Axita Cotton Limited IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Nov 16, 2022Axita Cotton Limited is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. Axita Cotton Limited IPO comprises public Issue of 17,52,000 Equity Shares of Rs.10/- each at a price of Rs. 60 per Equity Share aggregating to Rs. 1051.20 Lakh.
Let’s have a detailed review of the company and analytics of the Axita Cotton Limited IPO release date, IPO offer price, subscription, Axita Cotton Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
- Issue Price of this IPO is NA . Check the Live Share Price here Axita Cotton Share Price
- To track the performance of this IPO, click on this link – IPO Performance
Axita Cotton Limited IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.9/10 |
| Competitive Edge | 7.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 8.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
Summary of Axita Cotton Limited IPO
Axita Cotton Limited Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company 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. Initial public offer of up to 1752000 Equity Shares of Rs. 10 each, at an Offer Price of Rs.60 per Equity Share for cash aggregating up to Rs. 1051.20 lakh.
From FY 2013-14 to FY 2016-2017, as per the Restated Financial Statements,
- The EBITDA and restated profit for the period/year have grown at a CAGR of 109.24% in Fiscal 2018 from fiscal 2017 and were Rs.49.49 lakh and Rs. 109.24 lakh , respectively, in the three months ended June 30, 2018.
- The net asset value per Equity Share was Rs. 2,148.09 and Rs.1,810.28 as of June 30, 2018 and March 31, 2018, respectively, as per the Restated Financial Statements .
- The company sales have grown at a CAGR of 21.92% from 12,345.78 lakh in Fiscal 2018 to 1,736.08 lakh in Fiscal 2014 .
The Promoters of this company are Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel . The lead manager to the issue are Beeline Broking Limited and the Registrar to this issue is Link Intime India Private Limited.
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Axita Cotton Limited IPO Date
The opening and the closing date of Axita Cotton Limited IPO is 27 Dec 2018 to 2 Jan 2019.
Axita Cotton Limited IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| Day 1: 27 Dec | – | 1.03x | 0.24x | 0.64x |
| Day 2: 28 Dec | – | 1.63x | 0.48x | 1.06x |
| Day 3: 31 Dec | – | 1.63x | 0.74x | 1.19x |
| Day 4: 01 Jan | – | 1.66x | 1.05x | 1.35x |
| Day 5: 02 Jan | – | 2.40x | 1.55x | 1.98x |
| Shares Offered or Net Issue | – | 830,000 | 830,000 | 1,660,000 |
The shares subscribed by the public will be updated herein on a daily basis.
Axita Cotton Limited IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
| Basis of Allotment Finalization | 7-Jan-19 |
| Refunds Initiation | 8-Jan-19 |
| Credit of Shares to Demat Account | 9-Jan-19 |
| Share Listing Date | 10-Jan-19 |
Axita Cotton Limited IPO Price Band
The face value of each share is Rs 10, Cash Price is Rs 60, but the price band of the IPO is not yet disclosed.
Axita Cotton Limited IPO Equity Share Offering
Initial public offer of up to 1752000 Equity Shares of Rs. 10 each, at an Offer Price of Rs. 60 per Equity Share for cash, aggregating to Rs. 1051.20 Lakh.
Axita Cotton Limited – Company Overview
Axita Cotton Limited Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company 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. Their products are sold majorly 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. We are also doing ginning and pressing of Kapas on job work basis.
The Company is promoted by Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel and are the guiding force behind the growth and strategic decisions of the Company.
Competitive Strengths of Axita Cotton Limited :
- Installed Capacity of 87,600 MT/Annum
- Locational Advantage
- Increase in Business Scalibility and Captive Consumption
Business strategies of Axita Cotton Limited :
- Inventory Level/Stocking of Goods
- Quality of their products
- Optimal Utilization of Resources
- To build-up a professional organization
- Continue to maintain strong relationships with Customers
Axita Cotton Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
On the basis of Standalone statement:-
| Amount (in INR & Lakhs) | |||||
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 1,810.28 | 1,316.47 | 898.37 | 786.40 | 834.89 |
| Total Revenue | 12,345.78 | 9,023.06 | 6,808.83 | 7,691.20 | 1,736.08 |
| Total Expense | 12,283.11 | 9,150.67 | 6,858.83 | 7,736.45 | 1,725.65 |
| Profit After Tax | 82.13 | 2.71 | 12.46 | (28.51) | 5.85 |
Earnings per Equity Share (in Lakhs)
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Basic & Diluted | 3.29 | 0.11 | 0.50 |
From the above statements, one could find that the Axita Cotton Limited may perform well.
