Kizi Apparels Ltd. Share Price

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.

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (‘Listing Regulations’), Everlon Financials has informed that Nitin Ishwarlal Parekh (DIN: 00087248) Shall cease to be an Independent Director of the Company upon completion of his Second term of 5 consecutive years at the close of business hours on 16th September, 2026 accordingly, he shall cease to be a Member of the respective Committees of the Board upon such cessation of Directorship. The Board of Directors and the Company management places on record its deep appreciation and gratitude for the invaluable advice, guidance and contribution made by Nitin Ishwarlal Parekh during his tenure as an Independent Director of the Company. The details required in terms of Regulation 30 read with Schedule III - Para A of Part A of the Listing Regulations and SEBI Circulars issued in this regard, are given in Annexure -I.

The above information is a part of company’s filings submitted to BSE.