United Cotfab makes flat stock market debut; lists at 7% premium

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United Cotfab listing: United Cotfab shares made a flat debut on BSE SME on June 24, 2024. The shares opened at Rs 75, marking a 7.14 per cent rise against the issue price of Rs 70. 

Post listing, the stock surged 12.5 per cent to hit an intraday peak of Rs 78.75 per share.

Founded in 2015, United Cotfab Limited specialises in the production of premium open-end yarn for the textile sector. Its clientele comprises textile manufacturers, garment exporters, and distributors. The company offers a range of products including Open End Cotton Yarn and Cotton Yarn, manufactured at its advanced facility located in Taluka, Ahmedabad.

As of March 31, 2024, the company employs 118 staff members, and operates with an annual production capacity of approximately 9,125 metric tonnes.

The market capitalisation of the company is Rs 135.37 crore, according to Bombay Stock Exchange (BSE).

Subscription details

The United Cotfab IPO garnered strong demand, with a subscription rate of 107.16 times overall. Specifically, the retail category subscribed 77.22 times, while the Other category subscribed 114.71 times by June 19, 2024.

IPO details 

United Cotfab IPO was a fixed price issue of Rs 36.29 crore, with a fresh issue of 51.84 lakh shares.

United Cotfab IPO bidding started from June 13, 2024 and ended on June 19, 2024. 

Beeline Capital Advisors Pvt Ltd was the book running lead manager of the United Cotfab IPO, while Purva Sharegistry India Pvt Ltd was the registrar for the issue. The market maker for United Cotfab IPO was Spread X Securities.

Objective 

The company plans to utilise the funds to meet working capital requirements, general corporate purposes and to meet public issue expenses.

Financial performance

United Cotfab Limited's revenue zoomed 17,945.5 per cent and profit after tax (PAT) skyrocketed 6,121.4 per cent between the financial year ending with March 31, 2024 and March 31, 2023.