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Avi Ansh Textile Ltd IPO
Status:
Overview
IPO date
20 Sept 2024 to 24 Sept 2024
Face value
₹ 10 per share
Price
₹ 62 per share
Issue Size
4,193,541 shares
(aggregating up to ₹ 26 Cr)
(aggregating up to ₹ 26 Cr)
Allotment Date
25 Sept 2024
Listing at
NSE
Issue type
Fixed Price - SME
Sector
Unlock Stock of the Month
T&C*
Strengths vs Risks of Avi Ansh Textile Ltd
Know the pros & cons
Strengths
- The elected location for our manufacturing plant boasts a strategic advantage.
- Diversified product offerings underscore our commitment to quality.
- The experienced management team at our company brings a wealth of expertise and leadership.
Risks
- Its business depends on the company production facility in Punjab and the loss of or shutdown of operations of the production facility on any grounds could adversely affect its business or results of operations.
- The company does not have long-term agreements with a majority of its customers. Any changes or cancellations to the company orders or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition.
- Its insurance coverage may not be adequate.
- The company may need to seek additional financing in the future to support its growth strategies. Any failure to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its business requires the company to obtain and renew certain licenses and permits from government, regulatory authorities and other national/ international corporations and the failure to obtain or renew them in a timely manner may adversely affect its business operations.
- The company has entered into, and will continue to enter into, related party transactions.
- The company is subject to various laws and regulations in jurisdictions where its operate, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its financial condition.
- The company may not be able to successfully manage the growth of its business if the company is not able to effectively implement its strategies.
- An inability to address changing industry standards and shift in consumer preference or taste may adversely affect its business, results of operations and financial condition.
- Changes in Technology may render its current technologies obsolete or require the company to make substantial capital investments.
- The company depends on its senior management team and a loss of any of the company senior management may affect its ability to operate or grow the company's business.
- The company may be exposed to the risk of delays or non-payment by its clients and other counterparties, which may also affect its cash flows and business.
- The outbreak of COVID-19 or outbreak of any other severe communicable disease could have a potential impact on its business, financial condition and results of operations.
- The Shortage or non-availability of power and fuel facility may adversely affect its manufacturing process and have an adverse impact on its results of operations and financial condition.
- Its business, results of operations and financial condition may be adversely affected if operations at the facilities of its raw material suppliers are disrupted.
- The company is majorly dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products.
- If the company is subject to any frauds, theft, or embezzlement by its employees, suppliers, contractors or distributors, it could adversely affect its reputation, results of operations, financial condition and cash flows.
- Information relating to the installed capacity, actual production and capacity utilization of its manufacturing facilities included in this Draft Prospectus are based on various assumptions and estimates and future production and capacity may vary.
- Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- No independent agency has been appointed by our company to monitor the utilization of the issue proceeds.
- The industry segments in which we operate being fragmented, we face competition from other players, which may affect our business operations and financial conditions.
- The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations.
- The company Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct our business and affairs; their interests may conflict with your interests as a shareholder.
- Its lenders have charged over the company movable, immovable properties and book debts in respect of finance availed by it.
- The Company's logo is `AVI ANSH` is not registered as on the date of Prospectus. Its may be unable to adequately protect the company intellectual Property. Also, its Cannot assure the timely registration of the company logo.
- The discrepancy in ROC filed documents, which cannot be rectified at present, poses a risk of accruing penalties in the future. This could potentially impact the financial standing of the company.
- Its contingent liabilities and commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The Company is party to certain legal proceedings.
- Its operations are dependent on the company ability to attract and retain skilled personnel and any inability on its part to do so, could adversely affect the company's business, results of operations and financial condition.
- Funding the working capital requirements of the Company, based on certain assumptions and estimates, constitutes a key objective of the Issue. Failures to effectively utilize these funds could adversely impact its operations.
- Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.
- Delays or defaults in customer payments could adversely affect its financial condition.
- Any future issuance of Equity Shares may dilute your shareholdings, and the sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
- Abundant dependence on IndusInd Bank in respect of Loan facilities obtained by the Company.
- Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
- Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- Some of the details mentioned in the respective Documents of its promoters are not same as other KYC documents.
- The Company has high debt-to-equity ratio.
