Vivekanand Cotspin Limited IPO

“What the company does: gins raw cotton (kapas) into cotton bales and cotton seed, spins bales into cotton yarn at one plant at Rangpurda, Kadi, in Mahesana district, Gujarat, and also trades cotton bales and yarn (RHP p.160).”

“Who pays it: local fabric producers, corporate buyers and overseas customers (RHP p.177), whom the prospectus does not name because they have not consented (RHP p.45).”

“Two group entities, Ambica Cotseeds Limited and Vivekanand Industries, took 38.46% and 27.62% of FY24 revenue, and 3.21% and 3.28% of FY26 revenue (RHP p.25).”

“Why it is raising money: ₹1,100.00 lakh for working capital and ₹526.89 lakh for new spinning machinery, with a balance not yet stated for general corporate purposes (RHP p.100).”

“How fast it has grown: revenue from ₹35,738.81 lakh in FY24 to ₹40,801.01 lakh in FY26, and profit after tax from ₹335.33 lakh to ₹368.78 lakh (RHP p.115); by our arithmetic that is about 6.8% and 4.9% a year.”

“FY26 profit after tax was 0.90% of revenue (RHP p.115), and export incentives and a yarn VAT subsidy of ₹403.31 lakh (RHP p.244) came to about 79% of FY26 profit before tax of ₹512.87 lakh by our arithmetic (RHP p.66).”

“The business began as Vivekanand Cotspin LLP in July 2015, became a private company on August 5, 2024 and a public company on December 16, 2024 (RHP p.2).”

“It runs a ginning unit and a spinning unit of 25,536 spindles at Kadi (RHP p.28).”

“Ginning separates cotton fibre from seed and presses the fibre into bales; spinning turns bales into yarn for weaving and knitting (RHP p.160).”

“Kapas is procured from farmers and agricultural markets (mandis) in Gujarat (RHP p.179).”

“The company also trades: in FY26 its purchases of traded goods were ₹13,341.37 lakh against revenue of ₹40,801.01 lakh (RHP p.66).”

“Customers are given credit of 6 to 12 days (RHP p.51), and bales and yarn are sold mostly through brokers (RHP p.180).”

“Part of the cotton seed from ginning is sold to Vivekanand Industries, which processes it into oil and cake, and Ambica Cotseeds Limited has exported the company's yarn and bales (RHP p.26).”

“The company had 146 employees on payroll at May 30, 2026, 131 of them in production (RHP p.180), and runs a 4 MW ground-mounted solar plant for its own power (RHP p.177).”

“In FY26 cotton, traded goods and the change in stock took ₹37,739.90 lakh, 92.5% of revenue by our arithmetic (RHP p.66).”

“Power and fuel cost ₹580.72 lakh (RHP p.246), and finance cost ₹556.81 lakh (RHP p.66).”

“FY25 adds the LLP's period to August 4, 2024 and the company's period from August 5, 2024, by our arithmetic; the total matches the FY25 product sales the prospectus uses for its customer table (RHP p.177).”

“Export incentives and a yarn VAT subsidy come on top as other operating revenue: ₹350.89 lakh in FY24 and ₹403.31 lakh in FY26 (RHP p.244).”

“Gujarat took 89.40% of FY24 product sales and 81.21% of FY26 product sales (RHP p.172).”

“Exports were ₹3,191.14 lakh, 9.02%, in FY24 and ₹4,137.00 lakh, 10.24%, in FY26, of which China was ₹2,572.58 lakh after no sales there in the earlier years (RHP p.34).”

“Read from the filing: the largest customer's FY24 figure of ₹13,743.42 lakh (RHP p.45) equals the prospectus's FY24 sales to Ambica Cotseeds Limited, and the second customer's ₹9,870.98 lakh equals FY24 sales to Vivekanand Industries (RHP p.25).”

“In FY26 the two group entities' sales of ₹1,339.17 lakh and ₹1,310.63 lakh match the seventh and eighth customers in the top-ten list (RHP p.177).”

