Vivekanand Cotspin Ltd. IPO

Vivekanand Cotspin

• Vivekanand Cotspin is coming out with an initial public offering (IPO) of 60,00,000 shares in a price band of Rs 32-37 per equity share.
• The issue will open for subscription on September 21, 2026 and will close on September 23, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 3.20 times of its face value on the lower side and 3.70 times on the higher side.
• Book running lead manager to the issue is Swastika Investmart.
• Compliance officer for the issue is Ankit Sanchiher.

Profile of the company

The company is engaged in the business of cotton processing and yarn manufacturing, comprising ginning of raw cotton (kapas) into cotton bales and cotton seed, and spinning of cotton bales into cotton yarn. In addition to its manufacturing activities, the company also undertakes trading of cotton bales and cotton yarn in the ordinary course of business to meet customer requirements and optimize business opportunities. The products manufactured at the company include Cotton bales, Cotton Seeds and Cotton Yarn. The company operates in two primary areas: cotton ginning and spinning. In the ginning process, it separates cotton fibers from seeds, which is the first step in preparing raw cotton for textile production. Following this, the company focuses on spinning, where the clean cotton fibers are turned into yarn. This yarn, produced in various counts and quality grades, is used by textile mills for weaving and knitting fabrics.

The company's product range is centered on cotton yarn, including carded and combed yarn, which caters to both domestic and international markets. The company serves a wide array of industries that require high-quality yarn for fabric production, and its reach extends beyond India, with exports to other countries. The company operates spinning mills, utilizing machinery to ensure efficient production while maintaining quality control. The manufacturing facility of the company is situated at Rangpurda, Kadi of Mahesana District in Gujarat state which is close to the rich cotton growing areas of Maharashtra and Saurashtra region of Gujarat.

Proceed is being used for:

• Funding capital expenditure requirements towards plant & machinery 
• Meeting working capital requirements
• General corporate purpose

Industry overview

The Indian textile industry encompasses the production of fibres, yarns, fabrics, and finished textile products such as garments and home furnishings, covering the entire value chain from raw material processing to final consumption. It is one of the most significant sectors of the country’s economy, playing a vital role in industrial development, employment generation, and export performance. The sector contributes nearly 2.3% to India’s Gross Domestic Product (GDP), accounts for approximately 13% of overall industrial production, and contributes around 12% to total export earnings. It is also one of the largest employment generators in the country, providing livelihoods to nearly 45 million people across its diverse value chain.

The Indian textile and apparel industry is currently valued at around $174 billion as of FY 2024, with strong growth driven by domestic consumption and exports. The sector contributes around 2.3% to India’s GDP, 13% to industrial production, and 12% to total exports, highlighting its significant role in the economy. India is the world’s sixth largest exporter of textiles and apparel, recording $37.75 billion in exports in FY2025, reflecting its strong presence in global trade. Furthermore, the Indian textile and apparel market has reached $185.6 billion in FY 2025, reflecting a 7.0% year-on-year growth from the previous year.

The Government of India approved the Production Linked Incentive (PLI) Scheme for Textiles in September 2021 to promote manufacturing of Man-Made Fibre (MMF) apparel, MMF fabrics, and products of technical textiles. The scheme aims to boost domestic production capacity, attract investment, support exports, and enhance the global competitiveness of the textile sector. India is the leading exporter of cotton yarn in the world, with around 20 - 25% of domestic production being exported annually. The trade of cotton yarn reflects changing global demand–supply dynamics, price fluctuations, and evolving trade patterns. Export trends show dependence on key international markets, while imports indicate the need to manage domestic supply gaps. Together, trade value, volume, and partner distribution highlight market concentration and diversification, which are important for assessing growth and risk.

Pros and strengths

Forward integration: The company is engaged in the business of processing of raw cotton by way of Ginning of cotton and spinning of cotton yarn. The raw material for the ginning unit is raw cotton which is generally procured from the local areas and the raw material for cotton spinning is ginned cotton which is the finished product of the ginning unit. The setting up of the Spinning Unit has resulted into the forward integration into the cotton textile industry. This forward integration strategy helps the company benefit from control over its supply chain, reduce reliance on external suppliers for processed cotton, and potentially increase profitability by moving further down the value chain. Additionally, it positions the company strategically in the textile industry, enabling it to meet the demands of textile mills and other fabric manufacturers effectively.