- The company entry into the garments manufacturing sector is a new and untested area of business for it, and as such, the company may face unforeseen challenges and uncertainties that could impact its ability to operate successfully in this sector.
- The trading volume and market price of the Equity Shares may be volatile following the Offer.
- The company cannot assure you that its equity shares will be listed on the SME platform of NSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
Avi Ansh Textile Ltd Peer Comparison
Understand the company’s industry standing
Avi Ansh Textile Ltd
Jindal Worldwide Ltd
Shanti Spintex Ltd
Face Value
10
1
2
Standalone / Consolidated
Standalone
Consolidated
Standalone
Total Income Rs. Cr.
120.7064
1814.089
505
EPS-Basis
3.39
3.77
8.71
EPS-Diluted
3.39
3.77
8.71
NAV Per Share
---
---
---
P/E-Basic EPS
18.28
92.37
5.70
P/E-Diluted EPS
---
---
---
RONW(%)
2.29
10.52
15.03
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Avi Ansh Textile Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 20 Sept 2024 & closes on 24 Sept 2024.
Avi Ansh Textile Limited was originally incorporated as 'Rajneesh Spinners Private Limited' on 27th April, 2005 as a Private Company with the Registrar of Companies Punjab, H.P. & Chandigarh. The Company name was further changed to 'Avi Ansh Textile Private Limited' dated 16th December,2013 . In 2023, Company converted to a Public Limited attaining the name 'Avi Ansh Textile Limited' and a fresh Certificate of Incorporation dated 3rd January,2024 by the Registrar of Companies, Delhi.
The Company is engaged in yarn spinning, manufacturing high quality cotton yarns in Derabassi, Punjab. Since 2005, Company has been a prominent player in the yarn sector and has established as a premier manufacturer and exporter of 100% cotton yarn, specializing in carded, combed and slub yarn with counts ranging from 20s to 40s.
With 26,314 spindles, it produce approximately 4,500MT of cotton yarn annually. Branded as Pooja Gold, the yarn reflects meticulous craftsmanship, offering unparalleled softness, strength, and versatility. Additionally, the Company vertically integrated into the knitting division, producing superior quality fabrics in dyed and greige variants, delivered within promised timelines. Equipped with high-speed automatic circular knitting machines, fabric division can knit 1800 MT per annum of various fabric types.
After Attaining its hold over spinning, Company diversified the business into Knitting , leading a vertical integration. It commenced operations with installing 20 machines with an annual capacity of 1800 metric tons in FY 2022-23.
The Company issued and allotted 41,93,541 equity shares of Rs 10 by raising Rs 26 Cr through fresh issue on September 24, 2024.
Avi Ansh Textile Ltd IPO will close on 24 Sept 2024.
- The elected location for our manufacturing plant boasts a strategic advantage.
- Diversified product offerings underscore our commitment to quality.
- The experienced management team at our company brings a wealth of expertise and leadership.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Anil Kumar Jain | 3841010 | 39.25 | 3841010 | 27.48 |
| 2 | Geeta Jain | 1587200 | 16.22 | 1587200 | 11.35 |
| 3 | Avi Jain | 60000 | 0.61 | 60000 | 0.43 |
| 4 | GA Alloys Pvt Ltd | 649630 | 6.64 | 649630 | 4.65 |
| 5 | S J Metals Pvt Ltd | --- | --- | --- | --- |
| 6 | A K Jain (HUF) | 1793870 | 18.33 | 1793870 | 12.83 |
| 7 | Sanjeev Mittal HUF | 168350 | 1.72 | 168350 | 1.2 |
| 8 | Ramesh Mittal HUF | 196670 | 2.01 | 196670 | 1.41 |
| 9 | S C Jain (HUF) | 159200 | 1.63 | 159200 | 1.14 |
| 10 | Arihant Yarn Fab Pvt Ltd | --- | --- | --- | --- |
- Its business depends on the company production facility in Punjab and the loss of or shutdown of operations of the production facility on any grounds could adversely affect its business or results of operations.
- The company does not have long-term agreements with a majority of its customers. Any changes or cancellations to the company orders or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition.
- Its insurance coverage may not be adequate.
- The company may need to seek additional financing in the future to support its growth strategies. Any failure to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its business requires the company to obtain and renew certain licenses and permits from government, regulatory authorities and other national/ international corporations and the failure to obtain or renew them in a timely manner may adversely affect its business operations.
