Exploring the Avi Ansh Textile Limited IPO: A Deep Dive into Market Dynamics and Investment Potential

Table of Contents

Introduction to Avi Ansh Textile Limited’s IPO

Avi Ansh Textile Limited, a name synonymous with quality in the textile industry since its inception in 2012 in Punjab, is gearing up for a significant event in its corporate journey—an Initial Public Offering (IPO). This move not only marks a new chapter for Avi Ansh but also presents a unique investment opportunity for those interested in the textile sector.

Exploring Avi Ansh Textile Limited: A Deep Dive into Operations and Market Presence

IPO Details and Objectives

Launch Dates: The IPO is scheduled to open on September 20, 2024, and close on September 24, 2024, with listing expected on September 27, 2024.
Price Band: Set at ₹62 per share, indicating strategic pricing aimed at attracting a broad investor base.
Issue Size: Avi Ansh aims to raise approximately ₹26.00 crores through 4,193,541 equity shares, signaling intentions for expansion and enhancing operational capabilities.

Here’s a detailed tabular form for Avi Ansh Textile Limited’s IPO based on the information provided:

Aspect	Details
Company Name	Avi Ansh Textile Limited
IPO Open Date	September 20, 2024
IPO Close Date	September 24, 2024
Issue Type	Fixed Price Issue
Price Band	₹62 per share
Issue Size	Fresh Issue of ₹26.00 crores
Fresh Issue	4,193,541 equity shares
Offer for Sale	Not Applicable
Face Value	₹10 per share
Market Lot	2000 shares, amounting to ₹124,000
Allotment Date	September 25, 2024
Listing Date	September 27, 2024
Listing Platform	NSE SME
Promoters	Anil Kumar Jain, Geeta Jain, Avi Jain, among others
Business	Manufacturing and exporting 100% cotton yarn
Capacity	26,314 spindles, producing 4,500 MT per annum
Certifications	ISO 14001:2015 for Environmental Management, ISO 9001:2015 for Quality
Employees	281 as of September 2024
Financial Health	Revenue and profit growth noted, specifics for FY ending March 2024
IPO Objective	Expansion, working capital, and general corporate purposes

Avi Ansh Textile Limited: Business Overview

Avi Ansh Textile Limited specializes in manufacturing and exporting 100% cotton yarn, including both combed and carded varieties. Certified with ISO 14001:2015 for environmental management and ISO 9001:2015 for quality, the company stands out for its commitment to sustainability and quality assurance.

Financial Health and Market Sentiment

Revenue and Profit Growth: The company has shown commendable growth in both revenue and profit after tax in recent years, a testament to its robust business model and market demand.
Market Sentiment: The positive market sentiment towards recent IPOs, especially in the SME sector, could bode well for Avi Ansh’s offering, potentially influencing a high subscription rate.

Here’s a detailed timeline for Avi Ansh Textile Limited’s IPO in tabular form based on the information provided:

Event	Date	Details
IPO Opening	September 20, 2024	Start of the subscription period for investors.
IPO Closing	September 24, 2024	End of the subscription period.
Basis of Allotment	September 25, 2024	Determination of share allocation to applicants.
Refunds Initiation	September 26, 2024	Refunds for unsuccessful bids or excess application money.
Credit to Demat Accounts	September 26, 2024	Shares credited to the demat accounts of successful bidders.
IPO Listing	September 27, 2024	Shares listed on the NSE SME platform.
Price Band Announcement	Before IPO Opening	Price band set at ₹62 per share.
Issue Size Finalization	Before IPO Opening	Fresh issue of 4,193,541 equity shares to raise approximately ₹26.00 crores.
Finalization of Objectives	Before IPO Opening	Objectives include expansion, working capital, and general corporate purposes.
Regulatory Approvals	Before IPO Opening	Necessary approvals from SEBI and other regulatory bodies obtained.

This table encapsulates the key dates and events surrounding Avi Ansh Textile Limited’s IPO, providing a clear timeline for investors and interested parties.

Here’s the financial information for Avi Ansh Textile Limited in a tabular format:

Financial Metric	31 Mar 2024	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets (₹ in Lakhs)	6,522.64	4,692.35	4,336.85	4,694.81
Revenue (₹ in Lakhs)	14,214.65	12,149.57	12,016.76	7,264.3
Profit After Tax (₹ in Lakhs)	331.35	28.74	155.55	68.2
Net Worth (₹ in Lakhs)	1,587.22	1,256.74	1,229.62	1,076.34
Reserves and Surplus (₹ in Lakhs)	608.73	278.25	251.13	97.85
Total Borrowing (₹ in Lakhs)	4,481.21	3,193.46	2,659.87	3,375.46

Key Insights:

Revenue Growth: A notable increase of 17% from FY 2023 to FY 2024, indicating robust business growth.
Profit Surge: Profit After Tax jumped by 1053% from FY 2023 to FY 2024, showcasing significant operational efficiency or cost management improvements.
Asset Expansion: Assets grew by approximately 39% from FY 2023 to FY 2024, suggesting investment in capacity or infrastructure.
Net Worth and Reserves: Both net worth and reserves saw increases, reflecting retained earnings and overall financial health.
Borrowings: A significant increase in total borrowings, which might indicate funding for expansion or working capital needs.

