Vivekanand Cotspin Limited

Vivekanand Cotspin Limited, originally incorporated as a Limited Liability Partnership (M/s Vivekanand Cotspin LLP) in July 2015, converted into a private limited company in August 2024 and subsequently into a public limited company in December 2024. Functioning as the flagship entity of the Vivekanand Group of Industries (established in 1999), the company operates an integrated cotton processing and ring-spinning manufacturing enterprise. Its business model spans the primary textile value chain, comprising the ginning of raw seed cotton (kapas) into lint cotton bales and cotton seeds, as well as the spinning of cotton bales into ring-spun cotton yarn. Alongside manufacturing, the company undertakes merchant trading of cotton bales and yarn to optimize procurement efficiency, customer fulfillment, and market opportunities.

The company's product portfolio is centered on raw cotton bales (supplying long and short staple Shankar-6 varieties) and high-quality cotton yarn, including carded compact yarn and combed compact yarn produced in counts ranging from Ne 16' to Ne 40'. Additionally, key by-products such as comber noil (utilized in currency paper manufacturing, surgical cotton, and open-end spinning) and cotton seeds are commercialized to enhance total value realization. The company benefits from operational synergies within its promoter group: cotton seeds generated during ginning are supplied to group concern Vivekanand Industries for downstream extraction into cotton seed oil and oil cake, while export logistics and international distribution are facilitated through Ambica Cotseeds Limited.

The target client segment encompasses domestic weaving mills, knitting units, garment manufacturers, and international merchant traders requiring specialized yarn grades for fabric production. For the financial year ended March 31, 2026, domestic sales within India generated ₹362.60 Cr (89.76% of total manufacturing sales), while direct export sales contributed ₹41.37 Cr (10.24%). The company’s global export footprint extends across key international textile markets, including China (₹25.72 Cr), Vietnam (₹4.98 Cr), South Africa (₹4.07 Cr), Bangladesh (₹4.65 Cr), Indonesia (₹0.98 Cr), and Portugal (₹0.93 Cr).

The company’s centralized manufacturing facility is situated at Survey No. 181/1, 182/1, Rangpurda, Kadi, Mahesana District, Gujarat, spanning a total land area of 40,408 square meters. The plant is strategically located near the major cotton-growing belts of Saurashtra (Gujarat) and Maharashtra, ensuring raw material availability. Its spinning infrastructure consists of 25,536 spindles with an annual installed capacity of 4,551 Metric Tonnes (MT) of cotton yarn, while the ginning division holds an annual installed capacity of 8,000 MT of cotton bales. For FY24, FY25, and FY26, capacity utilization for cotton bales recorded 81.94% (6,556 MT), 85.01% (6,801 MT), and 92.82% (7,425 MT) respectively. Meanwhile, yarn spinning utilization recorded 81.38% (3,703 MT), 75.05% (3,415 MT), and 67.05% (3,051 MT) across the same periods, with the moderation in volume reflecting a deliberate strategic shift toward producing value-added, higher-count customized yarns to maximize profit margins.

Operational efficiency and quality assurance are managed by a technical team utilizing ring-spinning technology and a dual-approval process system to maintain stringent yarn standards. To optimize energy overheads, the company operates a captive 4 MWp solar power generation plant at its Rangpurda facility. Furthermore, fresh issue proceeds are earmarked for technological upgrades—including the installation of comber machines, compact spinning systems (Spinpact), and automatic cone winders (Link Coner)—to enhance yarn evenness, lower process wastage, and broaden the range of specialized yarn count offerings.

Based on its historical financial data, Vivekanand Cotspin Limited has posted total income and net profits of ₹358.02 Cr / ₹3.35 Cr in FY24, ₹366.51 Cr / ₹4.94 Cr in FY25, and ₹409.32 Cr / ₹3.69 Cr in FY26. The company has shown top-line revenue growth accompanied by fluctuating net profit margins and debt levels. It boasts an average EPS of ₹2.70 and an average RoNW of 18.63% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.08 against a NAV of ₹17.81 (as of March 31, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.61. Attributing the latest earnings to the expanded post-issue equity base, the asking price translates to a Post-Issue P/E of approximately 24.55 (FY24), 20.21 (FY25), and 22.32 (FY26). According to the RHP, a comparison between listed peers is shown in above table.

On the Book Running Lead Manager (BRLM) front, the issue is managed by Swastika Investmart Limited, which has handled 14 public issues to date. Out of its last 10 managed IPOs, two listed below the issue price, while the remaining eight listed at or above it. As of September 16, 2026, nine of these recent issues are currently trading below their issue price, while one is trading at or above it.

• 1 Nirav Bharatbhai Patel
• 2 Jasmin Visnubhai Patel
• 3 Bharatbhai Prahaladbhai Patel
• 4 Vishnubhai Prahladdas Patel
• 5 Gautam Bharatkumar Patel
• 6 B P Patel Family Trust
• 7 V P Patel Family Trust
• 8 Ranjanben Bharatbhai Patel
• 9 Kapilaben Vishnubhai Patel