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Vama Wovenfab
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Vama Wovenfab

What they do: The company operates in manufacturing and trading, with a significant portion of revenue from traded goods. It also engages in manufacturing activities, contributing to its revenue stream.

By IPO Milega Research · Published · Updated

Check allotment(opens in a new tab)
Our score
6.8/10Strong

The company has shown strong revenue growth with a significant increase in total revenue and a high CAGR.

Listing gain
+0%
Listed at ₹341
Subscribed
2.67x
Total
Retail odds
36%
1 in 2.8

GMP is an unofficial grey market indication. GMP updated 19 Sept, 13:03 IST.

Price band
₹324-341
Lot size
800 shares
Min. investment
₹2,72,800
Issue size
49.54 Cr.
Issue timeline
  1. Open15 Sept 2026
  2. Close17 Sept 2026
  3. Allotment18 Sept 2026
  4. Listing22 Sept 2026

Overview

Your odds

Estimated from the current subscription figures. Tap a category to work it out for your application size.

Subscription by category
2.67x total
QIB
1x
NII
2.22x
Retail
2.8x
Estimated listing from GMP (unofficial)

₹344 (+0.88%)

GMP trend

Unofficial grey market quotes, times in IST

Where the money goes

To the company
₹49.54 Cr
Fresh issue
To selling shareholders
₹0 Cr
No offer for sale
  • Capital Expenditure towards Construction of shed₹1.36 Cr4%
  • Capital Expenditure towards Purchase of Machinery₹7.25 Cr21%
  • To meet working capital requirements₹26.5 Cr75%
  • General Corporate PurposesNot stated

Outer ring: estimated gain

How the score adds up

The overall score is the average of these five, nudged by QIB demand once bidding closes.

  • Financials7.0
  • Performance8.0
  • Flexibility8.0
  • Timing7.0
  • Risk4.0
Estimated gain (fundamentals only)
+15%

The approximate gains potential is based on the company's strong revenue growth, strategic market positioning, and operational agility. However, the lack of GMP data limits the precision of this estimate. The company's high customer concentration and negative cash flows pose risks, but its adaptability and market timing could support moderate gains.

Strengths4

  • ISO 9001:2015 certification for quality management.
  • Revenue growth by 3.73 times from 2015 to 2025.
  • Crossed ₹200 crores in revenue in FY26.
  • Supplied over 2 crore PP fertilizer bags to a government company in 2017-18.

Concerns5

  • Volatile raw material prices affecting cost structure.
  • High customer concentration with top customers contributing 96.84% of revenue.
  • Negative cash flows from operations in FY 2025 and 2026.
  • Potential disruptions from power supply and machinery breakdowns.
  • Interest rate fluctuations impacting financial costs.

Who gets shares

Quota split
  • QIB50%
  • NII15%
  • Retail35%
Application size
  • Retail Minimum2,72,800
    2 lots, 800 shares
  • Retail Maximum2,72,800
    2 lots, 800 shares
  • S-HNI Minimum4,09,200
    3 lots, 1200 shares
  • S-HNI Maximum9,54,800
    7 lots, 2800 shares
  • B-HNI Minimum10,91,200
    8 lots, 3200 shares

Timing

7.0/10

The timing of the IPO appears favorable due to the company's recent transition to a public entity, which can attract investor interest. However, the presence of contingent liabilities and related party transactions may pose risks that could affect investor perception. The market environment seems conducive for an SME listing, but the company must address potential concerns to maximize the IPO's success.

Time to market
The company's recent conversion to a public limited company and the strategic choice of the SME platform for listing suggest a well-considered timing strategy. This move likely aims to capitalize on the company's new public status and attract a specific investor segment, enhancing the IPO's appeal.
How allotment works
Basis of allotment finalized and shares credited to demat
Market timing
Favourable
Time to market
8.0
Listing on
BSE SME

Key milestones

  1. 15 Sept 2026IPO Opens
  2. 17 Sept 2026IPO Closes
  3. 18 Sept 2026Basis of Allotment
  4. 21 Sept 2026Refunds Initiated
  5. 21 Sept 2026Credit to Demat Account
  6. 22 Sept 2026Listing Date

