Avax Apparels And Ornaments IPO: Review, Date & GMP

Avax IPO-Complete Overview

Avax IPO an SME IPO is a fixed price issue of Rs.1.92 crore by Avax Apparels And Ornaments Limited which was founded in June 2005. The company operates in two distinct business sectors:

• Wholesale Dealing

• Silver ornaments sold online

The company sells silver decorations, such as rings, ladies' payal, men's kada, plate sets, glass, bangles, bowls, chains, and other jewelry, online and wholesale knitted fabric. It provides for all of the nation's major cities.

In wholesale commerce, the corporation enjoys many significant advantages. Its location in the center of the fabric manufacturing industry is a major asset. The company also gains from the management's excellent business contacts and the increasing demand for these products, both of which support the company's success in this market.

Its new SME IPO is to be launched on 20 September 2024, and its ‘initial public offering’ will end on 24 September 2024.

 

 Avax IPO Overview

The Rs.1.92 crore Avax Apparels And Ornaments Ltd. IPO consists of a fully fresh issue of 2.74 lac Shares, of which 50% are allowed to retail investors and 50% to other investors.

This SME IPO date is from September 20-September 24, 2024. The expected IPO listing will take place on Friday, 27 September 2024, on BSE and SME. Avax Apparels And Ornaments IPO price is Rs.70 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue was increased by 50% and PAT grew by 99% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill working capital needs.

• General corporate purposes.

Peers of Avax Apparels And Ornaments Ltd.

Evaluation

The IPO price is Rs.70 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.18.06 from the last year, the resulting P/E ratio is 3.88x.

Considering the weighted EPS of Rs.12.21 for the last three years, the P/E ratio is 5.73x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 90.21.

 

In simple words, the P/E ratio of Avax Apparels IPO (3.88x), compared with the industry’s average P/E of 90.21x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• Advantage of location

• Strong relationships and network with industry participants

•  Outstanding customer service

• Skilled and knowledgeable staff

• Proven management record

 

IPO’s Weaknesses

• Restricted financial means

• Limited pricing power as a result of new competitors

• Limited experience selling silver ornaments especially

• The company's future business operations may consist solely of the textile industry, with little to no dealing in silver ornaments

• The company had a negative cash flow from its operating and investing activities in the past fiscal year(s). Sustained negative cash flow could impact its growth and business.

  

Avax IPO GMP Today

Its IPO GMP today is Rs.0 as of 19 September 2024. With a price band of Rs.70, Avax Apparels estimated IPO listing price is Rs.70.

0% gain or loss.

IPO Timetable (Tentative)

The IPO date is from September 20 to September 24, 2024, with allotment on September 25, refund initiation on September 26, and listing on September 27, 2024.

 

Avax IPO Details 

The Avax IPO with a Face Value of Rs.10 per Share is set to start on September 20, 2024, close on September 24, 2024, and offer a total issue size of 2,74,000 Shares (aggregating up to Rs.1.92 Cr) comprising a whole fresh issue size.

Avax IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,40,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,80,000.

 

Avax IPO Reservation (% of Net Issue)

Promoters And Management of Avax Apparels And Ornaments Ltd.

• Mr. Harinderpal Singh Sodhi

• Mr. Harish Kumar

 

IPO Lead Managers

• SKI Capital Services

 

Dividend Policy

The company has not paid dividends in any financial year.

 

Conclusion

Avax Apparels And Ornaments Ltd. has experienced negative cash flow in operating and investing activities in the last fiscal years. The company is launching an IPO for the general public to achieve its goals. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the upcoming IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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