Vivekanand Cotspin Ltd. IPO: price band, dates, issue size, financials, KPIs and risks

Vivekanand Cotspin Limited is bringing an SME initial public offering (IPO) with a price band of ₹32 to ₹37 per share. The issue opens on 21 Sep 2026 and closes on 23 Sep 2026, with listing scheduled for 28 Sep 2026. The total issue size is ₹24.05 crore and it is entirely a fresh issue, with no offer for sale (OFS). The lot size is 3,000 shares.

What Vivekanand Cotspin does: integrated ginning-to-spinning with by-products and trading

Vivekanand Cotspin Limited is an integrated cotton processing company based in Gujarat. Its operations span two connected stages of the cotton value chain.

First, the company processes raw cotton (kapas) into cotton bales through its ginning operations. Second, it uses those cotton bales as input for spinning to manufacture cotton yarn. The company’s yarn product mix, as described in the offer narrative, includes carded, combed and compact varieties.

Along with yarn, the business also sells by-products such as cotton seed and yarn waste. In addition to manufacturing, Vivekanand Cotspin undertakes trading of cotton bales and cotton yarn. The stated rationale is to meet customer requirements and optimise market opportunities.

On the market side, the company’s export exposure (as disclosed in the issue narrative) includes markets such as China, Bangladesh and Vietnam. The offer narrative also indicates that export access and trade execution are supported through group entities.

Operations and corporate milestones before the SME IPO

The company operates ginning and spinning facilities at Rangpurda (Kadi, Mehsana) in Gujarat. The offer document positions the proximity to cotton-growing regions as relevant to raw material access and logistics.

In terms of corporate structure milestones disclosed:

The business was formed in 2016 as Vivekanand Cotspin LLP. In 2024, it converted from a limited liability partnership into a private limited company named Vivekanand Cotspin Private Limited. Later in 2024, it converted into a public limited company and was renamed Vivekanand Cotspin Limited.

The IPO is being proposed as an SME listing, with the offer document centred on the company’s integrated ginning-and-spinning model, product capability, and revenue mix across products and geographies.

IPO structure: fresh issue, reservations and what proceeds are intended for

The Vivekanand Cotspin IPO is a 100% fresh issue of ₹24.05 crore and does not have an OFS component. This means the IPO proceeds are proposed to accrue to the company, and there is no disclosed shareholder sell-down as part of this offer.

The company states that it intends to utilise the proceeds of the issue towards:

1. funding capital expenditure requirements towards plant and machinery,
2. meeting working capital requirements, and
3. general corporate purpose.

The reservation split disclosed is 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs). The disclosures also provide for an anchor allocation within the QIB portion, with a domestic mutual fund reservation within the anchor book.

Financial performance: revenue, PAT and asset base across FY2024–FY2026

Across the reported periods, the financials show changes in revenue and profit after tax (PAT), with total assets staying within a relatively narrow range.

In FY2024, total revenue was ₹358.02 crore and PAT was ₹3.35 crore. In FY2025, total revenue was ₹290.94 crore and PAT was ₹4.07 crore. In FY2026, total revenue was ₹409.32 crore and PAT was ₹3.69 crore.

The reported PAT margin moved from 0.94% in FY2024 to 1.40% in FY2025 and 0.90% in FY2026. Total assets were ₹84.83 crore in FY2024, ₹87.53 crore in FY2025 and ₹84.85 crore in FY2026.

Given the business profile in cotton processing and trading, the offer narrative highlights exposure to cotton price volatility, seasonality and weather dependence affecting cotton availability and procurement costs, and export-market concentration risk.

Valuation and KPI context: margins, returns and leverage as disclosed

The offer disclosures include key performance indicators that provide context on profitability, returns and leverage. The reported earnings per share (EPS) is ₹2.27.

Return ratios disclosed include return on equity (ROE) of 15.96% and return on capital employed (ROCE) of 13.14%. Return on net worth (RoNW) is also disclosed at 15.96%.

On operating profitability, the disclosed EBITDA margin (earnings before interest, taxes, depreciation and amortisation margin) is 3.70%, while the reported PAT margin is 0.90%. Leverage is indicated by a disclosed debt-to-equity ratio of 1.56.

For valuation references at the IPO band, the offer context reports a pre-IPO price-to-earnings (P/E) multiple of 16.30 times and a price-to-book multiple of 2.08 times.

The grey market premium (GMP) observations available in the provided context for 16 Sep 2026 through 19 Sep 2026 show a GMP of ₹0 against a referenced issue price of ₹37. GMP is an unofficial indicator and can change ahead of subscription and listing.

Key risks and monitoring points investors typically track for this profile

The offer narrative and disclosed business profile highlight several risk factors relevant to a cotton ginning-and-spinning company with trading and exports.

Cotton price and supply disruption risk is identified as a threat, including disruption from climatic factors and trade-related factors. The company also flags exposure to cotton price volatility as a weakness, given cotton’s significance as a production input.

Customer concentration is disclosed as a weakness, with the top 10 customers contributing a large share of revenue. Supplier concentration is also flagged as a weakness, with top suppliers contributing a significant share of purchases.

The risk disclosures and industry context in the offer narrative also cite competition from lower-cost or functionally differentiated synthetic textiles. In addition, tightening environmental regulations and sustainability compliance are described as factors that can increase near-term costs.

Export-market concentration risk is identified as a threat, with exposure to demand and policy changes in key importing countries. The company’s narrative mentions exports to markets such as China, Bangladesh and Vietnam, and indicates export execution supported through group entities.

Monitoring points to track as disclosures update through the IPO process and after listing:

1. Changes in working capital intensity alongside the scale of trading in cotton bales and cotton yarn.

2. Shifts in product mix across carded, combed and compact yarn, and the related share of by-products in revenue.

3. Movement in customer and supplier concentration levels as reported in periodic disclosures.

4. Changes in leverage metrics, given the disclosed debt-to-equity ratio, alongside operating margin movements (EBITDA margin and PAT margin).

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.