Kaytex Fabrics Limited, a company redefining fabric innovation through advanced digital printing and textile solutions, is set to enter the capital markets with its Initial Public Offering (IPO). With an aim to raise ₹69.81 Crores, Kaytex Fabrics is eyeing expansion, modernization, and working capital boost through its public issue.

This IPO comes at a time when the SME segment is gaining substantial investor attention. With a focus on cutting-edge technology, high-quality fabric offerings, and robust growth, the company’s public offering is creating strong market buzz, especially with a Grey Market Premium (GMP) of ₹20, indicating an 11.11% expected listing gain.

IPO Details and Timeline

The Kaytex Fabrics IPO is a Book Built Issue consisting of a Fresh Issue of 31.99 lakh equity shares worth ₹57.58 Crores and an Offer for Sale (OFS) of 6.79 lakh shares aggregating to ₹12.22 Crores.

• IPO Opening Date: July 29, 2025

• IPO Closing Date: July 31, 2025

• Allotment Date: August 1, 2025

• Listing Date (Tentative): August 5, 2025

• Stock Exchange: NSE SME

The price band is fixed between ₹171 to ₹180 per share, and the lot size is 800 shares. Retail investors are required to apply for a minimum of 2 lots (1,600 shares), which amounts to an investment of ₹2,88,000 at the upper price band.

Issue Structure

• Fresh Issue: 31.99 lakh shares (₹57.58 Cr)

• OFS: 6.79 lakh shares (₹12.22 Cr)

• Total Issue Size: 38.78 lakh shares (₹69.81 Cr)

• Market Capitalization (at ₹180/share): ₹264.58 Crores

• Anchor Investment Raised: ₹18.00 Cr from anchor investors at ₹180 per share

Lead Managers and Registrar

• Book Running Lead Manager: Socradamus Capital Private Limited

• Registrar to the Issue: BIGSHARE SERVICES PVT LTD

• Market Maker: Gretex Share Broking Limited

Live Subscription Status

As of 11:00 AM on July 30, 2025, the IPO has been subscribed 1.77 times, indicating a healthy investor appetite on Day 2.

GMP (Grey Market Premium)

The GMP of ₹20 on the upper price band of ₹180 indicates an expected listing price of ₹200, suggesting an 11.11% premium. However, GMP trends are speculative, unofficial, and not recommended as a basis for investment decisions.

GMP Trend Table

Kaytex Fabrics Business Overview

Kaytex Fabrics is not just a supplier but a key innovation partner to fashion brands. Their offerings include:

• Advanced digital fabric printing technology

• High-quality stitched and unstitched fabrics

• Specialized fabric processing systems

Whether it’s for mass market labels or boutique designers, Kaytex helps turn creative visions into finished products efficiently.

Management Team

• Sanjeev Kandhari, Chairman and Managing Director – 30+ years of experience in textile manufacturing; oversees performance and strategy.

• Amit Kandhari, Whole-time Director and CFO – Drives finance, production, and compliance with three decades of industry experience.

Financial Performance

Kaytex Fabrics has shown strong financial growth over the past three fiscal years:

Key Ratios (FY 2023-24):

• Pre-Issue EPS: ₹14.70

• Post-Issue EPS: ₹11.50

• Pre-Issue P/E Ratio: 12.24x

• Post-Issue P/E Ratio: 15.65x

• Industry P/E: 10x

• ROCE: 33.25%

• ROE: 40.43%

• RoNW: 33.76%

The financials indicate stable growth, with healthy margins and returns.

Use of IPO Proceeds

The Net Proceeds from the IPO will be utilized for:

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

2. ₹373.20 Lakh – Building dedicated sales office in Amritsar

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

4. ₹3,000.00 Lakh – Incremental working capital

5. General Corporate Purposes

Kaytex Fabrics IPO Allotment Process

The allotment will be finalized on August 1, 2025, and can be checked by following these steps:

1. Visit the registrar’s IPO allotment page

2. Select “Kaytex Fabrics Limited IPO”

3. Enter PAN/Application No./DP ID

4. Submit and view allotment status

Kaytex Fabrics IPO Review – Apply or Avoid?

Kaytex Fabrics IPO is backed by a strong growth trajectory, a visionary management team, and clear use of proceeds toward scaling operations. The company is financially stable and competitively positioned in the SME textile segment, which has seen rising demand post-pandemic.

However, the valuation seems a bit higher compared to the industry average P/E, making this IPO more suitable for investors seeking listing gains or long-term strategic exposure to textile digitization.

With a GMP of ₹20, double-digit profit growth, and solid fundamentals, Risk-Tolerant Investors may consider subscribing for listing gains.

Disclaimer

The information above is for educational and informational purposes only and should not be considered financial advice. Investors are advised to consult with a registered investment advisor before making any investment decisions. Market risks apply.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Jyoti Global Plast.

The Current active IPO are B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono.

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