Vivekanand Cotspin IPO
Vivekanand Cotspin LtdSME
This IPO has listed.
- Open date
- 21 Sep 2026
- Close date
- 23 Sep 2026
- Min. Investment
- ₹2,22,000
- Lot Size
- -
- Fresh Issue
- ₹22.20 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers1.26x
- Non-Institutional Investors2.05x
- Retail-Individual Investors1.82x
- Total1.73x
Schedule
- Completed: IPO open date21 Sep 2026
- Completed: IPO close date23 Sep 2026
- Completed: Allotment date24 Sep 2026
- Completed: Funds unblock or debit25 Sep 2026
- Completed: Tentative listing date28 Sep 2026
About
Promoter shareholding in Vivekanand Cotspin Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Nirav Bharatbhai Patel | 32,50,000 | 20.00% | 32,50,000 | 14.61% |
| Jasmin Vishnubhai Patel | 32,50,000 | 20.00% | 32,50,000 | 14.61% |
| Bharatbhai Prahaladbhai Patel | 32,49,784 | 20.00% | 32,49,784 | 14.61% |
| Vishnubhai Prahaladdas Patel | 32,49,784 | 20.00% | 32,49,784 | 14.61% |
| Gautam Bharatkumar Patel | 32,50,000 | 20.00% | 32,50,000 | 14.61% |
| B P Patel Family Trust | 108 | 0.00% | 108 | 0.00% |
| V P Patel Family Trust | 108 | 0.00% | 108 | 0.00% |
| Ranjanben Bharatbhai Patel | 108 | 0.00% | 108 | 0.00% |
| Preet Vishnubhai Patel | 108 | 0.00% | 108 | 0.00% |
Vivekanand Cotspin IPO Strengths & Risks
- Forward Integration.
- Cost effective production and timely fulfillment of orders.
- Scalable Business Model.
- Quality Focus.
- Experienced Promoter.
- Risks Relating to the Business: Any fluctuations in cotton prices and availability may pose a significant risk to the Company's cost of production and profitability.
- Risks Relating to the Business: Dependence on seasonal cotton production may disrupt raw material procurement, impacting manufacturing continuity, production schedules, and profitability.
- Risks Relating to the Business: There is intense competition in the cotton processing and yarn manufacturing industry, which may affect market position and profitability.
- Risks Relating to the Business: There is volatility in foreign exchange rates, which may affect export revenues and impact overall profitability.
- Risks Relating to the Business: In case of the company inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operates its business it may have a material adverse effect on the company's business.
- Risks Relating to the Business: The company's revenues are significantly dependent upon sales of its main products that are cotton bales and yarn.
- Risks Relating to the Business: The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
- Risks Relating to the Business: Its Restated Financial Statements are reviewed and signed by a peer-reviewed auditor who is not the Statutory Auditor of the Company, which could give rise to differences in professional judgment or interpretation.
- Risks Relating to the Business: The company's operations are subject to high working capital requirements. Its inability to maintain sufficient cash flow, credit facilities and other sources of funding, in a timely manner, or at all, to meet requirement of working capital or pay out debts, could adversely affect the company operations.
- Risks Relating to the Business: The Company has not entered into any fixed or long term contracts with its customers and its will operates on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact the company's revenues and profitability.
- Risks Relating to the Business: Its does not maintain long-term contracts with the company third-party suppliers, and the company's business may be adversely affected by a shortfall in supply, or increase in price of materials.
- Risks Relating to the Business: The company has engaged in related party transactions and may continue to do so in the future. A significant portion of its sales and purchase transactions are with related parties.
- Risks Relating to the Business: The company's business, financial condition and results of operations are subject to seasonal fluctuations associated with cotton crop cycles, availability of raw cotton and demand patterns in the textile industry, which may adversely affect its revenues, cash flows and profitability.
- Risks Relating to the Business: The company is exposed to Risks from Labour Shortages, Strikes, and Wage Demands that Could Affect its Cash Flows and Operational Performance.
- Risks Relating to the Business: If the company fails to acquire new consumers or fails to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability.
- Risks Relating to the Business: The company's success is dependent on its Promoters, management team and skilled & unskilled manpower. The company inability to attract and retain key personnel or the loss of services of its Promoters or Managing Director and Whole Time Director may have an adverse effect on the company's business prospects.
