CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

India’s Nandan Terry files early papers for IPO

By Vinu Lal

16:44, 14 December 2021

Basket with color towels on white table in bathroom.
Nandan Terry has five manufacturing units and a facility in the western state of Gujarat - Photo: Shutterstock

India’s Nandan Terry, a manufacturer of cotton terry towels, has filed preliminary papers with the market regulator to raise INR2.55bn ($33.58m) via an initial stake sale to the public, according to a web posting by one of its issue managers.

The company, based out of the western city of Ahmedabad, would also look at raising INR400m through a pre-Initial Public Offering (IPO) placement, according to the company’s Draft Red Herring Prospectus (DRHP or initial papers).

The issue size will be reduced to the extent of such pre-IPO placement, it said.

Use of proceeds

The company would use INR356m of the net proceeds to repay debt, while a yet-to-be decided amount would be used for working capital requirement and general business purposes.

Set up in 2015, Nandan Terry is a manufacturer of terry towels and towelling products. The company also manufactures cotton yarn, a raw material for manufacturing of the towels, and is also a seller of cotton yarn. 

The company has five manufacturing units and a facility in the western state of Gujarat. 

AUD/USD

0.66 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006

AUD/USD_zero

0.66 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006

EUR/USD

1.10 Price
-0.010% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0002%
Overnight fee time 22:00 (UTC)
Spread 0.00006

GBP/USD

1.27 Price
+0.030% 1D Chg, %
Long position overnight fee -0.0047%
Short position overnight fee -0.0035%
Overnight fee time 22:00 (UTC)
Spread 0.00013

At present, investors Devkinandan Corporation and Chirpal Exim each hold a 26.35% stake in the firm, while individual investors Vedprakash Chirpal and Brijmohan D Chirpal hold 0.43%, respectively. 

Individual investors Savitridevi V Chiripal, Jyotiprasad Chiripal, Jaiprakash Chiripal, Pritidevi Chiripal and Ronak Brijmohan Chiripal together hold 26.09% in the company.

Financials

Nandan Terry’s revenues from operations for fiscal 2021 stood at INR5.39bn, a 25.42% year-on-year rise from INR4.3bn recorded during the comparable year-ago fiscal. The company’s standalone net profit for financial year 2021 was at INR233.8m, an increase from INR12.24m recorded a year ago.

Holani Consultants Private and BOI Merchant Bankers are the managers to the issue.

Read more: India’s Data Patterns raises IPO funds from anchor investors 

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading