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Vama Wovenfab

• Vama Wovenfab is coming out with an initial public offering (IPO) of 14,52,800 shares in a price band of Rs 324-341 per equity share.
• The issue will open for subscription on September 15, 2026 and will close on September 17 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 32.40 times of its face value on the lower side and 34.10 times on the higher side.
• Book running lead manager to the issue is Gretex Corporate Services.
• Compliance officer for the issue is Sakshi Mishra.

Profile of the company

Vama Wovenfab is an ISO 9001:2015 certified company, primarily engaged in manufacturing and selling Polypropylene (PP)/ High Density Polyethylene (HDPE) Woven Sack Bags & Fabric based products of different weight, sizes and colours as per customers specifications like, HDPE Trampoline and Coloured Woven Fabric Sheets, Loop handle bags. It also trades in plastic granules.

The company offers customised bulk packaging solutions to business-to-business (B2B) manufacturers catering to different industries and traders. The company is well-equipped to manufacture woven bags, fabrics along with trading of plastic granules. Its major revenue comes from the production and sale of Woven bags and Fabrics, which are used in several sectors for packaging and transporting various goods. Also, its well-equipped facilities enable it to consistently deliver high-quality products that meet the diverse requirements of its customers in sectors such as agriculture, chemicals, food processing, and more.

The company’s production primarily uses plastic granules, which are melted, extruded into tapes, and woven into fabric for conversion into customized woven bags, with reprocessed granules from recycled residues also utilized to optimize resources. To enhance quality and performance, it incorporates filler additives for processability and functional traits, and masterbatches for color and durability. Additionally, ancillary inputs such as BOPP films, liners, yarn, inks, and paper cores are used to provide strength, protection, printability, and finishing, enabling it to deliver tailored, high-quality packaging solutions to its customers.

Proceed is being used for:

• Capital expenditure towards construction of shed
• Capital expenditure towards purchase of machinery
• Meeting working capital requirements
• General corporate purposes

Industry overview

Packaging has emerged as the fifth largest sector of the Indian economy, playing a pivotal role in driving industrial growth, innovation, and value creation across FMCG, agriculture, and food processing. Growing at a rapid 22 to 25% annually, the sector is supported by advances in technology, logistics, and rising consumer demand. India has a strong base with over 22,000 packaging units, of which 85% are SMEs, and a robust paper manufacturing ecosystem of more than 850 mills, with 526 operational, producing nearly 25 million tonnes annually. Installed capacity in paper and paperboard stands at about 5 million tonnes, with utilisation levels above 95%, reflecting both scale and efficiency.

The outlook for the paper and packaging industry in India is optimistic, driven by several factors including the country's growing population, increasing urbanization, and rising disposable incomes. The rapid expansion of ecommerce is fueling demand for packaging materials, while a growing focus on sustainability is prompting the industry to innovate greener solutions. Government initiatives like “Make in India” and infrastructure development projects are expected to boost manufacturing activities and streamline supply chains. Technological advancements are enhancing productivity and quality, while rising export potential offers opportunities for market expansion. Despite challenges such as fluctuating raw material prices and competition from alternative materials, strategic investments and a commitment to sustainability can help the industry capitalize on opportunities and strengthen its position in the global market.

Meanwhile, the India Plastic Packaging Market size is estimated at $22.44 billion in 2025, and is expected to reach $26.13 billion by 2030, at a CAGR of 3.09% during the forecast period (2025-2030). Plastic is one of the most prominent packaging materials. The material's lightweight and low-cost nature instantly distinguished it among all the end-users. The Indian plastic industry is currently a significant economic sector valued at approximately $26.61 billion in 2025, with projections to grow to $44.59 billion by 2030 at a CAGR of roughly 10.9%.

Pros and strengths

Strong Long-Term Customer relationship: The company has established enduring, trust-based relationships with both customers and suppliers, ensuring consistent raw material supply, stable production, and reliable product delivery. This creates a dependable and mutually beneficial supply chain.

