Avax Apparel And Ornaments Limited is coming up with an IPO consisting of a fresh issue of 2,74,000 shares worth INR 1.92 crores. The company aims to address working capital requirements and general corporate needs.3
Avax Apparels And Ornaments IPO – Important Dates
| Avax Apparels And Ornaments Limited IPO Date | September 20, 2024 to September 24, 2024 |
| Avax Apparels And Ornaments Limited IPO Listing Date | September 27, 2024 |
| Avax Apparels And Ornaments Limited IPO Price | INR 70 per share |
| Avax Apparels And Ornaments Limited IPO Lot Size | 2000 Shares |
| Avax Apparels And Ornaments Limited IPO Total Issue Size | INR 1.92 crores |
| Avax Apparels And Ornaments Limited IPO Basis of Allotment | September 25, 2024 |
| Avax Apparels And Ornaments Limited IPO Initiation of Refunds | September 26, 2024 |
| Avax Apparels And Ornaments Limited IPO Credit of Shares to Demat | September 26, 2024 |
| Avax Apparels And Ornaments Limited IPO Issue Type | Fixed Price Issue IPO |
| Avax Apparels And Ornaments Limited IPO Listing At | BSE SME |
Avax Apparels And Ornaments Limited IPO – Company Profile
Avax Apparels engages in two distinct lines of business:
● Wholesale trading
● Online retail of silver ornaments
Wholesale trading: The Company operates in the wholesale trading of knitted cloth. They directly buy from manufacturers and supply wholesale to companies and readymade garment manufacturers in Punjab. The company specializes in knitted cloth, which is used for manufacturing ladies’ and gents’ jackets.
Online retail silver ornaments business: The Company operates in the business of online retail of silver ornaments. They offer a wide range of designs and articles with a choice of the weight of products, such as silver rings, silver ladies’ pajeb, silver gents kada, silver plate sets, silver glass, silver bangles, silver bowls, silver chains, and other silver jewellery. They are capable of supplying in all major cities across the country.
Avax Apparels And Ornaments Ltd IPO Fundamental Analysis
Avax Apparels has shown robust growth across revenue, equity, and profitability, demonstrating its potential for long-term success. Despite the rise in expenses, the company has maintained strong profitability and returns, making this IPO an investment opportunity for growth-oriented investors.
- Revenue: The company has exhibited exponential revenue growth, which shows rapid business expansion. This is a positive indicator of future potential.
- Equity: Equity has increased dramatically, showcasing the company’s efforts to strengthen its capital base. This also suggests a stronger foundation for future growth.
- Expenses: While expenses have risen significantly, this is typical for a growing company. The increase in expenses aligns with the company’s revenue growth and expansion strategies.
- Profit after tax: Profitability has improved sharply, with PAT growing significantly over the three-year period. This steady rise in profits shows the company’s ability to generate returns, a strong indicator of financial health.
- Return on net worth: Although RoNW has decreased from 2022, it remains high, particularly in 2024, showing efficient utilization of shareholder funds despite the expanding equity base.
- Diluted EPS: The rise in EPS indicates higher earnings per share, which reflects improved profitability for investors.
- Net Asset Value: The Net Asset Value (NAV) per share has grown substantially, indicating that the company’s asset base has strengthened.
- Assets and Liabilities: The company’s asset growth suggests expansion in operations and investments in growth. Liabilities have remained relatively stable in 2024, indicating effective management of financial obligations.
Avax Apparels And Ornaments IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 28.87 | 1470.21 | 2205.98 |
| Equity (₹ in lakhs) | 1.66 | 176.49 | 314.68 |
| Expenses (₹ in lakhs) | 27.52 | 94.53 | 194.08 |
| Profit and Loss After Tax (₹ in lakhs) | 1.01 | 69.44 | 138.19 |
| Diluted EPS only (₹) | 0.94 | 9.07 | 18.06 |
| Return on Net Worth (%) | 61.22 | 39.34 | 43.91 |
| NAV per Equity Share (₹) | 15.28 | 23.07 | 41.13 |
| Total Assets (in lakhs) | 57.66 | 346.89 | 484.60 |
| Total Liabilities (in lakhs) | 56.00 | 170.43 | 169.92 |
Avax Apparels And Ornaments Limited IPO Peer Comparison
Avax Apparels offers strong profitability with a low P/E and high RoNW, making it attractively priced. Anand Rayons has moderate returns but a higher valuation, while Aarnav Fashions boasts higher profits with lower efficiency and expensive stock.
