The Initial Public Offering(IPO) for the week is-
Veekayem Fashion and Apparels Limited-
The company was incorporated in 1985 and is engaged in the business of weaving and garment manufacturing. It is engaged in the business of manufacturing various brands but also caters to exports and local markets in customized designs as requested by the clients and customers in the textile and apparel industry.
Veekayem Fashion and Apparels Limited deals in a range of products like shirting fabrics, suiting fabrics, trouser fabrics, jacketing fabrics, format trousers, cotton trousers, and other accessories. Its product portfolio consists of 100% cotton-Lycra and Non-Lycra, Supima, blended cotton suiting, polyester cotton, 100% cotton yarn dyed, polyester viscose, and terry rayon suiting, and mock linen.
The company has its registered office in Mumbai, Maharashtra and the manufacturing facility is located at Umargaon in the state of Gujarat. The manufacturing facility is installed with automated machinery having the capacity to manufacture 5, 00,000 metric meters of fabric per month and 1, 50,000 pieces of readymade garments per month.
The business of the company is in two categories-
1) Textile- The company manufactures grey cloths that include polyester/viscose, polyester cotton, 100% cotton, 100% linen, 100% wool, and Lycra fabrics through the weaving process.
2) Garments- It manufactures readymade garments for men and women that include formal shirts, cotton shirts, formal trousers, cotton trousers, cotton joggers, cotton shorts, pajamas, and Bermuda.
The promoters of the company are Krishankant Gupta, Vijaykumar Gupta, and Madanlal Gupta. The objects of the issue are to raise funds for the working capital requirements of the company and a listing would enhance the brand image of the company.
The company had revenues of Rs 203.15 crore with a net profit of 2.28 crore (Year ended March 31, 2019), revenues of Rs. 215.51 crores with a profit of Rs. 1.09 crore (Year ended March 31, 2020), and revenue of Rs. 76.55 crores with a net profit of Rs. 35.25 lakh (Year ended March 31, 2021).