Avax Apparels And Ornaments is a key player in the wholesale trading of knitted fabrics, directly purchasing from manufacturers and supplying to businesses and ready-made garment manufacturers in Punjab. They specialize in knitted textiles, producing both men's and women's jackets. In addition, the company has a strong presence in the online retail sector, offering an exquisite collection of silver jewelry. This includes silver rings, ladies' pajeb, gents' kada, plate sets, glassware, bangles, bowls, chains, and more. Their products are supplied to major cities across India.

IPO Details

Avax Apparels And Ornaments is raising ₹1.92 Crores through a Fixed Price Issue with a Fresh Issue of 2.74 Lakh shares. The subscription period opens on January 07, 2025 and closes on January 09, 2025. The allotment is expected to be finalized on January 10, 2025, with a tentative listing date of January 14, 2025 on the BSE SME platform.

The price per share is set at ₹70, giving the company a market capitalization of ₹7.27 Crores at the IPO price. The lot size is 2,000 shares, meaning retail investors must invest a minimum of ₹1,40,000. For High-net-worth individuals (HNIs), the minimum investment is 2 lots (4,000 shares), totaling ₹2,80,000.

Subscription and Grey Market Premium

As of January 07, 2025, the Grey Market Premium (GMP) for the Avax Apparels And Ornaments IPO is ₹23, reflecting a potential listing gain of 32.98%. The GMP indicates market sentiment and demand but should be approached with caution, as it does not guarantee the actual listing price.

Financial Performance and Key Metrics

For the period ending September 30, 2024, the company reported revenues of ₹1,500.93 Lakh, with consistent growth over the years. The EBITDA for the same period was ₹145.20 Lakh, and the Profit after Tax (PAT) was ₹90.61 Lakh, signaling healthy profitability.

Key financial metrics include:

• Pre-issue EPS: ₹18.06
• Post-issue EPS: ₹13.30
• Pre-issue P/E ratio: 3.88x
• Post-issue P/E ratio: 5.26x, compared to the industry P/E ratio of 90x
• ROCE (Return on Capital Employed): 61.68% for FY24
• ROE (Return on Equity): 43.91% for FY24

With its strong profitability ratios and affordable valuation, Avax Apparels And Ornaments presents a fairly priced IPO.

Should You Apply for Avax Apparels And Ornaments IPO?

Given the steady financial performance and attractive valuation, the GMP of ₹23 suggests potential listing gains. The P/E ratio is much lower than the industry average, further indicating the IPO is underpriced.

For risk-tolerant investors, we recommend applying for the IPO, especially with the potential for short-term gains after listing. However, investors should assess their risk tolerance before making decisions.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.

The Current active IPO are   Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal, Fabtech Technologies.

For more updates on executive appointments and other business developments, we encourage readers to explore related news and articles, including the latest on IPOs, share market updates, and financial strategies at:
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