| Basis of Allotment |
(This is only an advertisement for Information purpose and not a Prospectus announcement. This does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Not for publication or distribution, directly or indirectly outside India)
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A B COTSPIN INDIA LIMITED |
Our Company was originally incorporated as "Ganga Cottex Private Limited" at Jalandhar, as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated June 23,1997 issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh bearing number 16-20118 of 1997. Subsequently our Company was converted from Private Limited Company to a Public Limited Company pursuant to a special resolution passed by the members of our Company in the Extra-ordinary General meeting held on March 20, 2010 and the name of the our company was changed to "Ganga Cottex Limited". A fresh Certificate of Incorporation, consequent upon conversion of Private Limited Company to Public limited Company dated March 26, 2010 was issued by Registrar of Companies, Punjab, Himachal Pradesh, and Chandigarh, bearing corporate Identification Number U17111PB1997PLC020118. Further, the name of our company was changed to "AB Cotspin India Limited" and a fresh Certificate of Incorporation dated December 24, 2010, consequent upon change of name was issued by Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. The Corporate Identification Number of our company is U17111PB1997PLC020118.
| Registered Office: |
| 176. Homeland Enclave, Bathinda, Punjab 151001 |
| Tel: +91 01642970169; |
| Email Id: investors@abcotspin.in |
| Website: www.abcotspin.com |
| Contact Person: Kannu Sharma, Company Secretary and Compliance Officer |
| PROMOTERS OF THE COMPANY |
| DEEPAK GARG AND POOJA GARG |
| BASIS OF ALLOTMENT |
INITIAL PUBLIC OFFER CONSISTING OF FRESH ISSUE OF UPTO 28,84,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH ("EQUITY SHARES") OF A B COTSPIN INDIA LIMITED ("COMPANY" OR "ISSUER") FOR CASH AT A PRICE OF RS. 35/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 25/- PER EQUITY SHARE) AGGREGATING UPTO RS. 1009.40 LAKHS (THE "ISSUE"). THE ISSUE INCLUDES A RESERVATION OF UPTO 1,48,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH AT A PRICE OF RS. 35/- PER EQUITY SHARE AGGREGATING RS. 51.80 LAKHS FOR SUBSCRIPTION BYTHE MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION"). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. NET ISSUE OF UPTO 27,36,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 35/- PER EQUITY SHARE, AGGREGATING RS. 957.60 LAKHS IS HEREINAFTER REFERED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 28.02 % AND 26.58 % RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
In terms of Rule 19(2)(b)(l) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR") the Issue is being made for at least 25% of the post- issue paid-up Equity Share capital of our Company. The Issue is being made through the Book Building Process, in compliance with Chapter IX of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended the ("SEBIICDR Regulations") and allocation in the net issue to the public will be made in terms of regulation 253 of the SEBI (ICDR) Regulations, as amended. All Bidders, shall only participate in the issue through the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective bank account (including UPI ID for Rlls using UPI Mechanism) (UPI ID, Rlls and UPI Mechanism are defined hereinafter) wherein the Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. For details, see "Issue Procedure" on page 193 of the Prospectus.
| RISKS TO INVESTORS: | |
| I. | This being the first public Issue of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares Is Rs.10 each. The Issue Price as stated In "Basis for Issue Price" on page 85 should not be taken to be Indicative of the market price of the Equity Shares after the Equity Shares are listed on Emerge platform of National stock Exchange of India Limited. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing. |
| II. | As on date of the Prospectus, the average cost of acquisition per Equity Share by our Promoters viz. Deepak Garg is Rs. 12.80 and Pooja Garg is Rs. 12.90 |
| THE FACE VALUE OF EQUITY SHARES IS RS.10/- EACH. |
| THE ISSUE PRICE IS RS. 35.00/- PER EQUITY SHARES |
| BID / ISSUE OPENED ON: THURSDAY DECEMBER 30, 2021 |
| AND CLOSED ON: MONDAY JANUARY 03, 2022 |
The Equity Shares of our Company offered through this Prospectus dated January 5, 2022 are proposed to be listed on the EMERGE Platform of National Stock Exchange of India Limited ("NSE EMERGE"). In terms of the Chapter IX of the SEBI (ICDR) Regulations, 2018 as amended from time to time, our Company has received an In-principle approval letter dated December 23, 2021 from National Stock Exchange of India Limited for using its name in the Offer document for listing of our shares on the EMERGE Platform of National Stock Exchange of India Limited. For the purpose of this Issue, National Stock Exchange of India Limited shall be the Designated Stock Exchange.
| SUBSCRIPTION DETAILS |
The Issue has received 4871 applications for 3,05,12,000 Equity shares (before rejections, before bids not banked but after Invalid Multiple/Duplicate bids) including Market Maker Application of 1,48,000 Equity Shares. The issue was subscribed to the extent of 10.58 times as per the application data (before rejections, before bids not banked but after Invalid Multiple/Duplicate bids). After considering the technical rejections cases, the issue was subscribed 10.3551 times.
