|Issue Date||27/12 - 03/01|
|Issue Size||₹3.83 Cr|
|Market Lot||6000 Shares|
|Shares on Offer||1,596,000|
|Subject to Sauda||N/A|
VAXTEX COTFAB LTD is one of theleading textile processing house located in ahmedabad with highly efficient machinary.we have instaled dyeing & printing capacity of more than 1 Million Meters monthly.we have been catering textile market since 2006 with high quality fabrics. pramoters of the company have exeperience of more then 25 years in textiles industries.
To be a complete & most respected M an u fact u rerfor entire range of Fabrics & Garments in the textile industry.To trade products comparable to international standards, to be customer focused & globally competitive through better quality, latest technology & continuous innovation.
VAXTEX COTFAB are engaged in the business of Textile processing of fabric and trading. Our Company is engaged in the Processing (dyeing and finishing) of grey fabrics for shirting, suiting, and other accessories and also on outsourcing basis for other fabric / garment companies. They have an installed capacity of 12,00,000 mtrs / month for processing of various fabrics from natural and man -made fibres specializing in 100% cotton, Giza & Supima cotton blended fabrics, polyester viscose and polyester cotton. Our Company procures Grey fabrics and process it into Finish Fabric as per the client’s requirement.
Earlier, prior to 2017, our company was involved in trading business of fabric. They were used to buy ready fabrics and sell into market. In the year 2017, our Company procured machines with latest technology for processing of fabrics and also consequently increased our installed capacity.
They process various fabrics like 100% Cotton – Lycra and Non-Lycra, Blended Cotton Suiting – Chief Value Cotton, Polyester Cotton, 100% Cotton Yarn Dyed, Polyester Viscose, Terry Rayon Suiting and Mock Linen. Our Company also undertakes corporate orders for Finished Fabrics for corporate brands. At our processing unit we do the process of Dyeing and finishing of fabrics which is termed as finished fabric and is ready to use for processing. Further finished fabrics are folded, checked and packed as per client’s requirement. Than the packed fabrics are directly sent to our Storage unit or are delivered to client’s go down.
Their processing unit is located at Narol, Ahmedabad in Gujarat and majority of the manufactured goods are dispatched from this unit itself. They also have a Packing and Storage unit at nearby place to our unit, Narol, in Gujarat and they dispatch the Stocked goods and certain outsourced processed goods from this unit.
They have a dedicated in-house Testing and Quality Control Team which undertakes rigorous testing and quality management. We have dedicated semi-automatic and manual testing machines. Our Testing and QC team coupled with our testing equipment’s ensure the quality of raw material dispensed in the production process and also the finished goods delivered to our customers. This helps in improving our procurement process thus reducing wastages, returns and other related costs.
Incorporated in 2005, Ahmedabad based Vaxtex Cotfab Limited is engaged in the business of Textile processing of fabric and trading. The Company does Processing (dyeing and finishing) of grey fabrics for shirting, suiting, and other accessories. It also works on an outsourcing basis for other fabric/garment companies.
Vartex has a processing unit and a Packing and Storage unit located at Narol, Ahmedabad in Gujarat. The installed capacity of the processing unit is 12,00,000 meters/month for processing of various fabrics from natural and man-made fibres specializing in 100% cotton, Giza & Supima cotton blended fabrics, polyester viscose and polyester cotton. The company undertakes corporate orders for Finished Fabrics from brands.
It also has a dedicated in-house Testing and Quality Control Team which undertakes testing and quality management.
Vaxtex Cotfab Limited is a Public incorporated on 26 December 2005. It is classified as Non-govt company and is registered at Registrar of Companies, Ahmedabad. Its authorized share capital is Rs. 62,500,000 and its paid up capital is Rs. 44,275,000. It is inolved in Wholesale on a fee or contract basis. [Includes commission agents, commodity brokers and auctioneers and all other wholesalers who trade on behalf and on the account of others. Activities of self employed auctioneers are included in 74991.]
Vaxtex Cotfab Ltd. (VCL) that started a cotton fabrics trading business at Kolkata has shifted its operations to Gujarat and is now also engaged in processing of fabrics at the rented plant. It currently does job work for third party products. It plans to gradually shift to own fabrics processing going forward based on growth in demand. Revenue from job work has the lion share in its top line.
