Press Release

Ahmedabad based United Cotfab Limited’s IPO Opens on 13th June 2024

Ahmedabad (Gujarat) [India], June 11: Ahmedabad based United Cotfab Limited is engaged in manufacturing of high quality recycled open-end cotton yarn derived from the cotton waste from spinning industry. Originally incorporated in 2015 as United Cotfab LLP is now entering in to equity market and has announced an Initial Public Offer to open on 13th June 2024. The company is aiming to raise ₹ 36.29 Crore at an Issue Price of Rs.70/- per share having face value of each share is Rs. 10, set to be listed on the BSE SME platform. IPO Closing date is 19th June 2024.

IPO Information:

Issue Opens on – Thursday, June 13, 2024

Issue Closes on – Wednesday June 19, 2024

Issue Size – Rs. 36.29 Cr.

Issue Price Rs. 70/-

Face Value – Rs. 10/-

Issue Type – Fresh Issue – Fixed Price

No. of Shares – 51,84,000 Equity Shares

Lot Size – 2000 Equity Shares

HNI Quota – 24,62,000 Equity Shares

Retail Quota – 24,62,000 Equity Shares

Market Maker Quota – 2,60,000 Equity Shares

The Lead Manager to the Issue is Beeline Capital Advisors Pvt. Ltd. and the Registrar to the issue is Purva Sharegistry (India) Pvt. Ltd.

Mr. Gagan Nirmalkumar Mittal, Chairman and Managing Director, having more than 18 years of experience in the Textile Industry Said, “We are pleased to announce our forthcoming IPO. We have a strong foothold in the Yarn Industry and Years of experience in manufacturing Cotton open end yarn. We are engaged in selling and distribution channel of recycled open end cotton yarn and cotton waste. Yarn is the end product of spinning, vital for cotton woven or knitted fabric.

The issue proceeds will be utilized to meet Working Capital requirement and General Corporate Purposes.

About United Cotfab Limited

United Cotfab Limited is located at Dascroi- Ahmedabad Originally incorporated as United Cotfab LLP in 2015 under the LLP Act, 2008. Well Equipped with modern and automatic plant and machinery for manufacturing high-quality open-end yarn for the textile industry. The company uses 100% of raw materials derived out of cotton waste from spinning industry, the cotton waste is used to manufacture the final products of the company in various categories of yarns from 6 counts to 30 counts thereby recycling the waste to yarns. These yarns are sold to corporates and brands to manufacture sustainable garments. In addition to support the environment, company has installed the solar power plant of 1 MW to use green energy. The manufacturing process upholds strict quality standards with advanced technology and machinery support, also manufacturing facility with an annual installed capacity of approximately 9,125 MT. Yarn is widely used in knitting, weaving, crocheting, and various textile products.

The Company recorded a revenue of Rs. 115.53 Crs. with a profit after tax of Rs. 8.67 Crs. in the financial year 2023-24, compared to revenue of Rs. 64.02 Crs. with a profit after tax of Rs. 0.14 Crs. in financial year 2022-23.

For more information please visit: www.unitedcotfab.com

Disclaimer

United Cotfab Limited (“Company”) is contemplating the potential, subject to necessary approvals, market conditions, and other considerations, of initiating an initial public offering of its equity shares (“IPO”) and has submitted the prospectus to the SME Platform of BSE Limited (“BSE SME”). Prospective investors should be aware that investing in equity shares involves a significant level of risk. For detailed information regarding such risks, potential investors are advised to refer to the section titled “RiskFactors” in the Prospectus (“Company”) is contemplating the potential, subject to necessary approvals, market conditions, and other considerations, of initiating an initial public offering of its equity shares (“IPO”).

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