“FY25 is the prospectus's own sum of two periods, the LLP from April 1 to August 4, 2024 and the company from August 5, 2024 to March 31, 2025 (RHP p.268).”

“FY25 profit includes a deferred tax credit of ₹155.31 lakh (RHP p.66), which the prospectus attributes to the fall in tax rate from 34.94% for the LLP to 25.17% for the company (RHP p.267).”

“Profit before tax, which that credit does not touch, was ₹524.24 lakh in FY24 and ₹512.87 lakh in FY26 (RHP p.66), and ₹457.74 lakh in FY25 (RHP p.267).”

“Our arithmetic: revenue grew about 6.8% a year from FY24 to FY26, EBITDA about 1.7% and profit after tax about 4.9%; the EBITDA margin fell about 38 basis points and the PAT margin about 3 basis points (RHP p.115).”

“Trade receivable days were 6 in FY24, 9 in FY25 and 12 in FY26 (RHP p.109).”

“Revenue from operations rose from ₹35,738.81 lakh in FY24 to ₹40,801.01 lakh in FY26 (RHP p.115), an increase of ₹5,062.20 lakh by our arithmetic.”

“Yarn sales rose from ₹9,742.95 lakh to ₹21,080.23 lakh while bale sales fell from ₹21,041.68 lakh to ₹15,650.16 lakh (RHP p.38).”

“Over the same years the company's own yarn output fell from 3,703 tonnes to 3,051 tonnes (RHP p.29), and purchases of traded goods were ₹12,754.25 lakh in FY24 and ₹13,341.37 lakh in FY26 (RHP p.66).”

“The prospectus does not say how much of the yarn sold was spun at Kadi and how much was traded, and it labels all product sales as manufacturing (RHP p.172).”

“The MD&A attributes FY26 growth mainly to exports (RHP p.266), which rose from ₹768.30 lakh in the period to March 2025 to ₹4,137.00 lakh in FY26 (RHP p.34).”

“Sales to the two group entities fell from ₹23,614.40 lakh in FY24 to ₹2,649.80 lakh in FY26 by our arithmetic (RHP p.25), so revenue from all other customers rose from about ₹12,124.41 lakh to about ₹38,151.21 lakh.”

“Operating cash flow against profit | ₹2,934.72 lakh against ₹1,198.40 lakh over FY24 to FY26, 2.4 times by our arithmetic; FY25 was an outflow of ₹371.96 lakh (RHP p.117)”

“Receivable days | 6, 9 and 12 in FY24, FY25 and FY26 (RHP p.107)”

“Inventory days | 23, 29 and 20 (RHP p.107)”

“Payable days | 10, 14 and 4 (RHP p.107)”

“Net working capital as % of revenue | 3.8% in FY24 and 8.7% in FY26 by our arithmetic (RHP p.41)”

“Other income | ₹131.14 lakh in FY26, of which ₹99.83 lakh was foreign exchange gain (RHP p.245)”

“Export incentives and subsidy | ₹403.31 lakh in FY26: duty drawback ₹80.42 lakh, RoDTEP ₹120.63 lakh, yarn VAT subsidy ₹202.26 lakh (RHP p.244)”

“Related-party share of revenue | 66.08% in FY24 and 6.49% in FY26 by our arithmetic (RHP p.25)”

“Exceptional items | loss of ₹15.91 lakh on destroyed plant, net of insurance, in the period to March 2025 (RHP p.246)”

“Restatement | period to March 2025: audited profit ₹225.88 lakh, restated ₹407.38 lakh (RHP p.248)”

“Auditor qualifications | none requiring adjustment (RHP p.227)”

“In FY26 export incentives and the yarn VAT subsidy (₹403.31 lakh) and other income (₹131.14 lakh) together came to ₹534.45 lakh by our arithmetic, more than profit before tax of ₹512.87 lakh (RHP p.66).”

“A yarn VAT subsidy receivable of ₹145.03 lakh was outstanding at March 2026 (RHP p.243).”

