United Techfab IPO

About United Techfab Ltd IPO

The IPO of United Techfab Ltd comprises entirely a fresh issue of up to 47,60,000 equity shares, with no offer for sale. It’s a fixed-price issue.

Objectives of United Techfab Ltd IPO

• Prepayment or repayment of all or a portion of certain outstanding secured borrowings availed by the company
• General corporate purposes
• To meet public issue expenses

Industry Outlook

The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030. Moreover, India is the world's 3rd largest exporter of textiles and apparel. India ranks among the top five global exporters in several textile categories, with exports expected to reach US$100 billion.

Global apparel market is expected to grow at a CAGR of around 8% to reach US$ 2.37 trillion by 2030 and the Global Textile & Apparel trade is expected to grow at a CAGR of 4% to reach US$ 1.2 trillion by 2030. India’s home textile industry is expected to expand at a CAGR of 8.9% during 2023-32 and reach US$ 23.32 billion in 2032 from US$ 10.78 billion in 2023.

Company Information

United Techfab Ltd is primarily engaged in manufacturing and trading of Grey & Denim Fabrics (“Grey Fabrics”), Dyed Cloths and Yarn. The company manufactures various types of Grey Fabrics such as power stretch spandex denim, light weight denim, colour denim, poly denim, ecru denim, slub denim, over dyed denim and flat finish of various dimensions including 3/1, 2/1, 6+1, 10+1 denims.

Risks of United Techfab Ltd IPO

• Market demand variability

The company’s business is vulnerable to variations in demand of grey and denim-based apparels and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.

• Reliance on few customers

Substantial portion of the company’s revenues has been dependent upon few customers, with which it doesn’t have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

• Dependence on few key suppliers

The company is primarily dependent upon a few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: KFin Technologies Ltd is the registrar of the IPO.
• Book Running Lead Manager: Nirbhay Capital Services Private Ltd

Business Model

Primarily engaged in manufacturing and trading of Grey & Denim Fabrics, United Techfab Ltd manufactures various types of Grey Fabrics such as power stretch spandex denim, light weight denim, colour denim, poly denim, ecru denim, slub denim, over dyed denim and flat finish of various dimensions including 3/1, 2/1, 6+1, 10+1 denims.

The company offers Grey Fabrics in a diverse spectrum of shades such as indigo blue, IBST, sulphur black, sulphur grey, halogen blue and ecru colour which has weights ranging from 4.50 Oz/sq. yd to 22.00 Oz./sq. yd.

Company Growth Trajectory

The net worth of United Techfab Ltd increased from ₹28.2550 crores in FY 22 to ₹37.2332 crores in FY 24.

Market Position

The company’s manufacturing operations commenced with the installation of 60 sets of automatic shuttle Air Jet Looms during Phase 1 in the financial year 2015-16. It began its business as a manufacturer and trader of Grey Fabrics in the financial year 2016 -17. Subsequently, its manufacturing capacity was augmented through the installation of an additional 60 sets of automatic shuttle Air Jet Looms, along with ancillary machinery, during Phase 2 in the financial year 2019-20.

As on date of the company’s draft red herring prospectus, the company had 120 air jet looms installed at its manufacturing unit located at Miroli which has an annual installed capacity of weaving 2,00,75,000 mtrs. of Grey Fabrics.

How to Check the Allotment Status of United Techfab Ltd IPO?

1. Visit the Registrar’s Website

• Visit the official website of KFin Technologies Ltd and choose ‘IPO Allotment Status’ under ‘Investors’
• Click on any of the links
• Select the IPO from ‘Select IPO’ dropdown
• Enter either Application Number, Demat Account or PAN
• Enter captcha and click on Submit to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

How to Apply for United Techfab Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.