Avi Ansh Textile IPO: Review, Valuation, Date & GMP

Avi Ansh Textile IPO-Complete Overview

Avi Ansh Textile IPO an SME IPO is a fixed price issue of Rs.25.99 crore by Avi Ansh Textile Limited which was founded in April 2005 as a producer and exporter of yarn made entirely of cotton. This includes combed and carded cotton yarn in different counts.

Avi Ansh Textile Limited has demonstrated its commitment to environmental management and quality assurance by obtaining ISO 9001:2015 and ISO 14001:2015 certifications. To satisfy client demands, the company manufactures and supplies a range of yarns and textiles for both domestic and international markets.

The company runs 26,000 spindle-capable spinning facilities that generate 4,500 metric tons of cotton yarn per year, with counts ranging from 20 to 40.

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

 Avi Ansh Textile IPO Overview

The Rs.25.99 crore Avi Ansh Textile IPO is a fully fresh issue of 41.92 lac Shares. This SME IPO date is from September 20-September 24, 2024. The expected IPO listing will take place on Friday, 27 September 2024, on NSE and SME. Avi Ansh Textile IPO price is Rs.62 for each Share.

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

 

Company Financial

The company’s revenue was increased by 17% and PAT grew by 1053% 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)

 

Segment-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

• Repayment of term loan

• General corporate purposes.

 

Peers of Avi Ansh Textile Ltd.

Evaluation

The IPO price is Rs.62 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.39 from the last year, the resulting P/E ratio is 18.28x.

Considering the weighted EPS of Rs.2.05 for the last three years, the P/E ratio is 30.24x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 76.96x.

 

In simple words, the P/E ratio of Avi Ansh Textile Limited IPO (18.28x), compared with the industry’s average P/E of 76.96x, 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 

• Its manufacturing plant's chosen location has a tactical benefit

• Its wide range of products demonstrates our dedication to excellence

• Its company's seasoned management group offers a plethora of knowledge and leadership.

 

IPO’s Weaknesses

• Its business is dependent on its production plant in Punjab, and its loss or closure for whatever reason could harm the operations and business outcomes

• Lack of fuel and electricity availability could affect the production process

• If there is an interruption in the operations at the facilities of the raw material suppliers, it could harm its business, operational results, and financial situation

• The company's Debt to Equity ratio is high

• Since the entry into the apparel manufacturing industry is new and unproven, the company could encounter

• Unexpected difficulties and unknowns can affect its capacity to function effectively in this industry.

 

 

Avi Ansh Textile IPO GMP Today

Its IPO GMP today is Rs.12 as of 20 September 2024. With a price band of Rs.62, Avi Ansh Textile's estimated IPO listing price is Rs.74.

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.

 

Avi Ansh Textile IPO Details 

The Avi Ansh 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 4,192,000 Shares (aggregating up to Rs.25.99 Cr) comprising a whole fresh issue size.

Avi Ansh Textile IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.124,000  and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,48,000.

 

Avi Ansh Textile IPO Reservation (% of Net Issue)

 

Promoters And Management of Avi Ansh Textile Ltd.

• Anil Kumar Jain

• Geeta Jain

• Avi Jain

• G A Alloys Private Limited

• S J Metals Private Limited

• A K Jain, (HUF)

• Sanjeev Mittal, (HUF)

• Ramesh Mittal, (HUF)

• S C Jain, (HUF)

• Arihant Yarnfab Private Limited

• Akanksha Jain

• Ansh Jain.

IPO Lead Managers

• 3Dimension Capital Services Limited

Dividend Policy

The company has not paid dividends in any financial year.

Conclusion

Avi Ansh Textile Ltd. has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. The company is in the production and distribution of cotton yarn. During the stated periods, the company's top lines showed growth, but its bottom line showed inconsistent results. The company is launching an IPO for the general public to achieve its goals. 

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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