Axita Cotton Limited IPO – Promoters
The Promoters of this company are:
- Mr. Nitinbhai Govindbhai Patel
- Mr. Kushal Nitinbhai Patel
- Mr. Amitkumar Govindbhai Patel
List of Related Parties (Key Managerial Personnel)
- Mr. Nitinbhai Govindbhai Patel
- Mr. Kushal Nitinbhai Patel
- Mr. Amitkumar Govindbhai Patel
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Axita Cotton Limited IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | 1752000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 1051.20 Lakh |
| Of which: | |
| Reserved for Market Makers |
92000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 55.20 Lakh |
| Net Issue to the Public | 1660000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 996.00 Lakh |
| Of which: | |
| Retail Investors Portion | 582000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 349.20 Lakh |
| Non-Retail Investors Portion | 1078000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 40/- each aggregating to Rs. 646.80 Lakh |
| Equity Shares outstanding prior to the Issue | 4800000 Equity Shares of Rs. 10/- each |
| Equity Shares outstanding after the Issue | 6552000 Equity Shares of Rs. 10/- each |
Axita Cotton Limited IPO Issue Object
The IPO Issue Objects of the company is:
- Net Incremental Working Capital Requirement
Axita Cotton Limited IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Location of the Factory (production Unit)
- Experienced management team and a motivated & efficient work force
- Installed Capacity, Cost effective production and timely fulfillment of orders
- Increase in Business scalability
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | 0.50 | 5.41 | – |
| 31-Mar-17 | 0.11 | 1.15 | – |
| 31-Mar-18 | 3.29 | 25.97 | 14.01 |
- Competitive Peers:
| Sr. No. | Particulars | Face Value (in Rs.) | Basic EPS (In Rs.) | P/E Ratio | RONW in % |
| 1 | Pashupati Cotspin Limited | 10 | Negative | Negative | Negative |
| 2 | Santaram Spinners Limited | 10 | 0.36 | 26.31 | 2.08 |
Axita Cotton Limited IPO Lead Managers
| Lead Managers |
| BEELINE BROKING LIMITED SEBI Registration Number: INM000012546 Address: Office No. 1 To 3,Vishwa Complex, First Floor, Opp. Jain Derasar, Navrangpura, Ahmedabad – 380 009 Telephone Number: +91 79 6666 4007 Email Id: mb@beelinebroking.com Investors Grievance Id: ig@beelinebroking.com Website: www.beelinebroking.com Contact Person: Mr. Vanesh Panchal CIN: U51900GJ2014PLC080598 |
Axita Cotton Limited IPO Registrar to offer
| Registrar to the Offer |
| LINK INTIME INDIA PRIVATE LIMITED SEBI Registration Number: INR000004058 Address: C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Maarg, Vikhroli (West), Mumbai – 400 083, Maharashtra Tel. Number: +91 22 4918 6200; Fax Number: +91 22 4918 6195 Email Id: axita.ipo@linkintime.co.in Investors Grievance Id: axita.ipo@linkintime.co.in Website: www.linkintime.co.in Contact Person: Ms. Shanti Gopalkrishnan CIN: U67190MH1999PTC118368 |
Other Details:
- Statutory Auditor – M/s. Manish Dave & Co., Chartered Accountants
- Peer Review Auditor – M/s. Purushottam Khandelwal & Co., Chartered Accountants
- Bankers to the Company – Oriental Bank of Commerce
Axita Cotton Limited IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Axita Cotton Limited IPO Grey Market Premium
The Axita Cotton Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
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Axita Cotton Limited IPO News
News 1 – IPO ISSUE OPENS SOON (Download Prospectus)
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