Gujarat Hy-Spin Limited is engaged in manufacturing of cotton yarns. It is Rajkot, Gujarat based company. This company started with the trading of Cotton Bales, Cotton Seeds and Wash Oil and in 2013 moved to the manufacturing of cotton yarns mainly in the domestic market and third-party export markets. Their IPO will be open to applying shortly. Hence, this post will guide you through the issue date, issue price and will discuss the Gujarat Hy-Spin Limited IPO Review on the basis of the draft red herring prospectus.
About Gujarat Hy-Spin Limited IPO :
- IPO Opens on – January 25,2018.
- IPO Closes on – January 31,2018.
- Face Value – Rs 10 Per Equity Share.
- Issue Price – Rs 10 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 10000 shares.
- Minimum Order Quantity – 10000 shares.
- Issue Size – 4,450,000 Equity Shares of Rs 10 aggregating up to Rs 4.45 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- The Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
- For the offer for sale of 44,50,000 Equity shares by the selling shareholders.
About The Company –
- Gujarat Hy-Spin Limited is incorporated in 2011.
- This company sell cotton yarns to the traders who further sell it to other Industrial units for weaving and other purposes.
- Gujarat Hy-Spin Limited also sells directly to Industrial units for weaving purpose.
- This company’s manufacturing plant is spread 15381.28 square meters which is well equipped with plant and machinery such as Blow room, Humidification facility, Contamination sorter, Link Conner etc.
- Gujarat Hy-Spin Limited also has test laboratory of Uster where the cotton yarns are tested.
- The promoters of this company are collectively held in aggregate 92,30,660 Equity Shares representing 55.11% of the pre-offer Paid up share capital of the company and will continue to hold a majority of post-Offer paid up share capital of the Company.
Promoters of the company :
- Maganlal Parvadiya, aged 56 years, is the Chairman, Whole Time Director and also the Promoter of this company.
- Chandulal Parvadia, aged 49 years, is the Promoter and Whole Time Director of this Company.
Gujarat Hy-Spin Limited IPO Review: Till the financial year 2015 the company was showing steady growth in the profitability. But in the FY 2016, it has shown a sharp dip in the profits. Though it has managed to turn around in profits on the FY 2017, still our Gujarat Hy-Spin Limited IPO Review is NEUTRAL on this issue. Apply only you can hold for long-term and have excess cash.