Avi Ansh Textile, established in the yarn sector since 2005, has made a mark as a manufacturer and exporter of 100% cotton yarn, including combed and carded varieties. By 2012, the company achieved a production capacity of approximately 4,500 MT per year, supported by 26,314 spindles.

The Avi Ansh Textile IPO, amounting to ₹25.99 crore, includes a fresh issue of 41.93 lakh shares priced at ₹62 per equity share. The subscription period runs from September 20 to September 24, 2024, with allotment expected by September 25 and listing on the NSE SME projected for September 27.

Retail investors must invest a minimum of ₹1,24,000 for 2,000 shares, while High-Net-Worth Individuals (HNIs) need to purchase a minimum of 4,000 shares for ₹2,48,000. 3Dimension Capital Services Limited serves as the book-running lead manager, while Skyline Financial Services Private Limited is the registrar.

As of September 20, 2024, the IPO has a Grey Market Premium (GMP) estimated at ₹10 to ₹12, reflecting potential listing gains. However, trading based on GMP is not advised due to its unregulated nature.

Live Subscription Status

As of 3:59 PM on September 20, 2024, the IPO subscription status showed 0.29 times on its first day.

Objectives of the IPO

The proceeds from the fresh issue will be allocated as follows:

₹2,011.94 Lakhs for working capital needs.

₹394.76 Lakhs for term loan repayment.

₹56.29 Lakhs for general corporate purposes.

Financial Performance

Avi Ansh Textile has shown robust financial growth:

Revenues from Operations: ₹14,214.65 lakhs (FY 2024), ₹12,149.57 lakhs (FY 2023), ₹12,016.76 lakhs (FY 2022), ₹7,264.30 lakhs (FY 2021).

EBITDA: ₹963.68 lakhs (FY 2024).

Profit After Tax: ₹331.35 lakhs (FY 2024).

With a pre-issue EPS of ₹3.39 and post-issue EPS of ₹2.37, the pre-issue P/E ratio stands at 18.28x, while the post-issue P/E ratio is 26.16x, compared to the industry average of 28x. The company's ROCE for FY24 is 15.88%, and ROE is 20.88%, indicating a strong financial standing.

Investment Recommendation

Given the overall performance and valuation metrics, while the Grey Market Premium suggests potential listing gains, investors are advised to avoid the Avi Ansh Textile IPO for immediate listing gains or long-term investment due to the inherent risks and market conditions.

The current active IPO is Avi Ansh Textiles Limited, Phoenix Overseas Limited, BikeWo GreenTech Limited, SD Retail Limited, Kalana Ispat.

The Recently Listed IPOs which is available for trading in stock Market are RNFI Services Limited, Sanstar Limited, Sahaj Solar Limited, Macobs Technologies Limited IPO, Kataria Industries Limited IPO, Sati Poly Plast Limited, Aelea Commodities Limited, Prizor Viztech Limited, Three M Paper Boards Limited, BANSAL WIRE INDUSTRIES, EMCURE PHARMACEUTICALS, NEPHRO CARE INDIA, Diensten Tech Limited, Vraj Iron and Steel Limited, Divine Power Energy Limited.

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