Vama Wovenfab IPO

Vama Wovenfab Limited is a Mumbai-based manufacturer of polypropylene (PP) and high-density polyethylene (HDPE) woven sack bags and fabric-based products. The company manufactures products in different weights, sizes and colours according to customer requirements and also trades in plastic granules.

The company provides customised bulk packaging solutions to B2B customers across industries such as agriculture, chemicals, food processing, cement, fertilizers, sugar, construction, retail and bulk packaging and logistics. Its product range includes woven bags, PP and HDPE fabric rolls, coloured woven fabric sheets, HDPE tarpaulins, BOPP laminated bags and FIBC bulk bags.

Vama Wovenfab commenced production at its Daman manufacturing facility in 2013. As of FY2024-25, the company had a sales presence across four states and two Union Territories. The company also undertook exports to Dubai through a third-party arrangement during FY2022-23.

The company operates an ISO 9001:2015 certified manufacturing business and uses plastic granules that are melted, extruded into tapes and woven into fabric before being converted into customised bags. Reprocessed granules from recycled residues are also used in its manufacturing process.

Vama Wovenfab operates in the industrial packaging and woven polymer products segment, supplying PP and HDPE woven bags and fabric-based products to customers across several industries. The company has established manufacturing operations in Daman and provides customised solutions based on customer specifications.

The company recorded significant growth in its financial performance. Revenue increased from ₹27.87 crore in FY2024 to ₹77.45 crore in FY2025 on the annualised/restated basis used in the IPO analysis. PAT increased from ₹2.63 crore to ₹6.84 crore over the same period, while EBITDA increased from ₹5.15 crore to ₹10.57 crore.

Profitability ratios also improved. ROE was reported at 39.91%, ROCE at 29.44%, EBITDA margin at 13.65% and PAT margin at 8.83%. The debt-to-equity ratio stood at 0.99x.

The IPO proceeds are primarily intended to strengthen manufacturing capacity and working capital. Investment in a new shed and machinery could support production growth if the expansion is completed on schedule and demand remains strong.

However, the business remains exposed to raw material price fluctuations, working-capital requirements and competition in the plastic and polymer industry. Investors should also consider the company's relatively small operating scale and dependence on industrial customers.

At the upper price band of ₹341, the IPO implies a valuation of approximately 18.63x based on the pre-issue EPS of ₹18.30 and approximately 26.62x based on the post-issue EPS of ₹12.81. Investors should compare this valuation with the company's growth prospects, profitability, debt position and the performance of comparable listed companies before making an investment decision.

Overall, Vama Wovenfab presents a combination of manufacturing capabilities, improving financial performance and planned capacity expansion. At the same time, investors should carefully evaluate working-capital needs, raw material risks, customer concentration, debt and the execution of the proposed expansion.

Vama Wovenfab IPO applications can be made through ASBA or UPI-supported IPO applications.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Vama Wovenfab IPO.
4. Enter the number of lots you want to apply for.
5. Select the bid price. Eligible investors can use the Cut-off option where available.
6. Enter your valid UPI ID.
7. Submit the IPO application.
8. Open your UPI application when the mandate request arrives.
9. Approve the mandate using your UPI PIN.
10. The application amount will be blocked in your bank account. If shares are allotted, the required amount will be debited; otherwise, the blocked amount will be released.