AB Cotspin Ltd

About the Company:

AB Cotspin Ltd is primarily engaged in manufacturing of cotton yarn, knitted fabric, cottonseed oil and oilcakes.

Company has one manufacturing facility which is located at, Jaitu (Dist Faridkot), Punjab and have an installed 18,000 spindles for manufacturing cotton yarn, 441 mt p.a. for knitted fabric and 6,750 mt p.a. for seed oil/oilcake.

Currently majority customers are being situated at Punjab and Haryana. Company has 2 warehouses and 1 Shop cun godown to manage our supply chain operations.

Company has 255 employees as of June 30, 2021, excluding contract employees.




Company’s History:

Company commenced its business in 1997 with a cotton ginning plant with cotton bales and cotton seeds being our initial products.

Thereafter in the year 2000, company installed a crushing unit to extract oil from cotton and mustard seeds and expanded our product basket with the addition of cotton seed oil, mustard oil and oil cake.

In the year 2011, company ventured in manufacturing cotton yarn by setting up a spinning plant. In the year 2014 company installed a knitting machine and thus forayed into manufacturing of knitted fabric.


Plans to Increase the existing installed capacities.

Company propose to set up a new manufacturing facility which shall expand our existing installed capacities for cotton yarn and have already procured a land adjacent to our existing manufacturing facility for the proposed expansion.

This shall help the company to expand customer base and increase revenue from operations.


Competitors in the Business:

Company face competition from listed companies like Amarjothi Spinning Mills Limited, Suryalata Spinnning Mills Limited , Salona Cotspin Limited and Pashupati Cotspin Ltd.



Management Team:

  1. Mr. Deepak Garg (Designation: Managing Director)
  2. Mr. Manohar Lal (Designation: Whole Time Director)





Objectives of the Issue:

Fresh Issue: (Rs. 10.09 cr)

  • Funding the working capital requirements of the Company Requirement.
  • General corporate purposes.




Financials of the Company:

(in Crores) FY 19 FY 20 FY 21 30th June 21
Revenue 121.06 94.28 115.5 30.53
Net Profit 1.34 0.73 3.87 3.39




Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
AB Cotspin India Ltd 10 5.24 6.67 17.76% 29.47
Amarjothi Spinning Mills Ltd 10 24.17 6.74 11.1% 217
Suryalata Spinnning Mills Ltd 10 43.99 6.41 13.0% 348
Salona Cotspin Ltd 10 4.01 54.45 13.84% 72.25
Pashupati Cotspin Ltd 10 3.8 21.58 5.4% 64.4



IPO Details:

Details Info
Issue Opens on 30th December 2021
Issue Closes on:. 3rd January 2022
Issue Price Rs.33 – 35
Face Value Rs.10
Minimum Lot 4000
Minimum Investment Rs.1,40,000
Issue Constitutes 28.02%
Issue Size Rs.10.09 cr
Market Cap Rs.36.02 cr
Listing at NSE SME
Equity Shares Offered (Fresh) 28,84,000
Equity Shares Prior to the Issue 74,08,200
Equity Shares after the issue 1,02,92,200

Also Read : List of Upcoming IPO’s in India.




Important Dates:

Finalization of Basis of Allotment on or Before 6th January 2022
Initiation of Refunds on or Before 7th January 2022
Credit of Equity Shares: on or Before 10th January 2022
Listing Date: on or Before 11th January 2022




IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
5.24 6.67 17.76% 29.47



Check IPO Allotment Status:

Link InTime Website: https://linkintime.co.in/PublicIssue/

BSE IPO Website: https://www.bseindia.com/IPO/Allotment



Company Contact Info:
AB Cotspin Ltd
176, Homeland Enclave, Bathinda,
Punjab – 151001.
Tel. No.: +91 01642970169;
E-mail: investors@abcotspin.in
Website: www.abcotspin.com


IPO Registrar Info:
C-101, 1st Floor, 247 Park, L.BS. Marg,
Vikhroli (West), Mumbai 400083,
Maharashtra, India
Tel: +91-022-49186200
Fax: +91-022-49186195
Email: abcotspin.ipo@linkintime.co.in
Website: www.linkintime.co.in


Lead Manager to the Issue:
406-408, Keshava Premises, Behind Family Court,
Bandra Kurla Complex, Bandra East, Mumbai 400051,
Maharashtra, India
Tel: +91-22 6194 6700
Fax: +91-22 2659 8690
Email: ipo@pantomathgroup.com
Website: www.pantomathgroup.com