“The restatement raised profit for the period to March 2025 by ₹181.50 lakh, mostly a deferred tax adjustment of ₹160.51 lakh (RHP p.248), while ₹180.92 lakh of prior-year tax was charged straight to reserves rather than to profit (RHP p.237).”

“The restated statements are signed by a peer-review auditor, S V J K and Associates, not by the statutory auditor, Mistry & Shah LLP (RHP p.39).”

“The FY24 cash inflow came with a ₹1,378.90 lakh rise in payables, and the FY25 outflow with a ₹1,481.91 lakh rise in receivables in the period to March 2025 (RHP p.67).”

“At March 31, 2026 borrowings were ₹4,499.52 lakh against net worth of ₹2,893.57 lakh, a debt to equity ratio of 1.56 (RHP p.258).”

“They were made up of Bank of Baroda term loans of ₹1,087.23 lakh at 8.15% and 9.25% (RHP p.237), cash credit of ₹2,750.58 lakh (RHP p.239) and unsecured loans from five promoters of ₹661.71 lakh (RHP p.238).”

“Cash was ₹29.75 lakh (RHP p.65).”

“By April 30, 2026 borrowings were ₹5,842.87 lakh, including cash credit of ₹4,135.08 lakh (RHP p.259), and 82.09% of borrowings were payable on demand (RHP p.261).”

“The company has no lease liabilities on its balance sheet; its plant land and buildings are leased from Avadh Cotton Industries and from promoters at ₹2.40 lakh a year for each lease (RHP p.182).”

“Contingent liabilities were ₹54.37 lakh, a disputed GST demand (RHP p.247).”

“An export obligation of ₹590.47 lakh FOB is open under an advance authorisation, with a duty liability of ₹303.97 lakh if it is not met (RHP p.49).”

“Guarantees: Nirav Bharatbhai Patel, Jasmin Vishnubhai Patel, Bharatbhai Prahaladbhai Patel, Vishnubhai Prahaladdas Patel and Gautam Bharatkumar Patel have given personal guarantees, and the term loans are also secured by mortgages of land owned by Ranjanben Bharatbhai Patel and Kapilaben Vishnubhai Patel, by Avadh Cotton Industries, and by Bharatbhai Prahaladbhai Patel and Vishnubhai Prahaladdas Patel (RHP p.260).”

“After the issue: the issue amount is blank, so the balance sheet after the fresh issue cannot be worked out, and the capitalisation statement leaves the post-issue column blank too (RHP p.258).”

“None of the proceeds is earmarked for repaying debt (RHP p.100).”

“Machinery: three comber machines at ₹148.89 lakh, six compact spinning systems at ₹176.20 lakh and one automatic cone winder of 44 drums at ₹199.22 lakh including customs duty, from quotations dated June 30 and August 12, 2026 (RHP p.103).”

“The quotations add up to ₹524.31 lakh (RHP p.103), ₹2.58 lakh less than the ₹526.89 lakh in the objects table; the prospectus does not explain the difference.”

“No orders have been placed, and the cone winder quotation was valid up to September 15, 2026 (RHP p.103).”

“Orders are to be placed in September 2026, with commercial production from January 2027 (RHP p.106).”

“The machinery adds no capacity; it is to make combed and compact yarn (RHP p.105).”

“Working capital: the company puts its FY28 working capital need at ₹6,974.87 lakh, of which ₹1,100.00 lakh is to come from the issue (RHP p.100).”

“General corporate purposes: at most 15% of gross proceeds or ₹1,000 lakh, whichever is lower (RHP p.100).”

“No monitoring agency is required because the issue is below ₹5,000 lakh (RHP p.111).”

“The issue: up to 60,00,000 new shares of ₹10 face value, 26.97% of the capital after the issue (RHP p.2).”

“Of these, 3,00,000 are reserved for the market maker; of the net issue of 57,00,000 shares, not more than 28,50,000 go to qualified institutions (up to 17,10,000 to anchors), not less than 8,55,000 to non-institutional bidders and not less than 19,95,000 to individual investors (RHP p.63).”

