Avax Apparels And Ornaments IPO: 260x Subscription; Check GMP And Allotment Date

The initial public offering of Avax Apparels and Ornaments Ltd. that went live on Tuesday closed for subscription on Thursday. The SME IPO was booked over 260 times led by demand from retail investors. On the second day of subscription, the IPO was subscribed 78.86 times.

The BSE SME issue consists entirely of 2.74 lakh shares valued at Rs 1.92 crore with no offer-for-sale component.

The IPO was subscribed 260.39 times as of 5:34 p.m. on Thursday

• NII: 140.46 times

• Retail Investors: 372.29 times

The allotment of shares is scheduled to be finalised on Jan. 10. Once the basis of allotment is confirmed, the process for initiating refunds will commence on Jan. 13, for those who did not receive shares. On the same day, successful applicants will see the credited shares reflected in their Demat accounts. 

The Avax Apparels and Ornaments IPO is expected to debut on the BSE SME on Tuesday, January 14, marking the official listing date.

The Avax Apparels and Ornaments IPO was priced at Rs 70 per share, with the minimum application lot size being set at 2,000 shares. This translates to a minimum investment of Rs 1,40,000 for one lot for retail investors. 

SKI Capital Services Ltd. is the book-running lead manager for the Avax Apparels and Ornaments IPO, while Skyline Financial Services Pvt. is the registrar. 

SKI Capital Services Ltd. also serves as the market maker for this BSE SME issue.

The Grey Market Premium (GMP) on Avax Apparels and Ornaments SME IPO was Rs 10 as of 4:30 p.m. on Jan. 9, according to InvestorGain. Based on the IPO's fixed price of Rs 70 per share, the estimated listing price is projected to be around Rs 80, combining the cap price with the current GMP. This suggests an expected gain of 14.29% per share upon listing.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Avax Apparels and Ornaments Ltd., established in June 2005, operates in two key areas — wholesale trading of knitted fabrics and online retail of silver jewellery. Through its digital platform, Avax serves customers in major cities across India, catering to both traditional and modern tastes. One of the company’s strengths lies in its strategic location within a prominent fabric manufacturing hub, allowing it to source materials efficiently and meet rising market demands.

The primary objective of the Avax Apparels and Ornaments IPO is to raise funds to support the company’s working capital needs and cover general corporate expenses.

For the quarter ending September 30, 2024, Avax Apparels and Ornaments Ltd. reported a revenue of Rs 15 crore, with a profit after tax of Rs 90.61 lakh. In comparison, for the financial year ending March 31, 2024, the company generated Rs 22.05 crore in revenue, with a profit after tax of Rs 1.38 crore. 

In FY23, the company achieved a revenue of Rs 14.70 crore and a profit after tax of Rs 69.44 lakh.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.