United Cotfab Limited IPO Message Board (Page 4)

​@M Gupta Are you betting on this one??

​@Mr. Singh Easier as in expected NII subs?

Can't get number. But other IPO may go 1000x in HNI and this will be much lesser that. May be 100x or 150x.

What is the Company's financial performance like in terms of revenue, profitability, and growth rate?

Looking at the promoter being fined by SEBI in March 2024 for artificially inflating the price of his other company - it would be better for retail investors to stay out of this IPO for their own safety.

​@BLUE WHALE You're right Mr Whale

​@Iranna keep on doing good work, dont get diverted by few arrogant replies

Expected Subscription 80 times?

Like 3C IT , this IPO also opened for 1 extra day.

Usually below average IPOs come with 1 extra day in SME counter.

This might be due to Purva factor , which is special in late unblocking.

Guys
Are you applying here

​@svh - Sorry Sir, I'm not aware of any discount broker providing free terminal facility currently.
I used Dartstox terminal in the past (Upstox supported it, later they stopped), now I only use web-based/mobile platforms of Zerodha, Upstox and Prostocks.
Maybe you can create a new post with your query, so that if any other member is aware they can also share.

​@RPSM What's your call on wsol as u hv explained results very well . Give your view....

Piotex Up today
As United Coftab from same industry, same LM & Same MM

​@Gaurav DD dimer Any news of piotex?

​@B positive 

No News. This usually happens, a recent listed stock give upside run, when new ipo comes with same LM.

Seen it many times, so i bought it today. May give run up, till this issue close.

Dependable LM+MM
This unit is bascially a combing, carding spinning unit manufacturing open end yarn which is then used by weavers to make grey / dyed fabric
Group companies like Vinod Spinners, Vinod Cotfab and United Polyfab Pvt Ltd are in the same line of business (yarn manufacturing) which could lead to conflict of interest.
Textile process is combing/carding --> spinning --> weaving --> dyeing and finishing.
Overall the group seems to have raw material to finished fabric manufacturing processes under its umbrella but different companies for each process.
Side effect of such business model is there will be large number of related party transactions, both purchases and sales, among group companies
High value of related party transactions also makes it easy to manipulate and shift profit from 1 legal entity to another
In 23-24, 56% of finished goods sales were to related parties while 58% of purchases were from related parties
FY23-24 was the first full year of operation so YoY comparison of revenue & expenses is not possible
23-24 cash flow is decent, largely aided by stretched creditors payments. This appears unsustainable as evidenced by objective of IPO - finance working capital i.e. make creditors payments.
Material cost is 83.5% of sales which makes it a high volume low margin business and slight movement in material cost can have high impact on profitability
Despite high material cost, company has shown good profitability largely aided by increase in inventory.
Without inventory increase, PBT margin comes at 3.7% leaving very limited operating flexibility
Capacity utilisation for 23-24 was 81.5%. Assuming same product mix, same pricing (RM & FG) and 95% capacity utilisation for 24-25, estimated turnover comes to Rs 135 cr.
Company is targetting Rs 150 cr turnover for 24-25, calculated from working capital estimates.
This implies that either company is expecting a better product mix, higher selling prices etc. in 24-25. Whether this materialises or not is to be seen.
Company has 118 employees as on 31-Mar-24. The CFO of the company is a textile engineer who was earlier head of spinning department.
His competence in financial matters is debatable, most likely he will be a rubber stamp with the promoter actively managing financial matters.
The issue proceeds will be used for financing working capital needs and general corporate purpose.
Company has applied for solar PV plant and has already spent Rs 2.3 cr for equipment. This should help in controlling power costs
In view of high % of related party transactions, receivables ageing makes no sense
Company has imported machines under EPCG scheme and thus has export obligation of $ 5.5 millon (Rs 46 cr approx.)
Given that company has no export track record, remains to be seen how this export obligation is fulfilled
Out of total assets of Rs 81 cr (non current + current) promoters have contributed Rs 24 cr ( Rs 12 cr capital and Rs 12 cr unsecured loans) whereas the rest is funded through debt
Unsecured loans from promoters have weighted average interest rate of 1.5%, as on 31-Mar-24
Fixed price issue, without QIB or anchor investors, likely to see selling pressure in initial days of listing
As pointed out by other members, the promoters & group company have been penalized by SEBI for manipulating share price. Flip side is promoters are well experienced/connected about managing share price.

Thanks for the information.

All the current and upcoming issues seems golmaal types. Better to be a little more attentive!!

Yes, adopt the approch of "SELL AND APPLY"

Gone thru RHP this weekend.
Mostly like that type only.
Banty Bably type.

Here one more
EnNutrica (Dindigul Farm) SME IPO Details
20 – 24 June 2024

Surprised DD ji has not mentioned about the SEBI fine incident related to the promoters w.r.t another listed company. Any online source for this information.?

Fix rate application 900/- ... Issue is very weak ,, Thats why offering fix rate .... This is my view point only

​ They will give you fix amount ie 900/- on application. Application should be valid and profit and loss will be borne by the broker. Income-tax and brokerage if any , to be borne by the applicant. Their purpose only to increase the subscription to attract innocent public... Thanks

​@Palka Ji yes👍 after many months we are seeing Kostak rate in SME IPO .Yes ur point is valid. 👍
@Learning IPO Market Fix rate application means you can sell your application to fix rate in grey market (Here fix rate is 900 per application) . Your application is bought at 900 rs. Now whether you may get allotment or not you will get 900 rs. per application.

📢 NEW 2 more IPO UNLOCKED -

🔷Durlax Top Surface Limited SME IPO
🔶Date (TNT) : 19-21 June
🔶Issue Price : 65-68
🔶Lot Size : 2000
🔶Issue Size : 40.8 cr
🔶LM : Expert Global

🔷Falcon Technoprojects India SME IPO
🔶Date (TNT) : 19-21 June
🔶Issue Price : 92 /-
🔶Lot Size : 1200
🔶Issue Size : 13.69 cr
🔶LM : Kunvarji Finstock

GPES me to subscription isse bahut jayda hone wale h to allotment k chances isme jyada honge 20-25% GMP lena sahi rhega ... discount listing k bhi koi chances bn skte h kya isme

Total fraud with no justification of Rs 70. Promoter have invested at Rs 10 but asking public for 70 with a running business for just 6 months (that to with transactions with group companies). Promoter recently fined by SEBI for stock manipulation.

The company is a total fraud. The promoter has been fined by SEBI for stock manipulation of his another company in March 2024. The promoter have recently subscribed to shares at 70 but were alloted bonus shares 2 days later to bring the effective price to 10. There is no jistification of premium charged to retail investor and is pure fraud with nothing to back it.

Sell and apply only.... Little bit risky

Subject to 32000/-

I think.. it must be avoided

Subject to 30000/-