“The prospectus gives an anchor bid date of September 18, 2026, bidding from September 21 to 23, 2026 and trading on or about September 28, 2026 (RHP p.307).”

“The floor price, cap price and bid lot are blank (RHP p.305), and individual investors must apply for at least two lots, above ₹2 lakh (RHP p.306).”

“Swastika Investmart Limited is the book running lead manager (RHP p.1), and Sunflower Broking Private Limited the market maker (RHP p.84).”

“> Into the business the whole issue: up to 60,00,000 new shares, at a price the prospectus leaves blank (RHP p.1).”

“> To selling shareholders nothing: there is no offer for sale (RHP p.1).”

“The whole issue is new shares and the offer for sale is nil (RHP p.1).”

“The promoters and promoter group will not bid in the issue (RHP p.99).”

“The prospectus names nine 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, Ranjanben Bharatbhai Patel and Kapilaben Vishnubhai Patel (RHP p.1).”

“It states that Bharatbhai Prahaladbhai Patel and Vishnubhai Prahaladdas Patel are brothers, that Nirav Bharatbhai Patel is a son of Bharatbhai Prahaladbhai Patel and that Jasmin Vishnubhai Patel is a son of Vishnubhai Prahaladdas Patel (RHP p.199).”

“It lists Gautam Bharatkumar Patel as a son of Bharatbhai Prahaladbhai Patel and Ranjanben Bharatbhai Patel, and Kapilaben Vishnubhai Patel as the spouse of Vishnubhai Prahaladdas Patel (RHP p.219).”

“Nirav Bharatbhai Patel has been Chairman and Managing Director since January 17, 2025 and has 15 years in cotton ginning and spinning; Jasmin Vishnubhai Patel is Whole Time Director with 6 years (RHP p.197).”

“Bharatbhai Prahaladbhai Patel and Vishnubhai Prahaladdas Patel are non-executive directors with 15 years each (RHP p.198).”

“Gautam Bharatkumar Patel is not a director and has 9 years in textiles (RHP p.213).”

“The prospectus says Ranjanben Bharatbhai Patel and Kapilaben Vishnubhai Patel have limited experience in this business (RHP p.40).”

“The two family trusts were created on December 17, 2024 (RHP p.214).”

“in Singapore (merchant trading), Vivekanand Industries (ginning and cotton-seed oil) and Avadh Cotton Industries (ginning) are in the same trade, and Truepay Finance Private Limited is a finance company (RHP p.30).”

“The company signed non-compete agreements with the first four on March 24 and April 10, 2026 (RHP p.195).”

“What the company pays them: salaries of up to ₹30 lakh a year each are approved for the Managing Director and the Whole Time Director (RHP p.201), and none was paid for 2025-26 (RHP p.202).”

“The company paid ₹167.85 lakh of interest on promoter loans in FY26 by our arithmetic (RHP p.71).”

“No promoter shares are pledged (RHP p.93).”

“Litigation and regulatory matters: Nirav Bharatbhai Patel faces income tax reassessment for assessment years 2019-20 to 2021-22, in which the assessing officer alleges that income of ₹7,13,46,338, ₹13,29,63,889 and ₹5,85,14,669 escaped assessment after Dena Bank flagged high-value transactions; responses have been filed and the matters are pending (RHP p.275).”

“Nirav Bharatbhai Patel was also a director of Sun Ambica Energy Private Limited, which never started business and was struck off at its own request in February 2024 (RHP p.33).”

“Some promoter group members are foreign nationals without PAN, and some Indian members have not filed income tax returns (RHP p.45).”

“August 5, 2024: on conversion, the five partners were allotted 30,00,000 shares each at ₹10 against ₹1,500 lakh of fixed capital in the LLP, with no further cash (RHP p.236); the rest of the partners' balances became unsecured loans to the company (RHP p.261).”

“September 30, 2024: Ranjanben Bharatbhai Patel acquired 100 shares at ₹10.95 (RHP p.94).”

“February 6, 2025: 100 shares each were gifted to the two family trusts (RHP p.94).”

