Avax Apparels and Ornaments Ltd. has launched its IPO, drawing significant attention from retail and non-institutional investors. As the IPO subscription window opens, let’s break down everything you need to know about the company, its financials, and the potential investment opportunity.
Who is Avax Apparels and Ornaments?
Established in June 2005, Avax Apparels and Ornaments operates in the wholesale trading of knitted fabrics and online retail of silver ornaments. The company leverages its location in a major fabric manufacturing hub to streamline operations and meet rising market demands.
Avax Apparels combines traditional craftsmanship with modern digital outreach, serving customers across India. From silver payals to fabric supply chains, the business taps into the growing demand for ethnic wear and silver accessories.
Also read: Capital Infra Trust InvIT IPO: A Complete Guide for 2025 Investors
Why is Avax Apparels launching an IPO?
The primary objective behind the IPO is to raise ₹ 1.92 crore to address the company’s working capital needs and fund general corporate purposes. This IPO aims to strengthen Avax’s financial footing, helping the company expand operations and scale production.
Must read: Indo Farm Equipment IPO: All the Details You Need
IPO details at a glance
Avax Apparels And Ornaments IPO Details
| Detail | Description |
| IPO Dates | January 7, 2025 – January 9, 2025 |
| IPO Price | ₹70 per share |
| Lot Size | 2,000 shares |
| Total Issue Size | 2.74 lakh shares (₹1.92 crore) |
| Issue Type | Fixed Price Issue |
| Listing Platform | BSE SME |
| Allotment Date | January 10, 2025 |
| Refund Initiation | January 13, 2025 |
| Shares Credited to Demat | January 13, 2025 |
| Listing Date | January 14, 2025 |
Subscription and Grey Market Premium (GMP)
Avax Apparels IPO saw an overwhelming response, with subscriptions reaching 16.85 times by January 7, 2025.
- Retail investors: 29.88 times
- Non-institutional investors (NII): 3.83 times
The Grey Market Premium (GMP) as of 12:02 p.m. on January 7 stood at ₹21. This suggests a potential listing price of ₹91 per share, reflecting a 30% gain over the issue price.
You may also read: Quadrant Future Tek IPO: Key Information You Need Before You Invest
IPO financials and performance
Avax Apparels And Ornaments Financials (₹ in Crores)
| Period | Revenue | Profit After Tax (PAT) |
| FY 2023-24 (H1) | ₹15.00 | ₹0.90 |
| FY 2023-24 (Full Year) | ₹22.05 | ₹1.38 |
| FY 2022-23 | ₹14.70 | ₹0.69 |
| FY 2021-22 | ₹0.28 | ₹0.01 |
The company’s growth in revenue and profit highlights its expanding market presence. Avax Apparels reported a 267.3% YoY increase in Gross Merchandise Value (GMV) for Q2 FY25, with digital credit GMV rising by 26.5% YoY.
Also read: Standard Glass Lining IPO
Shareholding pattern
Shareholding Breakdown (Pre and Post-IPO)
| Category | Pre-Issue (%) | Post-Issue (%) |
| Promoters | 57.00% | 41.97% |
| Public | 43.00% | 58.03% |
Utilisation of IPO proceeds
The funds raised through this IPO will primarily be allocated to:
- Working Capital Requirements – Supporting day-to-day business operations and scaling product lines.
- General Corporate Purposes – Enhancing operational efficiency and exploring growth opportunities.
Why should you invest in Avax Apparels and Ornaments IPO?
Advantages:
- Strong Market Presence: With operations spanning major cities in India, Avax’s dual focus on wholesale and retail adds resilience.
- Growing Revenue: Consistent growth in revenue highlights strong demand for products.
- Strategic Location: Proximity to key fabric manufacturing centres gives Avax a logistical edge.
- High GMP: A potential 30% gain on listing day makes this IPO attractive for short-term investors.
Watch out for:
- Small IPO Size: A limited post-IPO equity base may slow long-term liquidity.
- Competitive Market: The textile and jewellery sectors are fragmented and highly competitive.
- Profit Volatility: While the company has shown growth, fluctuations in profits highlight the need for cautious optimism.
The bottom line
Avax Apparels and Ornaments IPO presents an intriguing opportunity for investors, especially those looking to capitalise on the SME segment. While the growth potential is evident, market volatility and competitive pressures mean investors should tread carefully.
As always, conducting thorough research and consulting financial advisors is essential before making investment decisions. Happy investing!