The details of application received (Before Technical Rejection but after bids not banked and application banked but bid not registered)
| Category | Number of Applications | Number of Shares | Reserved | No of Times Subscription | Amount |
| MARKET MAKER | 1 | 1,48,000 | 1,48,000 | 1.00 | 51,80,000.00 |
| HNI | 229 | 118,00,000 | 13,68,000 | 8.63 | 4130,00,000.00 |
| RETAIL | 4,641 | 185,64,000 | 13,68,000 | 13.57 | 6494,24,000.00 |
| TOTAL | 4,871 | 305,12,000 | 28,84,000 | 10.58 | 10676,04,000.00 |
Final Demand
| PRICE | SHARES | % OF TOTAL | CUMULATIVE TOTAL | CUMULATIVE % OF TOTAL |
| 33 | 8,80,000 | 2.35 | 8,80,000 | 2.35 |
| 34 | 2,76,000 | 0.74 | 11,56,000 | 3.09 |
| 35 | 206,32,000 | 55.21 | 217,88,000 | 58.31 |
| 9999 | 155,80,000 | 41.69 | 373,68,000 | 100.00 |
| TOTAL | 373,68,000 | 100.00% |
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange- National Stock Exchange of India Limited on Thursday, January 06, 2022.
A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 35.00/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 1.00 time. The total number of shares allotted in this category is 1,48,000 Equity shares in full out of reserved portion of 1,48,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 35.00/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 13.57 times before Technical Rejection but after bids not banked and application banked but bid not registered. The category was subscribed by 13.21 times after Technical Rejection, bids not banked and application banked but bid not registered. Total number of shares allotted in this category is 13,68,000 Equity Shares. The category wise basis of allotment is as under:
| SR NO | Category | No. of Applications Received | % of Total | Total No. of Equity Shares Applied | % to Total | No. of Equity Shares Allotted per Bidder | Ratio | Total No. of Equity Shares Allotted |
| 1 | 4,000 | 4.518 | 100.00 | 180.72,000 | 100.00 | 4,000 | 5:66 | 13,68,000 |
| 4,518 | 100.00 | 180,72,000 | 100.00 | 13,68,000 |
C. Allocation to Non Institutional Investor (After Technical Rejection): The Basis of Allotment to other than Retail Individual Investors, at the issue price of Rs. 35.00/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 8.63 times before Technical Rejection but after bids not banked and application banked but bid not registered. The category was subscribed by 8.51 times after Technical Rejection, bids not banked and application banked but bid not registered. Total number of shares allotted in this category is 13,68,000 Equity Shares. The category wise basis of allotment is as under:
| SR NO | Category | No. of Applications Received | % of Total | Total No. of Equity Shares Applied |
% to Total | No. of Equity Shares Allotted per Bidder | Ratio | Total No. of Equity Shares Allotted | |
| 1 | 8,000 | 59 | 26.34 | 4,72,000 | 4.05 | 4,000 | 14:59 | 56,000 | |
| 2 | 12,000 | 35 | 15.63 | 4,20,000 | 3.61 | 4,000 | 12:35 | 48,000 | |
| 3 | 16,000 | 15 | 6.70 | 2,40,000 | 2.06 | 4,000 | 7:15 | 28,000 | |
| 4 | 20,000 | 17 | 7.59 | 3,40,000 | 2.92 | 4,000 | 10:17 | 40,000 | |
| 5 | 24,000 | 8 | 3.57 | 1,92,000 | 1.65 | 4,000 | 6:8 | 24,000 | |
| 6 | 28,000 | 6 | 2.68 | 1,68,000 | 1.44 | 4,000 | 5:6 | 20,000 | |
| 7 | 32,000 | 7 | 3.13 | 2,24,000 | 1.92 | 4,000 | 1:1 | 28,000 | |
| 8 | 36,000 | 2 | 0.89 | 72,000 | 0.62 | 4,000 | 1:1 | 8,000 | |
| 9 | 40,000 | 13 | 5.80 | 5,20,000 | 4.47 | 4,000 | 1:1 | 52,000 | |
| 4000 additional share is allocated for Serial no in the ratio of 2:13 | 4,000 | 2:13 | 8,000 | ||||||
| 10 | 44,000 | 1 | 0.45 | 44,000 | 0.38 | 4,000 | 1:1 | 4,000 | |
| 11 | 48,000 | 5 | 2.23 | 2,40,000 | 2.06 | 4,000 | 1:1 | 20,000 | |
| 4000 additional share is allocated for Serial no 1 in the ratio of 2:5 | 4,000 | 2:5 | 8.000 | ||||||
| 12 | 56,000 | 2 | 0.89 | 1,12,000 | 0.96 | 4,000 | 1:1 | 8,000 | |
| 4000 additional share is allocated for Serial no 2 in the ratio of 1:2 | 4,000 | 1:2 | 4,000 | ||||||
| 13 | 60,000 | 12 | 5.36 | 7,20,000 | 6.18 | 4,000 | 1:1 | 48,000 | |
| 4000 additional share is allocated for Serial no 3 in the ratio of 9:12 | 4,000 | 9:12 | 36,000 | ||||||
