IPO Details
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IPO Size
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Schedule of Vivekanand Cotspin IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Vivekanand Cotspin Ltd IPO
The IPO of Vivekanand Cotspin Ltd comprises a fresh issue of up to 55,00,000 equity shares. There’s no offer for sale. The IPO is a 100% book-built offer.
Objectives of Vivekanand Cotspin Ltd IPO
- Funding capital expenditure requirement towards installation of additional plant and machinery
- Funding working capital requirement of the company
- General corporate expenses
Vivekanand Cotspin Ltd IPO Valuation
Vivekanand Cotspin Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
Textile manufacturing is one of the significant economic sectors in India, contributing to nearly 2.3% towards the gross domestic product (GDP). The industry accounts for approximately 13% of overall industrial production, and nearly 12% of total export earnings.
The Indian textile and apparel market size was estimated to be approximately USD 165 billion in 2023, with the domestic market accounting for USD 125 billion and exports contributing USD 40 billion. The total annual production of cotton woven fabrics in India is estimated to have reached 384 million run meters in FY 2024 while the production of knitted cotton fabrics during the same year reached approximately 112 thousand tons.
Company Information
Vivekanand Cotspin Ltd is engaged in the business of cotton processing and yarn manufacturing sector by way of ginning of cotton and spinning of cotton yarn along with its trading. The products manufactured at our Company include Cotton bales, cotton seeds and cotton yarn. The company operates in two primary areas: cotton ginning and spinning.
In the ginning process, it separates cotton fibers from seeds, which is the first step in preparing raw cotton for textile production. Following this, the company focuses on spinning, where the clean cotton fibers are turned into yarn. This yarn, produced in various counts and quality grades, is used by textile mills for weaving and knitting fabrics.
Vivekanand Cotspin Ltd Strengths
Forward Integration
The company is engaged in the business of processing of raw cotton by way of ginning of cotton and spinning of cotton yarn. The raw material for the ginning unit is raw cotton which is generally procured from the local areas and the raw material for cotton spinning is ginned cotton which is the finished product of the ginning unit. The setting up of the spinning unit has resulted in the forward integration into the cotton textile industry.
Cost Effective Production and Timely Fulfilment of Orders
The company has taken various steps in order to ensure adherence to timely fulfilment and also to achieve cost efficiency as timely fulfilment of the orders is a prerequisite in its industry. These steps include identifying quality raw material, smooth labour relations, use of an efficient production system and ability to meet large and varied orders due to its capacity and linkages with raw material suppliers.
Scalable Business Model
The company operates with a scalable business model, which focuses on optimising production capacity, strengthening supplier relationships, and achieving economies of scale. The company aims to maximise the utilisation of its manufacturing capacity, ensuring that production is efficient and cost-effective. By maintaining linkages with quality raw material suppliers, the company secures consistent access to high-quality cotton, which is crucial for producing superior yarn.
Risks of Vivekanand Cotspin Ltd IPO
- Cotton Price Fluctuation
The company’s business is heavily dependent on the availability and pricing of raw cotton, which is subject to seasonal variations, global demand-supply dynamics, and government policies on agricultural production. The price of cotton is influenced by multiple factors, including weather conditions, international trade policies, fluctuations in foreign exchange rates, and subsidies or tariffs imposed by cotton-producing countries. Any sharp increase in raw cotton prices could significantly raise its production costs, while price volatility may impact its ability to maintain stable margins.
- Intense Competition
The cotton processing and yarn manufacturing industry is highly competitive, with numerous domestic and international players competing for market share. Competitors include large-scale vertically integrated textile companies, regional manufacturers, and international firms with established supply chains and financial strength. The company’s ability to maintain or expand its market position depends on factors such as pricing strategies, product quality, operational efficiency, and customer relationships.
