The Avax Apparels and Ornaments IPO is a fixed price issue, aiming to raise ₹1.92 crore through a fresh issue of 2.74 lakh shares.
The IPO will open for subscription on September 20, 2024, and close on September 24, 2024. The allotment is expected to be finalized on September 25, 2024, with the listing scheduled on the BSE SME platform on September 27, 2024.
Priced at ₹70 per share, the minimum application size is 2000 shares, requiring an investment of ₹140,000 for retail investors, while HNI investors need a minimum of two lots (4,000 shares), amounting to ₹280,000.
SKI Capital Services Ltd is the book running lead manager, while Skyline Financial Services Pvt. Ltd serves as the registrar. SKI Capital Services is also the market maker for this IPO.
Below are the details of Avax Apparels & Ornaments Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Avax Apparels & Ornaments IPO Details
| IPO Date | September 20, 2024 to September 24, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹70 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 274,000 shares (aggregating up to ₹1.92 Cr) |
| Fresh Issue | 274,000 shares (aggregating up to ₹1.92 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 765,158 |
| Share holding post issue | 1,039,158 |
| Market Maker portion | 14,000 shares |
Avax Apparels & Ornaments IPO Timeline
| IPO Open Date | Friday, September 20, 2024 |
| IPO Close Date | Tuesday, September 24, 2024 |
| Basis of Allotment | Wednesday, September 25, 2024 |
| Initiation of Refunds | Thursday, September 26, 2024 |
| Credit of Shares to Demat | Thursday, September 26, 2024 |
| Listing Date | Friday, September 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 24, 2024 |
Avax Apparels & Ornaments IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹140,000 |
| Retail (Max) | 1 | 2000 | ₹140,000 |
| HNI (Min) | 2 | 4,000 | ₹280,000 |
Avax Apparels & Ornaments IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Retail Shares Offered | 50% of the Net Issue |
| Other Shares Offered | 50% of the Net Issue |
Avax Apparels & Ornaments IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 484.6 | 346.89 | 57.66 | |||||||||||||||||||||||||||
| Revenue | 2,205.98 | 1,470.21 | 28.87 | |||||||||||||||||||||||||||
| Profit After Tax | 138.19 | 69.44 | 1.01 | |||||||||||||||||||||||||||
| Net Worth | 314.68 | 176.49 | 1.65 | |||||||||||||||||||||||||||
| Total Borrowing | 41.13 | 23.07 | 15.28 | |||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||
Avax Apparels & Ornaments IPO Review
Avax Apparels & Ornaments Ltd. (AAOL) operates in wholesale trading of knitted cloth and online retail of silver ornaments. The company sources knitted cloth from manufacturers and supplies to garment producers in Punjab. They are now moving toward backward integration by starting their own cloth manufacturing to improve profit margins and reduce working capital needs. Additionally, AAOL offers a wide range of affordable silver jewelry and accessories online, catering to growing demand for silver ornaments in India.
The company plans to raise ₹1.92 crore through its IPO, offering 2.74 lakh shares at ₹70 each, with the issue open from September 20-24, 2024. The IPO represents 26.36% of the post-issue equity capital, and post-allotment shares will be listed on the BSE SME platform. The funds raised will primarily be used for working capital and corporate purposes.
AAOL has shown steady financial growth, with total income rising from ₹0.29 crore (FY22) to ₹22.06 crore (FY24), and net profit increasing from ₹0.01 crore to ₹1.38 crore during the same period. The company posted a strong return on net worth (RoNW) and price-to-book value (P/BV) ratios, indicating solid financial performance. However, the highly competitive and fragmented market raises concerns about future sustainability, leading to the recommendation to approach the IPO with caution due to its “High Risk/Low Return” nature.