Vivekanand Cotspin IPO

SME • BSE SME • Fresh capital only

LISTEDSMEBSE SME

Vivekanand Cotspin

Price band

₹32 – ₹37

Lot size

3000 shares

Min investment

₹1,11,000

Issue size

₹22.2 Cr

About the company

Vivekanand Cotspin Limited was started in July 2015. It processes cotton and makes yarn, and also trades in cotton. Its work has two parts. Ginning is the first step, where raw cotton is cleaned and the fibre separated from the seed, producing cotton bales and cotton seed. Spinning is the next step, where the cleaned fibre is spun into yarn. Doing both means the company can take cotton from the farm gate through to finished yarn. Its products are cotton bales, cotton seeds and cotton yarn. The yarn is offered in carded and combed grades, combed being the finer and more processed of the two, and is sold both in India and abroad to buyers who make fabric. Its manufacturing facility is at Rangpurda in Kadi, in the Mahesana district of Gujarat, close to the cotton growing regions of Gujarat and Maharashtra. It has an annual capacity of about 4,550 tonnes of cotton yarn and 8,000 tonnes of cotton bales.

Vivekanand Cotspin Limited gins and spins cotton, producing cotton bales, seeds and carded and combed yarn for domestic and export customers. Its plant at Rangpurda in Kadi, Gujarat sits near the cotton belt with capacity of about 4,550 tonnes of yarn and 8,000 tonnes of cotton bales a year.

IPO details

Issue price: ₹37
Price band: ₹32 – ₹37
Face value: ₹10
Lot size: 3000
Min investment: ₹1,11,000
Issue size: ₹22.2 Cr
Sale type: Fresh capital only
Listing on: BSE SME
BSE scrip code: 7981
NSE symbol: VIVEKANAND.BO

Lot size & investment by category

APPLICATION	LOTS	SHARES	AMOUNT
Retail (Min)	1	3,000	₹1,11,000
Retail (Max)	1	3,000	₹1,11,000
HNI (Min)	2	6,000	₹2,22,000

Investor reservation

CATEGORY	RESERVED
QIB	28,50,000 shares (50.00% of the Offer)
NII	8,55,000 shares (15.00% of the Offer)
Retail	19,95,000 shares (35.00% of the Offer)

Objects of the issue

1Funding for capital expenditure requirement towards installation of additional plant and machinery5.27

2To meet Working Capital requirements11.00

3General Corporate Purposes

Financials

Rs. Crore • restated

METRIC	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	84.85	87.53	84.83
Total Income	409.32	290.94	358.02
Profit After Tax	3.69	4.07	3.35
EBITDA	15.09	14.59	14.59
NET Worth	28.94	17.26	20.62
Reserves and Surplus	12.69	2.26	5.62
Total Borrowing	45.00	54.76	40.02

Key performance indicators

P/E Ratio

22.84

EPS (₹)

1.62

RoE

15.96%

RoCE

13.14%

RoNW

15.96%

PAT Margin

0.90%

EBITDA Margin

3.70%

Debt / Equity

1.56

NAV (₹)

17.81

✓ Strengths

• The company handles both ginning and spinning, so it can take cotton from the raw stage through to finished yarn rather than depending on bought-in fibre.

• The plant at Kadi in Gujarat is close to the cotton growing regions of Gujarat and Maharashtra, which shortens the journey and cost of its main raw material.

• It has an established capacity of about 4,550 tonnes of cotton yarn and 8,000 tonnes of cotton bales a year.

• EBITDA has been steady at around Rs 14.59 crore to Rs 15.09 crore across the last three years.

• Net worth has grown from Rs 20.62 crore in FY2024 to Rs 28.94 crore in FY2026.

• Borrowing came down from Rs 54.76 crore in FY2025 to Rs 45.00 crore in FY2026.

• It offers both carded and combed yarn and sells in export markets as well as in India.

• The turnover is large for a company of this size, at Rs 409.32 crore in FY2026.

⚠ Risks

• The profit margin is the thinnest in this batch at 0.90%. On income of Rs 409.32 crore the company kept only Rs 3.69 crore.

• Profit actually fell in FY2026, from Rs 4.07 crore to Rs 3.69 crore, even though income rose 41%.

• Sales are volatile. Total income was Rs 358.02 crore in FY2024, fell to Rs 290.94 crore in FY2025 and then rose to Rs 409.32 crore in FY2026.

• The issue is priced at about 22.84 times earnings on an EPS of Rs 1.62, which is a high multiple for a commodity business earning under 1% on sales.

• Debt is high. Total borrowing was Rs 45.00 crore against a net worth of Rs 28.94 crore, a debt to equity ratio of 1.56.

• Cotton is a commodity. Prices move with the crop, with minimum support price decisions and with export demand, and ginning in particular offers very little to differentiate on.

• The whole business runs from one facility at Kadi in Gujarat, so a poor local crop or any problem at that site affects everything.

• The post issue promoter holding is not stated in the data available to us, so the extent of dilution is not clear.

• This is an SME issue. One lot is 3,000 shares, which is about Rs 1.11 lakh at the upper band of Rs 37, and SME shares usually trade in low volume after listing.

Promoters & holding

Nirav Bharatbhai Patel, Jasmin Vishnubhai Patel, Bharatbhai Prahaladbhai Patel, Vishnubhai Prahaladdas Patel, Gautam Bharatkumar Patel, B P Patel Family Trust and V P Patel Family Trust

Pre-issue promoter holding

100%

Post-issue promoter holding

—

Data refreshed 07 Nov 2026, 04:55 pm IST. GMP is unofficial market sentiment, not investment advice.