“March 25, 2026: a rights issue of 12,50,000 shares at ₹64, one for every twelve held, raised ₹800 lakh (RHP p.88).”

“Average cost per share: ₹14.15 for the five individual promoters, ₹4.74 for each trust and ₹14.88 for Ranjanben Bharatbhai Patel (RHP p.51).”

“The company has nine shareholders (RHP p.99).”

“The promoters hold 1,62,49,892 of the 1,62,50,000 shares and Preet Vishnubhai Patel, of the promoter group, holds 108 (RHP p.93).”

“Kapilaben Vishnubhai Patel holds no shares (RHP p.214).”

“There is no private equity, venture capital or institutional holder, and no pre-IPO placement (RHP p.1).”

“If the whole issue is allotted, the promoters and promoter group would hold 73.03% of 2,22,50,000 shares by our arithmetic (RHP p.63).”

“Of the promoters' shares, 48,95,000, which is 22.00% of the capital after the issue, are locked in for three years (RHP p.96).”

“The LLP became a private company on August 5, 2024 and a public company on December 16, 2024 (RHP p.2).”

“On conversion, ₹1,500 lakh of partners' capital became share capital and the rest unsecured loans; promoter loans went from ₹31.07 lakh at August 4, 2024 to ₹1,861.71 lakh at March 31, 2025 and ₹661.71 lakh at March 31, 2026 (RHP p.261).”

“Shah & Associates, audited it up to FY24; Mistry and Shah LLP became the company's first auditor on August 6, 2024 (RHP p.84).”

“The Managing Director, Whole Time Director and CFO were appointed on January 17, 2025 (RHP p.210); two independent directors left on December 9, 2025, their two replacements left on April 9, 2026, and the present two joined on April 16, 2026 (RHP p.204).”

“The company secretary changed on June 29, 2026 (RHP p.210).”

“The plant land and buildings were leased from Avadh Cotton Industries and from promoters under leases of November 2024 running ten years from August 5, 2024 (RHP p.182).”

“A solar plant began supplying power in May 2024 (RHP p.268); power and fuel cost fell from ₹1,178.69 lakh in FY24 to ₹580.72 lakh in FY26 (RHP p.246).”

“Purchases from related parties were 28.36% of purchases in FY24 and nil in FY26 (RHP p.49), and sales to group entities fell as set out in section 02.”

“Exports to China of ₹2,572.58 lakh appeared in FY26 (RHP p.34).”

“The family trusts were created on December 17, 2024 (RHP p.214), non-compete agreements were signed in March and April 2026 (RHP p.195), and a ₹800 lakh rights issue at ₹64 was made on March 25, 2026 (RHP p.88).”

“Restatement raised profit for the period to March 2025 from ₹225.88 lakh to ₹407.38 lakh (RHP p.248).”

“The company records errors in two forms filed with the Registrar of Companies in 2025 (RHP p.32), and provident fund deposits in FY24 that were up to 106 days late (RHP p.37).”

“The prospectus attributes the fall in yarn capacity use to a shift towards value-added yarn and to cotton price swings, not to any plant constraint (RHP p.29).”

“The issue-funded machinery does not change installed capacity (RHP p.105).”

“The company's own estimate, not this study's, is that shifting 2,500 kg a day from carded to combed yarn at about ₹10 a kilogram more, and 4,000 kg a day from combed to compact yarn at about ₹5 more, would add about ₹164.25 lakh of revenue a year at optimal use (RHP p.104).”

“As claimed: the industry chapter draws on the "Industry Report on Cotton Yarn" by Dun & Bradstreet dated August 14, 2026, which the company commissioned and paid for (RHP p.18).”

“The commissioned report puts India's cotton yarn production at 3,756.00 thousand tonnes in FY2025 and apparent domestic consumption at 2,612.5 thousand tonnes (RHP p.148).”

“It puts cotton yarn exports at 1,182.81 thousand tonnes in FY2026 (RHP p.153), with Bangladesh taking 43% and China 17% of exports in 2024-25 (RHP p.154).”

