Avi Ansh Textile Listings: A Detailed Overview
Shares of Avi Ansh Textiles made their debut on the NSE SME platform on September 27, experiencing a strong initial listing premium of 9.68%. The shares opened at a price of Rs 68, above the IPO price of Rs 62. This early day surge delighted investors, showcasing a profit right from the start. However, following the initial enthusiasm, the stock saw a correction, dropping by 5% to close at Rs 64.60.
IPO Details
The IPO for Avi Ansh Textiles was available for bidding from September 20 to September 24, successfully raising a total of Rs 25.99 crore. This offering consisted entirely of new shares, with 41.92 lakh shares being made available to investors. The fixed price of Rs 62 per share was set to help fund the company’s working capital needs, repay term loans, and support various general corporate purposes.
Subscription Insights
The IPO garnered significant attention, closing with a subscription rate of 8.32 times. While this indicates interest, it pales in comparison to some recent SME IPOs. Retail investors showed robust enthusiasm, bidding 11.38 times for the shares earmarked for them, while other investor categories subscribed 5.25 times for their respective allocations.
About Avi Ansh Textiles
Founded in April 2005, Avi Ansh Textiles specializes in the manufacturing and export of 100% cotton yarn, offering both combed and carded types in various counts. The company has achieved ISO 14001:2015 and ISO 9001:2015 certifications, underscoring its commitment to environmental stewardship and quality excellence.
Operational Capacity
Avi Ansh Textiles operates in both domestic and international markets, catering to diverse customer needs with a broad range of yarns and fabrics. The company runs spinning factories boasting a total capacity of 26,000 spindles, producing approximately 4,500 metric tons of cotton yarn each year, with yarn counts ranging from 20 to 40. As of June 2024, Avi Ansh employs 281 individuals across various departments, contributing to its operational efficiency and growth.
Financial Performance
Analyzing the financial health of Avi Ansh Textiles reveals remarkable growth. In FY 2024, the company’s revenue surged by 17% to reach Rs 142.14 crore, up from Rs 121.49 crore in the previous financial year. More impressively, the net profit skyrocketed by an incredible 1053%, climbing to Rs 3.31 crore from just Rs 28.7 lakh the year prior, showcasing the company’s robust financial trajectory and operational excellence.
Conclusion
Avi Ansh Textiles’ strong launch and subsequent trading action reflect both the potential and volatility often associated with SME IPOs. While the initial listing provided investors with a quick profit, ongoing market dynamics will be pivotal in determining the stock’s future performance. With solid operational practices and impressive financial growth, Avi Ansh Textiles represents a noteworthy player in the textile industry, making it a company to watch closely for potential investors.
