United Cotfab Limited is coming up with an IPO consisting of a fresh issue of 51,84,000 shares worth INR 36.29 crores. The company aims to meet working capital requirements and general corporate purposes.
United Cotfab IPO – Important Dates
| United Cotfab Limited IPO Date | June 13, 2024 to June 19, 2024 |
| United Cotfab Limited IPO Listing Date | June 24, 2024 |
| United Cotfab Limited IPO Price | INR 70 per share |
| United Cotfab Limited IPO Lot Size | 2000 shares |
| United Cotfab Limited IPO Total Issue Size | INR 36.29 crores |
| United Cotfab Limited IPO Basis of Allotment | June 20, 2024 |
| United Cotfab Limited IPO Initiation of Refunds | June 21, 2024 |
| United Cotfab Limited IPO Credit of Shares to Demat | June 21, 2024 |
| United Cotfab Limited IPO Issue Type | Fixed PriceIssue IPO |
| United Cotfab Limited IPO Listing At | BSE SME |
United Cotfab Limited IPO – Company Profile
United Cotfab Limited manufactures high-quality open-end yarn for the textile industry, utilizing advanced technology and machinery. Their systematic process includes stringent raw material selection, blending, spinning, winding, and rigorous quality control.
They have a modern, automated facility where advanced technology and skilled technicians ensure high-quality open-end yarn production. A comprehensive quality management system covers all production stages, boosting productivity and profitability.
They rigorously test raw materials and final yarns, ensuring standards are met. Committed to sustainability, they minimize waste and conserve energy. Strong client relationships and an emphasis on quality, reliability, and timely delivery foster long-term partnerships.
United Cotfab Ltd IPO Fundamental Analysis
United Cotfab Limited Technologies’ financial analysis reveals a mixed performance. Revenue has significantly increased. Profitability, EPS, and RoNW have risen, boosting investor confidence. Higher inventory turnover indicates strong sales and efficient inventory management.
- Revenue Trend: The revenue in March 2023 ₹44.20 lakhs. The revenue for the period ending March 2024 is INR 11,529.41 lakhs.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating enhanced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹1.60 lakhs in March 2022 to ₹866.65 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.02 in March 2022 to ₹7.97 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 0.23% to 63.89%, indicating an increase 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 increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, indicating strong sales and efficient inventory management.
United Cotfab IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | – | 44.20 | 11,529.41 |
| Equity (₹ in lakhs) | 681.97 | 993.56 | 1388.71 |
| Expenses (₹ in lakhs) | 0.28 | 43.03 | 10,350.59 |
| Profit and Loss After Tax (₹ in lakhs) | 1.60 | 13.93 | 866.65 |
| Diluted EPS only (₹) | 0.02 | 0.14 | 7.97 |
| Return on Net Worth (%) | 0.23 | 1.40 | 63.89 |
| NAV per Equity Share (₹) | 6.63 | 9.65 | 11.30 |
| Total Assets (in lakhs) | 1,559.95 | 5,367.71 | 8,168.46 |
| Total Liabilities (in lakhs) | 877.97 | 4,374.15 | 6,779.75 |
| Debt Equity Ratio | 1.13 | 3.85 | 3.42 |
| Current Ratio (in times) | 0.61 | 1.15 | 1.39 |
| Inventory Turnover Ratio | – | 0.13 | 8.67 |
United Cotfab Limited IPO Peer Comparison
United Cotfab Limited specializes in textiles and has moderate revenue and EPS. Lagnam Spintex Limited shows high revenue and EPS, indicating robust performance. PBM Polytex Limited exhibits low revenue but high EPS and profitability. Vippy Spinpro Limited displays moderate revenue with high EPS and profitability.
| Company | Type of Financial | CMP (₹) | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| United Cotfab Limited | Standalone | 70.00 | 44.20 | 10 | 517.10 | 0.14 | 1.40 | 9.65 |
| Lagnam Spintex Limited | Standalone | 49.4 | 30,465.93 | 10 | 8.93 | 5.53 | 10.35 | 53.36 |
| PBM Polytex Limited | Standalone | 89.92 | 20,220.84 | 10 | 209.12 | 0.43 | 0.24 | 183.75 |
| Vippy Spinpro Limited | Standalone | 172.8 | 15,632.26 | 10 | 9.47 | 18.25 | 15.02 | 121.50 |
United Cotfab IPO Objective
The main objective of United Cotfab Limited is to meet working capital requirements.
