The Gajanand International Limited IPO has concluded its subscription period, closing with an impressive 14.28x oversubscription. This high demand reflects growing investor confidence in the company's cotton manufacturing infrastructure and long-standing reputation in the textile industry. The IPO, a Fixed Price Issue amounting to ₹20.64 crore, consists entirely of a fresh issue of 57.36 lakh shares. The subscription window ran from September 9 to September 11, 2024, and shares are slated to list on the NSE SME on September 16, 2024.

Company Background and Strengths

Founded in 2009, Gajanand International Limited has established itself as a reliable name in the cotton industry. The company operates from a cutting-edge, fully automated factory located near Bye Pass Circle, Atkot Road, Jasdan, where it produces contamination-free, sustainable cotton. Known for offering high-quality services at competitive prices, Gajanand has built a loyal customer base over the years.

The company’s manufacturing capabilities and emphasis on customer satisfaction have helped it carve out a significant share in the organized cotton market. Gajanand International’s founders, Mr. Ashok Bhagvanbhai Monsara, Mrs. Truptiben Ashokbhai Monsara, and Mr. Ashish Dhirajlal Monsara, each bring decades of experience across cotton production, textile marketing, and consultation, contributing to the company’s steady growth and success.

I1PO Pricing and Investment Details

Priced at ₹36 per equity share, the Gajanand International Limited IPO has set a minimum lot size of 3,000 shares, making the minimum retail investment ₹108,000. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹216,000, as they are required to subscribe to 2 lots (6,000 shares). The IPO is being managed by FAST TRACK FINSEC PRIVATE LIMITED as the lead manager, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acting as the registrar. Nikunj Stock Broker Limited is the sole market maker for this IPO.

Financial Performance

The company's financial growth has been steady, with revenues rising from ₹6,176.21 lakh in FY22 to ₹7,342.40 lakh in FY23, and reaching ₹10,874.81 lakh in FY24. Similarly, the company's EBITDA has surged from ₹123.82 lakh in FY22 to ₹274.01 lakh in FY23, and now stands at ₹404.07 lakh for FY24. The Profit After Tax (PAT) figures have also shown significant improvement, jumping from a modest ₹2.85 lakh in FY22 to ₹141.06 lakh in FY23, and currently resting at ₹223.73 lakh for FY24.

The strong financial growth is also reflected in key performance metrics. The company's Return on Capital Employed (ROCE) for FY24 stands at 29.72%, while the Return on Equity (ROE) is at 19.30%. This underscores the company’s ability to generate substantial returns for its investors. With a pre-issue EPS of ₹1.71 and post-issue EPS of ₹1.18, the pre-issue P/E ratio stands at 21.05x, while the post-issue P/E ratio is 30.50x, lower than the industry average of 62.45x, indicating that the IPO is fairly priced.

For more financial updates and in-depth IPO analysis, check the latest reports at {Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi}.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for Gajanand International Limited IPO has ranged between ₹3 and ₹4 per share, indicating potential listing gains of 10-12%. Although GMP can offer insights into possible listing day performance, it is important to note that these prices are based on informal trading and are not regulated. The actual price discovery will only occur when the shares are listed on the NSE SME.

On the final day of the subscription period, September 11, 2024, the IPO was oversubscribed 14.28 times. Investors looking to track live subscription status updates can find real-time data on the NSE website.

For more on grey market premiums and live IPO updates, visit {Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi}.

Allotment Status and Listing Date

The allotment for Gajanand International IPO is expected to be finalized on September 12, 2024. Investors can check their allotment status by following these steps:

Visit the IPO allotment page on the registrar’s website.

Select Gajanand International Limited IPO from the list of IPOs.

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

Submit the information to check whether you’ve been allotted shares.

For real-time allotment updates, visit {Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi}.

The shares are expected to be listed on September 16, 2024, on the NSE SME platform.

Should You Invest?

Based on its financial performance and the overall market sentiment, Gajanand International Limited appears to be a solid long-term investment for those seeking exposure to the textile and cotton industries. However, listing gains may be limited, and as such, this IPO might not be the best option for investors seeking quick returns. The company’s profitability, particularly its ROCE and ROE, along with steady revenue growth, makes it an attractive choice for long-term investors.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.