| 14 | 72,000 | 9 | 4.02 | 6,48,000 | 5.57 | 8,000 | 1:1 | 72,000 | |
| 4000 additional share is allocated for Serial no 4 in the ratio of 1:9 | 4,000 | 1:9 | 4,000 | ||||||
| 15 | 80,000 | 4 | 1.79 | 3,20,000 | 2.75 | 8,000 | 1:1 | 32,000 | |
| 4000 additional share is allocated for Serial no 15 in the ratio of 1:4 | 4,000 | 1:4 | 4,000 | ||||||
| 16 | 84,000 | 1 | 0.45 | 84,000 | 0.72 | 12,000 | 1:1 | 12,000 | |
| 17 | 88,000 | 1 | 0.45 | 88,000 | 0.76 | 12,000 | 1:1 | 12,000 | |
| 18 | 92,000 | 1 | 0.45 | 92.000 | 0.79 | 12.000 | 1:1 | 12,000 | |
| 19 | 1,00,000 | 3 | 1.34 | 3,00,000 | 2.58 | 12,000 | 1:1 | 36,000 | |
| 20 | 1,12,000 | 1 | 0.45 | 1,12,000 | 0.96 | 12,000 | 1:1 | 12,000 | |
| 21 | 1,20,000 | 5 | 2.23 | 6,00,000 | 5.15 | 12,000 | 1:1 | 60,000 | |
| 4000 additional share is allocated for Serial no 21 in the ratio of 3:5 | 4,000 | 3:5 | 12,000 | ||||||
| 22 | 1,60,000 | 4 | 1.79 | 6,40,000 | 5.50 | 16.000 | 1:1 | 64,000 | |
| 4000 additional share is allocated for Serial no 22 in the ratio of 3:4 | 4,000 | 3:4 | 12,000 | ||||||
| 23 | 2,00,000 | 3 | 1.34 | 6,00,000 | 5.15 | 24,000 | 1:1 | 72,000 | |
| 24 | 2,84,000 | 4 | 1.79 | 11,36.000 | 9.76 | 32,000 | 1:1 | 1,28,000 | |
| 4000 additional share is allocated for Serial no 24 in the ratio of 1:4 | 4,000 | 1:4 | 4,000 | ||||||
| 25 | 2,88,000 | 1 | 0.45 | 2,88,000 | 2.47 | 32,000 | 1:1 | 32,000 | |
| 26 | 3,76,000 | 1 | 0.45 | 3,76,000 | 3.23 | 44,000 | 1:1 | 44,000 | |
| 27 | 4,00,000 | 1 | 0.45 | 4,00,000 | 3.44 | 48,000 | 1:1 | 48,000 | |
| 28 | 4,24,000 | 1 | 0.45 | 4,24,000 | 3.64 | 48,000 | 1:1 | 48,000 | |
| 29 | 6,00,000 | 1 | 0.45 | 6,00,000 | 5.15 | 72,000 | 1:1 | 72,000 | |
| 30 | 11,72,000 | 1 | 0.45 | 11,72,000 | 10.07 | 1,36,000 | 1:1 | 1,36,000 | |
| 224 | 100.00 | 116,44,000 | 100.00 | 13,68,000 | |||||
The Board of Directors of the Company at its meeting held on January 07, 2022 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. National Stock Exchange of India Limited and authorized corporate action for allotment of shares in dematerialized form to various successful applicants.
The allotment advice and/or notices shall be dispatched to the address of the Applicants as registered with the depositories/ as filled in the application form on or before January 10, 2022. Further, the instructions to SCSBs has been issued on January 07, 2022 for unblocking of funds. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. In case the same is not received within prescribed time, Investors may contact the registrar to the Issue at the address given below. The Company is taking steps to get the Equity Shares admitted for trading on the NSE EMERGE within six working days from the date of the closure of the Issue. The trading is proposed to commence on or before January 11, 2022 subject to receipt of listing and trading approvals from National Stock Exchange of India Limited.
INVESTORS PLEASE NOTE
The details of the allotment made will be hosted on the website of the Registrar to the Issue at www.bigshareonline.com. All future correspondence in this regard may kindly be addressed to the Registrar quoting full name of the First/' Sole applicant, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details atthe address ofthe Registrar given below:
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REGISTRAR TO THE ISSUE |
| LINK INTIME INDIA PRIVATE LIMITED | |
| C 101, 247 Park, LBS Marg, Vikhroli (West), Mumbai-400083, Maharashtra, India | |
| Tel No.: +91 22 4918 6200 | |
| Fax No.: 022-4918 6060 | |
| E-mail: abcotspin.ipo@linkintime.co.in Website: www.linkintime.co.in | |
| Contact Person: Shanti Gopalkrishnan | |
| SEBI Registration Number: INR000004058 | |
| Investor Grievance E-Mail: abcotspin.ipo@linkintime.co.in |
| For A B Cotspin India Limited | |
| On behalf of the Board of Directors | |
| Sd/- | |
| Deepak Garg | |
| Date: January 10, 2022 | Chairman and Managing Director |
| Place: Bathinda | DIN: 00843929 |
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF A B COTSPIN INDIA LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.
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