Piotex Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 May 2024 – 14 May 2024
- Listing date
- 17 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹94 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹14.47 Cr
- Market cap at offer price
- ₹47.97 Cr
- Promoter holding
- 100.00% → 65.94% pre-issue → post-issue
- ISIN
- INE0R4W01015
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- F/II Block, Plot No.16/2, M.I.D.C., Pimpri, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 78,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹94
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,12,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,25,600 |
| S-HNI (max) | 8 | 9,600 | ₹9,02,400 |
| B-HNI (min) | 9 | 10,800 | ₹10,15,200 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.44 | 5.89 |
| P/E (×) | 11.14 | 15.96 |
| Price to book (×) | 3.73 | — |
| Market cap | — | ₹47.97 Cr |
Key performance indicators
- Return on net worth
- 33.53%
- ROCE
- 33.20%
- Debt / equity
- 0.50
- PAT margin
- 2.54%
- NAV per share
- ₹25.17
- Price to book
- 3.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Piotex Industries
Piotex Industries Limited, incorporated on October 24, 2019 and converted to a public limited company on August 11, 2023, operates in the cotton textile industry. The company engages in contract manufacturing of cotton yarn through an outsourcing/job-work model and trading of yarn, fabric, and cotton bales. These products are primarily used for garments and home furnishings. The company sources raw materials from local markets and outsources manufacturing to third-party vendors while maintaining quality control and design supervision. The company is promoted by Mr. Abhay Shriram Asalkar and Mr. Yogesh Omprakash Nimodiya, both with approximately 25 years of experience in the textile industry.
Company Analysis
from RHPPiotex Industries Limited is a contract manufacturer and trader of cotton yarn, fabric, and cotton bales for garment and home furnishing industries.
Piotex Industries Limited, incorporated on October 24, 2019 and converted to a public limited company on August 11, 2023, operates in the cotton textile industry. The company engages in contract manufacturing of cotton yarn through an outsourcing/job-work model and trading of yarn, fabric, and cotton bales. These products are primarily used for garments and home furnishings. The company sources raw materials from local markets and outsources manufacturing to third-party vendors while maintaining quality control and design supervision. The company is promoted by Mr. Abhay Shriram Asalkar and Mr. Yogesh Omprakash Nimodiya, both with approximately 25 years of experience in the textile industry.
Objects of the Issue
- To Meet Working Capital Requirement ₹1051.05 Lakhs (72.63% of total issue size) p.18
- General Corporate Expenses ₹270.92 Lakhs (18.72% of total issue size) p.18
- Public Issue Expenses ₹125.25 Lakhs (8.65% of total issue size) p.18
- Funding the Working Capital Requirement 1051.05 Lakhs p.70
- General Corporate Purpose 270.92 Lakhs p.70
- Not specified in this document section - refer to 'The Offer' section for Objects of the Issue
- Working capital requirement, general corporate purpose and issue expenses p.187
Issue Structure
- Total Issue
- ₹1447.22 Lakhs (15,39,600 Equity Shares of ₹10 face value each at ₹94 per share)
- Fresh Issue
- ₹1447.22 Lakhs (15,39,600 Equity Shares)
- Offer for Sale
- Nil
- Price Band
- ₹94 per equity share
- Lot Size
- Not specified in this part of the document
- Face Value
- ₹10 per equity share
Business Model
The company operates through contract manufacturing (job-work) and trading. It sources cotton primarily from domestic markets, outsources the conversion of cotton into yarn to third-party spinning units through job-work agreements, and trades finished yarn, fabric, and cotton bales to garment manufacturers and other customers. Revenue is generated from the sale of these products to customers, with top ten customers contributing 97.74% of revenues in FY2024.