- Risks Relating to the Business: The company Registered and other offices and all its existing manufacturing units from where the company operates, have been acquired on lease basis from the members of its Promoter Group, including the company's Promoters. There can be no assurance that the lease agreements will be renewed upon termination or that its will be able to obtain other premises on lease on same or similar commercial terms.
- Risks Relating to the Business: The company is heavily dependent on a few key customers for a significant portion of its revenue. The loss of any major customer could have a material adverse impact on the company's financial performance.
- Risks Relating to the Business: Certain members of the company's Promoter Group does not possess Permanent Account Numbers ("PAN") due to their foreign nationality and certain Indian Promoter Group members have not filed income tax returns, which may expose them to regulatory actions and may adversely affect the reputation of the Company and the Issue.
- Risks Relating to the Business: The unsecured loan availed by the Company from Promoters, Directors and promoter group members may be recalled at any given point of time.
- Risks Relating to the Business: The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategy could have an effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The Company's logo is not registered as of the date of this Draft Red Herring Prospectus. Its may be unable to adequately protect the company's intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights which could have a material adverse effect on the company's business, results of operations and financial condition. Its may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of the company goodwill.
- Risks Relating to the Business: The debt facilities granted to the Company are secured against collateral properties leased by the Company, as well as personal guarantees from its Directors and Promoters and corporate guarantee from promoter group entity. If any personal guarantees provided by the company's Directors and Promoters are invoked, it could negatively impact its business, financial condition, operations, cash flows, and prospects.
- Risks Relating to the Business: Any increase in or occurrence of the company's contingent liabilities may adversely affect its financial condition.
- Risks Relating to the Business: The Company is yet to place orders for 100% of the Plant and Machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement may delay the company's implementation schedule and may also lead to increase in price of these plant & machinery, further affecting its revenue and profitability.
- Risks Relating to the Business: The company's top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect the company's business operations and profitability.
- Risks Relating to the Business: The price, which the company is able to obtain for the yarn and cotton bales that its produce depend largely on prevailing market prices.
- Risks Relating to the Business: The Company has Export Obligation which are outstanding under the Advance Authorization Scheme.
- Risks Relating to the Business: Increased competition from synthetic and alternative fibers presents a potential risk to the demand for cotton yarn, which could negatively affect the company sales and profitability.
- Risks Relating to the Business: The risks associated with cotton storage and inventory management could potentially impact the integrity of materials and disrupt the company operations.
- Risks Relating to the Business: The company will be required to comply with the provision of the Companies act post conversion which were not applicable on it prior to conversion.
- Risks Relating to the Business: There are certain discrepancies / errors noticed in some of the company's corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.
- Risks Relating to the Business: The Chairman & Managing Director of the Company, Nirav Bharatbhai Patel has been director of the Company which was voluntary Struck-Off.
- Risks Relating to the Business: Alterations in government regulations and trade policies could have a considerable impact on the company's operations and profitability.
- Risks Relating to the Business: The average cost of acquisition of Equity Shares by the company's Promoters could be lower than the Issue price.
- Risks Relating to the Business: Interruptions in the supply chain and logistics could result in delays in production and order delivery.
- Risks Relating to the Business: Any failures in the company quality control processes may have an adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company's inability to collect receivables and default in payment from its customers could result in the reduction of the company profits and affect its cash flows.
- Risks Relating to the Business: Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its existing manufacturing capacities could have an adverse effect on the company's business, future prospects and future financial performance.
- Risks Relating to the Business: There are significant risks to the company's operations, if industrial accidents or workplace safety issues occur, as they could disrupt production and impact employee well-being.
- Risks Relating to the Business: Industry Overview section of this Draft Red Herring Prospectus contain information from the Dun & Bradstreet Report which the company commissioned and purchased and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Risks Relating to the Business: If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect its results of operations.
- Risks Relating to the Business: The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
- Risks Relating to the Business: Its Promoters and Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- Risks Relating to the Business: The company is subject to the risk of failures of, or a material weakness in, its internal control systems.
- Risks Relating to the Business: There are certain delays in filing returns with Certain Government Authorities. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of relevant act could impact the financial position of the Company to that extent.
- Risks Relating to the Business: Major fraud, lapses of internal control or system failures could adversely impact the company's business.