“What the company is today: 3,051 tonnes of yarn produced in FY26 (RHP p.29), about 0.08% of the national FY2025 production figure by our arithmetic, on figures for different years.”

“Structure, from the commissioned report: spinning capacity is concentrated among 20 to 25 major mills (RHP p.156), while the wider textile industry is fragmented, with the top 30 organised players at about 13 to 15% (RHP p.156).”

“Raw cotton is more than half of the cost of making yarn (RHP p.156), cotton arrives mainly from November to March (RHP p.31), and synthetic fibres compete with cotton yarn (RHP p.49).”

“Where they overlap: Lagnam Spintex makes ring-spun and open-end cotton yarn with about 67,000 spindles (RHP p.156), and Deepak Spinners makes synthetic and blended yarns with 90,864 spindles (RHP p.157); neither is described as ginning cotton.”

“The prospectus puts the working capital cycle of Lagnam Spintex at 129 days and of Deepak Spinners at 54 days in FY26 (RHP p.108), against 29 days for the company (RHP p.107).”

“Why customers choose this company, as the prospectus puts it: quality, price and timely delivery (RHP p.181), with ginning and spinning at one site (RHP p.172).”

“It holds organic and recycled-content scope certificates valid to January 7, 2027, and its national organic certificate expired on April 17, 2026 with renewal pending (RHP p.289).”

“Its logo trademark application stands objected (RHP p.182).”

“The prospectus names competition from large integrated textile companies, regional manufacturers and overseas firms (RHP p.34).”

“> Peers named in the offer document: Deepak Spinners Limited and Lagnam Spintex Limited (RHP p.114).”

“Peer P/E is on BSE closing prices of May 29, 2026 and FY26 diluted EPS (RHP p.114).”

“The prospectus gives an industry P/E range of 9.52 to 22.11 with an average of 15.81 (RHP p.113).”

“The company's FY26 EPS was ₹2.45 and its three-year weighted EPS ₹2.70 (RHP p.113).”

“Deepak Spinners' revenue is about 1.3 times the company's and Lagnam Spintex's about 1.5 times, by our arithmetic (RHP p.114).”

“Deepak Spinners is in a different segment, synthetic yarn (RHP p.157).”

“Customers: the company has no long-term contracts and sells order by order (RHP p.42) → revenue depends on repeat orders from a customer list that has changed → the top ten customers were 51.18% of FY26 product sales, and the largest customer's share went from 38.84% in FY24 to 12.02% in FY26 (RHP p.45).”

“Group entities: four promoter group entities are in the same trade (RHP p.30) → sales, purchases and exports have run through them, and the non-compete agreements date only from March and April 2026 (RHP p.195) → sales to the two main group entities were ₹23,614.40 lakh in FY24 and ₹2,649.80 lakh in FY26 by our arithmetic (RHP p.25).”

“Cotton prices: cotton arrives mainly from November to March and its price moves with weather and trade policy (RHP p.31) → the company has no hedging contracts on cotton or yarn prices (RHP p.49) → cotton, traded goods and stock change took 92.5% of FY26 revenue by our arithmetic (RHP p.66).”

“Margin: FY26 profit after tax was ₹368.78 lakh on revenue of ₹40,801.01 lakh (RHP p.115) → a small change in the gap between cotton and yarn prices moves profit a long way → 1% of FY26 revenue is ₹408.01 lakh by our arithmetic, more than FY26 profit after tax.”

“Subsidy and incentives: other operating revenue of ₹403.31 lakh in FY26 was export incentives and a yarn VAT subsidy (RHP p.244) → it comes from government schemes, not from sales → it equals about 79% of FY26 profit before tax of ₹512.87 lakh by our arithmetic (RHP p.66).”

“Capacity: yarn capacity use fell from 81.38% in FY24 to 67.05% in FY26 (RHP p.29) → the spinning unit's fixed costs are spread over less output → the issue-funded machinery adds no capacity (RHP p.105).”

