Avi Ansh Textile Limited IPO:  Issue date, price and lot size

Avi Ansh Textile Limited IPO brings another opportunity for those exploring new investment avenues. With more businesses opting for public offerings, keeping track of upcoming IPOs is crucial for investors aiming to diversify their portfolios. This IPO offers a chance to explore a potential addition to the textile sector.

The blog delves into key details like the issue date, price, and lot size, providing a clear overview for those considering IPO investment. As companies continue to tap into public markets, staying informed helps investors seize opportunities in the evolving financial landscape.

Avi Ansh Textile Limited IPO details

Avi Ansh Textile IPO, valued at ₹26 crore, is a fixed price issue comprising a fresh offer of 41.94 lakh shares. The IPO opens for subscription on September 20 2024, and closes on September 24 2024. The allotment process is expected to be finalised on Wednesday, September 25 2024. 

The listing of Avi Ansh Textile Limited IPO SME is on NSE and is tentatively scheduled for Friday, September 27 2024. Investors looking to diversify their portfolios through upcoming IPOs should keep an eye on this opportunity, especially with the potential for growth in the textile sector.

Avi Ansh Textile Limited IPO: key dates

The Avi Ansh Textile IPO is priced at ₹62 per share, with a minimum application size of 2,000 shares. Retail investors need to invest at least ₹124,000, while HNIs must apply for at least two lots (4,000 shares), totalling ₹248,000. 

The IPO is managed by 3Dimension Capital Services Limited, with Skyline Financial Services Private Ltd as the registrar. Nikunj Stock Brokers will act as the market maker for the issue. This upcoming IPO offers an opportunity for investors interested in the textile industry with a structured and transparent approach to the investment process.

Avi Ansh Textile Limited: company overview

Founded in April 2005, Avi Ansh Textile Limited specialises in the production and export of 100% cotton yarn, including both combed and carded varieties across various counts. The company is certified with ISO 14001:2015 and ISO 9001:2015, highlighting its commitment to both quality and environmental standards. 

Avi Ansh Textile operates in domestic and international markets, catering to diverse customer demands. With a spinning capacity of 26,000 spindles, the company produces around 4,500 metric tons of cotton yarn annually, in counts ranging from 20s to 40s. By September 2024, Avi Ansh Textile employed 281 individuals across various roles.

Financial performance

Avi Ansh Textile Limited reported a 17% revenue increase and a significant 1053% rise in profit after tax (PAT) between the fiscal years ending March 31, 2024, and March 31, 2023. With a market capitalisation of ₹86.67 crore, the company has shown strong financial growth ahead of its IPO. Currently, the Avi Ansh Textile Limited IPO GMP stands at ₹0.

*Amounts in ₹ lakhs

Avi Ansh Textile Limited IPO: Strengths

Avi Ansh Textile Limited IPO presents a strong case for IPO investment due to several competitive advantages that position the company for continued growth and market success. Below are the key strengths:

• Strategic manufacturing location: The company's manufacturing facility is located in a region offering a strategic advantage. This location enhances operational efficiency, streamlines logistics, and enables the company to meet market demand more effectively.
• Diverse product portfolio:  Avi Ansh Textile's broad range of cotton yarn products highlights its dedication to quality and customer satisfaction. Their diversified offerings allow them to serve both domestic and international markets, positioning them well among upcoming IPOs.
• Experienced leadership: The company's seasoned management team brings significant expertise to the table. Their leadership fosters innovation, strong decision-making, and long-term growth strategies, ensuring business stability.

Avi Ansh Textile Limited IPO: Weaknesses

While Avi Ansh Textile Limited has several strengths, there are certain weaknesses that potential investors should consider before making an IPO investment. Below are the key concerns:

• Dependence on single production facility: The company's entire production is dependent on its facility in Punjab. Any disruption, loss, or shutdown of this facility could severely impact business operations and financial performance, which is a significant risk factor for upcoming IPOs.
• Lack of long-term customer agreements: Avi Ansh Textile does not hold long-term contracts with most of its customers. This makes it vulnerable to order cancellations or sudden changes in demand, potentially leading to fluctuating revenue streams.
• Inadequate insurance coverage: The company's current insurance coverage may not be sufficient to cover all potential risks, leaving the business exposed to unforeseen events or liabilities.

Avi Ansh Textile Limited IPO review

Avi Ansh Textile Limited's IPO offers an opportunity to invest in a well-established manufacturer of 100% cotton yarn with a strong presence in both domestic and international markets. With a strategic production facility and diversified product range, the company has demonstrated solid growth, reflected in a significant rise in revenue and profit. 

However, potential risks include reliance on a single production site and the absence of long-term customer agreements. Overall, this IPO presents a balanced investment option for those considering upcoming IPOs in the textile sector.

Key takeaways

As you navigate the landscape of upcoming IPOs, the Avi Ansh Textile Limited IPO provides a distinctive investment opportunity in the textile sector. With its strategic production advantages and robust growth metrics, it stands out as a promising candidate. However, potential investors should weigh the associated risks and opportunities carefully. For those looking to explore and invest in this IPO, consider using platforms like Ventura for a streamlined experience in stock trading and investment.

FAQs

1. What is the lot size for the Avi Ansh Textile IPO?

The minimum lot size for the Avi Ansh Textile IPO is 2,000 shares. Retail investors have been directed to invest a minimum of ₹124,000, while HNIs must invest in at least 4,000 shares, amounting to ₹248,000.

2. When does the Avi Ansh Textile IPO open for subscription?

The Avi Ansh Textile IPO opens for subscription on September 20, 2024, and closes on September 24, 2024. The allotment process is expected to be finalised on September 25, 2024.

3. Who are the key managers and registrar for the Avi Ansh Textile IPO?

3Dimension Capital Services Limited is the book-running lead manager for the Avi Ansh Textile IPO. Skyline Financial Services Private Ltd serves as the registrar for the issue, and Nikunj Stock Brokers acts as the market maker.