Financials

7.0/10
Period ended 2026
Change against 2025
Revenue
₹215 Cr
+176.0%
Profit after tax
₹11.55 Cr
+68.9%
Net margin
5.4%
-3.4 pts
Assets
₹74.18 Cr
+9.9%
Return on equity
15.0
Debt to equity
1
Current ratio
1.5
Revenue CAGR
150%
ROCE
31.94%
Return on net worth
50.37%
NAV per share (₹)
76.80

Financial performance trend

Amount ₹ in crores

The company has shown strong revenue growth with a significant increase in total revenue and a high CAGR. Profitability is also improving, with a positive net profit margin. However, the financial ratios indicate potential liquidity concerns, and the debt-to-equity ratio suggests moderate leverage.

Risk

4.0/10

Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.

Where the risks sit

  • Financial risks2
  • Market risks2
  • Operational risks2
  • Regulatory risks1

Vama Wovenfab faces high financial and operational risks due to customer concentration, volatile raw material prices, and negative cash flows.

How the company offsets these

Diversifying customer base and securing stable raw material supply contracts.

Financial risks2

  • Negative cash flows from operations in FY 2025 and 2026.
  • Interest rate fluctuations impacting financial costs.

Market risks2

  • Volatile raw material prices affecting cost structure.
  • High customer concentration with top customers contributing 96.84% of revenue.

Operational risks2

  • Potential disruptions from power supply and machinery breakdowns.
  • Dependency on brand recognition and business opportunities.

Regulatory risks1

  • Legal proceedings and operational hazards.

Performance

8.0/10

Vama Wovenfab Limited is a well-established manufacturer of polypropylene and HDPE woven sack bags and fabrics, with a strong focus on quality and customer satisfaction. The company has shown significant revenue growth and operational expansion, supported by a skilled workforce and strategic location advantages. It has a robust customer network and a commitment to sustainability and innovation.

Historical growth
The company has experienced substantial revenue growth, increasing from ₹2,786.57 lakhs in FY24 to ₹21,461.71 lakhs in FY26., The revenue grew by approximately 670% over two years, indicating a strong upward trajectory.
Market comparison
Vama Wovenfab operates in a competitive market with a focus on quality and customer satisfaction, which helps it stand out. The company's growth rate and strategic initiatives align well with industry trends, particularly in sustainability and innovation.
Future potential
The company is expected to continue its growth trajectory by expanding its market presence and focusing on sustainable practices.
Operational consistency
The company's strategic initiatives and strong customer relationships have contributed to its consistent performance.
Management quality
9.0/10
Experience
The promoters have over three decades of experience in the plastic industry, providing a competitive advantage.
Track record
The management has successfully expanded the company's market presence and revenue significantly.

Key achievements

  1. 01ISO 9001:2015 certification for quality management.
  2. 02Revenue growth by 3.73 times from 2015 to 2025.
  3. 03Crossed ₹200 crores in revenue in FY26.
  4. 04Supplied over 2 crore PP fertilizer bags to a government company in 2017-18.

Flexibility

8.0/10
Market adaptability
8.0/10

Vama Wovenfab Limited has a strong market adaptability due to its diverse product range catering to multiple industries such as agriculture, chemicals, and food processing. The company's strategic location and established customer network enhance its market presence.

Financial stability
7.0/10

The company shows financial stability with a significant increase in revenue from INR 2,786.57 lakhs in FY24 to INR 21,461.71 lakhs in FY26. However, the EBITDA margin has decreased from 18.32% in FY24 to 8.32% in FY26, indicating potential pressure on profitability.

Operational agility
9.0/10

Vama Wovenfab Limited exhibits high operational agility with efficient manufacturing processes, strategic location advantages, and a skilled workforce. The company has optimized its production processes and maintains a robust quality control system.

Vama Wovenfab Limited demonstrates strong flexibility and adaptability, driven by its diversified product offerings, strategic market presence, and robust operational practices. The company benefits from government initiatives and a growing export market, positioning it well for future growth.

Product diversification
The company offers a wide range of products including woven bags, fabrics, and BOPP laminated bags, catering to various industries such as agriculture, food, chemicals, and construction.
Future adaptability
With a focus on sustainable growth, advanced technology, and customer satisfaction, Vama Wovenfab Limited is well-positioned to adapt to future market changes and expand its presence in the woven sack industry.

The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.