Avax Apparels And Ornaments Limited is set to launch its initial public offering (IPO), opening for subscription on January 7, 2025, and closing on January 9, 2025. The IPO is a fixed price issue aiming to raise ₹1.92 crores through a fresh issue of 2.74 lakh shares at ₹70 per share.

IPO Details

• Issue Type: Fixed price issue
• Price: ₹70 per share
• Minimum Lot Size: 2,000 shares
• Retail Investment Minimum: ₹1,40,000
• HNI Minimum Investment: ₹2,80,000 (2 lots of 4,000 shares)
• IPO Registrar: Skyline Financial Services Private Ltd
• Lead Manager: SKI Capital Services Limited
• Market Maker: SKI Capital Services Limited
• Listing: BSE SME
• Tentative Listing Date: January 14, 2025
• Allotment Finalization Date: January 10, 2025

About Avax Apparels And Ornaments Limited

Incorporated in June 2005, Avax Apparels And Ornaments Limited operates in two primary business segments:

1. Wholesale Trading of Knitted Fabrics: The company has a locational advantage, being situated in a hub for cloth manufacturing, allowing it to efficiently serve growing market demand.
2. Online Retail of Silver Ornaments: The company sells a wide range of silver jewelry and accessories online, including rings, bangles, chains, payals, kadas, and silverware such as plates and bowls. These products are supplied to major cities across India.

Competitive Strengths

• Locational Advantage: The company benefits from its proximity to major cloth manufacturing centers, enabling cost-efficient operations.
• Strong Customer Relations: Avax has cultivated excellent relationships with its customers, which enhances repeat business.
• Professional Team: The management team’s experience and expertise contribute to operational efficiency.
• Track Record of Success: The company's established presence in the market and its strong industry connections position it for sustained growth.
• Network and Connections: Well-established relationships with key players in the fabric and jewelry sectors provide a competitive edge.

Objects of the Issue

The IPO proceeds will be utilized as follows:

1. Working Capital Requirements: To fund the company's operational needs and support its growth initiatives.
2. General Corporate Purposes: To cover expenses associated with expanding business operations.

Important Dates

• Subscription Opens: January 7, 2025
• Subscription Closes: January 9, 2025
• Allotment Finalization: January 10, 2025
• Listing Date: January 14, 2025

Investment Considerations

Retail investors are required to invest a minimum of ₹1,40,000 for a lot size of 2,000 shares, while HNI investors need to invest at least ₹2,80,000 (2 lots of 4,000 shares).

This IPO is an opportunity for investors looking to explore the BSE SME platform. With its focus on wholesale trading and silver ornaments, Avax Apparels And Ornaments Limited has positioned itself to benefit from the growing demand in both segments.

Conclusion

Avax Apparels And Ornaments IPO offers a promising entry point for retail and HNI investors interested in the SME market. With its strong operational foundation, competitive strengths, and strategic use of proceeds, the company is well-equipped to scale its business operations.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels and B R Goyal.

The Current active IPO are   Fabtech Technologies, Davin Sons and Parmeshwar Metal.