Avax Apparels And Ornaments IPO Upcoming
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About Avax Apparels And Ornaments
Avax Apparels And Ornaments Limited, incorporated in June 2005, is engaged in wholesale trading of knitted fabric and online retail of silver ornaments. The company supplies knitted fabric to readymade garment manufacturers and has recently invested in machinery to begin manufacturing its own knitted cloth. It also offers a range of silver jewellery, including rings, payals, kadas, bangles, and other items, with distribution across major cities in India.
Financials of Avax Apparels And Ornaments
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹1.92 crores |
| Fresh Issue | ₹1.92 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 1.51 (78.20%) |
| Issue related expenses | 0.21 (11.36%) |
| General corporate purposes | 0.20 (10.44%) |
Strengths
- Strong network and connections with key players in the sector, providing strategic advantages.
- Strategic locational advantage, enabling efficient operations and cost-effective logistics.
- Excellent customer relations, ensuring high levels of satisfaction and repeat business.
Risks
- The company may eventually focus solely on its textile business, with minimal contribution from the silver ornaments segment.
- Seasonal demand fluctuations for silver ornaments and knitted fabric could affect the company’s revenue during peak seasons.
- Consumer discretionary spending influences silver ornaments purchasing, which may decline during economic downturns.
- The company’s brand and reputation could be negatively impacted by issues with vendors, counterfeit products, or negative publicity.
- The absence of long-term contracts with suppliers and customers creates uncertainty in securing repeat business.