Veekayem Fashion and Apparels SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Aug 2022 – 11 Aug 2022
- Listing date
- 22 Aug 2022
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹4.44 Cr
- Market cap at offer price
- ₹16.45 Cr
- Promoter holding
- 54.31% → 39.67% pre-issue → post-issue
- ISIN
- INE0KTW01013
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 113, Udyog Bhavan, Sharma Ind.Estate, Walghat Road, Goregaon East, 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 | 80,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,08,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.39 | — |
| P/E (×) | 6.38 | — |
| Market cap | — | ₹16.45 Cr |
Key performance indicators
- Return on net worth
- 6.09%
- NAV per share
- ₹72.12
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Veekayem Fashion and Apparels SME
Originally incorporated as 'Veekayem Textile Mills Private Limited' on September 17, 1985, the company was converted to a public limited company in 2018 and renamed 'Veekayem Fashion & Apparels Limited' in October 2018. The company operates manufacturing facilities in Valsad, Gujarat and engages in the business of weaving and garment manufacturing for various brands, catering to exports and local markets in customized designs. The company manufactures a wide range of products including shirting fabrics, suiting fabrics, trouser fabrics, jacketing fabrics, format trousers, cotton trousers and other accessories, with an extensive product portfolio of 100% Cotton-Lycra and Non-Lycra, Giza, Supima, Blended Cotton Suiting, Polyester Cotton, 100% Cotton Yarn Dyed, Polyester Viscose, Terry Rayon Suiting and Mock Linen.
Company Analysis
from RHPVeekayem Fashion and Apparels Limited is a textile and apparel manufacturing company engaged in weaving and garment manufacturing, serving brands, exporters, and local markets.
Originally incorporated as 'Veekayem Textile Mills Private Limited' on September 17, 1985, the company was converted to a public limited company in 2018 and renamed 'Veekayem Fashion & Apparels Limited' in October 2018. The company operates manufacturing facilities in Valsad, Gujarat and engages in the business of weaving and garment manufacturing for various brands, catering to exports and local markets in customized designs. The company manufactures a wide range of products including shirting fabrics, suiting fabrics, trouser fabrics, jacketing fabrics, format trousers, cotton trousers and other accessories, with an extensive product portfolio of 100% Cotton-Lycra and Non-Lycra, Giza, Supima, Blended Cotton Suiting, Polyester Cotton, 100% Cotton Yarn Dyed, Polyester Viscose, Terry Rayon Suiting and Mock Linen.
Objects of the Issue
- Working Capital Requirements ₹400.00 lacs p.19
- General corporate purposes ₹1.02 lacs p.19
- Funding the working capital requirements of the company 400.00 lacs p.75
- General Corporate Purposes 1.02 lacs p.75
- Not specified in this document part
Issue Structure
- Total Issue
- ₹443.52 lacs
- Fresh Issue
- ₹443.52 lacs (15,84,000 equity shares at ₹28 per share)
- Offer for Sale
- Nil
- Price Band
- ₹28 per equity share (fixed price)
- Lot Size
- 4,000 shares minimum with multiples of 4,000 thereafter
- Face Value
- ₹10 per share
Business Model
The company manufactures grey fabrics and readymade garments for various brands on a manufacturing basis, and also caters to exports and local markets by accepting customized designs as requested by clients. The company operates on a purchase order basis with its customers without formal long-term supply contracts, and does not maintain long-term contracts with suppliers, instead relying on pre-booking capacity based on demand projections.
Business Segments
SWOT Analysis
- • First IPO with established manufacturing operations(p.50)
- • Diversified product portfolio in textiles and apparel(p.19)
- • Revenue growth from FY2021 to FY2022(p.46)
- • Consistency in quality and service standards through in-house testing and quality control(p.113)
- • Scalable business model with order-driven approach and economies of scale(p.113)
- • Diverse product portfolio spanning multiple fabric types and garment categories(p.113)
- • Experienced management team with deep industry expertise and long-standing relationships(p.114)
- • Wide sales and distribution network with long-standing relationships(p.114)
- • Modern manufacturing facility with significant production capacity(p.112)
- • Experienced promoters with 17+ years in textiles industry(p.139)
- • Modern manufacturing technology and automated machinery(p.188)
- • Established customer relationships with major retail brands(p.123)
- • In-house quality control and testing facilities(p.188)
- • Diversified product portfolio across fabric and garment segments(p.188)
- • Strong capacity utilization at manufacturing facility(p.123)
- • Heavy dependence on top 10 customers(p.28)
- • High leverage with ₹8,159.92 lacs total borrowings(p.29)
- • Inadequate backup for power supply(p.26)
- • No long-term agreements with customers(p.34)
- • No long-term supply contracts for raw materials(p.35)
- • Higher tax rate disadvantage versus new competitors(p.28)
- • Missing documentary evidence for historical transactions(p.27)
