UNITED COTFAB LIMITED is a manufacturer of high-quality open-end yarn for the textile industry. The company's clients include textile manufacturers, garment exporters and distributors. The company's product portfolio includes Open End Cotton Yarn and Cotton Yarn.

UNITED COTFAB LIMITED, a Fixed Price issue amounting to Rs 36.28 crores, consisting entirely of a fresh issue of 51.84 lakh shares. The subscription period for the IPO opens on June 13, 2024, and closes on June 19, 2024. The allotment is expected to be finalized on THURSDAY, JUNE 20, 2024, and the shares will be listed on the BSE SME with a tentative listing date set for MONDAY, JUNE 24, 2024.

The price is set at ₹70 per share, with a minimum lot size of 2000 shares. Retail investors are required to invest a minimum of ₹140,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (4000 shares), amounting to ₹280,000.

Beeline Capital Advisors Private Limited is the book-running lead manager, Purva Sharegistry (India) Private Limited is the registrar. Spread X Securities Private Limited is also the market maker for the United Cotfab IPO.

Grey Market Premium (GMP) of United Cotfab Limited

The Grey Market Premium is expected in the range of Rs 11 - Rs. 21 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Objectives of United Cotfab Limited

United Cotfab Issue Proceeds from the Fresh Issue will be utilized towards the following objects:
1. To Meet Working Capital Requirements
2. General Corporate Purposes

Refer to UNITED COTFAB RHP for more details about the Company.

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About UNITED COTFAB Limited

United Cotfab Limited (Formerly Known as the United Cotfab LLP and United Cotfab Private Limited) operating since 2015 in the Textile Industry in Ahmedabad, Gujarat. They are engaged in the manufacturing of high-quality open end yarn, catering to the textile industry. With a strong focus on innovation, quality, and customer satisfaction, they have established themselves as a trusted name in the market. Their state-of-the-art manufacturing facility and dedicated team ensure that they deliver exceptional products to meet the diverse needs of their clients. 

Their vision is to be recognized as a preferred supplier of open end yarn, known for their commitment to excellence, sustainable practices, and customer-centric approach. They strive to contribute to the growth and success of their clients by providing them with reliable and superior-quality products.

The company have over 25 years of working experience and have sold over 50 of their products to more than 325 trusted & satisfied clients. Notable trusted clients are as follows, Jindal, Anubha, aarbhee, Pratap Group, JRD Denims Ltd., Sangam & E-LAND APPAREL.

TEXTILE SECTOR IN INDIAN INDUSTRY

▪ India is the world’s second-largest producer of textiles and garments. India is the world's 3rd largest exporter of Textiles and Apparel.
▪ The textiles and apparel industry contributes 2.3% to the country’s GDP, 13% to industrial production and 12% to exports.
▪ The textile industry has around 45 million workers employed in the textiles sector, including 3.5 million handloom workers.
▪ India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY and Total textile exports are expected to reach US$ 65 billion by FY26.
▪ The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26.
▪ The Rs. 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major boost for textile manufacturers. The scheme proposes to incentivise MMF (man-made fibre) apparel, MMF fabrics and 10 segments of technical textiles products.
▪ Mr. Piyush Goyal discussed the roadmap to achieve the target of US$ 250 billion in textiles production and US$ 100 billion in exports by 2030.

UNITED COTFAB LIMITED STRENGTHS & STRATEGIES

1. Cost Effective Manufacturing Process
2. Entering into new geographies
3. Maintaining strong relationship with customers
4. Optimum Utilization of Resources
5. Experienced Promoters
6. Location advantage of our manufacturing facility
7. Scalable Business Model

UNITED COTFAB LIMITED RISK FACTORS & CONCERNS

1. Company's revenues are highly dependent on their operations in geographical region of state of Gujarat & Maharashtra.
2. The Company is dependent and will continue to depend on their manufacturing facilities.
3. Company requires deployment of labour and depend on availability of labour.
4. The Comapny may face foreign exchange risks that could adversely affect their results of operations and cash flows.
5. Any future issuance of their Equity Shares may dilute prospective investors’ shareholding, and sales of their Equity Shares by their major shareholders.
6. Company's lenders have charge over their movable and immovable properties in respect of finance availed by them.