Cost effective production and timely fulfillment of orders: The company has taken various steps in order to ensure adherence to timely fulfillment and also to achieve cost efficiency as timely fulfillment of the orders is a prerequisite in its industry. These steps include identifying quality raw material, smooth Labor relations, use of an efficient production system and ability to meet large and varied orders due to its capacity and linkages with raw material suppliers. The company also has enjoyed good relations with its suppliers and as a consequence, has the benefit of timely supplies of the raw materials which has been one of the major reasons why it has been able to achieve timely fulfillment of orders of its customers. The company constantly endeavors to implement an efficient procurement policy for inputs required for production so as to ensure cost efficiency in procurement which in turn results in cost effective production.

Scalable business model: The company operates with a scalable business model, which focuses on optimizing production capacity, strengthening supplier relationships, and achieving economies of scale. The company aims to maximize the utilization of its manufacturing capacity, ensuring that production is efficient and cost-effective. By maintaining linkages with quality raw material suppliers, the company secures consistent access to high-quality cotton, which is crucial for producing superior yarn. This strategic approach helps in reducing procurement costs and improving production efficiency. Over the past few financial years, the model has proven to be successful as it allows for upward scaling to meet the growing needs of the market. The company is in position to expand its operations by increasing output as required, thus catering to an expanding customer base and seizing new business opportunities.

Risks and concerns

Significant dependence on cotton bales and yarn sales: The company’s core business is the manufacturing and trading of cotton bales and yarn. Its Cotton Yarn contributed 52.18%, 32.37%, and 27.53% of its revenue for the periods ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. Its Cotton Bales contributed 38.74%, 55.70%, and 59.46% of its revenue for the periods ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. Consequently, its income is significantly dependent on sales of the cotton bales and yarn and over the years, such sales have emerged as the major contributor to its revenue and business. Its continued reliance on sales of its products for a significant portion of its revenue exposes it to risks, including the potential reduction in the demand for such products in the future; increased competition from domestic and regional manufacturers; cost-effective technology; fluctuations in the price and availability of the raw materials; changes in regulations and import duties; and the cyclical nature of its customers’ businesses. One or more such reasons may affect its revenues and income from sales of its products and thereby adversely affect its business, profitability, cash flows and results of operations.

Volatility in raw cotton prices and availability: Its business is heavily dependent on the availability and pricing of raw cotton, which is subject to seasonal variations, global demand-supply dynamics, and government policies on agricultural production. The price of cotton is influenced by multiple factors, including weather conditions, international trade policies, fluctuations in foreign exchange rates, and subsidies or tariffs imposed by cotton-producing countries. Any sharp increase in raw cotton prices could significantly raise its production costs, while price volatility may impact its ability to maintain stable margins. There is no assurance that it will always be able to procure raw cotton at favorable prices or in required quantities. In periods of limited availability, it may have to source cotton at higher costs, which could reduce its competitiveness and profitability. Additionally, a decline in global or domestic cotton demand may lead to inventory accumulation, further impacting cash flow and operational efficiency.

Dependence on order-by-order customer relationships: The company has not entered into any fixed or long-term contracts with its customers and it caters to them on an order-by-order basis. As a result, its customers can terminate their relationships with it without any notice and, without consequence, which could materially and adversely impact its business. Consequently, its revenue may be subject to variability because of fluctuations in demand for its materials. The company’s customers have no obligation to place orders with it and may either cancel, reduce or delay orders. The orders placed by the company's customers are dependent on factors such as the customer satisfaction with the level of service that the Company provides, quality consistency, fluctuation in demand for the company’s products and customer’s inventory management.

