Severeconcentrationpage 25
Related-party revenue concentration to Ambica Cotseeds
Ambica Cotseeds Limited... 24.43%... 47.23%... 38.46% (sales as % of revenue from operations)
ListedSMETextileVIVEKANAND
Vivekanand Cotspin IPO
Vivekanand Cotspin IPO is an SME IPO raising ₹24 Cr at ₹32 – ₹37 a share. It listed on 28 Sept 2026 at ₹38, +2.7% against its issue price of ₹37, and trades at ₹41 today (+10.8% since issue). It was subscribed 1.73× in total.
₹37
Issue price
₹41
Price now
+10.8%
Since issue price
28 Sept 2026
Listed on
1.73×Subscribed (final) · all exchanges
Just covered — bids slightly exceed the shares on offer
populated partly populated we hold nothing here — the tab says why
What the prospectus says could go wrong
Read from the 395-page prospectus. Indian prospectuses list hundreds of risk factors, most of them generic boilerplate. These are the 13 specific to this company; 154 generic ones were skipped. Every one is quoted verbatim with its page, so you can check it against the document.
Severeoperationalpage 43
Single manufacturing facility in Kadi, Gujarat
We manufacture our products from our manufacturing facilities which are located at Kadi, Gujarat. Any disruption in the operations due to supply of power, fire outages or industrial accidents at the unit could hamper or delay our ability to continue production
Severepromoterpage 27
Conflicts of interest with promoter group in same line of business
our promoter group entities and group companies, namely Avadh Cotton Industries, Vivekanand Industries, Ambica Cotseeds Limited, and Ambica Cotseeds PTE Ltd, are involved in businesses similar to our company
Severeconcentrationpage 45
Top-10 customer concentration of 88.73% in FY24
Our top ten customers have contributed 51.184%, 83.08% and 88.73% of our revenues for the year ended March 31, 2026, 2025 and 2024
Severeregulatorypage 49
Export obligation shortfall of ₹303.97 Lakhs
while non-fulfilment could result in a duty liability of ₹ 303.97 Lakhs (together with applicable interest and other charges, if any), the Company has implemented adequate monitoring and compliance processes to mitigate this risk
Severefinancialpage 66
Finance costs exceed pre-tax profit
(e) Finance costs 26 556.81 260.91 182.92 440.04
Highoperationalpage 26
Declining spinning capacity utilization
Cotton Yarn... 67.05... 75.05... 81.38 (capacity utilization % for FY26, FY25, FY24)
Highfinancialpage 67
Negative operating cash flow in FY25
NET CASH FROM OPERATING ACTIVITIES (A) 866.64 (1,078.76) 706.80 2,440.04
Highconcentrationpage 47
Top supplier was ~41% of FY25 purchases
Top 1 Supplier 8,122.72 21.30 13,281.82 40.95 12,865.60 39.47
Highregulatorypage 32
Repeated delays in GST, EPF and ESIC filings
our company has delayed in filing GST returns, EPF returns, ESIC returns and deposit of statutory dues
Highpromoterpage 29
CMD previously director of struck-off company
Our Company's Chairman & Managing Director i.e. Nirav Bharatbhai Patel, was previously associated as a director with a company that was subsequently struck off from the register of companies
Highregulatorypage 45
Promoter Group lacks PAN and has not filed income tax returns
certain members of our Promoter Group are foreign nationals and son of one of the Promoter i.e. Mantra Patel due his minority do not possess Permanent Account Numbers ("PAN") ... certain Indian members of our Promoter Group have not filed income tax returns
Highfinancialpage 49
No hedging against cotton/yarn price volatility
we have not yet entered into any contract for hedging the risk of any adverse price movement in the price of our raw material or finished goods
Extracted from the issuer’s own prospectus and ranked by how specific and material each risk is to this company. Severity is our assessment of the disclosure, not a prediction — and nothing here is a recommendation to apply to this issue.
What’s in court
The issuer’s own summary of outstanding legal proceedings — SEBI requires this table in every prospectus. Counts and amounts are as disclosed.
| Against | Criminal | Tax | Other material | Amount at stake |
|---|---|---|---|---|
| The company | 0 | 4 | 0 | ₹0.6 Cr |
| Promoters | 0 | 4 | 0 | ₹26 Cr |
| Directors | 0 | 1 | 0 | — |
| Subsidiaries | 0 | 0 | 0 | — |
| Group companies | 6 | 14 | 1 | ₹11 Cr |
case₹13 Crpage 276
Income Tax Dept vs. Mr. Nirav Bharatbhai Patel (Promoter-CMD): Section 148 proceedings for AY 2020-21 alleging Rs. 13,29,63,889 (~Rs. 13.30 cr) of escaped income; pending
case₹6.0 Crpage 279
GST Dept vs. M/s. Ambica Cotseeds Ltd (Group Co.): Order u/s 74 for period Jul 2017–Mar 2019 demanding Rs. 6,01,03,394 (~Rs. 6.01 cr) for alleged excess/wrong ITC; appeal pending
case₹1.4 Crpage 283
M/s. Truepay Finance Pvt Ltd (Group Co.) vs. Creduce Technologies & 3 others / Mr. Vastupal Vora: 6 criminal complaints u/s 138 NI Act for dishonoured cheques aggregating ~Rs. 1.38 cr; pending before ACJM, Ahmedabad
Amounts converted from Indian Rupees to crore using 1 crore = 1,00,00,000 Rs = 100 lakh = 10 million. Counts include both proceedings filed by and against each party. Company has no subsidiary (explicitly stated p284). Group bucket includes partnership firms of promoters (Vivekanand Industries, Avadh Cotton Industries, Balaji Oil Mill) alongside group companies (Ambica Cotseeds Ltd, Truepay Finance Pvt Ltd). Promoter Nirav Bharatbhai Patel is also CMD; classified under promoters per text. Mrs. Ranjanben Patel demand of Rs. 1,780 (~Rs. 0.0002 cr) included in promoter aggregate. Vishnubhai Prahladdas Patel tax matter (AY 2025-26) has no quantified amount. Group Companies amount aggregate includes TDS defaults (~Rs. 0.054 cr), 10 GST cases (~Rs. 9.11 cr), civil electricity dispute for Balaji Oil Mill (Rs. 8,34,578) and the 6 NI Act s.138 criminal matters filed by Truepay Finance (~Rs. 1.38 cr). No explicit grand-total amount is stated in the section; the arithmetic sum of all quantified stated amounts is approximately Rs. 37.47 crore.. Outstanding means unresolved — a listed case is an exposure, not a verdict.
Source documents
What the issuer and the exchanges published. Everything else on this tab is read out of these.