Avax Apparels shares make bumper market debut, list with 90% premium at ₹133 on BSE SME

Avax Apparels and Ornaments IPO Listing: Avax Apparels and Ornaments shares made a stellar market debut on Tuesday, January 14, as they were listed at ₹133 apiece on the BSE SME, a premium of 90% over the issue price of ₹70.

The stock further rallied post-listing to reach ₹139.55 apiece, marking an almost 100% jump from the IPO price, effectively doubling investors' wealth in just a single day.

The SME IPO, valued at ₹1.92 crore, was open for subscription from January 7 to January 9, at an IPO price of ₹70 per share.

The issue was entirely a fresh offering of 2.74 lakh shares. The IPO received a robust response, with an overall subscription of 260 times. Notably, the non-institutional investor (NII) segment was oversubscribed by 140 times, while the retail portion saw an oversubscription of 372 times, as per the exchange data. 

The company plans to utilise the net proceeds from the issue to meet its working capital requirements and fund general corporate purposes.

SKI Capital Services Limited acted as the book-running lead manager for the Avax Apparels and Ornaments IPO while Skyline Financial Services Private Ltd served as the registrar for the issue. The market maker for the IPO is also SKI Capital Services Limited.

For retail investors, the company set a minimum subscription value of ₹1,40,000 for each lot of 2,000 shares.

About Avax Apparels

The company operates in two distinct lines of business: wholesale trading and online retail of silver ornaments. It specialises in the wholesale trading of knitted cloth, directly sourcing from manufacturers and supplying to companies and readymade garment manufacturers in Punjab.

Avax Apparels also specialises in knitted cloth used in the manufacturing of ladies' and gents' jackets. Additionally, the company operates in the business of online retail of silver ornaments. The company's key advantages in this business include operating in the affordable silver ornaments sector, an increase in demand for silver ornaments in Indian markets, the ability to replicate gold jewellery designs in silver, and access to exclusive Punjabi ethnic designs.

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