Axita Cotton Ltd

Axita Cotton

About the Company:

Axita Cotton Ltd is in the business of producing cotton bales and cotton seeds.

Company’s products are sold majorily in the state of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh. They are also engaged in the business of trading of Kapas, cotton bales and cotton seeds.

Company’s production facility is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat.

They are also member of Better Cotton Initiatives (Independent Organization) which promotes better standards in cotton farming and practices across various countries.

Company also commenced exporting their products directly to few countries namely Pakistan, Bangladesh and Vietnam.


Axita Exports Private Limited (“AEPL”)

During the FY 2016, Promoters of the Company floated a new private limited company named, Axita Exports Private Limited (“AEPL”),

Axita Exports was incorporated with the aim of exporting of cotton bales to various countries. AEPL exports cotton bales in Bangladesh, Vietnam, China and Pakistan, purchased from Axita Cotton Ltd and also exports locally purchased cotton bales from other suppliers.


Company’s Business Model:

Axita Cotton’s business model is broadly divided into two category i.e. Production and Trading of their products.

Company’s products are sold directly to end users in India and to end users through merchandise in Overseas. They are also exporting to Pakistan, Bangladesh and Vietnam.

They are also doing ginning and pressing of Kapas on job work basis and provide customized products as per requirements of the consumers.


Installed Capacity & Capacity Utilization: 


Management Team:

  1. Mr. Nitinbhai Govindbhai Patel (Designation: Chairman and Managing Director)
  2. Mr. Kushal Nitinbhai Patel (Designation: Managing Director)
  3. Mr. Amitkumar Govindbhai Patel (Designation: Whole Time Director)


Financials of the Company

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18 30th June 18
Revenue 17.36 77.05 68.75 91.52 123.92 21.2
Net Profit 0.058 (-0.28) 0.12 0.027 0.82 0.32


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Axita Cotton Ltd 10 3.29 18.26 25.97% 26.65
Pashupati Cotspin Ltd 10 Negative Negative Negative 50.66
Santaram Spinners Ltd 10 0.36 26.31 2.08% 17.26

Akshar Spintex Ltd       Lagnam Spintex Ltd      Angel Fibers Ltd


IPO Details:

Details Info
Issue Opens on 27th December 2018
Issue Closes on:. 2nd January 2019
Issue Price Rs.60
Face Value Rs.10
Minimum Lot 2000
Minimum Investment Rs.1,20,000
Issue Constitutes 26.74%
Issue Size Rs.10.51 cr
Market Cap Rs.39.31 cr
Listing at BSE SME
Equity Shares Offered (Fresh) 17,52,000
Equity Shares Prior to the Issue 48,00,000
Equity Shares after the issue 65,52,000


Important Dates:

Finalization of Basis of Allotment on or Before 7th January 2019
Initiation of Refunds on or Before 8th January 2019
Credit of Equity Shares: on or Before 9th January 2019
Listing Date: on or Before 10th January 2019


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
3.29 18.26 25.97% 26.65


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Company Contact Info:
Axita Cotton Ltd
Servey No. 324, 357, 358,
Kadi Thol Road, Borisana,
Kadi, Mahesana – 382 715, Gujarat;
Telephone No.: +91 63587 47514;


IPO Registrar Info:
Address: C-101, 1st Floor,
247 Park, Lal Bahadur Shastri Maarg,
Vikhroli (West), Mumbai – 400 083, Maharashtra
Tel. Number: +91 22 4918 6200;
Email Id:


Lead Manager to the Issue:
Address: Office No. 1 To 3,Vishwa Complex,
First Floor, Opp. Jain Derasar,
Navrangpura, Ahmedabad – 380 009
Telephone Number: +91 79 6817 4040
Investors Grievance Id: