Ahemdabad based Axita Cotton to raise funds through initial public offering

Excerpt: Axita Cotton Ltd. has announced public offering of 1752000 shares at a price of Rs 10.00 each for Cash at a Premium of Rs 50.00 per share.

Axita Cotton Ltd. has announced public offering of 1752000 shares at a price of Rs 10.00 each for Cash at a Premium of Rs 50.00 per share. The gross proceeds of the issue are expected to be Rs 1,051.20 lakhs. The company's initial public offer (IPO) will open on 27 December 2018 and is expected to close on 02 January 2019, subject to customary closing conditions. The IPO includes a fresh Issue of 1752000 Equity Shares of the Company at an price of Rs 60.00 per Equity Share. The proceeds of the IPO will be used to meet the working capital requirements of the company.

Axita Cotton Private Limited, Ahmedabad was incorporated on July 16, 2013. Company was established with the main aim of conducting business of Ginning and Pressing of seed cotton (“Kapas”). Company has installed 48 Ginning and Pressing machines which is having capacity of processing 87,600 MT/Per annum of seed cotton.

The Promoters of our Company Mr. Nitinbhai Govindbhai Patel and Mr. Amitkumar Govindbhai Patel have more than one decade of experience in the cotton textile industry. Promoters have sound knowledge of production process, marketing, finance and all kind of other commercial activities related to the cotton textile industry including but not limited to production and marketing of raw cotton, Cotton bales, Cotton seeds and by-products. Companys’ revenue from operation has reached to 12327.02 Lakhs in the F.Y. 2017-18 as compared to1736.08 Lakhs in its first financial year after incorporation i.e. F.Y. 2013-14.