Outlook

Vivekanand Cotspin, is the flagship company of the Vivekanand Group of Industries which was established in 1999. The company is primarily engaged in cotton ginning and spinning, with an installed capacity of around 400 bales per day for ginning and around 25,000 spindles for spinning. The company’s product line includes raw cotton bales, cotton seed, cotton yarn (both cotton combed compact yarn and compact carded yarn), and comber noil. In addition, the company also supplies imported premium cotton yarn to its customers in India. On the concern side, the cotton processing and yarn manufacturing industry is highly competitive, with numerous domestic and international players competing for market share. Competitors include large-scale vertically integrated textile companies, regional manufacturers, and international firms with established supply chains and financial strength. Its ability to maintain or expand its market position depends on factors such as pricing strategies, product quality, operational efficiency, and customer relationships. If competitors offer lower-priced or higher-quality products, it may face pricing pressure that could impact its revenue and profit margins.

The company is coming out with a maiden IPO of 60,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 32-37 per equity share. The aggregate size of the offer is around Rs 19.20 crore to Rs 22.20 crore based on lower and upper price band respectively. On performance front, during FY 2025–26, the company’s total revenue increased to Rs 40,932.15 lakh from Rs 36,651.25 lakh recorded in FY 2024-25, representing an increase of around 11.68%. The restated profit after tax for FY 2025-26 decreased to Rs 368.78 lakh, as compared to Rs 494.29 lakh in FY 2024-25, representing a decrease of around 25.39%.

Meanwhile, it intends to cater to the increasing demand of its existing customers and also to increase its existing customer base by enhancing the distribution reach of its products in different parts of the country and also around the world. It proposes to increase its marketing and sales team which can focus in different regions and also maintain and establish relationship with customers. Enhancing its presence in additional regions will enable it to reach out to a larger population. The company is actively focused on expanding its market presence to drive growth and reduce dependency on existing markets. This expansion strategy encompasses both domestic and international markets, enabling the company to broaden its customer base and capitalize on emerging opportunities. By entering new geographic regions and forging relationships with a diverse range of customers, the company is able to enhance its sales potential and mitigate risks associated with market saturation in its current territories.

Robokidz Eduventures

• Robokidz Eduventures is coming out with an initial public offering (IPO) of 29,32,800 shares in a price band of Rs 100 - 106 per equity share.
• The issue will open for subscription on September 21, 2026 and will close on September 23, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 10.00 times of its face value on the lower side and 10.60 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance officer for the issue is Isha Shashikant Kulkarni.

Profile of the company

Robokidz Eduventures is engaged in providing technology-enabled learning and skill development solutions for K-12 students in the areas of Robotics, Artificial Intelligence (AI), Coding, Electronics and STEM (Science, Technology, Engineering and Mathematics). It primarily provides these solutions to schools and educational institutions through educational laboratory setup projects, subscription-based learning programmes and other educational services. Its offerings are supported by its proprietary digital platforms, educational kits, curriculum, teacher training and technical support, enabling educational institutions to deliver application-based and experiential learning. Through its integrated approach, it combines laboratory infrastructure, practical learning resources and digital learning tools to support hands-on learning and help students develop scientific aptitude, logical reasoning and technical skills. Its business model is built on a two-tier revenue architecture. Educational Laboratory Setup Projects establish its initial engagement with an institution through the design, supply and installation of technology-enabled learning infrastructure, while its subscription services and other educational services are designed to convert this initial engagement into a sustained, recurring relationship.

Its business activities are undertaken through educational laboratory setup projects vertical, subscription services vertical & other educational services vertical. In addition, it operates a franchise model under the YEA (Young Engineers Academy) brand through its wholly owned subsidiary, Robokidz Retails (RRPL), through which it expands its presence to establish and operate activity centres. Under this model, it provides franchisees with access to curriculum, teacher training, learning kits, digital platforms, operational guidance and marketing support, enabling the delivery of standardized robotics, AI, coding and STEM education while facilitating the growth of its activity centre network in various locations. As part of the expansion strategy, it has established its Activity Center in Malad (West), Mumbai and Baner, Pune under its franchise model. In addition, it also operates two more Activity Centers managed directly by the company and its subsidiary, enabling it to expand its reach while maintaining standardized delivery of its robotics, AI, coding and STEM education programmes.

