Avax Apparels and Ornaments Limited is set to launch its initial public offering (IPO) from January 07 to January 09, 2025, aiming to raise approximately ₹1.92 crores through a fresh issue of 274,000 shares priced at ₹70 each. The company operates in wholesale trading and online retail of silver ornaments, focusing on knitted cloth for garment manufacturing. The primary objective of the IPO is to address working capital requirements, with ₹1.5 crores allocated for this purpose, while the remaining funds will support general corporate needs and brand building efforts.
₹10
₹70
₹133.00
Expert Opinions
Market sentiment for the Avax Apparels and Ornaments IPO is cautiously optimistic, reflecting growing interest in the apparel and ornament sectors. Company strengths include a strategic location in Punjab, which provides access to quality knitted fabric and a strong network for wholesale trading, alongside a diverse range of silver ornaments offered online. However, potential risks and challenges involve reliance on a limited number of customers and suppliers, which could impact revenue stability if relationships falter.
The valuation analysis indicates an IPO price of ₹70 per share, with the company reporting significant revenue growth from ₹14.70 crores in FY2023 to ₹22.06 crores in FY2024, showcasing its potential for profitability. From a long-term investment perspective, Avax Apparels is well-positioned to leverage increasing consumer demand.
Investor Considerations
Company performance and fundamentals indicate a robust growth trajectory, with revenue increasing from ₹14.70 crores in FY2023 to ₹22.06 crores in FY2024, alongside profits rising from ₹0.69 crores to ₹1.38 crores, reflecting solid operational management. The sector outlook is favorable, driven by rising consumer demand for apparel and ornaments, particularly in the context of increasing disposable incomes and changing fashion trends.
The IPO valuation is set at ₹70 per share, aiming to raise ₹1.92 crores primarily for working capital needs and general corporate purposes, making it an accessible investment opportunity. While the growth prospects appear promising due to strategic initiatives and market positioning, potential risk factors include reliance on a limited customer base and exposure to market volatility. A long-term investment horizon is advisable, as the company seeks to capitalize on sector growth while navigating inherent challenges.
| Date | GMP | Trend |
|---|---|---|
| 13 Jan 2025 11.24 | ₹10 | --- |
| 12 Jan 2025 16.31 | ₹10 | --- |
| 11 Jan 2025 12.34 | ₹10 | --- |
| 10 Jan 2025 11.04 | ₹10 | --- |
| 09 Jan 2025 11.03 | ₹10 | --- |
| 08 Jan 2025 11.01 | ₹10 | Down |
| 07 Jan 2025 10.41 | ₹20 | --- |
| 06 Jan 2025 10.51 | ₹20 | --- |
| 05 Jan 2025 10.07 | ₹20 | Up |
| 04 Jan 2025 11.44 | ₹00 | --- |
| 03 Jan 2025 11.29 | ₹00 | --- |
| 18 Sep 2024 10.58 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Avax Apparels And Ornaments’ listing performance. While the GMP of ₹10 predicted a modest premium of 14.29% over the issue price, the stock delivered a much stronger gain of 90%. With a substantial prediction error of 66.25%, the GMP significantly underestimated the magnitude of gains, though it correctly predicted the positive listing direction, demonstrating its limitations as a reliable price predictor in this case.
Avax Apparels And Ornaments IPO Current GMP is ₹10.
Avax Apparels And Ornaments IPO Expected Returns is 14.29%.
Avax Apparels And Ornaments IPO estimated listing price is ₹80.