United Cotfab IPO subscribed over 48 times on day 4; check latest GMP, subscription status, key dates, more

  • United Cotfab IPO subscriptions open from June 13 to June 19 at 70 per share. Company known for high-quality yarn, owned by Nirmalkumar Mittal. Grey market premium suggests listing price could be 82 per share.

Dhanya Nagasundaram
Updated19 Jun 2024, 01:43 PM IST
United Cotfab IPO began subscriptions today (Thursday, June 13) and will close on Wednesday, June 19.
United Cotfab IPO began subscriptions today (Thursday, June 13) and will close on Wednesday, June 19.(www.unitedcotfab.com/)

The United Cotfab IPO began subscriptions on Thursday, June 13 and will close on Wednesday, June 19. The United Cotfab IPO has a lot size of 2,000 shares. The United Cotfab IPO price band has been set at 70 per equity share, having a face value of 10.

The company produces high-quality open-end yarn for the textile industry. The company's manufacturing process meets high quality requirements and is supported by cutting-edge technology and machinery. The company follows a rigorous process that includes raw material selection, blending (if necessary), spinning, winding, and quality control.

The firm's proprietors are Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal. The company's promoters have over 55 years combined experience in the cotton textile industry.

According to the Red Herring Prospectus (RHP), the company's (P/E of 517.10) listed peers include Lagnam Spintex Ltd (P/E of 8.93), PBM Polytex Ltd (P/E of 209.12), and Vippy Spinpro Ltd (P/E of 9.47).

The United Cotfab IPO basis of share allocation will be completed on Thursday, June 20, and the business will begin refunds on Friday, June 21, with the shares credited to allottees' demat accounts on the same day. United Cotfab's IPO shares are planned to be listed on BSE SME on Monday, June 24th.

Also Read: United Cotfab IPO price band set at 70 apiece; SME IPO to kick off for subscription on June 13

United Cotfab IPO subscription status

United Cotfab IPO subscription status is 48.95 times, on day 4, so far. 

The retail portion was subscribed 55.31 times, and NII portion was booked 36.11 times.

The company has received bids for 24,10,16,000 shares against 49,24,000 shares on offer, at 13:39 IST, according to data on chittorgarh.com.

United Cotfab IPO subscription status was 2.59 times, on day 1, and the issue was booked 8.68 times on the second day of bidding. United Cotfab IPO subscription status was 23.66 times, on day 3.

United Cotfab IPO GMP today

United Cotfab IPO GMP or grey market premium is +11. This indicates United Cotfab share price were trading at a premium of 11 in the grey market, according to investorgain.com.

Given the top end of the IPO pricing band and the current premium in the grey market, the estimated listing price for United Cotfab shares is 81 per share, 15.71% more than the IPO price of 70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: GEM Enviro IPO price band set at 71 - 75 per share; SME IPO to open on June 19

United Cotfab IPO details

The United Cotfab IPO, worth 36.29 crore, consists of a fresh issuance of 5,184,000 equity shares at face value of 10. There is no offer-for-sale component.

The proceeds from the fresh issuance will be used to achieve the following objectives: working capital requirements, general corporate purposes, and public issue expenses.

Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the United Cotfab IPO, and Purva Sharegistry India Pvt Ltd is the registrar. Spread X Securities is the market maker for United Cotfab's IPO.

United Cotfab IPO Review

The company that was primarily a trader in fabrics went on xstream for manufacturing cotton yarn in April 2023, and thus has just one full year performance. The year marked boosted top and bottom lines that not only raise eyebrows, but also concern over its sustainability, being a highly competitive and fragmented segment. Based on FY24 super earnings, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds for the long term,” said Dilip Davda, the contributing editor at Chittorgarh.

Also Read: ixigo IPO allotment in focus today; latest GMP, key dates, step-by-step guide to check status

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:19 Jun 2024, 01:43 PM IST
HomeMarketsIPOUnited Cotfab IPO subscribed over 48 times on day 4; check latest GMP, subscription status, key dates, more

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