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:
- Mr. Deepak Garg (Designation: Managing Director)
- 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: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED 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: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 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 |
