Vivekanand Cotspin
What they do: The company operates in the textile industry, specifically in cotton spinning, as indicated by its name and location in Gujarat, a hub for textile manufacturing.
By IPO Milega Research · Published
The company shows moderate financial fundamentals with a stable revenue trend and a positive profit margin.
- GMP (unofficial)
- +0%
- ₹0 a share
- Subscribed
- 1.79x
- Total
- Retail odds
- 55%
- 1 in 1.8
GMP is an unofficial grey market indication.
- Price band
- ₹32-37
- Lot size
- 6000 shares
- Min. investment
- ₹2,22,000
- Issue size
- 24.05 Cr.
- Open21 Sept 2026
- Close23 Sept 2026
- Allotment24 Sept 2026
- Listing28 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 1.26x
- NII
- 2.41x
- Retail
- 1.82x
₹37 (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials5.0
- Performance6.0
- Flexibility7.0
- Timing5.0
- Risk4.0
The Grey Market Premium (GMP) is neutral at 0.00%, indicating no expected gains on listing. The company's moderate financial fundamentals and high-risk profile further suggest limited immediate upside potential.
Strengths2
- Achieved a net profit of ₹512.87 lakhs in its initial operational period.
- Generated ₹1,005.01 lakhs in cash from operations.
Concerns5
- Unsecured loans of ₹661.71 Lakhs can be recalled anytime.
- Reliance on key customers for 51.18% of revenue.
- Potential lease non-renewal for offices.
- Fluctuations in raw material prices.
- Regulatory compliance post LLP to company conversion.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,22,0002 lots, 6000 shares
- Retail Maximum2,22,0002 lots, 6000 shares
- S-HNI Minimum3,33,0003 lots, 9000 shares
- S-HNI Maximum9,99,0009 lots, 27000 shares
- B-HNI Minimum11,10,00010 lots, 30000 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 6000 | 2,22,000 |
| Retail Maximum | 2 | 6000 | 2,22,000 |
| S-HNI Minimum | 3 | 9000 | 3,33,000 |
| S-HNI Maximum | 9 | 27000 | 9,99,000 |
| B-HNI Minimum | 10 | 30000 | 11,10,000 |
Timing
5.0/10The timing of the IPO is moderate, with both opportunities and risks present. While the company could benefit from the established export channels and relationships, the broader economic and political uncertainties pose significant risks. The market conditions are not entirely favorable, but they are not entirely adverse either.
- Time to market
- The IPO is being launched amidst a mixed economic environment. While there are established business relationships and export channels that could support the IPO, the prevailing economic uncertainties and potential for political and financial instability present considerable risks. The timing is neither optimal nor poor, reflecting a balanced approach to market entry.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE SME
Key milestones
- 21 Sept 2026IPO Opens
- 23 Sept 2026IPO Closes
- 24 Sept 2026Basis of Allotment
- 25 Sept 2026Refunds Initiated
- 25 Sept 2026Credit to Demat Account
- 28 Sept 2026Listing Date
Financials
5.0/10- Revenue
- ₹409 Cr
- +40.7%
- Profit after tax
- ₹3.69 Cr
- -9.3%
- Net margin
- 0.9%
- -0.5 pts
- Assets
- ₹84.85 Cr
- -3.1%
- Return on equity
- 15.96%
- Debt to equity
- 1.56
- ROCE
- 13.14%
- Return on net worth
- 15.96%
- NAV per share (₹)
- 17.81
Financial performance trend
Amount ₹ in croresThe company shows moderate financial fundamentals with a stable revenue trend and a positive profit margin. However, the absence of detailed financial ratios and liabilities data limits a comprehensive assessment.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks1
- Operational risks2
- Regulatory risks1
High financial and operational risks due to unsecured loans, customer concentration, and regulatory compliance challenges.
How the company offsets these
Diversify customer base and secure long-term financing to mitigate financial risks.
Financial risks3
- Unsecured loans of ₹661.71 Lakhs can be recalled anytime.
- Reliance on key customers for 51.18% of revenue.
- Significant marketing investments needed to remain competitive.
Market risks1
- Fluctuations in raw material prices.
Operational risks2
- Potential lease non-renewal for offices.
- Under-utilization of manufacturing capacities.
Regulatory risks1
- Regulatory compliance post LLP to company conversion.
Performance
6.0/10Vivekanand Cotspin Limited, a relatively new company, has shown potential in the cotton yarn industry with a focus on domestic sales, particularly in Gujarat. However, it faces significant challenges such as high employee attrition and procurement risks due to cotton seasonality. The management team is experienced, but the company is still in its early stages of growth, which reflects in its financial performance and operational consistency.
- Historical growth
- The company has shown initial growth with a net profit of ₹512.87 lakhs and cash generated from operations of ₹1,005.01 lakhs for the period ending March 31, 2024., Moderate
- Market comparison
- The company operates in a competitive cotton yarn industry with a focus on domestic markets, primarily in Gujarat. It faces challenges similar to peers in terms of raw material procurement and market volatility.
- Future potential
- The company aims to expand its market presence both domestically and internationally, but faces challenges such as high attrition and procurement risks.
- Operational consistency
- The company has a high attrition rate and faces procurement challenges, impacting its operational consistency and revenue stability.
- Experience
- The management team, led by Nirav Bharatbhai Patel and Jasmin Visnubhai Patel, has a moderate level of experience with a focus on operational efficiency.
- Track record
- Limited track record due to the company's recent incorporation in December 2024.
Key achievements
- 01Achieved a net profit of ₹512.87 lakhs in its initial operational period.
- 02Generated ₹1,005.01 lakhs in cash from operations.
Flexibility
7.0/10The company is actively expanding its market presence both domestically and internationally, aiming to reduce dependency on existing markets and capitalize on emerging opportunities. This strategy indicates a strong adaptability to market changes.
The company is committed to improving operational efficiencies through process improvements, technology adoption, and skill upgrades. However, the high employee attrition rate could impact operational agility.
The company demonstrates moderate flexibility and adaptability, with a focus on expanding its market presence, improving operational efficiencies, and leveraging relationships with suppliers and customers. However, it faces challenges such as high customer concentration and a significant attrition rate.
- Product diversification
- The company primarily focuses on cotton processing and yarn manufacturing, with limited diversification beyond these core products.
- Future adaptability
- The company's focus on expanding market presence and improving operational efficiencies positions it well for future adaptability. However, its high reliance on a few key customers and suppliers may pose risks to adaptability.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.