Piotex Industries IPO Review

 
Piotex Industries IPO Review

IPO Open Date: May 10, 2024

IPO Close Date: May 14, 2024

IPO Price: ₹94 per share

Lot Size: 1200 Shares

Listing: May 17, 2024

Piotex Industries is scheduled to hit the market on May 10, 2024 and close on May 14, 2024. Piotex Industries plans to raise around ₹14.47 Cr through an IPO with a sale of up to 1,539,600 equity shares of ₹10 each. The Retail offered 50%, Other Shares Offered 50%.

Piotex Industries Limited, established in 2019, specializes in contract manufacturing and trading of yarns, fabrics, and cotton bales for diverse applications like apparel and home textiles. The company's operations include trading in cotton bales, synthetic fibers, cotton yarns, and fabrics in key textile hubs of Maharashtra such as Malegaon, Ichalkaranji, and Bhiwandi. Additionally, Piotex Industries Limited engages in supplying cotton yarn to Burhanpur and Ahmedabad while having an exclusive distribution partnership with Babasaheb Deshmukh Industries Private Limited for its cotton yarn products.

Another core aspect of the company's business involves contract labor and fabric weaving. In this setup, Piotex Industries Limited provides yarn to contract workers and weaving mills who undertake the weaving process at a predetermined price. Once the weaving is complete, the resulting fabric is then marketed to customers. As of March 31, 2024, the company maintains a workforce of 18 employees on its payroll, contributing to the smooth functioning of its operations.


Piotex Industries



Piotex Industries IPO Details

Piotex Industries IPO opens on May 10, 2024, and closes on May 14, 2024. The Listing date for Piotex Industries IPO is on May 17, 2024. The price band for IPO is ₹94 per share and lot size of 1200 Shares.

IPO DateMay 10, 2024 to May 14, 2024
Listing DateMay 17, 2024
Price₹94 per share
Lot Size1200 Shares
Issue Size₹14.47 Cr
Face Value₹10 per share

Piotex Industries IPO Tentative Timetable

Piotex Industries opening date is May 10, 2024 and close date is May 14, 2024. The IPO allotment date is May 15, 2024. The refund initiation of IPO is on May 16, 2024. The credit of shares in demat account is on May 16, 2024. The listing date is on May 17, 2024.

EventDate
IPO OpeningMay 10, 2024
IPO ClosingMay 14, 2024
IPO Allotment DateMay 15, 2024
Refund InitiationMay 16, 2024
Shares Credit to DematMay 16, 2024
Lisiting DateMay 17, 2024

Piotex Industries IPO Lot Size

Lot Size of this IPO is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or ₹112,800).

CategoryLotsSharesAmount
Retail(Minimum)11200₹112,800
Retail(Maximum)11200₹112,800
HNI (Minimum)22400₹225,600

Piotex Industries IPO Promoter Holding

Pre Issue Share Holding100%
Post Issue Share Holding69.83%

Piotex Industries IPO Review

Piotex Industries Ltd. is set to launch its maiden IPO, offering 1,539,600 equity shares at Rs. 94 per share to raise Rs. 14.47 crore. The company, engaged in contract manufacturing and trading of yarn, fabric, and cotton bales, lacks its own manufacturing unit, which is a significant concern. Despite showing impressive financial figures in recent years, especially in FY24 with a net profit of Rs. 3.01 crore, there are doubts about the sustainability of this growth. The IPO is led by Beeline Capital Advisors Pvt. Ltd., and the funds raised will primarily be used for working capital and general corporate purposes.

Investors should approach this IPO with caution due to the company's reliance on third-party contracts and the lack of a proprietary manufacturing unit. While Piotex Industries Ltd. has demonstrated growth potential, the sudden surge in profits raises questions about the authenticity of the numbers. With an average RoNW of 46.82% over the last three years and a P/BV ratio of 3.73 based on its NAV as of March 31, 2024, investors must carefully evaluate the risks involved. The company's dividend policy remains uncertain, as it has not declared any dividends since its inception.

In conclusion, Piotex Industries Ltd.'s IPO presents a high-risk, low-return opportunity for investors. The company's financial performance, especially the significant increase in profits leading up to the IPO, may raise red flags for potential investors. With no listed peers for comparison and uncertainties surrounding its dividend policy, investors must conduct thorough due diligence before considering this investment. It is advisable for well-informed investors with surplus funds to cautiously evaluate this opportunity for medium-term investment potential.

Piotex Industries IPO Subscription Status (Bidding Details)

Table not found

Piotex Industries IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Piotex Industries IPO FAQs

What is Piotex Industries IPO?

Piotex Industries is issuing 1,539,600 equity shares with a face value of 10 each, totaling up to ₹14.47 Cr. The shares are being offered at a price of ₹94 each, with a minimum order quantity of 1200 shares.

Cameo Corporate Services Limited is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Piotex Industries IPO will open?

Piotex Industries will open on May 10, 2024 for QIB, NII, and Retail Investors.

When Piotex Industries IPO will end?

Piotex Industries will end on May 14, 2024.

What is Piotex Industries IPO Size?

Premier Roadlines IPO size is 14.47 Cr.

What is Premier Roadlines IPO Price Band?

Piotex Industries price band is ₹94 per share.

What is the Piotex Industries IPO Allotment Date?

Piotex Industries allotment date is May 15, 2024.

What is the Piotex Industries IPO Listing Date?

Piotex Industries listing date is May 17, 2024. The IPO is to be listed on BSE and NSE.

How to Piotex Industries IPO through Zerodha?

To apply for the IPO “Piotex Industries” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Piotex Industries IPO through Upstox?

To apply for the IPO “Piotex Industries” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Piotex Industries IPO Allotment Status?

For Piotex Industries IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Piotex Industries IPO GMP?

You can check out here: Piotex Industries IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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