Since listing, the stock has risen 12.5% to a record high of Rs 78.75 per share.
 "United Cotfab's stock market debut is flat, it lists at a 7% premium")
SI Reporter New Delhi
United Cotfab Listing: United Cotfab shares debuted flat on the BSE SME on June 24, 2024. The stock price opened at Rs 75 and appreciated by 7.14% against the issue price of Rs 70.
Since listing, the stock has risen 12.5% to a record high of Rs 78.75 per share.
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Established in 2015, United Cotfab Limited specializes in producing premium open-end yarns for the textile industry. The company’s clients include textile manufacturers, garment exporters and distributors. The company offers a range of products that include open-end cotton yarn and cotton thread manufactured at its advanced facility in Ahmedabad taluka.
As of March 31, 2024, the company has 118 employees and an annual production capacity of approximately 9,125 tonnes.
According to the Bombay Stock Exchange (BSE), the company’s market capitalisation is Rs 1,353.7 crore.
Subscription Details
United Cotfab’s IPO attracted strong demand with an overall subscription ratio of 107.16 times, with the retail unit being subscribed 77.22 times and the other units being subscribed 114.71 times by June 19, 2024.
IPO Details
United Cotfab’s IPO was a fixed price issue of Rs 362.9 crore with fresh issue of 5,184,000 shares.
The IPO bidding for United Cotfab began on June 13, 2024 and ended on June 19, 2024.
Beeline Capital Advisors Pvt Ltd was the book-running lead manager for the United Cotfab IPO and Purva Sharegistry India Pvt Ltd was the registrar for the issue. The market maker for the United Cotfab IPO was Spread X Securities.
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The company plans to use the proceeds to fund working capital requirements, general corporate purposes and to cover the costs of the offering.
Financial Performance
United Cotfab Limited’s revenue grew 17,945.5 per cent between the financial year ended March 31, 2024 and March 31, 2023, while its profit after tax (PAT) surged 6,121.4 per cent.
