Avax Apparels and Ornaments is launching a fixed-price IPO worth ₹1.92 crore. The offering consists entirely of a fresh issue of 2.74 lakh shares at ₹70 per share. The IPO opens for subscription on January 7, 2025, and closes on January 9, 2025. The allotment is expected to be finalised on January 10, 2025, with a tentative listing date on the BSE SME platform set for January 14, 2025.
Retail investors must apply for a minimum of 2,000 shares, requiring an investment of ₹1,40,000, while HNIs need to invest in at least 4,000 shares (2 lots) amounting to ₹2,80,000.
SKI Capital Services Limited serves as the book-running lead manager and market maker, while Skyline Financial Services Private Limited acts as the registrar. This IPO offers an opportunity for investors to participate in a niche segment underpinned by Avax's growth potential.
Industry Outlook
- India’s textile and apparel exports rose 41% YoY in FY22, reaching $44.4 billion, with the US accounting for 27% of total export value.
- The textiles industry attracted $4.03 billion FDI (April 2000-June 2022) and gained momentum with investments like ₹10,000 crore in PM MITRA Park, Amravati.
Avax Apparels and Ornaments IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- To meet out the Working Capital requirements of the Company.
- To meet out the General Corporate Purposes.
About Avax Apparels and Ornaments Limited
Incorporated in June 2005, Avax Apparels and Ornaments Limited operates in two distinct business segments: wholesale trading of knitted fabrics and online retail of silver ornaments. The company’s jewellery offerings include rings, ladies' payals, gents' kadas, plate sets, glasses, bangles, bowls, chains, and other accessories, catering to customers across major cities in India.
Strategically located in a prominent cloth manufacturing hub, Avax Apparels and Ornaments enjoys a significant geographical advantage. The company benefits from increasing demand for its products, strong business relationships, and a professional team with extensive industry expertise. Its excellent customer relations and track record further enhance its competitiveness.
With a growing network in the sector, Avax Apparels and Ornaments stands out as a reliable player in both wholesale and retail markets. As of September 2024, the company employs seven full-time professionals, supporting its mission to deliver quality products and services.
How To Check the Allotment Status of the Avax Apparels and Ornaments IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Avax Apparels and Ornaments IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Avax Apparels and Ornaments IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Avax Apparels and Ornaments IPO
Registered office: 611 6th Floor Jaina Tower II Distt. Centre Janakpuri,
West Delhi, Delhi- 110058
Phone: +011-44750642/ +91-9599497767
E-mail: secretarial@avaxapparels.com
Avax Apparels and Ornaments IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares |
- |
|
Market Maker Shares |
14,000 (5.11%) |
|
Other Shares Offered |
1,30,000 (47.45%) |
|
Retail Shares Offered |
1,30,000 (47.45%) |
Avax Apparels and Ornaments IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
2,000 |
₹1,40,000 |
|
Retail (Max) |
1 |
2,000 |
₹1,40,000 |
|
HNI (Min) |
2 |
2,000 |
₹2,80,000 |
Avax Apparels and Ornaments IPO Promoter Holding
The Promoters of the company are Mr. Harinderpal Singh Sodhi and Mr. Harish Kumar.
|
Share Holding Pre-Issue |
57.00% |
|
Share Holding Post Issue |
41.97% |
Key Performance Indicators for Avax Apparel and Ornaments IPO
As of March 31, 2024, the market capitalisation of Avax Apparels and Ornaments's IPO is ₹7.27 crore. Here are the KPIs of Avax Apparels and Ornaments:
|
KPI |
Value |
|
ROE (%) |
43.91% |
|
ROCE (%) |
61.68% |
|
RoNW (%) |
43.91% |
|
PAT Margin (%) |
6.26% |
|
Price to Book Value (x) |
1.70 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
18.06 |
17.44 |
|
P/E (x) |
3.88 |
4.01 |
Avax Apparels and Ornaments IPO Prospectus
Avax Apparels and Ornaments IPO Registrar and Lead Managers
Avax Apparels and Ornaments IPO Lead Managers
- SKI Capital Services Limited
Registrar for Avax Apparels and Ornaments IPO
Skyline Financial Services Private Ltd
- Contact Number: 02228511022
- Email Address: ipo@skylinerta.com
Website: Avax Apparels and Ornaments IPO Registrar
Financial Performance of Avax Apparels and Ornaments Limited
| Particulars | 6M ending on September 30, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh) | 1,500.93 | 2,205.98 | 1,470.21 |
| Profit after Tax (PAT) (in ₹ lakh) | 90.61 | 138.19 | 69.44 |
| Total Borrowings (in ₹ lakh) | 72.02 | 71.50 | - |
| Net Worth (in ₹ lakh) | 405.30 | 314.68 | 176.49 |
| Return on Equity (%) | 21.51% | 43.91% | 39.34% |
| Return on Capital Employed (%) | 31.06% | 61.68% | 53.56% |
| Net Working capital days | 77.15 | 36.24 | 36.37 |
| Earning Per Share (EPS)-in absolute ₹ | 11.84 | 18.06 | 9.07 |
Know before investing
Strengths
8Strategic locational advantage in a major cloth manufacturing hub.
Robust network and connections within the textile sector.
Excellent customer relationships enhance client retention and satisfaction.
Experienced, professional team drives operational excellence.
Strong track record of management, ensuring reliability.
In-house design team tailors products to customer preferences.
Outsourced manufacturing ensures flexibility and scalability.
Rigorous quality assurance maintains high product standards.
Risks
8Promoters lack original ownership, posing potential legacy issues.
No long-term contracts with most suppliers and customers.
Promoters have limited experience in current business operations.
Dependence on a few customers for significant revenue, ~79%.
Negative cash flows from operating activities impact financial stability.
Dependence on few suppliers, with top 5 contributing ~85%.
Cybersecurity risks threaten data integrity and operational security.
Failure to address changing consumer preferences affects demand.
Avax Apparels and Ornaments Limited Peer Details Comparison
| Company Name | EPS (Basic) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|
| Avax Apparels And Ornaments Limited | 18.06 | 3.88 | 44.72% | 1.35 |
| Anand Rayons Ltd | 2.09 | 21.6 | 8.37% | 1.8 |
| Aarnav Fashions Ltd | 1.33 | 41.3 | 4.3% | 1.28 |
