Avax Apparels And Ornaments IPO: Review, Date & GMP

Avax Apparels And Ornaments IPO-Complete Overview

Avax IPO an SME IPO is a fixed price issue of Rs.1.92 crore by Avax Apparels And Ornaments Limited which was founded in June 2005. The company operates in two distinct business sectors:

• Wholesale Dealing

• Silver ornaments sold online

The company sells silver decorations, such as rings, ladies' payal, men's kada, plate sets, glass, bangles, bowls, chains, and other jewelry, online and wholesale knitted fabric. It provides for all of the nation's major cities.

In wholesale commerce, the corporation enjoys many significant advantages. Its location in the center of the fabric manufacturing industry is a major asset. The company also gains from the management's excellent business contacts and the increasing demand for these products, both of which support the company's success in this market.

Its new SME IPO is to be launched on 07 January 2025, and its ‘initial public offering’ will end on 09 January 2025.

 

Avax Apparels IPO Overview

The Rs.1.92 crore Avax Apparels And Ornaments Ltd. IPO consists of a fully fresh issue of 2.74 lac Shares, of which 50% are allowed to retail investors and 50% to other investors.

This SME IPO date is from January 07, 2025. The expected IPO listing will take place on Tuesday, 14 January 2025, on BSE and SME. Avax Apparels And Ornaments IPO price is Rs.70 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill working capital needs.

• General corporate purposes.

Peers of Avax Apparels And Ornaments Ltd.

Evaluation

The IPO price is Rs.70 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.18.06 from the last year, the resulting P/E ratio is 2.96x.

Considering the weighted EPS of Rs.12.21 for the last three years, the P/E ratio is 5.73x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 90.21.

In simple words, the P/E ratio of Avax Apparels IPO (2.96x), compared with the industry’s average P/E of 90.21x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• Advantage of location

• Strong relationships and network with industry participants

•  Outstanding customer service

• Skilled and knowledgeable staff

• Proven management record

 

IPO’s Weaknesses

• Restricted financial means

• Limited pricing power as a result of new competitors

• Limited experience selling silver ornaments especially

• The company's future business operations may consist solely of the textile industry, with little to no dealing in silver ornaments

• The company had a negative cash flow from its operating and investing activities in the past fiscal year(s). Sustained negative cash flow could impact its growth and business.

  

Avax Apparels And Ornaments IPO GMP Today

Avax Apparels And Ornaments IPO GMP is Rs.0 as of 04 January 2025. With a price band of Rs.70, Avax Apparels estimated IPO listing price is Rs.70.

IPO Timetable (Tentative)

The IPO date is from January 07 to January 09, 2025, with allotment on January 10, refund initiation on January 13, and listing on January 14, 2025.

 

Avax IPO Details 

The Avax IPO with a Face Value of Rs.10 per Share offers a total issue size of 2,74,000 Shares (Rs.1.92 Cr) comprising a whole fresh issue size.

Avax IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,40,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,80,000.

 

Avax IPO Reservation (% of Net Issue)

Promoters And Management of Avax Apparels And Ornaments Ltd.

• Mr. Harinderpal Singh Sodhi

• Mr. Harish Kumar

 

IPO Lead Managers

• SKI Capital Services

 

Dividend Policy

The company has not paid dividends in any financial year.

 

Conclusion

The Avax Apparels and Ornaments IPO is offering a very low investment entry, at just Rs.70 per share, for a company that is focused on the pathways of not just textiles, but also silver ornaments. Right now, the company is still considered attractive because of how well-directed it is in terms of location, solid industry relations, and valuation as compared to peers. However, limited resources and historical negative cash flows are serious risks.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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