Vivaa Tradecom
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2023 – 04 Oct 2023
- Listing date
- 12 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹7.99 Cr
- Market cap at offer price
- ₹20.08 Cr
- Promoter holding
- 50.00% → 30.11% pre-issue → post-issue
- ISIN
- INE0PA601017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 17, Pirana Piplej Road, Saijpur (Gopalpur), Piplej, Gujarat
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 | 82,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.07 | — |
| P/E (×) | 4.61 | — |
| Market cap | — | ₹20.08 Cr |
Key performance indicators
- Return on net worth
- 2.10%
- Debt / equity
- 0.38
- PAT margin
- 19.00%
- NAV per share
- ₹51.09
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vivaa Tradecom
Vivaa Tradecom Limited was originally incorporated as Anantnath Infracon Private Limited on April 23, 2010 at Ahmedabad (incorporated by Viral Mehta and Aesha Mehta), was taken over by present promoter Mitesh Adani in September 2012 and renamed Vivaa Tradecom Private Limited, and was converted into a public limited company in December 2022. Initially a trader of textile fabrics and readymade garments, it acquired the ongoing readymade-garment manufacturing business of M/s Parikh Impex Private Limited via slump sale in 2013 and ran manufacturing alongside trading until March 31, 2022, when it sold its factory to Globe Textiles (India) Ltd for Rs.26.43 crores (slump sale) and adopted an asset-light model concentrated on trading. It now trades denim fabric and readymade garments — men's denim jeans (brands 'Afford' and 'Indigen'), women's jeans/joggers and cotton pants (brand 'Indie Girl') — and printed cotton fabric, buying mostly against client orders and selling mainly within Gujarat/Ahmedabad, with past clients including Lifestyle International Pvt. Ltd., Aditya Birla Fashion and Retail Ltd., Lajja Polyfab Pvt. Ltd., Nandan Denim Limited, Bajaj Impex and Reliance Retail Limited. From FY2023-24 it has added a distribution vertical for VIR and Prelam MDF boards (furniture-industry inputs) from Rushil Décor Limited across 11 states. It makes money on trading margins on these goods; FY2023 revenue from operations was Rs.13,401.73 lakhs with profit after tax of Rs.25.48 lakhs. It is raising Rs.798.66 lakhs through a 100% fresh fixed-price IPO of 15,66,000 shares at Rs.51 on the BSE SME platform, mainly to fund long-term working capital.
Company Analysis
from RHPVivaa Tradecom Limited is an Ahmedabad-based company that trades denim fabrics and readymade garments (men's and women's jeans and cotton pants) and has newly entered MDF board distribution, having exited garment manufacturing in 2022 — spanning the textiles/apparel and wood-panel (furniture input) industries.
Vivaa Tradecom Limited was originally incorporated as Anantnath Infracon Private Limited on April 23, 2010 at Ahmedabad (incorporated by Viral Mehta and Aesha Mehta), was taken over by present promoter Mitesh Adani in September 2012 and renamed Vivaa Tradecom Private Limited, and was converted into a public limited company in December 2022. Initially a trader of textile fabrics and readymade garments, it acquired the ongoing readymade-garment manufacturing business of M/s Parikh Impex Private Limited via slump sale in 2013 and ran manufacturing alongside trading until March 31, 2022, when it sold its factory to Globe Textiles (India) Ltd for Rs.26.43 crores (slump sale) and adopted an asset-light model concentrated on trading. It now trades denim fabric and readymade garments — men's denim jeans (brands 'Afford' and 'Indigen'), women's jeans/joggers and cotton pants (brand 'Indie Girl') — and printed cotton fabric, buying mostly against client orders and selling mainly within Gujarat/Ahmedabad, with past clients including Lifestyle International Pvt. Ltd., Aditya Birla Fashion and Retail Ltd., Lajja Polyfab Pvt. Ltd., Nandan Denim Limited, Bajaj Impex and Reliance Retail Limited. From FY2023-24 it has added a distribution vertical for VIR and Prelam MDF boards (furniture-industry inputs) from Rushil Décor Limited across 11 states. It makes money on trading margins on these goods; FY2023 revenue from operations was Rs.13,401.73 lakhs with profit after tax of Rs.25.48 lakhs. It is raising Rs.798.66 lakhs through a 100% fresh fixed-price IPO of 15,66,000 shares at Rs.51 on the BSE SME platform, mainly to fund long-term working capital.
