IPO Overview
Incorporated in July 2015, Vivekanand Cotspin Limited is engaged in cotton processing and yarn manufacturing through ginning and spinning, including trading. The company’s manufacturing facility is located in Rangpurda, Kadi, within the Mahesana District of Gujarat, close to the fertile cotton-growing regions of Maharashtra and Saurashtra in Gujarat. The company has established an annual production capacity of approximately 4,550 tons of cotton yarn and 8,000 tons of cotton bales. Its products include cotton bales, cotton seeds, and cotton yarn (carded and combed), catering to domestic textile mills as well as export markets.
Vivekanand Cotspin IPO is a book build issue of ₹24.05 crores. The issue is entirely a fresh issue of 65.00 lakh shares. The IPO opens for subscription on Sep 21, 2026 and closes on Sep 23, 2026. The IPO is priced at ₹32 to ₹37 per share and the shares are proposed to be listed on BSE SME, with a tentative listing date of September 28, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 21 September 2026 |
| IPO Close Date | 23 September 2026 |
| Allotment Date | 24 September 2026 (Expected) |
| Refund Initiation | 25 September 2026 |
| Credit to Demat | 25 September 2026 |
| Listing Date | 28 September 2026 (Tentative) |
| Price Band | ₹32 – ₹37 per share |
| Face Value | ₹10 per share |
| Lot Size | 3,000 shares |
| Minimum Investment (Retail) | ₹2,22,000 (2 lots = 6,000 shares) |
| Minimum Investment (S-HNI) | ₹3,33,000 (3 lots = 9,000 shares) |
| Issue Size | ₹24.05 crore |
| Fresh Issue | 65,00,000 shares (₹24.05 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Shares | % of Net Issue |
| Anchor Investors | 17,10,000 | 28.50% |
| QIB (Excl. Anchor) | 11,40,000 | 19.00% |
| NII / HNI | 8,55,000 | 15.00% |
| Retail Individual Investors (RII) | 19,95,000 | 35.00% |
| Market Maker | 3,00,000 | 5.00% |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue — all IPO proceeds will flow directly into the company for business use.
Objects of the Issue (Fund Utilization)
The company proposes to utilise the net proceeds from the fresh issue as follows:
- Capital expenditure for installation of additional plant and machinery — ₹5.27 crore
- Working capital requirements — ₹11.00 crore
- General corporate purposes — remaining proceeds
Total identified utilization: ₹16.27 crore
Lead Managers & Registrar
- Book Running Lead Manager: Swastika Investmart Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
- Market Maker: Sunflower Broking Pvt. Ltd.
Promoters & Management
The promoters of the company are Nirav Bharatbhai Patel, Jasmin Vishnubhai Patel, Bharatbhai Prahaladbhai Patel, Vishnubhai Prahaladdas Patel, Gautam Bharatkumar Patel, B P Patel Family Trust, and V P Patel Family Trust.
Pre-IPO, the Promoter and Promoter Group hold 100% of the paid-up equity share capital of the company.
Company Details
Vivekanand Cotspin Limited is engaged in the business of cotton processing and yarn manufacturing by way of ginning of cotton and spinning of cotton yarn along with its trading. In the ginning process, it separates cotton fibers from seeds. Following this, clean cotton fibers are turned into yarn in various counts and quality grades used by textile mills for weaving and knitting fabrics.
Sectors Served:
- Domestic textile mills and fabric manufacturers
- Export markets (Japan, East Africa, Americas, and beyond)
Key Products:
- Cotton Bales
- Cotton Seeds
- Cotton Yarn (Carded and Combed, various counts and quality grades)
Key Capabilities:
- Installed ginning capacity of 400 bales per day and spinning capacity of 25,000 spindles
- Forward integration from ginning into spinning, adding value across the cotton textile supply chain
- Scalable production model to optimize output, strengthen supplier relationships, and achieve economies of scale
Manufacturing Facility:
- S/No 181/1, 182/1, At Rangpurda, Kadi, Mahesana District, Gujarat — 382715
- Located close to the fertile cotton-growing belts of Maharashtra and Saurashtra in Gujarat
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
| FY24 | ₹358.02 | ₹3.35 | ₹14.59 |
| FY25 | ₹290.94 | ₹4.07 | ₹14.59 |
| FY26 | ₹409.32 | ₹3.69 | ₹15.09 |
Key Financial Metrics
- Revenue grew 41% in FY26 vs FY25, but PAT declined 9% during the same period — indicating margin compression despite strong top-line growth.
- PAT Margin is extremely thin at 0.90% for FY26 — reflecting the low-margin commodity nature of the cotton ginning and spinning business.
- EBITDA Margin: 3.70% | ROE: 15.96% | ROCE: 13.14% | RoNW: 15.96%
- Debt/Equity ratio stands at 1.56 — indicating a moderately leveraged balance sheet with total borrowings of ₹45.00 crore as of FY26.
- Post-IPO P/E: 22.84x | Pre-IPO EPS: ₹2.27 | Post-IPO EPS: ₹1.62
- Post-IPO Market Cap: ₹84.18 crore at upper price band
Company Strengths
- Locational advantage — manufacturing facility in Mahesana, Gujarat, where raw cotton is readily available in proximity; Gujarat is the largest producer of cotton in India, resulting in lower logistics costs.
- Forward integration from ginning into spinning, adding value at multiple stages of the cotton textile supply chain.
- Scalable production model with ability to optimize output, strengthen supplier relationships, and achieve economies of scale.
- Established production capacity of ~4,550 tons of cotton yarn and ~8,000 tons of cotton bales per year.
- Experienced Patel family promoter group with an established track record in the cotton textile industry and export markets.
- Entire IPO is a fresh issue — no promoter exit; all funds directed towards capacity expansion and working capital strengthening.
Key Risks & Challenges
- Extremely thin PAT margin of 0.90% in FY26 — typical of the commodity-driven cotton ginning and spinning business, leaving minimal cushion against demand or price shocks.
- PAT declined 9% in FY26 despite 41% revenue growth — indicating significant cost pressures and margin compression.
- Profitability is highly susceptible to fluctuations in raw cotton prices, which are driven by external factors like weather, crop yields, and government policy.
- Moderately leveraged balance sheet with total borrowings of ₹45.00 crore and a Debt/Equity ratio of 1.56 as of FY26.
- Highly fragmented and competitive textile industry — faces competition from numerous small and mid-size ginning and spinning units across Gujarat and Maharashtra.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
