Kaytex Fabrics IPO: Strong Subscription and Moderate GMP Spark Listing Hopes

Kaytex Fabrics Limited, a fabric innovator known for its digital printing and high-quality textile offerings, received a robust response to its SME IPO. The issue, which opened on July 29, 2025, and closed on July 31, 2025, was subscribed 40.88 times, reflecting strong interest from retail and institutional investors.

The IPO comprises a fresh issue of 31.99 lakh shares worth ₹57.58 crores and an offer for sale (OFS) of 6.79 lakh shares worth ₹12.22 crores. The price band was set between ₹171–₹180 per share, with the final allotment price expected at ₹180.

The minimum investment required from retail investors was 2 lots (1,600 shares), amounting to ₹2,88,000. Shares are scheduled to be listed on the NSE SME platform on or around August 5, 2025.

Grey Market Premium and Anchor Interest

As of July 31, 2025, the Grey Market Premium (GMP) for Kaytex Fabrics IPO stood at ₹20, suggesting potential listing gains of approximately 11.11% over the issue price. However, investors should note that the grey market is unregulated, and price discovery via GMP is unofficial and speculative.

Ahead of the IPO, Anchor Investors subscribed to 10 lakh shares at ₹180 apiece, contributing ₹18 crore. This indicates institutional confidence in the issue, though investors must weigh it against market risks.

Company Background and Business Overview

Established in Amritsar, Punjab, Kaytex Fabrics has made a name in the textile industry by delivering customised, high-quality unstitched fabrics for both established fashion houses and emerging designers. The company’s offerings range across digital textile printing, dyeing, and finishing, catering to dynamic needs of the apparel industry.

Led by Sanjeev Kandhari (Chairman & MD) and Amit Kandhari (Whole-time Director & CFO), both with 30 years of industry experience, Kaytex Fabrics blends legacy expertise with innovation. Their leadership ensures steady expansion and operational efficiency.

Financial Performance Snapshot

The company has reported consistent financial growth:

Profitability Metrics:

• Pre-Issue EPS (FY24): ₹14.70

• Post-Issue EPS: ₹11.50

• Pre-Issue P/E: 12.24x

• Post-Issue P/E: 15.65x

• Industry P/E: ~10x

• ROE: 40.43%

• ROCE: 33.25%

• RoNW: 33.76%

While the post-issue P/E ratio is slightly above the industry average, the high ROE and revenue growth trajectory make the issue appear reasonably priced for long-term investors.

IPO Objectives: Capital Allocation

Kaytex intends to deploy the net proceeds from the IPO for:

1. ₹2.56 Cr – New warehouse construction in Amritsar

2. ₹3.73 Cr – New sales office setup in Amritsar

3. ₹5.01 Cr – Purchase of advanced fabric processing systems

4. ₹30.00 Cr – Incremental working capital

5. Balance – General corporate purposes

The focus on infrastructure and technological upgrades indicates a roadmap toward scalability and operational excellence.

How to Check Allotment Status

The allotment will be finalised on August 1, 2025. Here’s how to check your allotment:

1. Visit the registrar’s website – BIGSHARE SERVICES PVT LTD

2. Select Kaytex Fabrics Limited IPO from the dropdown

3. Enter your Application No., PAN, or DP Client ID

4. Click on Submit to view your allotment status

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   Disclaimer

   The above analysis is for educational and informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Kindly consult your financial advisor before investing.

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   The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

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   The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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