Objects of the Issue
- Long-term working capital requirement Rs.518.00 lakhs p.50
- General corporate purposes Rs.172.00 lakhs p.52
- Meeting Public Issue Expenses Rs.108.66 lakhs p.52
Issue Structure
- Total Issue
- Rs.798.66 lakhs (15,66,000 Equity Shares of Rs.10 face value at Rs.51 per share, including a Market Maker Reservation Portion of 82,000 shares aggregating Rs.41.82 lakhs)
- Fresh Issue
- Rs.798.66 lakhs — the entire issue is a fresh issue of 15,66,000 Equity Shares
- Price Band
- Fixed Price Issue at Rs.51 per Equity Share (including share premium of Rs.41 per share); issue price is 5.1 times the face value
- Lot Size
- 2,000 Equity Shares and in multiples thereof
- Face Value
- Rs.10 per Equity Share
Business Model
The company earns revenue by purchasing readymade garments and denim/cotton fabrics from the open market — predominantly against orders received from clients — and reselling them at a margin, mainly to buyers concentrated in Gujarat/Ahmedabad, generally extending and receiving credit of over 100 days. Until March 31, 2022 it also earned from garment manufacturing and cotton-printing job work, but sold its factory to Globe Textiles (India) Ltd by slump sale for Rs.26.43 crores and moved to an asset-light trading model; from FY2023-24 it additionally earns distributorship income on VIR/Prelam MDF boards sourced from Rushil Décor Limited.
Business Segments
SWOT Analysis
- • Experienced promoter with deep domain knowledge driving consistent growth(p.72)
- • Established supplier relationships ensuring steady, uninterrupted supply(p.73)
- • Strong existing client relationships generating multiple repeat orders(p.73)
- • High level of customer satisfaction aiding retention(p.73)
- • Track record of supplying reputed national clients(p.69)
- • Debt-free balance sheet post slump-sale of factory(p.139)
- • Extreme customer concentration - single largest customer contributed 89.26% of FY23 revenue; top 10 customers = 100%(p.17)
- • Extreme supplier concentration - top 10 suppliers accounted for 100% of FY23 purchases(p.18)
- • Exit from manufacturing leaves a lower-margin, trading-only model(p.18)
- • Material pending income-tax dispute of Rs 521.16 lakh before ITAT(p.18)
- • Unsecured loans of Rs 412.52 lakh from erstwhile director repayable on demand(p.21)
- • No long-term supply agreements with vendors/suppliers(p.20)
- • Geographic concentration of trading activity in Gujarat/Ahmedabad(p.69)
- • History of negative operating cash flows (Rs (453.77) lakh in FY2022)(p.22)
- • Diversification into laminated sheets/MDF board trading to lift revenue(p.74)
- • Asset-light model frees management focus for expanding trading activities(p.73)
- • Indian textile & apparel industry expected to grow at 10% CAGR to US$ 190 billion by 2025-26(p.64)
- • Overall Indian textiles market projected to exceed US$ 209 billion by 2029(p.68)
- • Government policy support including export promotion and 100% FDI in the sector(p.66)
- • Intent to expand geographical presence beyond current Gujarat concentration(p.73)
- • Competition from traders with substantially larger capital base and resources(p.75)
- • Adverse changes in regulations and policies governing the business(p.25)
- • Changes in taxes and levies (income tax, GST) could hurt financials(p.25)
- • Exposure to global economic and political factors beyond company control(p.24)
- • 100% revenue derived from India - vulnerable to domestic economic slowdown(p.25)
- • No prior public market; SME-listed shares may be volatile/illiquid(p.25)
- • Natural calamities and civil disturbances may interrupt business(p.25)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mitesh Adani | Promoter | 48.85% | 29.42% |
| Yash Adani | Promoter Group | 1.15% | 0.69% |
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.