Minerva Capital Research Solutions

Vivekanand Cotspin

ListedListed 28 Sep 2026BSE SMENSE: VIVEKANANDCheck allotment
Current price₹ 44.31+19.76% since issue
Listing day+2.7%
Issue price
₹ 37
Issue size
₹ 22.2 Cr.
Min. investment
₹ 1,11,000
Listing price
₹ 38
Subscribed
1.73x
Lot size
3,000 shares
P/E
22.84
RoNW
15.96%
RoCE
13.14%
Debt / Equity
1.56
PAT margin
0.90%
EBITDA margin
3.70%
RoE
15.96%
EPS
₹ 1.62
NAV
₹ 17.81

About

Vivekanand Cotspin Limited was started in July 2015. It processes cotton and makes yarn, and also trades in cotton. Its work has two parts. Ginning is the first step, where raw cotton is cleaned and the fibre separated from the seed, producing cotton bales and cotton seed. Spinning is the next step, where the cleaned fibre is spun into yarn. Doing both means the company can take cotton from the farm gate through to finished yarn. Its products are cotton bales, cotton seeds and cotton yarn. The yarn is offered in carded and combed grades, combed being the finer and more processed of the two, and is sold both in India and abroad to buyers who make fabric. Its manufacturing facility is at Rangpurda in Kadi, in the Mahesana district of Gujarat, close to the cotton growing regions of Gujarat and Maharashtra. It has an annual capacity of about 4,550 tonnes of cotton yarn and 8,000 tonnes of cotton bales.

Timeline

  1. Opens
    21 Sep
    done
  2. Closes
    23 Sep
    done
  3. Allotment
    24 Sep
    done
  4. Refunds
    25 Sep
    done
  5. Demat credit
    25 Sep
    done
  6. Listing
    28 Sep
    done

Subscription

How many times each investor group bid for its share, as of 26 Sep 2026, 06:30 PM IST.

How much to apply for

The smallest and largest bids for each kind of investor at the upper price band.

Lots and amounts by investor type
Retail (Min)13,000₹ 1,11,000
Retail (Max)13,000₹ 1,11,000
HNI (Min)26,000₹ 2,22,000

Company overview

Financials

Financials by year
Assets84.8587.5384.83
Total Income409.32290.94358.02
Profit After Tax3.694.073.35
EBITDA15.0914.5914.59
NET Worth28.9417.2620.62
Reserves and Surplus12.692.265.62
Total Borrowing4554.7640.02

Strengths

  • The company handles both ginning and spinning, so it can take cotton from the raw stage through to finished yarn rather than depending on bought-in fibre.
  • The plant at Kadi in Gujarat is close to the cotton growing regions of Gujarat and Maharashtra, which shortens the journey and cost of its main raw material.
  • It has an established capacity of about 4,550 tonnes of cotton yarn and 8,000 tonnes of cotton bales a year.
  • EBITDA has been steady at around Rs 14.59 crore to Rs 15.09 crore across the last three years.
  • Net worth has grown from Rs 20.62 crore in FY2024 to Rs 28.94 crore in FY2026.
  • Borrowing came down from Rs 54.76 crore in FY2025 to Rs 45.00 crore in FY2026.
  • It offers both carded and combed yarn and sells in export markets as well as in India.
  • The turnover is large for a company of this size, at Rs 409.32 crore in FY2026.

Risks

  • The profit margin is the thinnest in this batch at 0.90%. On income of Rs 409.32 crore the company kept only Rs 3.69 crore.
  • Profit actually fell in FY2026, from Rs 4.07 crore to Rs 3.69 crore, even though income rose 41%.
  • Sales are volatile. Total income was Rs 358.02 crore in FY2024, fell to Rs 290.94 crore in FY2025 and then rose to Rs 409.32 crore in FY2026.
  • The issue is priced at about 22.84 times earnings on an EPS of Rs 1.62, which is a high multiple for a commodity business earning under 1% on sales.
  • Debt is high. Total borrowing was Rs 45.00 crore against a net worth of Rs 28.94 crore, a debt to equity ratio of 1.56.
  • Cotton is a commodity. Prices move with the crop, with minimum support price decisions and with export demand, and ginning in particular offers very little to differentiate on.
  • The whole business runs from one facility at Kadi in Gujarat, so a poor local crop or any problem at that site affects everything.
  • The post issue promoter holding is not stated in the data available to us, so the extent of dilution is not clear.
  • This is an SME issue. One lot is 3,000 shares, which is about Rs 1.11 lakh at the upper band of Rs 37, and SME shares usually trade in low volume after listing.

What the money is for

Objects of the issue
Funding for capital expenditure requirement towards installation of additional plant and machinery5.27
To meet Working Capital requirements11
General Corporate Purposes—

Promoters

  • Nirav Bharatbhai Patel
  • Jasmin Vishnubhai Patel
  • Bharatbhai Prahaladbhai Patel
  • Vishnubhai Prahaladdas Patel
  • Gautam Bharatkumar Patel
  • B P Patel Family Trust
  • V P Patel Family Trust
Promoter holding100%→—before → after the issue

Registrar, lead managers and documents

Listing on
BSE SME
Face value
₹ 10 a share
Registrar
MUFG Intime India Private Limited
Basis of allotment
Open

IPO dates, prices, grey market premium (GMP), subscription and the company overview: IPO Guru, updated three times a day. GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Our recommendations are research opinions, not investment advice. Read the offer document (RHP) and consult your financial adviser before investing.