- • Conflict of interest with promoter group companies in same business(p.28)
- • High concentration of revenue in top customers creating dependency risk(p.116)
- • Significant fluctuation in revenue with substantial decline from FY2020 to FY2021(p.115)
- • Inability to trace historical board resolutions and regulatory filings for share capital changes(p.61)
- • Reliance on historical allotment registers and promoter affidavits rather than formal documentation(p.62)
- • Significant dependence on related party financing(p.167)
- • High financial leverage with total debt-to-equity ratio of 2.64(p.178)
- • Recurring losses in profitability with minimal PAT(p.164)
- • Regulatory non-compliance regarding deposits from related parties(p.159)
- • Missing historical records and regulatory filings(p.134)
- • Low cash reserves and liquidity position(p.163)
- • Highly leveraged financial position with significant finance costs(p.195)
- • Thin profit margins despite revenue recovery(p.195)
- • Dependence on material costs; cost of material consumed 80.81% of total income(p.193)
- • Outstanding tax disputes and compliance issues(p.200)
- • Significant outstanding litigation with employees(p.198)
- • Utilize IPO proceeds for working capital requirements(p.19)
- • Expand international operations(p.38)
- • Growing Indian textile industry sector(p.19)
- • Introduction of value-added products like denims and casual shirts(p.114)
- • Expansion into new geographies and markets to build long-term customer relationships(p.115)
- • Growing domestic textiles market expected to reach $190 billion by 2025-26(p.101)
- • Increasing demand for technical textiles in apparel, automotive, healthcare and infrastructure sectors(p.103)
- • Government support through Production-Linked Incentive scheme for MMF and technical textiles(p.103)
- • Strong global apparel market growth projected to reach $2.25 trillion by 2025(p.95)
- • Technology Upgradation Fund Scheme support for textile industry(p.124)
- • Gujarat state incentive schemes for textile sector(p.124)
- • Interest subsidy schemes in Gujarat for textile industries(p.125)
- • Power tariff and VAT concessions available in Gujarat(p.125)
- • Expansion into technical textiles with specific support(p.125)
- • Pan-India growth expansion plans(p.188)
- • Recovery from COVID-19 disruption showing strong revenue growth potential(p.194)
- • Significant growth in raw material purchases and garment sales(p.195)
- • Export incentives demonstrating diversification into international markets(p.195)
- • Geographically concentrated manufacturing in Valsad, Gujarat(p.35)
- • High dependency on third-party transportation(p.31)
- • Significant raw material price and supply fluctuations(p.35)
- • Intense competition from organized and unorganized players(p.37)
- • COVID-19 pandemic impact on operations(p.30)
- • Foreign exchange rate fluctuations(p.31)
- • Restrictive lending covenants limiting business flexibility(p.29)
- • Labour-intensive operations dependent on workforce availability(p.35)
- • Exposure to Indian macroeconomic and political risks(p.39)
- • Yarn being flammable raw material poses fire risk(p.39)
- • Global economic slowdown affecting textile demand and export markets(p.86)
- • Supply chain disruptions and elevated inflation affecting costs and margins(p.86)
- • Highly fragmented textile market with significant small and medium-scale competitors(p.95)
- • Risk of new COVID-19 variants causing renewed supply chain disruptions and demand decline(p.86)
- • Heavy dependence on export markets vulnerable to global trade restrictions(p.91)
- • Concentration of export revenue in few countries (Vietnam 0.68%, USA 0.62%, Colombia 0.45%)(p.116)
- • Moderate to intense competition from organized and unorganized textile players(p.121)
- • Competitive pressure on pricing and profit margins(p.189)
- • COVID-19 pandemic disruption to manufacturing and supply chain(p.189)
- • Dependence on few large customers for significant revenues(p.123)
- • Vulnerability to foreign exchange and raw material price fluctuations(p.123)
- • Industry cyclicality and economic downturn sensitivity(p.189)
- • Competition from organized and unorganized players in domestic and international markets(p.197)
- • Historical severe revenue volatility due to external factors(p.195)
- • Rising working capital requirements impacting cash flows(p.196)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Krishankant Gupta | Promoter | 9.44% | 6.90% |
| Vijaykumar Gupta | Promoter | 9.26% | 6.76% |
| Madanlal Gupta | Promoter | 10.70% | 7.82% |
| Krishankant Gupta | Promoter | 9.44% | 6.90% |
| Vijaykumar Gupta | Promoter | 9.26% | 6.76% |
| Madanlal Gupta | Promoter | 10.70% | 7.82% |
| Mahesh Kant Gupta | Promoter Group | 10.38% | 7.58% |
| Surendra Gupta | Promoter Group | 9.44% | 6.90% |
| Shashi Gupta | Promoter Group | 1.29% | 0.94% |
| Shakuntaladevi Gupta | Promoter Group | 1.12% | 0.82% |
| Satish Gupta | Promoter Group | 0.82% | 0.60% |
| Sachin Kumar Gupta | Promoter Group | 1.13% | 0.83% |
| Mithleshdevi Gupta | Promoter Group | 0.72% | 0.53% |
| Krishankant Gupta | Promoter | 9.44% | — |
| Vijaykumar Gupta | Promoter | 9.26% | — |
| Madanlal Gupta | Promoter | 10.70% | — |
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.