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03 May 2024

Piotex Industries Limited IPO

PIOTEX is a professional textile firm founded by two textile technocrats who have vast experience in the field textile industry. Piotex is primarily in marketing activities related to Textile industries and associated with leading brands of Textile Machinery and Accessories. Over the years, Piotex committed itself to provide reliable and durable textile machine technology leading to value addition and human resources enhancement. Piotex has started associating with the world class manufacturers in the field of machinery and accessories. Today PIOTEX is fully equipped to respond to any requirements in terms of Textile Machinery and Accessories across the line from Ginning, Spinning, and Weaving etc.

Piotex Industries IPO is a fixed price issue of Rs 14.47 crores. The issue is entirely a fresh issue of 15.4 lakh shares. Piotex Industries IPO price is ₹94 per share. The minimum lot size for an application is 1200 Shares. Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Piotex Industries IPO, while Cameo Corporate Services Limited is the registrar for the issue. The market maker for Piotex Industries IPO is Spread X Securities.

Piotex Industries IPO Overview

Detail	Description
IPO Date	May 10, 2024 to May 14, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹94 per share
Lot Size	1200 Shares
Total Issue Size	1,539,600 shares (aggregating up to ₹14.47 Cr)
Fresh Issue	1,539,600 shares (aggregating up to ₹14.47 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	BSE SME
Share holding pre issue	3,564,000
Share holding post issue	5,103,600
Market Maker portion	78,000 shares Spread X Securities

Piotex Industries IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Friday, May 10, 2024
IPO Close Date	Tuesday, May 14, 2024
Basis of Allotment	Wednesday, May 15, 2024
Initiation of Refunds	Thursday, May 16, 2024
Credit of Shares to Demat	Thursday, May 16, 2024
Listing Date	Friday, May 17, 2024
Cut-off time for UPI mandate confirmation	5 PM on May 14, 2024

Piotex Industries IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹112,800
Retail (Max)	1	1200	₹112,800
HNI (Min)	2	2,400	₹225,600

Piotex Industries IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	-
Market Maker Shares Offered	78,000 (5.07%)
Other Shares Offered	730,800 (47.47%)
Retail Shares Offered	730,800 (47.47%)
Total Shares Offered	1,539,600 (100%)

Piotex Industries IPO Promoter Holding

Share Holding Pre Issue	100.00%
Share Holding Post Issue	69.83%

Company & Financials

Founded in 2019, Piotex Industries Limited is engaged in contract manufacturing and trading of yarns, fabrics and cotton bales for various purposes such as apparel and home textiles. The company also manufactures cotton yarn under an outsourcing model (job- work).

The company has two main business areas:

1. Trading in cotton bales, synthetic fibers, cotton yarns, and fabrics: The company manufactures and trades in cotton bales and cotton yarn in the textile centers of Maharashtra, namely Malegaon, Ichalkaranji and Bhiwandi. The company also supplies cotton yarn to Burhanpur and Ahmedabad. For its end product, cotton yarn, the company has entered into an exclusive distribution agreement with Babasaheb Deshmukh Industries Private Limited.
2. Contract Labor and Fabric Weaving: Under this arrangement, the company supplies the yarn to the contract workers and the weaving mill who carry out the weaving process at a contractually agreed price and return the finished product. The finished product, i.e. the fabric, is then sold to the customers.

Piotex Industries Limited Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	3,610.59	1,757.68	1,385.47
Revenue	11,893.88	8,667.21	8,046.39
Profit After Tax	300.80	288.75	74.29
Net Worth	897.18	440.07	151.32
Reserves and Surplus	582.47	425.07	136.32
Total Borrowing	445.94	372.30	528.58
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	44.99%
ROCE	33.20%
Debt/Equity	0.5
RoNW	33.53%
P/BV	3.73
PAT Margin (%)	2.54

	Pre IPO	Post IPO
EPS (Rs)	8.44	5.89
P/E (x)	11.14	15.95

Objectives of Piotex Industries IPO

The Net Proceeds from the Fresh Issue will be utilized towards the following objectives:

1. Funding the Working Capital Requirement.
2. General Corporate Purpose.

Piotex Industries IPO Review

The company is operating in a highly competitive and fragmented segment. It does third party contract manufacturing, which raises major concerns. The sudden boost in its bottom lines from FY23 onwards appears to be a window dressing to fetch fancy valuations. This issue can be termed as a “High Risk / Low Return” bet. Small post-IPO equity base indicates a longer gestation period for migration. Well-informed/cash surplus investors may park moderate funds for the medium term.

FAQs for Piotex Industries IPO

What Is The Size Of The Piotex Industries Limited IPO?

The offer size of Piotex Industries Limited is INR 14.47 crores, consisting of a fresh issue of 35,00,000 shares of Rs.94 each. The company seeks funds for the working capital requirements and to meet general corporate purposes.
What Is The Price Band Of The Piotex Industries Limited IPO?

The price band of the issue is INR 94 per share.
What is the last date and time for the Piotex Industries Limited IPO subscription?

14th May is the last date to apply for the IPO. You can apply on the last date in the market hours.
When will Piotex Industries Limited IPO be listed?

The company will list its IPO in the market on May 17, 2024.
When will Piotex Industries Limited shares be credited?

Piotex Industries Limited shares will be credited on May 16, 2024.