“Regulation: the plant's pollution control consent was valid to June 30, 2026 (RHP p.289) → the prospectus says a failure to obtain or renew approvals could affect operations (RHP p.34) → the renewal applied for on June 15, 2026 was still pending at the date of the prospectus (RHP p.290).”

“Export obligation: duty-free imports under an advance authorisation carry an export obligation of ₹590.47 lakh FOB, valid to September 30, 2027 (RHP p.49) → if it is not met, the duty saved must be repaid with interest (RHP p.49) → the duty at stake is ₹303.97 lakh (RHP p.49).”

“Financial: 82.09% of borrowings at April 30, 2026 were payable on demand (RHP p.261) → working capital lines can be recalled or repriced → cash credit was ₹4,135.08 lakh of borrowings of ₹5,842.87 lakh (RHP p.259).”

“Promoters: promoter loans of ₹661.71 lakh at March 2026 have no repayment terms and can be recalled (RHP p.46) → a recall would fall on the bank lines → the Managing Director also faces reassessment on ₹2,628.25 lakh of income alleged to have escaped assessment, by our arithmetic on the three years (RHP p.275).”

“Issue-specific: the price, bid lot and general corporate purposes amount are blank (RHP p.305) → the reader cannot yet see what the issue raises → there is no monitoring agency (RHP p.111), and no machinery order has been placed (RHP p.103).”

“GST demand for April 2020 to March 2021, input credit from a supplier with cancelled registration | Company, as the LLP | ₹54.37 lakh | appeal filed January 28, 2026; demand stayed (RHP p.275)”

“TDS shortfalls shown on the tax portal | Company and the LLP | ₹1.25 lakh | no recovery action yet (RHP p.274)”

“Scrutiny assessment notice of June 20, 2026 | Company | not quantified | pending (RHP p.274)”

“Reassessment of income for AY 2019-20 to 2021-22 | Nirav Bharatbhai Patel | ₹2,628.25 lakh of income; tax not stated | pending (RHP p.275)”

“Income tax demand and interest | Ranjanben Bharatbhai Patel | ₹1,780 | pending (RHP p.276)”

“Faceless assessment for AY 2025-26 | Vishnubhai Prahaladdas Patel | not quantified | pending (RHP p.276)”

“14 tax matters, mostly GST demands | Group entities | ₹916.62 lakh | appeals and replies pending (RHP p.39)”

“Six cheque-dishonour complaints filed as lender | Truepay Finance Private Limited | ₹138.22 lakh | pending (RHP p.39)”

“There is no criminal case, regulatory action or disciplinary action against the company (RHP p.274) or against its directors and promoters (RHP p.275).”

“The largest group matter is a GST order of ₹6,01,03,394 against Ambica Cotseeds Limited for July 2017 to March 2019, under appeal (RHP p.279); several Ambica Cotseeds Limited and Vivekanand Industries orders allege input credit claimed on bills without goods being received (RHP p.278).”

“The company's own summary table puts the five tax matters against directors and promoters at ₹0.02 lakh, with the amount for four not ascertained (RHP p.39).”

“Rent to promoters and Avadh Cotton Industries was ₹7.20 lakh in FY26 (RHP p.71).”

“Related customers paid in 2 to 5 days against 10 to 13 days for others, and the company paid related suppliers in 4 to 17 days against 3 to 4 days for others (RHP p.108), with some kapas from promoter relatives paid in 86 days (RHP p.107).”

“The company says the same stock is not traded several times within the group (RHP p.26).”

“What appeared and disappeared: promoter loans appeared at the conversion in August 2024 and interest on them began in FY26, replacing interest on partners' capital (RHP p.261).”

“Purchases from related parties stopped in FY26 (RHP p.49).”

“in the period to March 2025 (RHP p.71).”

“The plant and solar-land leases with promoters and Avadh Cotton Industries were signed in November 2024 (RHP p.182).”

“How much of the yarn and bales sold were made at Kadi and how much were traded is not disclosed; all product sales are labelled manufacturing (RHP p.172).”

“Customer and supplier names are not given (RHP p.45).”