Deep customer understanding and prioritization: The company’s approach centers on truly understanding customer needs through close collaboration before production begins. All departments - from production and quality control to dispatch - align their efforts around these priorities. This customer focused alignment minimizes errors, reduces waste, and enables faster, clearer response to customer requirements.

On-time and planned delivery: The company strictly adhere to planned schedules for production and dispatch, ensuring timely delivery of orders. The company’s proactive monitoring and prompt scheduling reduce waiting times and provide customers with clear expectations, supporting their seamless operations and strengthening its reputation as a dependable supplier.

Risks and concerns

Significant dependence on a limited number of customers: The company derives a substantial portion of its revenues from limited buyers and dependence on a limited set of bulk purchasers in a commoditised and price-sensitive market exposes it to concentration, cyclicality, and demand volatility, which may adversely affect its business. The company has garnered 96.84%, 94.86% and 92.57% of its total revenue from top 10 customers in FY26, FY25 and FY24 respectively.  Any slowdown in end-use industries, deferral or scaling down of orders, or adverse pricing negotiations by institutional buyers could therefore materially impact its revenues, profitability, and cash flows.

Dependence on limited geographic markets: The company derives a major portion of its revenue from three states, indicating a high geographical concentration of revenue. The company has garnered its total revenue from Daman and Diu, and Dadra & Nagar Haveli (47.93%), Gujarat (12.46%) and Maharashtra (39.60%) in FY26. Such geographical concentration of its business in these regions heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations. Its inability to expand into other countries may adversely affect its business prospects, financial conditions and results of operations.

Working capital constraints may affect business operations: The company requires significant amounts of working capital and significant portion of its working capital is consumed in trade receivables and inventories. The company’s inability to meet its working capital requirements including failure to realise receivables and inventories may have an adverse effect on its results of operations and overall business.

Outlook

Vama Wovenfab is an ISO 9001:2015 certified manufacturer of PP and HDPE woven sack bags and fabric-based packaging products. The company also trades in plastic granules and provides customised bulk packaging solutions to B2B customers across industries such as agriculture, food processing, chemicals, fertilizers, sugar and cement. The company has customised packaging solutions. It also focuses on product and process improvement. On the concern side, the company derives a substantial portion of its revenues from limited buyers and dependence on a limited set of bulk purchasers in a commoditised and price-sensitive market exposes it to concentration, cyclicality, and demand volatility, which may adversely affect its business. Moreover, the company generates its major portion of sales from its operations in certain geographical regions. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 14,52,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 324-341 per equity share. The aggregate size of the offer is around Rs 47.07 crore to Rs 49.54 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by Rs 13,716.90 lakh from Rs 7,744.81 lakh for the financial year ended March 31, 2025, to Rs 21,461.71 lakh for the financial year ended March 31, 2026, representing a growth of 177.11%, such significant growth is on account of addition of new customers and repetitive orders from existing customers. Moreover, the company’s profit increased by Rs 470.75 lakh from Rs 683.76 lakh for the financial year ended March 31, 2025, to Rs 1,154.51 lakh for the financial year ended March 31, 2026, representing an increase of 68.85%. This increase was mainly due to increased revenue and improved operational efficiency, which outpaced the growth in expenses.

Meanwhile, the global shift toward sustainability demands packaging solutions that minimize environmental impact while maintaining functionality. In the context of woven bags, this involves two key strategies reducing the use of raw materials and conserving energy throughout the production cycle. Further, the company’s revenue models that not only focus on sales but also on creating long-term value through efficiency, innovation, and customer-centric solutions. This includes offering customized packaging solutions, exploring product-as-a-service models where possible, and integrating recycling-based revenue streams by reusing production waste. By adopting these modern approaches, it ensures that its growth is not only about increasing volumes but also about reducing costs and optimizing use of resources.