- The company has entered into, and will continue to enter into, related party transactions.
- The company is subject to various laws and regulations in jurisdictions where its operate, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its financial condition.
- The company may not be able to successfully manage the growth of its business if the company is not able to effectively implement its strategies.
- An inability to address changing industry standards and shift in consumer preference or taste may adversely affect its business, results of operations and financial condition.
- Changes in Technology may render its current technologies obsolete or require the company to make substantial capital investments.
- The company depends on its senior management team and a loss of any of the company senior management may affect its ability to operate or grow the company's business.
- The company may be exposed to the risk of delays or non-payment by its clients and other counterparties, which may also affect its cash flows and business.
- The outbreak of COVID-19 or outbreak of any other severe communicable disease could have a potential impact on its business, financial condition and results of operations.
- The Shortage or non-availability of power and fuel facility may adversely affect its manufacturing process and have an adverse impact on its results of operations and financial condition.
- Its business, results of operations and financial condition may be adversely affected if operations at the facilities of its raw material suppliers are disrupted.
- The company is majorly dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products.
- If the company is subject to any frauds, theft, or embezzlement by its employees, suppliers, contractors or distributors, it could adversely affect its reputation, results of operations, financial condition and cash flows.
- Information relating to the installed capacity, actual production and capacity utilization of its manufacturing facilities included in this Draft Prospectus are based on various assumptions and estimates and future production and capacity may vary.
- Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- No independent agency has been appointed by our company to monitor the utilization of the issue proceeds.
- The industry segments in which we operate being fragmented, we face competition from other players, which may affect our business operations and financial conditions.
- The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations.
- The company Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct our business and affairs; their interests may conflict with your interests as a shareholder.
- Its lenders have charged over the company movable, immovable properties and book debts in respect of finance availed by it.
- The Company's logo is `AVI ANSH` is not registered as on the date of Prospectus. Its may be unable to adequately protect the company intellectual Property. Also, its Cannot assure the timely registration of the company logo.
- The discrepancy in ROC filed documents, which cannot be rectified at present, poses a risk of accruing penalties in the future. This could potentially impact the financial standing of the company.
- Its contingent liabilities and commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The Company is party to certain legal proceedings.
- Its operations are dependent on the company ability to attract and retain skilled personnel and any inability on its part to do so, could adversely affect the company's business, results of operations and financial condition.
- Funding the working capital requirements of the Company, based on certain assumptions and estimates, constitutes a key objective of the Issue. Failures to effectively utilize these funds could adversely impact its operations.
- Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.
- Delays or defaults in customer payments could adversely affect its financial condition.
- Any future issuance of Equity Shares may dilute your shareholdings, and the sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
- Abundant dependence on IndusInd Bank in respect of Loan facilities obtained by the Company.
- Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
- Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- Some of the details mentioned in the respective Documents of its promoters are not same as other KYC documents.
- The Company has high debt-to-equity ratio.
- The company entry into the garments manufacturing sector is a new and untested area of business for it, and as such, the company may face unforeseen challenges and uncertainties that could impact its ability to operate successfully in this sector.
- The trading volume and market price of the Equity Shares may be volatile following the Offer.
- The company cannot assure you that its equity shares will be listed on the SME platform of NSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
The Issue type of Avi Ansh Textile Ltd is Fixed Price - SME.
The minimum application for shares of Avi Ansh Textile Ltd is 2000.
The total shares issue of Avi Ansh Textile Ltd is 4193541.
Public issue of 41,92,000 equity shares of face value of Rs. 10 each ("Equity Shares") of Avi Ansh Textile Limited (the "Company" or the "Issuer") for cash at a price of Rs. 62/- per equity (the "Issue Price") aggregating to Rs. 25.99 crores ("The Issue") of which 2,12,000 equity share face value of Rs. 10 each for cash at a price of Rs. 62 equity share including premium of Rs. 52 per equity shares aggregating to Rs. 1.31 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 39,80,000 equity share face value of Rs. 10 each at a cash price of Rs. 62 per equity share including premium of Rs. 52 per equity share aggregating to Rs. 24.68 crores (the "Net Issue"). The issue and the net issue will constitute 30% and 28.47% respectively of the post issue paid up equity share capital of the company.