in the unregulated grey market, before the shares are officially listed on the stock exchange. The GMP is usually considered a reflection of investor sentiment toward the upcoming listing.
For Spunweb Nonwoven, the ₹35 GMP means that investors are willing to pay ₹131 (₹96 + ₹35) for each share, even before the stock officially lists. This is a strong indicator of the IPO’s popularity, and historically, stocks with high GMPs often see a decent listing day performance.
Why Is There So Much Interest in This IPO?
You might be asking yourself, “Why is everyone talking about this IPO?” Well, there are several key reasons driving the massive day one demand:
1. Boom in the Nonwoven Fabric Industry
The nonwoven fabric industry has been gaining momentum over the last few years, especially in the wake of the pandemic. Companies like Spunweb Nonwoven are benefiting from increased demand in sectors like hygiene (diapers, feminine hygiene products, etc.), medical (PPE kits, surgical drapes), and agriculture (crop protection). With global consumption rising, Spunweb is well-positioned to capture a significant share of the market.
2. Solid Financials and Growth Prospects
Spunweb Nonwoven has been demonstrating impressive financial growth. In FY25, the company recorded a doubling of revenue and profits, with strong profit margins. In particular, the company’s EBITDA margin of about 13.75% and profit margin of approximately 4.75% are notable signs of a healthy and growing business.
3. Appealing Valuation
The price band of ₹90–96 per share is considered affordable given the company’s growth prospects. When you combine this with the strong demand seen in the grey market and the first day of subscription, it’s clear that investors are excited about what Spunweb has to offer. Investors in the retail segment are especially eager, as evidenced by the over 10x subscription for retail investors on Day 1.
Should You Invest in Spunweb Nonwoven’s IPO?
If you’re considering this IPO, here’s what you need to know:
1. Understand the Risks of Investing in SMEs
While the grey market premium is promising and the subscription numbers are high, investing in SME IPOs can be risky. SME stocks typically have lower liquidity compared to large-cap stocks, which can lead to higher price volatility. The NSE SME exchange also has different regulatory standards compared to the main exchanges, which can impact your investment.
2. Look at the Fundamentals
It’s essential to evaluate Spunweb’s business model and financial performance before making a decision. The company has strong financials and operates in a high-demand sector, but you should also keep an eye on market dynamics that could affect future growth. This includes global supply chain disruptions, economic conditions, and raw material price fluctuations.
3. Consider Your Investment Horizon
If you’re planning to invest in this IPO, think about your investment horizon. Are you in it for the short-term listing gain or the long-term growth potential of the company? If you’re in it for the listing gain, you may benefit from the likely surge in prices on the listing date. However, if you’re in it for the long haul, you’ll want to track how the company grows post-listing and evaluate its financial health over time.
FAQs
1. What is the minimum investment required for the Spunweb Nonwoven IPO?
The minimum investment for the IPO is ₹2.3 lakh for 2 lots (1,200 shares per lot).
2. When is the listing date for Spunweb Nonwoven?
The expected listing date is July 21, 2025, on the NSE SME platform.
3. What does a GMP of ₹35 mean?
A GMP of ₹35 means that traders are willing to pay ₹35 more than the upper price band for each share, indicating high demand and suggesting that the stock may list at a premium price.
4. How can I apply for the Spunweb Nonwoven IPO?
Investors can apply for the IPO through ASBA (Application Supported by Blocked Amount) using their bank accounts. IPO applications can be submitted via brokerages, upstox, zerodha, or directly through the NSE platform.