Business Segments
SWOT Analysis
- • Established industry presence with 25 years combined experience in textile sector(p.29)
- • Revenue growth trajectory across recent fiscal years(p.19)
- • Consistent profitability with positive net profit margins(p.19)
- • Diversified business model across contract manufacturing and trading(p.18)
- • Existing client relationships and repeat orders(p.96)
- • Customer satisfaction through quality and timely delivery(p.96)
- • Experienced management team with 25+ years industry experience(p.95)
- • Control of raw material quality from the beginning(p.95)
- • Proven track record of over 4 years(p.96)
- • Experienced management team with deep textile industry expertise(p.165)
- • Revenue growth trajectory demonstrating market traction(p.168)
- • Established integrated business model across trading and manufacturing(p.165)
- • Consistent profitability and improving margins(p.169)
- • Strong debt service capability(p.158)
- • Sole selling agency agreement providing stable supply channel(p.165)
- • High customer concentration with top 10 customers representing 97.74% of FY2024 revenues(p.24)
- • Substantial debt burden with limited financial flexibility(p.28)
- • Unsecured loans from directors subject to recall at any time(p.29)
- • High supplier concentration with top 10 suppliers contributing 61.80% of FY2024 purchases(p.26)
- • Negative operating cash flows in FY2024 and weak cash position(p.31)
- • No owned manufacturing facilities; full dependence on third-party vendors(p.23)
- • Unregistered trademark logo creates intellectual property vulnerability(p.30)
- • Related party transactions including loans from directors and inter-company transactions(p.29)
- • Rented office premises with no long-term security(p.27)
- • Past compliance lapses with tax and statutory filings(p.27)
- • Group company involved in 18 criminal complaints totaling ₹483.02 Lakhs(p.26)
- • Heavy dependence on suppliers and job workers(p.102)
- • High working capital requirement(p.102)
- • Insufficient market reach(p.102)
- • High customer concentration with top 5 customers accounting for 87.45% of revenue(p.102)
- • Severe customer concentration dependency(p.171)
- • Negative operating cash flow despite profitable operations(p.170)
- • Rapid growth in trade payables indicating credit reliance(p.141)
- • Declining trade receivables collection efficiency(p.158)
- • Recent company incorporation with limited operating history(p.114)
- • Pending GST litigation for excess ITC claims(p.174)
- • India's technical textiles market growth potential(p.18)
- • Garment manufacturing industry demand for cotton yarn(p.18)
- • Working capital expansion to support business growth(p.18)
- • Potential to diversify and expand product portfolio(p.30)
- • Expanding into new geographical areas(p.102)
- • Growth in Indian domestic textile market(p.102)
- • Government thrust for development will boost demand(p.102)
- • Indian textile industry expected to grow at 10% CAGR to reach US$ 190 billion by 2025-26(p.89)
- • Expansion of fabric trading business into new geographies(p.165)
- • Growing textile manufacturing demand in India(p.165)
- • Leverage technology for quality improvement and competitive advantage(p.165)
- • Establish additional sole selling agency agreements with larger suppliers(p.165)
- • Enhanced customer relationship development through process innovation(p.165)
- • Intense competition from domestic and international textile companies(p.24)
- • Cotton price volatility and supply risks affecting raw material costs(p.24)
- • Dependence on third-party transportation with limited contractual protections(p.25)
- • Vendor/manufacturer agreements lack formal protections(p.23)
- • Regulatory compliance risks and licensing renewal uncertainties(p.27)
- • Environmental and health/safety regulatory stringency increasing(p.35)
- • Economic slowdown risk from global and Indian macroeconomic conditions(p.32)
- • Tax regime changes including GST and GAAR provisions(p.39)
- • Force majeure events disrupting raw material and logistics supply(p.25)
- • Natural disasters and pandemic risks affecting operations(p.37)
- • Indian economic policy and political stability risks(p.32)
- • Competition Act compliance risks and potential regulatory penalties(p.38)
- • Increased competition from big organized players(p.102)
- • Low entry barriers leading to competition from new entrants(p.102)
- • Fluctuation in raw material prices(p.102)
- • Rising labour wages(p.102)
- • Change in government policies(p.102)
- • Textile industry commodity price volatility affecting margins(p.167)
- • Regulatory compliance complexity under multiple labor codes(p.110)
- • Intense competition in textile manufacturing and trading(p.171)
- • Economic cyclicality and recession impact on demand(p.166)
- • Litigation risk from customer defaults on dishonored cheques(p.176)
- • Potential compliance challenges under new consolidated labor codes(p.111)
- • Foreign exchange exposure from potential overseas operations(p.110)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Abhay Shriram Asalkar | Promoter | 47.21% | 32.97% |
| Mr. Yogesh Omprakash Nimodiya | Promoter | 47.21% | 32.97% |
| Abhay Shriram Asalkar | Promoter & Managing Director | 47.21% | 32.97% |
| Yogesh Omprakash Nimodiya | Promoter & Whole-Time Director | 47.21% | 32.97% |
| Chaitali Abhay Asalkar | Promoter Group | 0.005% | 0.00% |
| Sandhya Nimodiya | Promoter Group | 0.005% | 0.00% |
| Abhay Shriram Asalkar | Promoter | 47.21% | — |
| Yogesh Omprakash Nimodiya | Promoter | 47.21% | — |
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.