Avax Apparels and Ornaments
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Jan 2025 – 09 Jan 2025
- Listing date
- 14 Jan 2025
- Face value
- ₹1 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹1.92 Cr
- Market cap at offer price
- ₹7.27 Cr
- Promoter holding
- 57.00% → 41.97% pre-issue → post-issue
- ISIN
- INE0NQ401016
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- SKI Capital Services Ltd.
- Registered office
- 611 6th Floor, Jaina Tower II Distt.Centre, Janakpuri, West, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 14,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 18.06 | 17.44 |
| P/E (×) | 3.88 | 4.01 |
| Price to book (×) | 1.70 | — |
| Market cap | — | ₹7.27 Cr |
Key performance indicators
- Return on net worth
- 43.91%
- ROCE
- 61.68%
- PAT margin
- 6.26%
- NAV per share
- ₹41.13
- Price to book
- 1.70
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Avax Apparels and Ornaments
Avax Apparels and Ornaments Limited, incorporated on June 2, 2005 and currently based in West Delhi, operates two distinct business segments: wholesale trading of knitted cloth sourced primarily from Punjab, and online retail of silver ornaments through its e-commerce portal (blushines.com). The company sources knitted cloth and supplies it to customers in the wholesale market, emphasizing competitive pricing and quality products aligned with fashion trends. For silver ornaments, it offers sterling silver jewelry items including necklaces, bracelets, earrings, and rings, with customization options through its user-friendly and secure e-commerce platform. The company generates revenue through purchase orders from clients based on their requirements, with no long-term contracts for most transactions. As of September 30, 2024, the company reported total income of ₹1,500.93 lakhs with profit after tax of ₹90.61 lakhs.
Company Analysis
from RHPAvax Apparels and Ornaments Limited operates in wholesale trading of knitted cloth in Punjab and online retail of silver ornaments through its e-commerce platform.
Avax Apparels and Ornaments Limited, incorporated on June 2, 2005 and currently based in West Delhi, operates two distinct business segments: wholesale trading of knitted cloth sourced primarily from Punjab, and online retail of silver ornaments through its e-commerce portal (blushines.com). The company sources knitted cloth and supplies it to customers in the wholesale market, emphasizing competitive pricing and quality products aligned with fashion trends. For silver ornaments, it offers sterling silver jewelry items including necklaces, bracelets, earrings, and rings, with customization options through its user-friendly and secure e-commerce platform. The company generates revenue through purchase orders from clients based on their requirements, with no long-term contracts for most transactions. As of September 30, 2024, the company reported total income of ₹1,500.93 lakhs with profit after tax of ₹90.61 lakhs.
Objects of the Issue
- Working Capital Requirement ₹150.00 lakhs p.15
- General Corporate Purposes ₹21.80 lakhs p.16
- Issue Expenses ₹20.00 lakhs p.16
- To meet out the Working Capital requirements of the Company ₹150.00 Lakhs p.63
- To meet out the General Corporate Purposes ₹21.80 Lakhs p.63
Issue Structure
- Total Issue
- ₹191.80 lakhs
- Fresh Issue
- 2,74,000 Equity Shares of face value ₹10/- each at ₹70/- per share aggregating ₹191.80 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹70 per equity share (fixed price)
- Lot Size
- As per SEBI regulations; minimum application ₹2,00,000 for non-retail investors
- Face Value
- ₹10/- per equity share
Business Model
The company operates on a trading and e-commerce business model. In the wholesale knitted cloth segment, it sources products from third-party manufacturers and supplies to customers on a purchase order basis without long-term contracts. For silver ornaments, it sells directly to consumers through its e-commerce platform (blushines.com), offering sterling silver jewelry with customization options. The company does not own manufacturing facilities; it relies entirely on third-party manufacturers for sourcing. Revenue is earned from the margin between procurement costs and selling prices.
