United Cotfab Limited IPO is set to launch on 13 June, 2024. The company was incorporated in 2018. It is engaged in the manufacturing of high quality open end yarn catering to the textile industry. Its manufacturing process adheres to stringent quality standards and is backed by advanced technology and machinery. It follows a systematic approach that includes raw material selection, blending (if required), spinning, winding, and quality control.
During the Financial Year 2020-23, the company set up a manufacturing facility having an installed capacity of approx. 9125 (MT) p.a. Its manufacturing facility is close to the rich cotton growing areas of Saurashtra region of Gujarat and Maharashtra. Its manufacturing facility is equipped with modern and automatic plant and machinery. In April 2023, it commenced the manufacturing of open ended cotton yarn. Cotton yarn is a type of yarn that is made from cotton fibres.
Other Information
Cotton yarn comes in various thicknesses, known as yarn weights, which determine its suitability for different products. Common yarn weights include lace, fingering, sport, worsted, and bulky, each with its own characteristics and recommended uses. It is widely used in the textile industry for various applications, including knitting, weaving, and crocheting. Cotton yarn is known for its softness, breathability, and versatility, making it a popular choice for clothing, home textiles, and other fabric-based products.
The company is committed to sustainable manufacturing practices and environmental responsibility. Its processes are designed to minimise waste, conserve energy and reduce the environmental impact. The company has built strong relationships with a diverse range of clients, including textile manufacturers, garment exporters and distributors. As of March 31, 2024, it had 118 employees on its payroll.
United Cotfab Limited : IPO DETAILS
United Cotfab Limited IPO is set to launch on 13 June, 2024. The subscription timeline extends till 19 June, 2024. The size for the IPO is Rs. 36.29 Crore. The issue is entirely a fresh issue of 51.84 lakh shares aggregating to Rs. 36.29 Crore. The lot size is 2000 shares and the price is Rs. 70 per share. The company is going to get listed at BSE SME Board. The face value per share is Rs.10 and this is a Fixed Price Issue. The registrar for the company is Purva Sharegistry India Pvt Ltd.
Tabular Description of United Cotfab Limited IPO
| IPO OPENING DATE | 13 June, 2024 |
| CLOSING DATE FOR IPO | 19 June, 2024 |
| ISSUE TYPE | Fixed Price Issue |
| Face Value per share | Rs. 10 per share |
| IPO price band | Rs. 70 per share |
| LOT SIZE | 2000 shares |
| MINIMUM ORDER QUANTITY | 2000 shares |
| ISSUE SIZE | Rs. 36.29 Crore |
| OFFER FOR SALE | NIL |
| FRESH ISSUE | Rs. 36.29 Crore |
| LISTING AT | BSE SME Board |
| LISTING DATE | 24 June, 2024 |
United Cotfab Limited IPO: IMPORTANT DATES
| IPO OPENING DATE | 13 June, 2024 |
| CLOSING DATE FOR IPO | 19 June, 2024 |
| IPO ALLOTMENT DATE | 20 June, 2024 |
| REFUNDS | 21 June, 2024 |
| DEMAT A/C CREDITED ON | 21 June, 2024 |
| IPO LISTING DATE | 24 June, 2024 |
United Cotfab Limited IPO begins for subscription from 13 June, 2024. The IPO subscription would continue till 19 June, 2024. The allotment status for the shareholders who applied would come on 20 June, 2024. The refunds for the ones who did not get allotment would be initiated on 21 June, 2024. The DEMAT accounts of shareholders would be credited on 21 June, 2024. The listing of the company would be completed on 24 June, 2024.
United Cotfab Limited IPO: Lead Managers
The lead managers are :
- Beeline Capital Advisors Pvt Ltd
The minimum and maximum lot size for retail investors is 2000 shares, amounting to Rs. 140000. The minimum lot size for HNI is 4000 shares, amounting to Rs. 280000.
| Lots | Shares | Amount | |
| Retail (Minimum) | 1 | 2000 shares | Rs. 140000 |
| Retail (Maximum) | 1 | 2000 shares | Rs. 140000 |
| HNI (Minimum) | 2 | 4000 shares | Rs. 280000 |
OBJECTIVES FOR THE IPO
- To Meet Working Capital Requirements
- General Corporate Purposes
- To meet Public Issue Expenses
COMPANY FINANCIALS
| Particularly (in Rs. Lakhs) | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
| Asset | 107.10 | 1559.95 | 5367.71 | 8168.46 |
| Revenue | 0 | 1.88 | 64.02 | 11552.74 |
| PAT | -0.11 | 1.60 | 13.93 | 866.65 |
United Cotfab Limited had an asset base of Rs. 107.10 Lakhs in 2021 which increased to Rs. 5367.71 Lakhs in 2023.The asset base of the firm jumped to Rs. 8168.46 Lakhs as on March 2024. The revenue for the company was Rs. 1.88 Lakhs in 2022, which increased to Rs. 64.02 Lakhs in 2023. The revenue for the period ending March 2024 was Rs. 11552.74 Lakhs. The profit of the company increased from Rs. -0.11 Lakhs in 2021 to Rs. 13.93 Lakhs in 2023. The profit generated for the period ending March 2024 was Rs. 866.65 Lakhs.
PROS
- It is engaged in the manufacturing of high quality open end yarn catering to the textile industry.
- Its manufacturing facility is equipped with modern and automatic plant and machinery.
- The company is committed to sustainable manufacturing practices and environmental responsibility. Its processes are designed to minimise waste, conserve energy and reduce the environmental impact.
United Cotfab Limited IPO Application Process with Zerodha
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform. Clicking the IPO section present in the ORDER tab.
- Click the United Cotfab Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
