IPO Details

Bidding Dates

06 Jan '25 - 08 Jan '25

Minimum Investment

₹1,40,000 / 1 Lot (2,000 Shares)

Price Range

₹70

Maximum Investment

₹1,40,000 / 1 Lot (2,000 Shares)

Retail Discount

Not Applicable

Issue Size

₹1.92 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Other Investors   |  

Avax Apparels and Ornaments IPO Important Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Jan 6, 2025

IPO Closing Date

Jan 8, 2025

Basis of Allotment

Jan 9, 2025

Initiation of Refunds

Jan 12, 2025

IPO Listing Date

Jan 13, 2025

About Avax Apparels and Ornaments IPO

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

  1. 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.
  2. 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:

  1. To meet out the Working Capital requirements of the Company.
  2. 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:

  1. Log in to the Angel One app.
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. 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?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Avax Apparels and Ornaments IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. 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

Retail Shares Offered

50% of the Net Issue

Other Shares Offered

50% of the Net Issue

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

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 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 1,500.93 2,205.98 1,470.21 28.87
Profit after Tax (PAT) (in ₹ lakh) 90.61 138.19 69.44 1.01
Total Borrowings (in ₹ lakh) 72.02 71.50 - 30
Net Worth (in ₹ lakh) 405.30 314.68 176.49 1.65
Return on Equity (%) 21.51% 43.91% 39.34% 61.21%
Return on Capital Employed (%) 31.06% 61.68% 53.56% 81.43%
Net Working capital days 77.15 36.24 36.37 (135.10)
Earning Per Share (EPS)-in absolute ₹ 11.84 18.06 9.07 0.94

Know before investing

Strengths

8

  1. Strategic locational advantage in a major cloth manufacturing hub.

  2. Robust network and connections within the textile sector.

  3. Excellent customer relationships enhance client retention and satisfaction.

  4. Experienced, professional team drives operational excellence.

  5. Strong track record of management, ensuring reliability.

  6. In-house design team tailors products to customer preferences.

  7. Outsourced manufacturing ensures flexibility and scalability.

  8. Rigorous quality assurance maintains high product standards.

Risks

8

  1. Promoters lack original ownership, posing potential legacy issues.

  2. No long-term contracts with most suppliers and customers.

  3. Promoters have limited experience in current business operations.

  4. Dependence on a few customers for significant revenue, ~79%.

  5. Negative cash flows from operating activities impact financial stability.

  6. Dependence on few suppliers, with top 5 contributing ~85%.

  7. Cybersecurity risks threaten data integrity and operational security.

  8. Failure to address changing consumer preferences affects demand.

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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

Avax Apparels and Ornaments IPO FAQs

What is the Avax Apparels and Ornaments IPO?

Avax Apparels and Ornaments IPO is a book-built issue IPO. It will be open from January 7, 2025, to January 9, 2025.

When will Avax Apparels and Ornaments IPO be allotted?

The Basis of Allotment will happen on Friday, January 10, 2025.

When will Avax Apparels and Ornaments IPO open for subscription?

The IPO subscription window will open on January 7, 2025.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 2,000 shares.

When will Avax Apparels and Ornaments Limited list on exchanges?

The listing date for Avax Apparels and Ornaments Limited is Tuesday, January 14, 2025.

What is the issue size of the Avax Apparels and Ornaments IPO?

The issue size of the Avax Apparels and Ornaments IPO is up to ₹1.92 crore, with a complete fresh issue of ₹1.92 crore.

What are the open and close dates of the Avax Apparels and Ornaments IPO?

The open and close dates for Avax Apparels and Ornaments IPO are from January 7, 2025, to January 9, 2025.

What would be the listing gains on the Avax Apparels and Ornaments IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting an Avax Apparels and Ornaments IPO allotment?

1. Multiple Submissions: Use different Demat accounts to make multiple applications.
2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Avax Apparels and Ornaments IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Avax Apparels and Ornaments Limited using one PAN?

You can submit only one application using your PAN card.

How to read Avax Apparels and Ornaments Limited's financial statements?

To read Avax Apparels and Ornaments’s financial statements, download the IPO’s RHP document.

What is 'pre-apply' for Avax Apparels and Ornaments Limited IPO?

Pre-apply allows investors to apply for the Avax Apparels and Ornaments IPO two days before the subscription period opens, ensuring an early submission of your application.

If I pre-apply for the Avax Apparels and Ornaments Limited IPO, when will my order get placed?

Your order will be placed when the IPO opens for bidding, and a UPI request will follow within 24 hours.

When will I know if my Avax Apparels and Ornaments Limited IPO order is placed?

You will receive a notification once your order is successfully placed with the exchange after the bidding starts.

Who is the registrar of Avax Apparels and Ornaments IPO?

Skyline Financial Services Private Ltd is the registrar responsible for managing the IPO allotment process and handling investor queries.

Where is the Avax Apparels and Ornaments IPO getting listed?

Avax Apparels and Ornaments Limited IPO is proposed to be listed on the SME platform of the Bombay Stock Exchange (BSE).