Piotex Industries Limited consists of a fresh issue of 15,39,600 shares of Rs.94 each, worth INR 14.47 crores. The company aims to fund the working capital requirements and meet general corporate purposes.
Piotex Industries IPO – Important Dates
| Piotex Industries Limited IPO Date | May 10, 2024 to May 14, 2024 |
| Piotex Industries Limited IPO Listing Date | May 17, 2024 |
| Piotex Industries Limited IPO Price | INR 94 per share |
| Piotex Industries Limited IPO Lot Size | 1200 shares |
| Piotex Industries Limited IPO Total Issue Size | INR 14.47 crores |
| Piotex Industries Limited IPO Basis of Allotment | May 15, 2024 |
| Piotex Industries Limited IPO Initiation of Refunds | May 16, 2024 |
| Piotex Industries Limited IPO Credit of Shares to Demat | May 16, 2024 |
| Piotex Industries Limited IPO Issue Type | Fixed Price Issue IPO |
| Piotex Industries Limited IPO Listing At | BSE SME |
Piotex Industries Ltd IPO – Company Profile
Piotex Industries Limited specializes in contract manufacturing and trading yarn, fabric, and cotton bales. Focusing on supplying products for garments, home furnishings, and more, they excel in cotton yarn production via outsourcing.
They prioritize quality control from raw material selection to production, ensuring superior cotton yarn and fabrics. With advanced technology and a skilled team, productivity and profitability are driven, delivering high-quality solutions to clients.
They prioritize continuous improvement through process innovation and quality maintenance in their yarn production. By focusing on quality products, they aim to increase customer satisfaction and cultivate a positive brand image, leading to enduring customer relationships.
Piotex Industries Limited IPO Review
Piotex Industries Limited financial analysis reveals a mixed performance. Revenue growth is consistent. Equity rises steadily, reducing debt reliance. Profitability improves notably, boosting investor confidence with higher EPS. However, RoNW decreases, and liquidity weakens, affecting short-term obligations and profitability ratios.
- Revenue Trend: The revenue increased from ₹8,022.18 lakhs in March 2022 to ₹8,600.58 lakhs in March 2023. The revenue for March 2024 is 11,845.92 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹74.29 lakhs in March 2022 to ₹300.80 lakhs by March 2024. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS have risen from ₹3.00 in March 2022 to ₹8.48 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 49.09% to 33.53%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has declined, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Net Profit Ratio: The net profit ratio has also decreased from 0.93% to 2.54%, signaling reduced profitability relative to revenue.
Piotex Industries IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 8,022.18 | 8,600.58 | 11,845.92 |
| Equity (₹ in lakhs) | 274.57 | 812.56 | 1,284.87 |
| Expenses (₹ in lakhs) | 7,946.49 | 8,275.20 | 11,491.92 |
| Profit and Loss After Tax (₹ in lakhs) | 74.29 | 288.75 | 300.80 |
| Diluted EPS only (₹) | 3.00 | 11.67 | 8.48 |
| Return on Net Worth (%) | 49.09 | 65.61 | 33.53 |
| NAV per Equity Share (₹) | 100.88 | 293.38 | 25.17 |
| Total Assets (in lakhs) | 1,385.47 | 1,757.68 | 3,610.59 |
| Total Liabilities (in lakhs) | 1,110.9 | 945.12 | 2,325.72 |
| Debt-Equity Ratio | 3.49 | 0.41 | 0.50 |
| Current Ratio | 1.25 | 1.85 | 1.53 |
| Net profit ratio(%) | 0.93 | 3.36 | 2.54 |
Piotex Industries Limited IPO Peer Comparison
There are no listed companies in India and abroad that are developing a similar product solution to Piotex Industries Limited. Accordingly, it is not possible to compare the industry’s accounting ratios with the company’s.
Piotex Industries Ltd IPO Objective
The main objective of Piotex Industries Limited is to fund the working capital requirements.
- Funding the Working Capital Requirement: The company plans to allocate INR 10.51 crores from the Net Proceeds of the Issue to meet working capital demands, supplemented by borrowings as needed, aligning with business requirements.
- General Corporate Purposes: The company will balance funds towards general corporate goals, including meeting operating expenses and initial development costs for projects other than the identified projects and strengthening business development and marketing capabilities to address difficulties.
Piotex Industries Limited IPO Risks And Challenges
Piotex Industries Limited’s risk includes dependency on third-party manufacturers, vulnerability to equipment breakdowns, vendor reliance, intense competition in the textile industry, and susceptibility to price fluctuations and supply shortages in cotton procurement.
- The company relies solely on third-party contract manufacturers for production and faces risks, including equipment breakdowns and vendor dependency. Failure to secure alternate vendors may hinder growth and adversely affect the business.
- They face significant competition in the Indian textile industry, particularly in cotton yarn and cotton knitted fabrics. This could lead to price reductions, sales declines, and lower profit margins, potentially adversely impacting the business.
- Their business heavily relies on domestically sourced cotton, subject to price fluctuations due to weather and other factors. Rising cotton prices may adversely affect their operations and financial health, compounded by potential supply shortages or quality issues.
Piotex Industries Ltd IPO – Industry & Market Potential
India’s textile and apparel industry is projected to grow at 10% CAGR, reaching US$190 billion by 2025-26. The industry is poised for substantial growth, with significant cotton production and expanding exports.
With increasing demand for technical textiles, driven by pandemic-related needs like PPE, India’s textile industry sees promising growth prospects—sustainability efforts and rising disposable income further fuel expansion, projecting a US$ 209 billion market by 2029.
India’s most prominent global cotton producer cultivates over 11.7 million hectares, sustaining about 60 million people. Production in 2021-22 was 31.2 million bales, with the Central and Southern zones contributing significantly to the industry.
Piotex Industries Ltd IPO – Type of Offer
Piotex Industries Limited consists of a fresh issue of 15,39,600 shares of Rs.94 each, worth INR 14.47 crores. The company aims to fund the working capital requirements and meet general corporate purposes.
Piotex Industries IPO Offer Size
The offer size of Piotex Industries Limited is INR 14.47 crores, consisting of a fresh issue of 35,00,000 shares of Rs.94 each. The company seeks funds to meet working capital requirements and general corporate purposes.
Piotex Industries Ltd IPO Allotment Structure
Piotex Industries Limited 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 78,000 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 78,000 shares for this purpose.
How to apply for Piotex Industries Limited’s Ltd IPO?
To apply for the Piotex Industries Limited IPO through Alice Blue, you would typically 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 Piotex Industries 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 Piotex Industries 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 Piotex Industries Limited’s 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 their 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 Piotex Industries 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 Piotex Industries 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Piotex Industries Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Private Limited, the registrar of the Piotex Industries 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 (BSE) Small Medium Enterprise (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.
Piotex Industries Limited Ltd IPO Offer Registrar
The registrar for the Piotex Industries Limited IPO is Cameo Corporate Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
CAMEO CORPORATE SERVICES LIMITED
No.01, Club House Road, Mount Road,
Chennai-600002, India.
Tel. No.: 044 40020700/28460390
Email: [email protected]
Website: www.cameoindia.com
Piotex Industries Limited IPO – FAQs
The allotment date of the Piotex Industries Limited IPO is May 15, 2024.
The price band of the issue is INR 94 per share.
The offer size of Piotex Industries Limited is INR 14.47 crores, consisting of a fresh issue of 35,00,000 shares of Rs.94 each. The company seeks funds for the working capital requirements and to meet general corporate purposes.
The listing date of Piotex Industries Limited’s IPO is May 17, 2024.