It delivers its solutions through an integrated ecosystem comprising schools, educational institutions, government and semi government organizations, activity centres and direct learner engagement across India. It undertakes projects awarded by government bodies, departments and agencies, including the establishment and implementation of Atal Tinkering Labs (ATLs), either directly or through channel partners. Its offerings are aligned with the objectives of the National Education Policy, 2020 (NEP 2020), which include STEM, robotics, AI and coding solutions designed to support these educational institutions in delivering experiential and competency-based learning. It has obtained various certifications, including ISO 14001:2015, ISO 9001:2015, ISO 21001:2018, ISO 45001:2018, ISO 50001:2018 and ISO/IEC 27001:2022, in relation to its operations. In addition, it holds certifications and compliances such as ROHS (EU) 2015/863, Greenguard Compliance and BIFMA (Business and Institutional Furniture Manufacturers Association). Its operations are conducted in accordance with applicable laws and regulations.

Proceed is being used for:

• Funding the working capital requirements of the company
• Pre-payment or repayment of all or a portion of certain outstanding borrowings availed by the company
• Meeting general corporate purposes

Industry overview

India has the largest population in the world in the age bracket of 5-24 years, with nearly 580 million people, offering immense opportunities for the education sector. The country holds a prominent position globally, with one of the largest networks of higher education institutions, comprising over 53,461 colleges and 1,409 universities as of FY26 (as of February 2026). Despite this vast base, there remains considerable scope for expansion and qualitative improvement in the system. In recent years, growing awareness and aspirations have led private players to collaborate with international brands to bring global standards of education to India. Private investments have surged, supporting the rising demand for specialised, industry-focused degrees and online programmes tailored to consumer needs. The Indian edtech market, already valued at $7.5 billion, is projected to grow nearly fourfold by 2030, highlighting the sector’s rapid digital shift. 

The education market in India is expanding at a rapid pace, projected to reach $313 billion by FY30, up from $117 billion in FY23. Within this, higher education alone was valued at Rs 5,75,000 crore ($68.06 billion) in 2024 and is expected to nearly double to Rs 11,60,000 crore ($134.84 billion) by 2033, growing at a CAGR of 8.1%. The K-12 segment, valued at $48.9 billion in 2023, is also on a high-growth trajectory and is estimated to reach $125.8 billion by 2032 at a CAGR of 10.7%.

With the adoption of transformative technologies such as AI, ML, IoT, and blockchain, India’s education sector is steadily redefining itself. The Education 4.0 revolution, which emphasises inclusive learning and employability, is already underway. Government initiatives like the National Education Policy (NEP), now in phased implementation since FY22, are set to further reshape the system with a strong focus on high-quality vocational and skills-based education, preparing India’s youth for the demands of a dynamic global economy. Further, various government initiatives are being adopted to boost the growth of the distance education market, besides focusing on new education techniques such as E-learning and M-learning. The Government of India has taken several steps including opening of IITs and IIMs in new locations, as well as allocating educational grants for research scholars in most government institutions. Furthermore, with the online mode of education increasingly being used by several educational organisations, the higher education sector in India is set for major change and development in the years to come.

Pros and strengths

Integrated Business Model with End-to-End Solutions: It provides integrated solutions comprising laboratory setup, curriculum design, training modules and academic support services, enabling educational institutions to implement robotics and artificial intelligence-based learning programs through a single service provider. This reduces dependency on multiple vendors and supports consistency in delivery, quality standards, and implementation timelines. Its integrated approach covers the entire lifecycle of a project, including requirement assessment, infrastructure setup, content delivery, teacher training and ongoing academic and technical support. This enables coordination between infrastructure and curriculum components to facilitates seamless execution, while also supporting long-term engagement with customers. 

Structured project management, experienced management team and operational capabilities: It employs structured project management methodologies supported by experienced project management teams, standardized protocols and project management tools, enabling effective planning, monitoring and execution of projects. Its experienced management team actively contributes to strategic planning, business development and project execution, enabling it to efficiently manage projects across multiple geographies while adhering to defined timelines and quality standards. 

