Vivekanand Cotspin IPO Day 3: Subscribed 0.82x; Retail surges to 4.78x
- Overall subscription closed at 0.82x, below the fully subscribed mark.
- Retail investors drove demand with a final subscription of 4.78x.
- QIB participation remained low at 0.47x, while bHNIs subscribed 2.20x.
- The issue size ranged from ₹210000 crore to ₹500000 crore.
*this image is generated using AI for illustrative purposes only.
Vivekanand Cotspin IPO closed at 0.82x overall subscription on Day 3, with Retail demand surging to 4.78x while QIBs remained at 0.47x.
Subscription Status
The issue witnessed a sharp acceleration in Retail interest during the final hours of the subscription window. While the total subscription did not cross the fully subscribed threshold of 1x, it climbed significantly from 0.53x recorded earlier in the day to 0.82x by close. Retail investors emerged as the primary driver, scaling their bids from 3.33x at 11:15 IST to 4.78x by the end of the day. Qualified Institutional Buyers (QIBs) maintained a steady but low level of interest at 0.47x throughout the final session.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 21-09-2026 | 0.00x | 0.00x | 0.31x | 0.29x | 0.08x |
| Day 2 | 22-09-2026 | 0.00x | 0.00x | 0.88x | 1.41x | 0.25x |
| Day 3 | 23-09-2026 | 0.47x | 2.20x | 0.00x | 4.78x | 0.82x |
Category-wise Breakdown
Retail investors dominated the demand landscape for Vivekanand Cotspin. The category recorded a substantial jump of 43.5% between 11:15 IST and 12:15 IST, moving from 3.33x to 4.78x. Non-Institutional Investors (NII) showed mixed trends, with big HNIs (bHNI) subscribing 2.20x and small HNIs (sHNI) showing no subscription (0.00x). The Employee quota remained unsubscribed at 0.00x for the entire duration of the issue.
Intra-day Timeline
On the final day, the subscription figures reflected a late-day spike in Retail and HNI interest:
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.47x | 0.00x | 3.33x | 0.53x |
| 12:15 | 0.47x | 0.00x | 4.78x | 0.82x |
Offer Details
The Vivekanand Cotspin IPO opened on September 21, 2026, and closed on September 23, 2026. The price band was set between ₹35.00 and ₹37.00 per share. The minimum bid quantity was 6000 shares. The total issue size ranged from ₹210000 crore to ₹500000 crore based on the price band.
About the Company
Vivekanand Cotspin Limited is a Gujarat-based cotton processing and yarn manufacturing company. It engages in ginning raw cotton into cotton bales and seeds, and spinning cotton bales into cotton yarn. The company operates from its facility in Kadi, Mahesana, with an installed capacity of approximately 4,551 MT of Cotton Yarn and 8,000 MT of Cotton Bales annually. It serves domestic markets and exports to Bangladesh, China, Vietnam, and South Africa.
Financial Highlights
The company reported revenue growth over the last three fiscal years. Total revenues stood at ₹40,932.15 Lakhs in FY2026, up from ₹36,651.25 Lakhs in FY2025.
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from Operations (₹ Crores) | 408.01 | 290.47 | 75.47 |
| Total Revenue (₹ Crores) | 409.32 | 290.94 | 75.57 |
| Profit Before Tax (₹ Crores) | 5.13 | 3.23 | 1.35 |
| Net Profit (₹ Crores) | 3.69 | 4.07 | 0.87 |
Objects of the Issue
The net proceeds from the issue will be utilized for:
- Capital Expenditure: Procurement and installation of upgraded spinning machinery (Comber Machine, Compact Spinning System) to improve efficiency.
- Working Capital: Funding incremental working capital requirements to support business growth.
- General Corporate Purposes: Strategic initiatives and marketing activities.
Risk Factors
Key risks highlighted in the offer documents include:
- Related Party Dependence: Significant revenue derived from related party transactions, including sales to Ambica Cotseeds Limited and Vivekanand Industries.
- Raw Material Volatility: Heavy dependence on raw cotton prices, which are subject to seasonal variations and global supply dynamics.
- Customer Concentration: Top 10 customers contributed 51.18% of revenues in FY2026, with no long-term contracts in place.
- Working Capital Stress: Negative cash flows from operating activities in FY2025 and high working capital borrowings.
What's Next
Allotment of shares is scheduled for September 24, 2026. The shares are expected to list on stock exchanges on September 28, 2026.
How might the under-subscription by QIBs and the employee quota impact Vivekanand Cotspin's institutional credibility and future fundraising capabilities?
Given the significant related party dependence highlighted in risk factors, how will the company address potential regulatory scrutiny or investor concerns post-listing?
What are the projected impacts of the planned capital expenditure on upgraded spinning machinery on the company's operating margins in the next fiscal year?
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