Pashupati Cotspin Limited (PCL) is a Gujarat based cotton spinning company. It was incorporated in 2013. Pashupati Cotspin Limited is coming up with a fixed price IPO shortly. Pashupati Cotspin Ltd IPO review will delve into the draft prospectus and present a critical review of this new issue.
About the Issue – Pashupati Cotspin Ltd IPO review finds the following details of the issue as per draft prospectus submitted to NSE.
- Issue opens on – 28 August 2017
- Issue closes on – 31 August 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 75 per equity share
- Lot size – A minimum quantity of 1600 shares and in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 2,784,000 nos. of equity shares aggregating up to Rs 20.88 crores
- Listing Exchange – NSE SME
Objects of the issue – The proceeds from this IPO will be used to – a) to meet issue expenses, b) to meet general corporate expenses and c) to fulfill the demand for working capital.
About the company – Pashupati Cotspin Limited (PCL) has its manufacturing unit situated at Kadi, Mahesans district, Gujarat. The place is close to rich cotton producing areas of Maharashtra and Saurashtra. The company is into the business of processing of raw Kapas cotton by way of spinning of cotton yarn, Ginning of cotton and delineating process.
The installed capacity of the manufacturing unit of Pashupati Cotspin Limited is 25536 spindles and 56 ginning units. PCL also earns a part of its revenue from the leasing of the company owned warehouse.
Company Financials –
Since it’s incorporation, PCL is doing good business as the reinstated financial statement shows. PAT shows good growth rate. But the company is a relatively small company and has long-term and short-term debts.
Conclusion – Pashupati Cotspin Ltd IPO review has NEUTRAL views on this issue. An investor, though, may follow our articles on IPO investment techniques for final investment ideas.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.