Business Segments
SWOT Analysis
- • Established supplier relationships in Punjab region with competitive pricing and quality focus(p.15)
- • User-friendly and secure e-commerce platform for silver jewelry retail(p.15)
- • Growing online retail market for silver ornaments in India with access to remote areas(p.15)
- • Revenue growth trajectory with PAT increasing from ₹1.01 Lakh (FY22) to ₹90.61 Lakh (H1 FY25)(p.37)
- • Locational advantage in textile hub(p.91)
- • Strong business relationships and network(p.91)
- • Experienced and professional management team(p.91)
- • Backward integration through in-house manufacturing(p.91)
- • Access to exclusive Punjabi ethnic designs in silver ornaments(p.91)
- • Strong return metrics and profitability(p.72)
- • Promoter control with significant stake(p.133)
- • Dual business model reducing concentration risk(p.198)
- • Strong revenue growth trajectory(p.203)
- • Profitability expansion(p.203)
- • No litigation or regulatory penalties(p.134)
- • Positive net worth and net tangible assets meeting BSE SME eligibility(p.220)
- • Demonstrated operating profitability and 3-year track record(p.220)
- • Growing EBITDA and net asset value(p.220)
- • Operational website and no regulatory/disciplinary actions(p.220)
- • No prior capital issues; clean governance history(p.224)
- • No outstanding debt instruments or debentures(p.224)
- • No investor complaints in three years(p.226)
- • Heavy dependence on limited customer base with top 5 customers representing 79.76% of H1 FY25 revenue(p.21)
- • Promoters lack experience in textile and e-commerce sectors(p.20)
- • Heavy reliance on limited supplier base with top 5 suppliers representing 85.44% of purchases in H1 FY25(p.22)
- • Negative operating cash flows in recent periods despite profitability(p.21)
- • Delayed payment of statutory dues including advance tax(p.22)
- • High working capital requirements with long credit period of about 180 days(p.16)
- • Promoters are not original founders and company ownership changed hands(p.20)
- • Silver ornaments business contributes only 3.62% of total revenue(p.23)
- • Limited financial resources(p.91)
- • Limited pricing power due to emerging competition(p.91)
- • High working capital requirements(p.64)
- • Dependence on few large customers(p.97)
- • Limited experience in silver ornaments business(p.91)
- • Small workforce with limited scale(p.101)
- • Significant customer concentration(p.208)
- • High dependence on promoter personal guarantees(p.168)
- • Minimal cash reserves(p.162)
- • Negative operating cash flows in recent period(p.206)
- • Reliance on bank overdraft facility with demand repayment(p.168)
- • No prior public issuance or trading history creates uncertainty for investors(p.225)
- • Very modest capital base relative to industrial scale(p.219)
- • Relatively volatile EBITDA growth trajectory(p.220)
- • Expansion into new geographic regions and towns within and outside Punjab(p.29)
- • Growth of e-commerce sector providing new sales channels for businesses(p.15)
- • Potential for in-house manufacturing to reduce working capital cycle(p.16)
- • Wholesale trading sector as significant employment generator and economy contributor(p.15)
- • Government support under Make in India policy(p.91)
- • Rising demand for textiles and apparel(p.91)
- • Textile sector growth and PLI scheme benefits(p.80)
- • Expansion of e-commerce market for retail(p.88)
- • Growing demand for silver ornaments in India(p.92)
- • Positive government initiatives for textiles(p.91)
- • Expansion in knitted cloth wholesale business(p.198)
- • Growing demand for silver ornaments in Indian markets(p.199)
- • Geographical advantage in manufacturing hub location(p.198)
- • Capacity for nationwide distribution(p.199)
- • Start of manufacturing operations(p.199)
- • Migration path to BSE Main Board available upon meeting capital thresholds(p.232)
- • Compulsory market making for 3 years provides liquidity support(p.232)
- • Access to capital markets for future growth through rights/preferential issues(p.265)
- • No long-term contracts with most suppliers and customers; business based on purchase orders only(p.20)
- • Dependence on third-party manufacturers subjects company to supply chain and quality risks(p.26)
- • Geographic concentration of operations in Punjab exposes business to regional economic downturns(p.29)
- • Silver ornaments are discretionary/luxury purchases vulnerable to economic downturns(p.31)
- • Seasonal fluctuations in sales with peak seasons affecting profitability(p.30)
- • E-commerce growth dependent on India's telecommunications infrastructure and internet penetration(p.28)
- • Changes in fashion trends and consumer preferences difficult to predict(p.25)
- • Exposure to cyberattacks and data security risks from storing personal and transactional data(p.23)
- • Potential for brand reputation damage through vendor non-compliance or counterfeit products(p.25)
- • Exposure to credit risk from counterparties with potential for delays or non-payment(p.35)
- • Changes in government policy(p.91)
- • Exposure to raw material price volatility(p.91)
- • Competition from cheaper imports(p.92)
- • Intense competition in wholesale and online retail(p.105)
- • Foreign exchange and monsoon risk(p.64)
- • Limited scale compared to established competitors(p.71)
- • Seasonal business variability(p.208)
- • General economic uncertainties and recession risks(p.199)
- • Competitive market conditions in textiles and jewellery(p.208)
- • COVID-19 pandemic uncertainty(p.199)
- • Regulatory compliance and licensing risks(p.199)
- • Dependency on minimum subscription threshold for issue completion(p.219)
- • Regulatory refund liability if listing approval not obtained from stock exchange(p.223)
- • Company exposure to foreign exchange and import regulation risks(p.232)
- • Constraint on promoter dilution and control given SME platform requirements(p.220)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Harinderpal Singh Sodhi | Promoter | 28.50% | 20.99% |
| Harish Kumar | Promoter | 28.50% | 20.99% |
| Harinderpal Singh Sodhi | Individual Promoter | 28.50% | — |
| Harish Kumar | Individual Promoter | 28.50% | — |
| Harinderpal Singh Sodhi | Promoter | 28.50% | — |
| Harish Kumar | Promoter | 28.50% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.