- Volatility in Foreign Exchange Rates
A portion of the company’s revenue is derived from exports, making it susceptible to fluctuations in foreign exchange rates. The appreciation or depreciation of the Indian rupee against foreign currencies can impact its export earnings and cost structure. If the rupee appreciates, its products may become less competitive in global markets, potentially leading to lower demand and revenue losses. Conversely, depreciation of the rupee could increase the cost of imported raw materials or machinery, affecting production costs.
All Financial Information about Vivekanand Cotspin
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company | Revenue of Operations (in ₹ crores) for FY 24 | PAT for FY 24 | PAT Margin (in %) for FY 24 |
|---|---|---|---|
Vivekanand Cotspin Ltd | 357.4591 | 3.5904 | 1 |
Deepak Spinners Ltd | 470.9777 | 1.3034 | 0.28 |
Pashupati Cotspin Ltd | 658.3768 | 8.3039 | 1.26 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: MUFG Intime India Pvt Ltd, previously known as Link Intime India Pvt Ltd
- Book Running Lead Manager: Grow House Wealth Management Pvt Ltd
Business Model
Vivekanand’s product range is centred on cotton yarn, including carded and combed yarn, which caters to both domestic and international markets. The company serves a wide array of industries that require high-quality yarn for fabric production, and its reach extends beyond India, with exports to other countries. It operates spinning mills, utilising machinery to ensure efficient production while maintaining quality control.
Company Growth Trajectory
The company’s revenue from operations grew from ₹182.8634 crores in FY 22 to ₹357.4591 crores in FY 24. Its PAT margin increased from -0.38% in FY 22 to 1% in FY 24.
Market Position
Vivekanand Cotspin Ltd has established a production capacity of approximately 4,550.51 tons of cotton yarn and 8,000 tons of cotton bales annually. The level of advancement determines the productivity of machines and labour, which in turn, determines the production and profitability of the company. It caters to domestic as well as international markets like Portugal, China and Bangladesh.
Vivekanand Cotspin Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 357.8231 | 302.1783 | 182.9828 |
Profit /(Loss) Before Tax (in ₹ crores) | 5.2001 | -0.6790 | -0.7987 |
Profit After Tax (in ₹ crores) | 3.5904 | -0.5735 | -0.6962 |
EPS in ₹ | 2.39 | -0.38 | -0.46 |
EBITDA | 14.8164 | 9.5021 | 8.6963 |
Vivekanand Cotspin Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit /(Loss) Before Tax (in ₹ crores) | 5.2001 | -0.6790 | -0.7987 |
Net Cash from Operating Activities (in ₹ crores) | 23.8804 | 14.7180 | -1.9656 |
Net Cash from Investing Activities (in ₹ crores) | -15.2165 | 0.2322 | -3.5391 |
Net Cash Flow in Financing Activities (in ₹ crores) | -9.5812 | -13.9610 | 4.5290 |
Cash and Cash Equivalent (in ₹ crores) | 0.1040 | 1.0214 | 0.0323 |
How to Check Allotment Status of Vivekanand Cotspin Ltd IPO?
Visit the Registrar’s Website
- Visit the website of MUFG Intime India Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Vivekanand Cotspin Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Vivekanand Cotspin 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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vivekanand Cotspin IPO FAQs
Where can I read more about Vivekanand Cotspin business?
You can read more about Vivekanand Cotspin and its IPO from the company’s red herring prospectus (RHP) here.
What is the Vivekanand Cotspin Ltd IPO?
The IPO of Vivekanand Cotspin Ltd comprises only a fresh issue of up to 55,00,000 equity shares. It doesn’t have any offer for sale.
When will the IPO of Vivekanand Cotspin Ltd go live?
The exact dates of Vivekanand Cotspin Ltd IPO are yet to be announced.
Who is the chairman and MD of Vivekanand Cotspin Ltd?
Nirav Bharatbhai Patel is the chairman and MD of Vivekanand Cotspin Ltd.
From where can I read more about the IPO of Vivekanand Cotspin Ltd IPO?
You can read more about the IPO of Vivekanand Cotspin Ltd from the company draft red herring prospectus here.