| Company | Profit after tax (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) | RoNW (%) |
| Avax Apparels and Ornaments Limited. | 138.19 | 10 | 3.88 | 18.06 | 43.91% |
| Anand Rayons Limited | 300.00 | 10 | 21.60 | 2.09 | 9.02% |
| Aarnav Fashions Limited | 600.00 | 10 | 41.3 | 1.33 | 3.2% |
Avax Apparels And Ornaments Ltd IPO Objective
The main objective of the company’s IPO is to use INR 1.5 crores from the Net Proceeds for working capital needs and balance for general corporate purposes, including brand building, growth, and addressing unforeseen business needs.
- To meet the working capital requirement: The business of the company is working capital intensive; hence it will meet the requirement to the extent of INR 1.5 crores from the Net Proceeds.
- General Corporate Purpose: The company will deploy a balance to general corporate goals, including brand building, funding growth opportunities, and addressing ongoing general corporate exigencies, including unforeseen needs that may arise in business.
Avax Apparels And Ornaments IPO Risks And Challenges
- The company has experienced negative cash flows from operating and investing activities in the past. Sustained negative cash flow will negatively impact the operations.
- The company is dependent on the top 5 customers for almost 58% of its revenue. The loss of any of the major customers due to any adverse development or significant reduction in business from the major customer may adversely affect the business.
- The company is dependent on the top 5 suppliers for almost 81% of its revenue. The loss of any of the major suppliers will impact the entire supply chain.
- The Company’s future may have only one line of business which is the textile business and the trading in silver ornaments may be negligible or may not exist at all.
Avax Apparels And Ornaments Ltd IPO – Industry & Market Potential
The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel. India is the world’s largest producer of cotton.
Estimated production stood at 362.18 lakh bales during cotton season 2021-22. Domestic consumption for the 2021-22 cotton season is estimated to be at 338 lakh bales. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers.
India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. India’s textile and apparel exports to the US, its single largest market, stood at 27% of the total export value in FY22. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.
Avax Apparels And Ornaments Limited IPO – Type of Offer
Avax Apparel And Ornaments Limited is launching an IPO with a fresh issue of 2,74,000 shares, valued at INR 1.92 crores. The funds will be used to meet working capital requirements and general corporate purposes.
Avax Apparels And Ornaments IPO Offer Size
The offer size for Avax Apparel And Ornaments Limited IPO is 2,74,000 shares, amounting to INR 1.92 crores. The proceeds will be utilized to meet the company’s working capital requirements and for general corporate purposes.
Avax Apparels And Ornaments Limited IPO Allotment Structure
Avax Apparels and Ornaments Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 14,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 14,000 shares for this purpose.
How to apply for the Avax Apparels And Ornaments IPO?
To apply for the Avax Apparels And Ornaments Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Avax Apparels And Ornaments Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Avax Apparels And Ornaments Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Avax Apparels And Ornaments IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Avax Apparels And Ornaments Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Avax Apparels And Ornaments Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Avax Apparels And Ornaments Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Avax Apparels And Ornaments Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Avax Apparels And Ornaments Ltd IPO Offer Registrar
The registrar for the Avax Apparels And Ornaments Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153A, 1st floor,
Phase I, Okhla Industrial Area,
Delhi – 110020
Tel No.: +91-11-40450193-97,
E-mail: [email protected]
Website: www.skylinerta.com
Avax Apparels And Ornaments IPO – FAQs
1. What is the allotment date of the Avax Apparels And Ornaments IPO?
The allotment date of the Avax Apparels And Ornaments Limited IPO is September 25, 2024.
2. What is the price band of the Avax Apparels And Ornaments IPO?
The price band of the issue is INR 70 per share.
3. What is the size of the Avax Apparels And Ornaments IPO?
Avax Apparels and Ornaments Limited is coming up with an IPO consisting of a fresh issue of 2,74,000 shares worth INR 1.92 crores. The company aims to address working capital requirements and general corporate needs.
4. What is the listing date of the Avax Apparels And Ornaments IPO?
The listing date of Avax Apparels And Ornaments Limited’s IPO is September 27, 2024.
