United Cotfab IPO: Open/Close Date, Price, Lot Size, Allotment, Subscription

Q: When will United Cotfab Limited IPO open for subscription?

The IPO subscription window will open on June 13, 2024 .

IPO Details

Bidding Dates

13 Jun '24 - 19 Jun '24

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

To be announced

Issue Size

₹36.29 Cr

Investor category and sub category

Qualified Institutional Buyers | Retail Individual Investors | Non-institutional Investor |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Jun 13, 2024

IPO Closing Date

Jun 19, 2024

Basis of Allotment

Jun 20, 2024

Initiation of Refunds

Jun 21, 2024

Credit of Shares to Demat

Jun 21, 2024

IPO Listing Date

Jun 24, 2024

Cut-off time for UPI mandate confirmation

Jun 19, 2024

About United Cotfab Ltd

United Cotfab is engaged in the manufacturing of high-quality open-end yarn catering to the textile industry. They follow a systematic approach that includes raw material selection, blending, spinning, winding, and quality control. Till March 2023, the company was engaged in the business of trading cotton yarn. But then, the company began producing cotton yarn in April 2023.

The company’s manufacturing facility is close to the rich cotton-growing areas of the Saurashtra region of Gujarat and Maharashtra. Their processes are designed to minimise waste, conserve energy and reduce the environmental impact. They have built strong relationships with a diverse range of clients, including textile manufacturers, garment exporters and distributors.

Natural fibres are regarded as the backbone of the Indian textile industry, which is expected to grow from US$138 billion to US$195 billion by 2025. India’s ready-made garment exports are likely to surpass US$ 30 billion by 2027, growing at a CAGR of 12-13%. Companies in this sector can thus have an advantage in their growth journey due to the growth of the sector overall.

Industry Outlook:

The Indian textile industry is projected to grow at a CAGR of 10% from 2019-20 to 2025-26, aiming to reach a valuation of US$ 190 billion. This robust growth trajectory, bolstered by the PLI scheme and enhanced global market share, presents significant opportunities for companies to expand their production and export capacities.
With exports expected to reach US$ 65 billion by FY26, and the sector's contribution to GDP at 2.3%, companies can leverage increased government support and global demand to enhance competitiveness and profitability in both domestic and international markets.

United Cotfab Ltd IPO Details

United Cotfab Ltd IPO Dates

United Cotfab Limited IPO is open from June 13, 2024, to June 19, 2024. The IPO will be listed on BSE SME.

United Cotfab Ltd IPO Price Band

United Cotfab Limited is a fixed-price issue IPO. The price is set to ₹70 per share.

United Cotfab Ltd IPO Lot Size

The lot size for United Cotfab Limited’s IPO is 1 lot of 2,000 shares, with a minimum investment of ₹1,40,000.

United Cotfab Ltd IPO Objectives

The proceeds from the fresh issue will be used for:

To meet working capital requirements.
General corporate purposes.
To meet public issue expenses.

Peer Details

The companies considered by United Cotfab as its peers include:

Lagnam Spintex Limited
PBM Polytex Limited
Vippy Spinpro Limited

How To Check the Allotment Status of the United Cotfab Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app.
Go to the Individual order details page of the IPO that you had applied for.
Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email and SMS.

Contact Details of United Cotfab Limited

Registered office: Survey No. 191, Village-Timba, Taluka-Dascroi, Timba, Ahmedabad, Dascroi -382425, Gujarat, India

Phone: +91 987987 4955

E-mail: info@unitedcotfab.com

Financial Performance

Particulars	Year ending on March 31, 2024	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2022
Revenue from Operations (in ₹ lakh)	11,529.41	44.20	-	-
Profit After Tax (PAT) (in ₹ lakh)	866.65	13.93	1.60	(0.11)
Cash & Cash Equivalents (in ₹ lakh)	0.07	1.09	15.81	20.58
Net Worth (in ₹ lakh)	1,356.42	993.56	681.97	0.22
Debt to Equity Ratio(x)	3.42	3.85	1.13	389.36
Return on Equity (%)	72.76%	1.66%	0.47%	(40.91%)
Return on Capital Employed (RoCE) (%)	26.95%	0.04%	(0.04%)	(0.11%)
Earning Per Share (EPS)-in absolute ₹	7.97	0.14	0.02	(0.00)

Know before investing

Strengths

The company's manufacturing facility is situated in the close vicinity of the cotton-rich belt of Gujarat and Maharashtra. The strategic location of the company will help reduce its raw material costs.
The company intends to cater to the increasing demand of their existing customers and also to increase their existing customer base by enhancing the distribution reach of our products in different parts of the country and also around the world.
They focus on maximum capacity utilisation, developing linkages with quality raw material suppliers and achieving consequent economies of scale.

Risks

Their revenues are highly dependent on operations in the geographical region of the states of Gujarat and Maharashtra. Any adverse development affecting our operations in these regions could have an adverse impact on the business, financial condition and results of operations. The states of Gujarat and Maharashtra contributed 94.75% and 5.25% of their total domestic revenue for the period ended on September 30, 2023.
Their top ten customers contribute 82.79% and 100% of their total revenue from operations for the period ended September 30, 2023, and for the year ended March 31, 2023, respectively.
Their top ten suppliers contributed 95.67% and 100% of their total purchases for the period ended on September 30, 2023, and the financial year ended on March 31, 2023, respectively.