This table provides a clear snapshot of Avi Ansh Textile Limited’s financial trajectory, highlighting its growth and financial strategy over the past years.

Avi Ansh Textile Limited IPO GMP and Subscription

Here’s the updated data for today, September 24, 2024:

Avi Ansh Textile Limited IPO Overview (Updated for September 24, 2024)

Grey Market Premium (GMP): The GMP for Avi Ansh Textile Limited’s IPO has now been reported at ₹12. This indicates that in the grey market, shares are trading at a premium of ₹12 over the issue price of ₹62 per share, suggesting a speculative interest in the stock before its listing. This represents a premium of approximately 19.35% over the IPO price.
Subscription Status:
- Overall Subscription: The IPO has seen an increase in interest, now subscribed 8.32 times as of today. This shows a significant rise in investor interest from its initial day’s subscription rate.
- Retail Category: Retail investors have shown robust participation, with the category being subscribed 11.38 times. This high subscription rate indicates strong retail investor confidence or speculative interest in Avi Ansh Textile Limited’s IPO.
- Non-Institutional Investors (NII): Subscribed at 5.25 times, this category also reflects moderate to strong interest from this segment, possibly due to the sector’s growth prospects or the company’s market standing.
Market Sentiment: The increased subscription rates and maintained GMP suggest a continued or even stronger market sentiment towards Avi Ansh Textile Limited. This could be driven by factors like positive financial performance, sector-specific optimism, or general market trends favoring IPOs in manufacturing or textiles.
Investment Considerations:
- GMP and Listing Gains: The GMP indicates expectations for listing gains, but investors should also consider the broader market sentiment, macroeconomic conditions, and the intrinsic value of the company beyond just the GMP.
- Retail and NII Interest: The strong subscription from retail and NII indicates confidence or at least speculative interest, which might be based on the sector’s growth forecasts or the company’s strategic positioning.
Cautions for Investors:
- Market Volatility: IPOs can be subject to significant price volatility post-listing. Investors should be prepared for potential swings in share price.
- Fundamental Analysis: Beyond market sentiment, thorough fundamental analysis of Avi Ansh Textile Limited’s business model, financial health, and industry outlook is crucial.

This update reflects a growing interest in Avi Ansh Textile Limited’s IPO, with robust participation from both retail and non-institutional investors, alongside a maintained GMP signaling market optimism.

Post-IPO Expectations and Market Performance

Based on the information gathered from various sources up to September 23, 2024, regarding Avi Ansh Textile Limited’s IPO:

EPS (Earnings Per Share):
- Pre-IPO EPS: ₹3.39
- Post-IPO EPS: ₹2.37
P/E Ratio (Price to Earnings Ratio):
- Pre-IPO P/E Ratio: 18.28x
- Post-IPO P/E Ratio: 26.16x

These figures reflect the financial health and market valuation expectations for Avi Ansh Textile Limited at the time of its IPO. The decrease in EPS post-IPO is due to the dilution effect from issuing new shares, which spreads the company’s earnings over a larger number of shares. Conversely, the increase in the P/E ratio from pre-IPO to post-IPO suggests that investors are willing to pay more for each rupee of earnings, potentially indicating high expectations for future growth or sector-specific optimism.

The P/E ratio, especially post-IPO, can be seen as relatively high compared to some industry peers, which might reflect either high growth expectations or speculative pricing in the SME IPO market. Always consider these metrics in the context of the broader market conditions, sector trends, and the company’s growth prospects for a comprehensive investment analysis.

Comparative Analysis with Competitors

Avi Ansh Textile Limited’s IPO enters a market where competition varies from direct textile manufacturers like Ambika Cotton Mills Ltd. to broader fashion conglomerates influencing market dynamics. Unlike some competitors, Avi Ansh’s niche in high-quality cotton yarn could carve out a unique market position, potentially attracting investors looking for specialized growth in the textile sector.

Conclusion: Investment Decision

For investors, Avi Ansh Textile Limited’s IPO represents a blend of growth potential and inherent risks typical of the textile industry. The company’s strategic positioning, quality certifications, and market expansion plans could offer substantial returns, especially in a market where quality and innovation are increasingly valued.

Call to Action

Stay informed about market conditions, consider your investment strategy, and evaluate Avi Ansh Textile Limited’s IPO against your investment goals. The textile sector’s dynamics, combined with Avi Ansh’s strategic moves, could make this IPO an intriguing addition to your portfolio.

Avi Ansh Textile Limited IPO

Avi Ansh IPO Performance

Avi Ansh IPO Analysis

Avi Ansh Textile IPO Review

Avi Ansh IPO Market Conditions

Avi Ansh IPO Financial Analysis

Avi Ansh Textile Investment Opportunities

Avi Ansh IPO Stock Market Trends

Avi Ansh Textile Limited Stock Analysis

Avi Ansh IPO Listing Performance