Avi Ansh Textile has been a prominent player in the yarn sector since its inception in 2005. By 2012, the company had established itself as a manufacturer and exporter of 100% cotton yarn, including combed and carded cotton yarn in various counts. With a production capacity of approximately 4,500 MT of cotton yarn per year and 26,314 spindles, the company has steadily expanded its market presence.

Avi Ansh Textile IPO Details

The Avi Ansh Textile IPO, a fixed price issue, aims to raise ₹25.99 crore by offering 41.93 lakh shares at a price of ₹62 per equity share. The subscription period for this IPO runs from September 20 to September 24, 2024. The shares are expected to be listed on the NSE SME on or around September 27, 2024.

Retail investors must invest a minimum of ₹1,24,000, which corresponds to a minimum lot size of 2,000 shares. For high-net-worth individuals (HNIs), the minimum investment requirement is 2 lots (4,000 shares), amounting to ₹2,48,000.

3Dimension Capital Services Limited is the book-running lead manager, while Skyline Financial Services Private Limited acts as the registrar for the issue. Nikunj Stock Brokers Limited is the sole market maker for the IPO.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Avi Ansh Textile IPO is estimated to be between ₹10 and ₹12. It is important to note that the GMP reflects market sentiment and is not a definitive indicator of actual trading performance. This premium varies based on demand and supply in the unregulated market, which is why potential investors should approach it cautiously.

Live Subscription Status

As of 5:00 PM on September 20, 2024, the Avi Ansh Textiles IPO was subscribed 1.08 times on its first day. This indicates positive investor interest, and prospective investors can monitor the live subscription status on the NSE website.

Allotment Date and Process

The allotment date for the Avi Ansh Textile IPO is set for September 25, 2024. Investors can check their allotment status by following these simple steps:

Go to the IPO allotment status page on the registrar’s website.

Select Avi Ansh Textiles Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Click Submit to check your allotment status.

Objectives of the IPO

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

₹20.11 crore for working capital requirements.

₹3.94 crore for term loan repayment.

₹0.56 crore for general corporate purposes.

Financial Performance Overview

Avi Ansh Textile has shown consistent growth in revenue, with the following figures for the past fiscal years:

FY24: ₹14,214.65 lakh

FY23: ₹12,149.57 lakh

FY22: ₹12,016.76 lakh

FY21: ₹7,264.30 lakh

The EBITDA figures also reflect a positive trajectory:

FY24: ₹963.68 lakh

FY23: ₹455.54 lakh

FY22: ₹619.17 lakh

FY21: ₹558.04 lakh

Profit after Tax has improved notably:

FY24: ₹331.35 lakh

FY23: ₹28.74 lakh

FY22: ₹155.55 lakh

FY21: ₹68.20 lakh

For the Avi Ansh Textile IPO, the pre-issue EPS is ₹3.39, while the post-issue EPS is projected at ₹2.37. The pre-issue P/E ratio stands at 18.28x, with a post-issue P/E ratio of 26.16x, compared to an industry P/E ratio of 28x. The company's ROCE for FY24 is 15.88%, and the ROE is 20.88%. These metrics suggest that the IPO is fairly priced but may offer limited upside potential.

Investment Recommendation

Given the current Grey Market Premium, which indicates potential listing gains of 15%-20%, investors should weigh the company's strong historical performance against market conditions. However, based on the analysis, it may be advisable for investors to avoid the Avi Ansh Textile IPO for immediate listing gains or long-term investment purposes due to the competitive P/E ratio compared to industry standards.

Disclaimer

The information in this review is intended for educational and informational purposes only and should not be considered financial advice. Always consult a professional advisor before making investment decisions, as the views presented here do not take into account individual circumstances or risk appetites.

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