Kaytex Fabrics IPO Analysis: Key Details and Investment Outlook

Kaytex Fabrics, a leading innovator in digital textile printing and high-quality fabrics, is transforming the fashion supply chain for both emerging designers and established brands. With a commitment to efficiency, speed, and creative freedom, Kaytex goes beyond being a fabric supplier — it is a partner in fashion innovation.

The company is offering an IPO through a Book Built Issue of ₹69.81 Crores, which includes a Fresh Issue of ₹57.58 Crores (31.99 lakh shares) and an Offer for Sale of ₹12.22 Crores (6.79 lakh shares). The IPO price band is ₹171 to ₹180 per share, and the minimum lot size is 800 shares. Retail investors must apply for at least 2 lots (1,600 shares) amounting to ₹2,88,000.

The issue opened on July 29, 2025, and closed on July 31, 2025. The share allotment is expected on August 1, and listing is scheduled for August 5, 2025, on the NSE SME platform.

Anchor Investment and Grey Market Premium (GMP)

Kaytex Fabrics successfully raised ₹18.00 Crores from Anchor Investors, allotting 10,00,000 equity shares at ₹180 — the upper end of the price band — signaling strong institutional interest.

The Grey Market Premium (GMP) for the IPO is ₹20, suggesting a potential 11.11% listing gain. While grey market trends are unofficial and speculative, they reflect market sentiment. GMP is based on demand and supply in the unregulated grey market and should not be considered a reliable predictor of listing price.

As of July 24, 2025:

• IPO Price: ₹180

• Expected Listing Price: ₹200

• GMP: ₹20 (11.11%)

IPO Subscription Status

The Kaytex Fabrics IPO received huge investor response, with a final subscription of 40.88 times as of 7:00 PM on July 31, 2025. This indicates strong demand across investor categories.

Such robust subscription usually signals positive listing momentum, especially when combined with a favourable GMP.

Objectives of the IPO

Kaytex Fabrics plans to use the net proceeds from the IPO for the following:

1. ₹255.55 Lakh – Construction of additional warehouse facility in Amritsar.

2. ₹373.20 Lakh – Setting up a dedicated sales office in Amritsar.

3. ₹501.00 Lakh – Purchase of advanced fabric processing systems.

4. ₹3,000.00 Lakh – Working capital requirements.

5. Remaining funds for general corporate purposes.

These investments are aimed at capacity expansion, improving infrastructure, and supporting the company’s growth strategy.

How to Check Allotment Status

The IPO allotment status will be available on August 1, 2025. To check:

1. Visit BIGSHARE SERVICES registrar’s IPO allotment page.

2. Select Kaytex Fabrics Limited from the dropdown.

3. Enter application number, PAN, or DP Client ID.

4. Submit and check your allotment result.

Company Background and Leadership

Kaytex Fabrics is redefining the textile business with a focus on quality, innovation, and sustainability. The company provides digital printing, premium fabric solutions, and unstitched garments that serve the rapidly evolving fashion ecosystem.

The company is led by:

• Sanjeev Kandhari, Chairman & MD, with 30 years’ experience in textile manufacturing.

• Amit Kandhari, Whole-Time Director & CFO, also with 3 decades of experience, manages finance, production, and expansion plans.

The management’s depth of experience supports stable operations, strategic growth, and financial discipline.

Financial Performance Overview

Kaytex has shown consistent revenue and profit growth, indicating sound business fundamentals:

• Revenue from operations:

  • FY25: ₹15,321.50 Lakh

  • FY24: ₹12,503.32 Lakh

  • FY23: ₹9,934.40 Lakh

• EBITDA:

  • FY25: ₹3,048.99 Lakh

  • FY24: ₹2,251.78 Lakh

  • FY23: ₹1,294.39 Lakh

• Profit After Tax (PAT):

  • FY25: ₹1,690.47 Lakh

  • FY24: ₹1,130.80 Lakh

  • FY23: ₹559.14 Lakh

The data reflects a stable upward trend, strengthening investor confidence.

Valuation Metrics and Industry Comparison

• Pre-issue EPS (FY24): ₹14.7

• Post-issue EPS (FY24): ₹11.50

• Pre-issue P/E Ratio: 12.24x

• Post-issue P/E Ratio: 15.65x

• Industry P/E: ~10x

• ROCE (FY24): 33.25%

• ROE (FY24): 40.43%

• RoNW: 33.76%

Despite the post-issue P/E ratio being slightly higher than industry, the strong return ratios justify the valuation to some extent. The IPO is fairly priced considering its growth trajectory and profitability metrics.

Investor Outlook: Apply or Avoid?

Given the following:

• High subscription demand

• Favourable GMP of ₹20

• Sound fundamentals

• Strong leadership

• Clear growth plans

Experts recommend risk-tolerant investors to apply for potential listing gains. While valuation appears slightly stretched, the expected listing premium of 11.11% and anchor investor interest improve the case for short-term investment.

However, conservative investors should wait and watch how the stock performs post-listing before entering for long-term holdings.

Conclusion

The Kaytex Fabrics IPO offers an opportunity in a high-potential textile tech space. Backed by strong financials, experienced leadership, and credible demand in the IPO phase, the company is set for a positive market debut. The GMP suggests moderate listing gains, and strategic expansion plans further enhance its long-term prospects.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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