BSE SME IPO of United Cotfab subscribed 2.80 times

The offer received bids for 1.45 crore shares as against 51.84 lakh shares on offer.

The initial public offer (IPO) of United Cotfab received bids for 1,45,40,000 shares as against 51,84,000 shares on offer, as per BSE data as of 17:00 hours on Thursday (13 June 2024). The issue was subscribed 2.80 times.

The issue opened for bidding on Thursday (13 June 2024) and it will close on Wednesday (19 June 2024). The price of the IPO is fixed at Rs 70 per share. The minimum order quantity is 2,000 equity shares. The equity shares will list on BSEs SME platform.

The IPO comprises fresh issue of 51,84,000 equity shares. The promoter and promoter group shareholding will dilute to 69.84% from 99.99% pre-offer.

About 2,60,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 49,24,000 equity shares. The issue and the net issue will constitute 30.16% and 28.64% respectively of the post offer paid up equity share capital of the company.

The company intends to utilize the net proceeds to meet working capital requirements, to meet public issue expenses and general corporate purpose.

United Cotfab is a leading manufacturer of high-quality open end yarn for the textile industry. The companys manufacturing process adheres to stringent quality standards and is backed by advanced technology and machinery. Its manufacturing process involves raw material selection, blending, spinning, winding, and quality control, ensuring stringent quality standards. As on 31 March 2024, the company has total 118 employees.

The company recorded revenue from operations of Rs 115.29 crore and net profit of Rs 8.66 crore for the period as on 31 March 2024.

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