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Hot Pursuit News

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(12 Oct 2023, 12:21)

BSE SME Vivaa Tradecom makes weak debut

Shares of Vivaa Tradecom were quoting at Rs 40.15 on the BSE, a discount of 21.27% compared with the issue price of Rs 51.


The scrip was listed at Rs 40.80, down 20% over the initial public offer (IPO) price. The counter hit a high of Rs 42.82 and a low of Rs 38.76. About 3.42 lakh shares of the company changed hands at the counter.

Vivaa Tradecom's IPO was subscribed 1.76 times. The issue opened for bidding on 27 September 2023 and it closed on 4 October 2023. The price band of the IPO was fixed at Rs 51 per share.

The issue size comprised of fresh issue of 15,66,000 equity shares having a face value of Rs 10 each. The company intends to utilize the net proceeds of issue to meet working capital requirements; and general corporate purpose.

Vivaa Tradecom is a company involved in the manufacturing and trading of clothes and garments. They have a wide range of clients across India, including Lifestyle International, Aditya Birla Fashion and Retail, Lajja Polyfab, Nandan Denim, Bajaj Impex, and Reliance Retail. One of their main segments is the trading of denim jeans garments and denim cloth. They purchase ready-made garments, cotton, and jeans garments from the market and sell them to their customers. Since April 2022, their major business is conducted with an Ahmedabad-based buyer and seller. While most purchases are made based on client orders, at times they also purchase and store garments and fabrics to take advantage of market supply and demand for better margins. The company operates with a credit system, both for purchasing trading materials and selling to customers, with credit terms often exceeding 100 days. Currently, their trading activities are focused primarily within Gujarat.

As on 31 August 2023, the company had 4 permanent employees in various departments.

On a consolidated basis, the company recorded revenue from operations of Rs 134.01 crore and net profit of Rs 0.25 crore for the period as on 31 March 2023.


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