Proven track record in executing educational laboratory setup projects: It has established a proven track record in executing Educational Laboratory Setup Projects, which has been a key driver of its business growth and financial performance. Its capabilities span the end-to-end design, supply, installation and implementation of AI, Robotics and STEM laboratory solutions for educational institutions and government-supported initiatives across India. Over the last three Fiscals, Educational Laboratory Setup Projects have consistently been the principal contributor to its revenue from operations, reflecting its execution capabilities, technical expertise and ability to successfully deliver projects in accordance with customer requirements. Its experience in implementing projects for schools, colleges and government-supported programmes has enabled it to develop strong domain knowledge, standardized execution processes and long-standing customer relationships.

Risks and concerns

Dependence on channel partners and institutions: It depends on arrangements with schools, educational institutions and channel partners for sourcing student enrolments for its training programs across various locations. Its ability to maintain and expand its operations is dependent on its ability to continue existing arrangements on commercially acceptable terms and establish new relationships with schools, institutions in existing and new geographies. These arrangements with schools, educational institutions and channel partners for student enrolments are not formalised through written agreements, contracts or memoranda of understanding. Such arrangements are based on mutual understanding and agreed commercial terms between the company and the respective parties. Further, schools, institutions and its channel partners may choose to engage with other service providers, conduct similar programs internally, or discontinue such programs due to changes in their academic priorities, budgets, management policies or regulatory requirements.

Geographical concentration of revenue in Maharashtra: Its operations and revenue generation are concentrated in certain states in India, particularly Maharashtra. For Fiscal 2026, Fiscal 2025 and Fiscal 2024, revenue generated from Maharashtra constituted 53.04%, 87.28% and 89.86%, respectively, of its revenue from operations. In addition, it has derived revenue from other states including Delhi, Kerala, Uttar Pradesh, and Gujarat during the aforesaid periods. Its financial performance is therefore dependent, to a significant extent, on the demand for its training programs, operational continuity and economic conditions prevailing in such regions. Any adverse developments affecting such regions may adversely affect its business, results of operations and financial condition.

Revenue reliance on limited number of customers: It depends on a limited number of customers for a significant portion of its revenue from operations. Its top ten customers contribute 77.99%, 92.95%, and 96.60% of its total revenue from operations for the financial year ended on March 31, 2026, 2025 and 2024, respectively. Its business operations are dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations.

Outlook

Robokidz Eduventures is engaged in the business of providing technical education to educational institutions, developing scientific toys and kits for educational institutions. It has established its presence across multiple geographies, with revenue generated from different regions over the last three fiscal years. This geographic diversification reduces dependence on a single region and supports operational stability. On the concern side, it does not have binding long-term agreements with a majority of its customers, and its business is dependent on its ability to maintain strong customer relationships and engagements. Its customers may, at their discretion, discontinue their orders, choose not to renew or continue their subscriptions or service engagements, renegotiate commercial terms, or engage other providers offering similar education solutions, its business and operational results could be negatively impacted.

The company is coming out with a maiden IPO of 29,32,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 100 - 106 per equity share. The aggregate size of the offer is around Rs 29.33 crore to Rs 31.09 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 58.67% from Rs 5,875.28 lakh in Fiscal 2025 to Rs 9,322.31 lakh in Fiscal 2026.  Profit after tax increased 102.02% from Rs 497.82 lakh in Fiscal 2025 to Rs 1,005.69 lakh in Fiscal 2026.

Meanwhile, it intends to expand its educational laboratory setup business by increasing its presence across educational institutions in India, particularly in Tier I and Tier II cities. It plans to leverage its project execution capabilities, operational experience, established relationships with educational institutions and its network of channel partners to identify and execute laboratory setup opportunities across multiple geographies. Going forward, the company intends to expand its retail segment to enhance direct engagement with students and parents outside the formal school environment. This includes conducting workshops, short-term training programs, and structured learning modules through offline, online and hybrid formats. By offering flexible, modular, and age-appropriate programs, it aims to cater to a wider learner base, including hobbyists, beginners, and advanced learners.