To part finance its needs for acquiring machinery (Rs. 0.59 cr.), working capital (Rs. 2.50 cr.) and general corpus fund (Rs. 0.44 cr.) VCL is coming out with a maiden IPO of 1596000 equity shares of Rs. 10 each at a fixed price of Rs. 24 per share to mobilize Rs. 3.83 cr. The issue opens for subscription on 27.12.19 and will close on 03.01.20. The minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 26.5% of the post issue paid-up capital of the company. VCL is spending Rs. 0.30 cr. for the entire proceeds of this IPO.
The issue is solely lead managed by Capitalsquare Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. NNM Securities Pvt. Ltd. is the market maker for this issue.
Having issued initial equity at par value, VCL raised further equity for Rs. 100 per share in March 2006 and had issued bonus shares in the ratio of 10 shares for every 1 share held in April 2019. The average cost of acquisition of shares by the promoters is Rs. 0.09 and Rs. 0.91 per share. Post issue, VCL's paid-up capital will stand enhanced from Rs. 4.43 cr. to Rs. 6.02 cr. Thus the company mulls market capitalization of Rs. 14.46 cr.
For the last three fiscals, VCL has posted turnover/net profits of Rs. 4.46 cr. / Rs. 0.02 cr. (FY17), Rs. 18.47 cr. / Rs. 0.17 cr. (FY18) and Rs. 22.02 cr. / Rs. 0.60 cr. (FY19). For Q1 of FY20, it has clocked in the net profit of Rs. 0.34 cr. on a turnover of Rs. 4.54 cr. A sudden spurt in the bottom line for Q1 raises concern. For the last three fiscals, VCL has posted an average EPS of Rs. 0.78 and an average RoNW of 7.82%. The issue is priced at a P/BV of 2.10 based on its NAV of Rs. 11.44 as on 30.06.19 (as per restated financial data) and at a P/BV of 1.63 based on post-IPO NAV of Rs. 14.76. VCL has not paid any dividends so far.
If we annualize FY20 Q1 super earnings and attribute it to post issue paid-up equity capital then asking price is at a P/E of 10.6.
VCL's holding periods for inventors is expected to rise from the current 36 days to 54 days and trade receivables from 61 days to 98 days. This is set to impact its working going forward. Company's current debt/equity ratio of 1.78 will decline to 1.01 post this issue.
As per offer documents, VCL has shown Kavita Fabrics, SKS Textiles and Jakharia Fabrics as its listed peers. They are currently trading at a P/E of 391, 5.64 and 21.15 (as on 23.12.19). However, they are not strictly comparable.
On merchant banker's front, this is the 2nd mandate from its stable in the current fiscal. The only listing that took place so far was opened at a discount (-1.16%) to offer price on the day of listing. Currently, it trades at a discount of around 30%.
|Total Assets (In ₹ Millions)||1,018.76||470.00||419.31|
|Total Revenue (In ₹ Millions)||1,846.63||446.06||65.42|
|Profit After Tax (PAT) (In ₹ Millions)||17.09||1.85||0.78|
|Date & Time||QIB||NII||RII||Total|
|Day 1 - 27 Dec 2019||0.05||0.25||0.15|
|Day 2 - 30 Dec 2019||0.22||0.59||0.40|
|Day 3 - 31 Dec 2019||0.29||0.89||0.59|
|Day 3 - 1 Jan 2020||0.75||1.23||0.99|
|Day 4 - 2 Jan 2020||1.42||2.05||1.73|
|Day 5 - 3 Jan 2020||1.75||3.97||2.86|
Please click the link below to check the IPO allotment status.IPO Allotment Status
Vaxtex Cotfab Limited IPO will open on 27/12 and close on 03/01.
Vaxtex Cotfab Limited IPO will list on .
The offer price of Vaxtex Cotfab Limited IPO is ₹24.
The lot size of Vaxtex Cotfab Limited IPO is 6000.
The Grey Market Premium (GMP) price of Vaxtex Cotfab Limited IPO is Not Available at the moment.
The Kostak price of Vaxtex Cotfab Limited IPO is Not Available at the moment.
The Subject to Sauda price for Vaxtex Cotfab Limited IPO is Not Available at the moment.
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