- Risks Relating to the Business: The company's insurance may not be adequate to protect it against all potential losses to which the company may be subject.
- Risks Relating to the Business: The company's business is substantially affected by prevailing economic, political and other prevailing conditions in India.
- Risks Relating to the Business: Certain of its Directors were previously associated with companies that have been struck off from the register of companies. Any adverse perception arising from such associations may affect the reputation of the Company.
- Risks Relating to the Business: The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
- Risks Relating to the Business: The company is susceptible to risks relating to unionization of its workers employed by the company.
- Risks Relating to the Business: The company has not identified any alternate source of raising the capital expenditure and working capital mentioned as its `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect the company growth plans, operations and financial performance.
- Risks Relating to the Business: The Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
- Risks Relating to the Business: There may be potential conflicts of interest if the company's promoter group entities and group companies get involved in any business activities that compete with or are in the same line of activity as its business operations.
- Risks Relating to the Business: Portion of the company Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [?] of the Issue Proceed. As on date the company has not identified the use of such funds.
- Risks Relating to the Business: The company will continue to be controlled by its Promoters and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
- Risks Relating to the Business: The company's Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
- Risks Relating to the Business: Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Risks Relating to the Business: The Issue Price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Risks Relating to the Business: A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
- Risks Relating to the Business: The requirements of being a listed company may strain its resources and distract management.
- Risks Relating to the Business: Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of the company's Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
- Risks Relating to the Business: Any failures to comply with financial and other restrictive covenants imposed on the company under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
- Risks Relating to the Business: Activities involving the company's manufacturing process can be dangerous and any industrial accident can cause injury to people or property in certain circumstances which could have an adverse effect on its production schedules, costs, revenue and ability to meet customer demand.
- Risks Relating to the Business: The raw material and the finished product stored at the company's factory premises may be subject to distortion and color fading due to lapse of time.
- Risks Relating to the Business: Changes in technology may render the company's current technologies obsolete or requires it to make substantial capital investments. Modernization and technology up gradation is essential to reduce costs and increase the output.
- Risks Relating to the Business: The company's operations are concentrated in the state of Gujarat and any adverse developments affecting Gujarat could have an adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company's raw material and finished products both are highly flammable commodity. Any adverse situation at its factory or godown can have an adverse effect on the company's operations and profitability.
- Risks Relating to the Business: Obsolescence, destruction, theft, breakdowns of the company major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.
- Risks Relating to the Business: The company's business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Failures on account of unavailability of electrical power may restrict it in utilizing the company full capacity and, hence, may impact its business and results of operation.
- Risks Relating to the Business: The company's inability to effectively implement its business and growth strategy may have an adverse effect on the company operation and growth.
- Risks Relating to the Business: The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Risks Relating to the Business: There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Risks Relating to the Business: Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.
- Risks Relating to the Business: Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Risks Relating to the Business: Certain data mentioned in this Prospectus has not been independently verified.
- Risks Relating to the Business: Activities involving the company's manufacturing process can be dangerous and any industrial accident can cause injury to people or property in certain circumstances which could have an adverse effect on its production schedules, costs, revenue and ability to meet customer demand.
- Risks Relating to the Business: The raw material and the finished product stored at the company's factory premises may be subject to distortion and colour fading due to lapse of time.
- Risks Relating to the Business: Changes in technology may render the company's current technologies obsolete or requires it to make substantial capital investments. Modernization and technology up gradation is essential to reduce costs and increase the output.
- Risks Relating to the Business: The company's raw material and finished products both are highly flammable commodity. Any adverse situation at its factory or go down can have an adverse effect on the company operations and profitability.
- Risks Relating to the Business: Obsolescence, destruction, theft, breakdowns of the company's major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations
- Risks Relating to the Business: The company's business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Failures on account of unavailability of electrical power may restrict the company in utilizing its full capacity and, hence, may impact the company's business and results of operation.
- Risks Relating to the Business: The company's inability to effectively implement its business and growth strategy may have an adverse effect on the company operation and growth.
- Risks Relating to the Business: The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Risks Relating to the Business: There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Risks Relating to the Business: Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.
- Risks Relating to the Business: Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Risks Relating to the Business: Certain data mentioned in this Prospectus has not been independently verified.
