Kaytex Fabrics, a player in digital textile innovation, is launching its ₹69.81 crore Book Built IPO on July 29, 2025, closing on July 31, 2025. The issue comprises a fresh issue of 31.99 lakh shares worth ₹57.58 crore and an Offer for Sale (OFS) of 6.79 lakh shares amounting to ₹12.22 crore.

The company has set a price band of ₹171 to ₹180 per share. The minimum lot size is 800 shares, and retail investors must apply for at least 2 lots (1,600 shares), which requires a minimum investment of ₹2,88,000.

With a tentative listing date of August 5, 2025, the IPO will list on the NSE SME platform. The allotment date is August 1, 2025.

Company Overview

Founded with the mission to digitally transform the fabric supply chain, Kaytex Fabrics partners with fashion brands and designers to offer high-quality unstitched garments and digitally printed fabrics. The company positions itself not only as a supplier but also a growth partner for innovation and efficiency.

The leadership team is headed by Sanjeev Kandhari (Chairman & MD) and Amit Kandhari (Whole-time Director & CFO) — both boasting over 30 years of experience in the textile manufacturing industry.

Kaytex Fabrics Financials: Solid Revenue and Profit Growth

Kaytex Fabrics has shown consistent growth in its top and bottom lines:

These figures highlight a steady financial trajectory, with net profit tripling over three years and margins improving consistently.

Valuation & Key Ratios

• Pre-Issue EPS (FY24): ₹14.7

• Post-Issue EPS (FY24): ₹11.5

• Pre-Issue P/E: 12.24x

• Post-Issue P/E: 15.65x

• Industry P/E: 10x

• ROCE (FY24): 33.25%

• ROE (FY24): 40.43%

• RoNW: 33.76%

While the P/E ratio is slightly above industry average, the high ROE and ROCE indicate efficient capital deployment and solid operational performance, making this IPO fairly valued.

Use of IPO Proceeds

Kaytex intends to utilise the funds from the fresh issue for the following:

1. ₹2.55 crore for warehouse construction in Amritsar

2. ₹3.73 crore for dedicated sales office in Amritsar

3. ₹5.01 crore for advanced fabric processing systems

4. ₹30 crore for working capital needs

5. Remaining for general corporate purposes

Anchor Investment and IPO Registrar

• Raised ₹18 crore from Anchor Investors at ₹180 per share

• Allocated 10,00,000 shares to institutional buyers

• Socradamus Capital Pvt Ltd is the Book Running Lead Manager

• BIGSHARE SERVICES PVT LTD is the Registrar

• Gretex Share Broking Ltd is the Market Maker

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  Disclaimer: This review is for informational purposes only. It should not be construed as investment advice. Investors must consult their financial advisors before investing. Past performance is not indicative of future results. Investment in securities is subject to market risks.

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