Akshar Spintex Ltd

Akshar Spintex

About the Company:

Akshar Spintex (Incorporated in 2013) is engaged in manufacturing of cotton yarn which include combed, semi combed and carded yarn.

Company’s Manufacturing facility is situated at Kalavad of Rajkot District in Gujarat state in 1,83,437 sq. ft. area which is in the vicinity of the rich cotton growing areas of Gujarat.

Company has installed a capacity of total 24,480 spindle.Company procures only Shankar-6 quality of cotton which is predominantly grown in Gujarat.

End users for company’s products are textile manufacturers and traders. They supply the products to large garment houses for manufacturing of cotton textiles.

Company is located in the state of Gujarat and enjoy benefits of various incentives provided by central and state government which includes 2% interest subsidy under TUFS, 7% interest subsidy and 5% VAT incentive under Gujarat Textile Policy, 2012. Thus, such government incentives gives Company an operating leverage over the units located in other states.

Projected Capacity Utilization:

capacity utilization

Management Team:

  1. Mr.Ashokbhai Bhalala (Designation: Managing Director)
  2. Mr.Amit Gadhiya (Designation: Whole Time Director)
  3. Mr.Harikrishna Chauhan (Designation: Whole Time Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Amit Gadhiya 18,20,100 10
Ashok Bhalala 16,80,000 10
Rekhaben Chauhan 24,00,000 10
Harikrishna Chauhan 6,00,000 10


Objectives of the Issue:

Fresh Issue: (Around Rs.3.99 cr)

Funding the working capital requirements of the Company.

General corporate purposes.

OFS (Offer For Sale): (Around Rs.22.99 cr)

Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.

Fund Utilization:

Particulars Amount (Rs. in Crores)
Working Capital requirements 2.8
General Corporate Expenses 0.89
Net Proceeds 3.99 cr


Financials of the Company:

(in Crores) FY 15 FY 16 FY 17 31st Oct 17
Revenue  15.61  59.84  90.38  55.59
Net Profit  (-0.51)  2.66  5.38  2.78


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Akshar Spintex Limited 10 2.24 17.86 17.08% 13.14
Vippy Spinpro Limited 10 5.65 8.83 10.28% 54.97
Sri Nachammai Cotton
Mills Limited
10 1.48 10.14 37.18% 4.37


IPO Details:

Details Info
Issue Opens on 27th April 2018
Issue Closes on:. 3rd May 2018
Issue Price Rs.40
Face Value Rs.10
Minimum Lot 3000
Minimum Investment Rs.1,20,000
Issue Constitutes 26.98%
Issue Size Rs.26.98 cr
Market Cap Rs.99.99 cr
Listing at BSE SME
Equity Shares Offered (Fresh) 9,99,000
Equity Shares Offered (OFS) 57,48,000
Total Equity Shares Offered (Fresh + OFS) 67,47,000
Equity Shares Prior to the Issue 2,40,00,000
Equity Shares after the Issue 2,49,99,000


Important Dates:

Finalization of Basis of Allotment on or Before 8th May 2018
Initiation of Refunds on or Before 9th May 2018
Credit of Equity Shares: on or Before 10th May 2018
Listing Date: on or Before 11th May 2018


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered 27/4 30/4 2/5 3/5
HNI  32,01,000  0.36  0.36  0.45 1.70 
Retail   32,01,000  1.03  1.16  3.75  9.24
Others    3,45,000  0.00  0.00  0.00  0.19
Employee     ——–  —–  —-   —-  —-
TOTAL  67,47,000  0.66  0.72  1.99 5.20 


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
2.24 17.86 17.08% 13.14


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Neutral NA NA


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Company Contact Info:
Akshar Spintex Limited
Revenue Survey No. 102/2 Paiki,
Plot No. 2, Village: Haripar,
Ranuja Road, Tal: Kalavad,
Jamnagar – 361013,
Gujarat, India.
Tel: +9198252 13622
Email: admin@aksharspintex.in
Website: www.aksharspintex.in


IPO Registrar Info:
1st floor, Bharat Tin works Building,
Opp. Vasant Oasis, Makwana Road, Marol,
Andheri (East),Mumbai – 400059, India
Tel: +91 22 62638200
Fax: +91 22 62638299
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com


Lead Manager to the Issue:
406-408, Keshva Premises, Behind Family Court,
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051, India
Tel: +9122 6194 6700
Email: ipo@pantomathgroup.com
Website: www.pantomathgroup.com