Vivekanand Cotspin IPO
IPO price, dates, financial performance, strengths, risks and offer details
₹2,10,000 / 6,000 shares
Bidding Dates21 Sept, 26 – 23 Sept, 26
Min Investment₹2,10,000
Lot Size3,000
Price Range₹35 – ₹37
Issue Size₹22.20 Cr.
IPO Timeline
IPO Offer Start21 Sept, 26
IPO Offer Ends23 Sept, 26
Allotment Finalisation24 Sept, 26
Refund Initiation25 Sept, 26
Listing of Shares28 Sept, 26
Strengths
Integrated cotton processing operationsThe company combines cotton ginning and spinning activities. Cotton processed at its own ginning unit can be used as raw material for yarn production, providing greater control over the supply chain and allowing the business to move further along the cotton textile value chain.
Focus on production efficiencyCost management is supported by careful raw material selection, stable labour relations and an efficient manufacturing process. Strong supplier relationships also help the company meet customer orders within expected timelines.
Scalable manufacturing capacityThe business is structured to optimize capacity utilization and benefit from economies of scale. Its installed annual capacity is approximately 4,551 MT of cotton yarn and 8,000 MT of cotton bales, providing scope to scale production in line with demand.
Multiple yarn grades and countsThe company manufactures cotton yarn across different counts and grades for domestic and overseas markets. Consistent quality checks throughout production support customer confidence and competitiveness in the textile market.
Experienced promoter groupThe promoters have between six and fifteen years of experience in the cotton textile industry, with knowledge spanning manufacturing, marketing and finance. Their experience supports customer relationships and business development.
Risks
Dependence on related party salesA substantial share of revenue has come from related parties, with sales to Ambica Cotseeds Limited and Vivekanand Industries representing as much as 47.23% and 23.13% of revenue respectively during certain periods. Any change or termination of these arrangements could affect operations and financial performance.
Exposure to raw cotton pricesThe business depends heavily on raw cotton, whose availability and pricing are influenced by seasonality, global supply-demand conditions, weather and government policies. Higher cotton prices or supply shortages could increase production costs and compress margins if selling prices cannot rise proportionately.
Customer concentrationThe ten largest customers contributed 51.18%, 83.08% and 88.73% of revenue in FY2026, FY2025 and FY2024 respectively. With no long-term customer contracts, the loss of a major buyer or lower order volumes could adversely affect revenue, cash flows and profitability.
Working capital and cash flow pressureThe company recorded negative operating cash flow of ₹371.96 Lakhs in FY2025 and has sanctioned working capital facilities of ₹4,800 Lakhs. Inadequate cash generation or reduced access to credit could affect liquidity and day-to-day operations.
Single manufacturing locationAll manufacturing facilities are situated at Kadi, Gujarat. Power disruptions, industrial accidents or other regional events affecting this location could interrupt production, customer deliveries and revenue generation.
Secured borrowing obligationsSecured borrowings stood at ₹3,837.81 Lakhs as of March 31, 2026. Financing agreements contain restrictive covenants requiring lender approval for certain corporate actions. Breaches could result in defaults, accelerated repayment or reduced operational flexibility.
Statutory compliance exposureThe company has disclosed delays in GST filings, EPF payments of up to 106 days and inaccuracies in certain ROC filings. As a recently converted company, it is also subject to the broader compliance framework under the Companies Act, 2013, which could create additional regulatory exposure.
Intense textile industry competitionThe cotton processing and yarn manufacturing market faces competition from large domestic and international producers. Synthetic alternatives such as polyester and viscose also create substitution pressure. Failure to remain competitive on price, quality and product relevance could affect market share and profitability.
Outstanding export obligationsThe company has export obligations under the Advance Authorization Scheme with potential duty liability of ₹303.97 Lakhs, plus applicable interest and penalties, if obligations are not fulfilled. Export validity extends until September 30, 2027.
Promoter control and related business interestsPromoters and the Promoter Group hold 100% of pre-IPO share capital and are expected to retain control after the issue. Group entities including Ambica Cotseeds Limited, Vivekanand Industries and Avadh Cotton Industries operate in similar businesses, creating potential conflicts of interest despite non-compete agreements signed in March and April 2026.
Objectives
Part of the Net Proceeds is proposed for procuring, installing and commissioning upgraded spinning equipment, including a Comber Machine, Compact Spinning System and Link Corner/Autoconer Winding System. The investment is intended to improve efficiency, integrate processes and support production of higher-value yarn products.
A portion of the Net Proceeds is planned for incremental working capital needs. The business requires significant working capital and currently relies on internal accruals and bank and financial institution borrowings to support operations.
The balance of the Net Proceeds is proposed for general corporate purposes, including strategic initiatives, stronger marketing activities and other ongoing business requirements, subject to the prescribed limit of 15% of Gross Proceeds or the specified rupee limit, whichever is lower.
Issue-related expenses, including underwriting and management fees, printing and distribution, advertising, legal costs and listing expenses, are proposed to be met from the gross proceeds of the issue.
Yearly Financial Results
Standalone
| Annual Financials | Aug 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Revenue | 75.47 | 290.47 | 408.01 |
| Expenses | 74.23 | 287.55 | 404.19 |
| Other Income | 0.11 | 0.47 | 1.31 |
| Total Revenue | 75.57 | 290.94 | 409.32 |
| Profit Before Tax | 1.35 | 3.23 | 5.13 |
| Net Profit | 0.87 | 4.07 | 3.69 |
Above figures are in Rs. Crores
Balance Sheet
Standalone
| Balance Sheet | Aug 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Total Assets | 76.23 | 87.53 | 84.85 |
| Current Assets | 25.31 | 39.93 | 41.45 |
| Fixed Assets | 50.92 | 47.60 | 43.40 |
| Total Equity & Liabilities | 76.23 | 87.53 | 84.85 |
| Total Liabilities | 52.78 | 70.27 | 55.91 |
| Current Liabilities | 28.13 | 35.73 | 38.14 |
| Non Current Liabilities | 24.65 | 34.53 | 17.78 |
| Total Equity | 23.45 | 17.26 | 28.94 |
Above figures are in Rs. Crores
Cash Flow
Standalone
| Cash Flow | Aug 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Net Cash Flow | 0.02 | 0.11 | 0.07 |
| Investing Activities | 0.27 | -0.24 | -1.27 |
| Operating Activities | 7.07 | -10.79 | 8.67 |
| Financing Activities | -7.33 | 11.14 | -7.33 |
Above figures are in Rs. Crores
About Vivekanand Cotspin
Vivekanand Cotspin Limited is a Gujarat-based cotton processing and yarn manufacturing company involved in ginning raw cotton (kapas) into cotton bales and cotton seeds, followed by spinning cotton bales into yarn. The company operates from its Rangpurda facility in Kadi, Mahesana, with installed capacity of approximately 4,551 MT of cotton yarn and 8,000 MT of cotton bales.
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