Avax Apparels And Ornaments is set to launch its upcoming IPO, offering investors an opportunity to participate in a growing company within the apparel and ornaments sector. The IPO is structured as a fixed-price issue, with the company raising funds through fresh equity shares. Investors and market watchers are closely monitoring this offer, which will be listed on the BSE SME exchange.
For those considering IPO investment, this public offering provides an avenue to invest in a company that has shown steady financial growth. With an accessible pricing structure and allocation strategy, it appeals to both retail and high-net-worth investors.
The Avax Apparels And Ornaments Limited IPO is scheduled from September 20 to September 24, 2024. This fixed-price issue aims to raise ₹1.92 crores through a fresh issue of 2.74 lakh shares, priced at ₹70 each.
The allocation includes 50% for retail investors and 50% for HNI investors, with no shares for QIBs. The IPO allotment will be finalised on September 25, 2024, and the shares are set to be listed on the BSE SME on September 27, 2024.
Retail investors can apply for a minimum of 2,000 shares (₹140,000), while HNIs must apply for at least 4,000 shares (₹280,000). The company reported a revenue increase from ₹14.70 crores in 2023 to ₹22.06 crores in 2024, and profits rising from ₹0.69 crores to ₹1.38 crores, indicating potential for long-term growth. SKI Capital Services Limited is the book-running lead manager, Skyline Financial Services Private Ltd is the registrar, and SKI Capital Services is the market maker.
Understanding the timeline of an IPO is crucial for investors to manage their applications and expectations effectively. The following table outlines the key dates for the Avax Apparels And Ornaments Limited IPO:
| Avax Apparels And Ornaments Limited IPO open date | Friday, September 20, 2024 |
| Avax Apparels And Ornaments Limited IPO close date | Tuesday, September 24, 2024 |
| UPI mandate confirmation | 5 PM on September 24, 2024 |
| Allotment finalisation basis | Wednesday, September 25, 2024 |
| Refund initiation | Thursday, September 26, 2024 |
| Transfer of shares to the demat account | Thursday, September 26, 2024 |
| Avax Apparels And Ornaments Limited IPO Listing date | Friday, September 27, 2024 |
Incorporated in June 2005, Avax Apparels And Ornaments Limited operates in two key business segments: wholesale trading of knitted fabric and online retail of silver ornaments. The company sources knitted cloth directly from manufacturers and supplies it to wholesalers and garment makers, primarily in Punjab. This strategic location in a cloth manufacturing hub gives the company a competitive edge.
In its online retail business, Avax offers a diverse range of silver jewellery, including rings, bangles, chains, and other items, catering to growing demand across major Indian cities. The company plans to expand into manufacturing, integrating production for long-term growth.
Avax Apparels And Ornaments Limited's financial performance has changed significantly over the years, with notable increases in assets and revenue despite a slight decline in profit after tax (PAT) between 2022 and 2024.
| Financial information (Restated standalone) | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
| Assets (₹ in Lakhs) | 57.66 | 346.89 | 484.6 |
| Revenue (₹ in Lakhs) | 28.87 | 1,470.21 | 2,205.98 |
| Profit after tax (₹ in Lakhs) | 1.01 | 69.44 | 1,38.19 |
| Net worth (₹ in Lakhs) | 1.65 | 176.49 | 314.68 |
| Total borrowing (₹ in Lakhs) | 15.28 | 23.07 | 41.13 |
Avax Apparels And Ornaments Limited faces a dynamic landscape with various strengths and challenges that impact its performance and growth:
1. Locational advantage: Strategic location provides ease of access to resources and markets.
2. Strong network: Well-established connections with key industry players.
3. Customer relations: Excellent rapport with customers, fostering loyalty and repeat business.
4. Experienced team: A professional team with extensive industry expertise.
5. Solid management track record: Proven success and reliability in management, ensuring stable operations.
1. Limited financial resources: Financial constraints that may hinder expansion and growth.
2. Pricing power limitations: Intense competition limits the company’s ability to set competitive pricing.
3. Limited experience in silver ornaments: Relatively new to silver ornament sales, posing a learning curve.
4. Exposure to market volatility: Vulnerable to raw material price fluctuations and potential changes in government policies.
The Avax Apparels and Ornaments Limited IPO presents an appealing investment opportunity. Its strong locational advantage, well-established network, and experienced management team support it. The company benefits from favourable government policies and a growing demand for knitted fabrics and silver ornaments.
However, challenges include limited financial resources and emerging competition, which could impact pricing power. The Avax Apparels and Ornaments Limited IPO review suggests potential for growth in the SME sector, while the Avax Apparels And Ornaments Limited IPO GMP reflects investor interest. If you're considering this SME IPO, the positive market outlook and solid company fundamentals make it worth evaluating.
With its strategic location, strong network, and experienced team, the company is well-positioned for growth. The IPO, raising ₹1.92 crores through a fixed-price issue, appeals to both retail and high-net-worth investors.
While the Avax Apparels and Ornaments Limited IPO review highlights the company's strengths and positive investor sentiment, challenges such as limited financial resources and competitive pressures remain. The Avax Apparels And Ornaments Limited IPO GMP reflects strong market interest. For those exploring upcoming IPOs, this offer is worth considering for its growth potential and solid fundamentals.
1. What is the Avax Apparels And Ornaments Limited IPO SME?
The Avax Apparels And Ornaments Limited IPO SME is a public offering of shares by Avax Apparels and Ornaments Limited, listed on the BSE SME exchange. This SME IPO aims to raise funds through a fixed-price issue of fresh equity shares to support the company's growth and expansion.
2. What is the Avax Apparels And Ornaments Limited IPO GMP?
The Avax Apparels And Ornaments Limited IPO GMP (Grey Market Premium) indicates the premium at which shares of the IPO are trading in the grey market before the official listing. A high GMP reflects strong investor interest and positive expectations for the IPO.
3. Why should I consider investing in the Avax Apparels And Ornaments Limited IPO SME?
Investing in the Avax Apparels And Ornaments Limited IPO SME provides an opportunity to join a growing company in the apparel and ornaments sector. The company's strategic location, solid management team, and positive market outlook make this SME IPO an ideal option for investors looking for growth potential.
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