- To Meet Working Capital Requirements: The company intends to utilize INR 24.70 crores from the Net Proceeds of the Issue to meet the estimated Net Working Capital requirements for FY 2024-25 and FY 2025-26.
- General Corporate Purposes: The company will deploy the balance fund of INR 8.86 crores for various general corporate purposes, including land acquisition, hiring personnel, strategic alliances, capital expenditure, working capital, and other business expansion initiatives.
United Cotfab IPO Risks And Challenges
United Cotfab Limited’s risks include legal entanglements, lacking documentation in a group company case, potential adverse outcomes impacting business, open-ended cotton yarn production, absent Non-Compete Agreement, and heavy reliance on critical customers for revenue.
- They are entangled in legal proceedings across multiple levels and jurisdictions. Additionally, a case involving a group company lacks documentation. Adverse outcomes in these proceedings may severely impact their business, finances, and operations.
- Their company manufactures open-ended cotton yarn, and some group entities operate in similar businesses. No Non-Compete Agreement is in place. Failure to adhere to this may adversely affect their business and financial conditions.
- Their revenue relies heavily on a few key customers, with their top ten customers contributing significantly. Losing any customer could adversely affect sales, operations, and financials. Maintaining relationships and acquiring new customers is crucial for business sustainability.
United Cotfab Ltd IPO – Industry & Market Potential
India’s textile market reached US$ 223 billion in 2021, projected to surpass US$ 209 billion by 2029. Export focus on the US, aiming for US$ 100 billion by 2030, backed by a US$ 1.44 billion PLI scheme.
Textile manufacturing in India is recovering post-pandemic. Seven mega textile parks aim to attract investments. PM MITRA Park expects a Rs. 10,000 crore investment, creating 300,000 jobs. The government plans 75 textile hubs and a second PLI scheme.
India’s textile industry has an India’s export position with competitive production costs. Exports reached US$ 36.68 billion in 2022-23, with promising growth prospects in medical textiles and composites.
United Cotfab Limited IPO – Type of Offer
United Cotfab Limited is coming up with an IPO consisting of a fresh issue of 51,84,000 shares worth INR 36.29 crores. The company aims to meet working capital requirements and general corporate purposes.
United Cotfab IPO Offer Size
The offer size of United Cotfab Limited is INR 36.29 crores, consisting of a fresh issue of 51,84,000 shares. The company seeks funds to meet working capital requirements and general corporate purposes.
United Cotfab Limited IPO Allotment Structure
United Cotfab 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 260,000 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 260,000 shares for this purpose.
How to apply for a United Cotfab Limited IPO?
To apply for the United Cotfab 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 United Cotfab 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 United Cotfab 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 United Cotfab 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 United Cotfab 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 United Cotfab 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 United Cotfab Limited IPO:
● Registrar’s Website: Visit the website of Purva Sharegistry (India) Private Limited, the registrar of the United Cotfab 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 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.
United Cotfab Limited Ltd IPO Offer Registrar
The registrar for the United Cotfab Limited IPO is Purva Sharegistry (India) Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED
9 Shiv Shakti Industrial Estate,
J.R. Boricha Marg, Near Lodha Excelus,
Lower Parel East, Mumbai – 400 011, Maharashtra, India.
Tel. Number: +91 022 4961 4132 / 3199 8810
Email Id: [email protected]
Website: www.purvashare.com
United Cotfab Limited Limited IPO – FAQs
The allotment date of the United Cotfab Limited IPO is June 20, 2024.
The price band of the issue is INR 70 per share.
The offer size of United Cotfab Limited is INR 36.29 crores, consisting of a fresh issue of 51,84,000 shares. The company seeks funds to meet working capital requirements and general corporate purposes.
The listing date of United Cotfab Limited’s IPO is June 24, 2024.