“The floor price, cap price and bid lot are blank (RHP p.305); so are the issue amount and the general corporate purposes amount (RHP p.100), and the issue expenses (RHP p.110).”

“The tax at stake in the Managing Director's reassessment is not stated (RHP p.275).”

“The industry chapter shows FY25 EBITDA as a negative ₹6,087.77 lakh (RHP p.159) against ₹1,458.92 lakh in the key indicators (RHP p.115).”

“FY25 profit before tax is ₹457.74 lakh on one page (RHP p.267) and ₹473.65 lakh on the next spread (RHP p.269).”

“Yarn capacity is given as 4,551 kilograms in one place (RHP p.28) and 4,551 tonnes in the certified table (RHP p.29).”

“The MD&A says the business is not seasonal (RHP p.271), while the risk factors describe seasonal cotton buying (RHP p.42).”

“The notes say provident fund and gratuity rules do not apply because work is done by contract labour (RHP p.256), while the company paid provident fund for 22 employees in FY26 (RHP p.38) and provides for gratuity (RHP p.250).”

“Growth | EBITDA margin FY24 → FY26 | 4.1% → 3.7% | (RHP p.115)”

“Growth | PAT margin FY26 | 0.9% | (RHP p.115)”

“Issue | Fresh issue | 60,00,000 shares, price not stated | (RHP p.1)”

“Issue | Offer for sale | none | (RHP p.1)”

“Issue | Shares after the issue | 2,22,50,000 | (RHP p.63)”

“Concentration | Largest customer | 12.0% of FY26 product sales | (RHP p.45)”

“Concentration | Top ten customers | 51.2% of FY26 product sales | (RHP p.45)”

“Concentration | Largest supplier | 21.3% of FY26 purchases | (RHP p.48)”

“Balance sheet | Total borrowings March 2026 | ₹45.0 cr | (RHP p.258)”

“Balance sheet | Debt to equity FY26 | 1.6× | (RHP p.258)”

“Balance sheet | ROCE FY26 | 13.1% | (RHP p.115)”

“Worth reading | Related-party sales FY26 | ₹26.5 cr | (RHP p.72)”

“Worth reading | Contingent liabilities | ₹0.5 cr | (RHP p.69)”

“Worth reading | Working-capital cycle FY26 | 29 days | (RHP p.107)”

“Worth reading | Operating cash flow FY26 | ₹8.7 cr | (RHP p.117)”

“Before the IPO | Revenue FY24 → FY26 | ₹357.4 cr → ₹408.0 cr | (RHP p.66)”

“Before the IPO | PAT FY24 → FY26 | ₹3.4 cr → ₹3.7 cr | (RHP p.115)”

“Before the IPO | Receivable days FY24 → FY26 | 6 → 12 | (RHP p.109)”

“Before the IPO | Pre-IPO placement | none | (RHP p.1)”

“Before the IPO | Last allotment before the IPO | ₹64 a share, March 2026 | (RHP p.88)”

“Before the IPO | Auditor change | none in the last three years | (RHP p.84)”

“Before the IPO | Converted to a public company | December 2024 | (RHP p.2)”

“Who is involved | Industry | Textiles and apparel | (RHP p.1)”

“Who is involved | Promoter | Nirav Bharatbhai Patel | (RHP p.1)”

“Who is involved | Promoter | Jasmin Vishnubhai Patel | (RHP p.1)”

“Who is involved | Promoter | Bharatbhai Prahaladbhai Patel | (RHP p.1)”

“Who is involved | Promoter | Vishnubhai Prahaladdas Patel | (RHP p.1)”

“Who is involved | Promoter | Gautam Bharatkumar Patel | (RHP p.1)”

“Who is involved | Promoter | B P Patel Family Trust | (RHP p.1)”

“Who is involved | Promoter | V P Patel Family Trust | (RHP p.1)”

“Who is involved | Promoter | Ranjanben Bharatbhai Patel | (RHP p.1)”

“Who is involved | Promoter | Kapilaben Vishnubhai Patel | (RHP p.1)”