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

United Cotfab IPO price band set at ₹70 apiece; SME IPO to kick off for subscription on June 13/Company' website

MINT | June 11, 2024 | 08:51 PM IST | Breaking News | Follow on Google News

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

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

The United Cotfab IPO price band has been fixed at ₹70 per equity share with a face value of ₹10 apiece. The United Cotfab IPO will kickstart its subscription on Thursday, June 13, and close on Wednesday, June 19. The United Cotfab IPO lot size consists of 2,000 shares. 

The firm manufactures high-quality open-end yarns for the textile industry. The company’s production process adheres to high quality standards and is supported by cutting-edge technology and machinery. The business employs a methodical methodology that involves raw material selection, mixing (if necessary), spinning, winding, and quality monitoring.

Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal are the promoters of the firm. The company’s promoters have over 55 years of combined expertise in the cotton textile sector.

As per the Red Herring Prospectus (RHP), the company’s (P/E of 517.10) listed peers are Lagnam Spintex Ltd (with a P/E of 8.93), PBM Polytex Ltd (with a P/E of 209.12), and Vippy Spinpro Ltd (with a P/E of 9.47).

Tentatively, the United Cotfab IPO basis of allocation of shares will be concluded on Thursday, June 20, and the firm will commence refunds on Friday, June 21, with the shares being credited to allottees’ demat accounts on the same day. United Cotfab’s IPO shares are expected to be launched on BSE SME on Monday, June 24.

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 GMP today

United Cotfab IPO GMP today or grey market premium is +18. This indicates United Cotfab share price were trading at a premium of ₹18 in the grey market on Tuesday, according to investorgain.com.

Given the upper end of the IPO price band and the existing premium in the grey market, the expected listing price of United Cotfab shares is ₹88 per, which is 25.71% more than the IPO price of ₹70.

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

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