Kaytex Fabrics IPO to open on July 29 

Mumbai, 24 July 2025: Kaytex Fabrics Ltd., a textile manufacturer, is launching its IPO worth ₹69.81 crore through a book-building issue comprising a fresh issue of 31.99 lakh shares (₹57.59 crore) and an offer for sale of 6.79 lakh shares (₹12.23 crore). The IPO will be open for public subscription from July 29 to July 31, 2025, with a price band of ₹171 to ₹180 per share. The shares are proposed to be listed on the NSE SME platform with a tentative listing date of August 5, 2025.

Anchor Backing as IPO Gathers ₹18 Crore Ahead of the IPO Opening

Kaytex Fabrics raised ₹18 crore from anchor investors on July 28, 2025, with 10,00,000 shares allocated ahead of the public issue. Anchor shares are subject to a lock-in period ending August 31, 2025 (50% shares) and October 30, 2025 (remaining shares), ensuring investor confidence and stability in early market trading.

IPO Structure and Reservation: Balanced Allocation Across Investor Classes

• Total issue size: 38,78,400 shares (₹69.81 crore)
• Fresh issue (ex-Market Maker): 30,04,800 shares (₹54.09 crore)
• Offer for sale: 6,79,200 shares (₹12.23 crore)
• Market Maker reservation: 1,94,400 shares (₹3.50 crore)

Investor Quota

• QIBs: 15,55,200 shares (40.10%)
• Retail investors: 13,20,000 shares (34.03%)
• NIIs: 8,08,800 shares (20.85%)
• Market Maker: 1,94,400 shares (5.01%)

IPO Timeline (Tentative Schedule)

• IPO Open Date: Tuesday, July 29, 2025
• IPO Close Date: Thursday, July 31, 2025
• Anchor Bidding Date: Monday, July 28, 2025
• Allotment Finalisation: Friday, August 1, 2025
• Refunds Initiated: Monday, August 4, 2025
• Credit to Demat Accounts: Monday, August 4, 2025
• Listing Date: Tuesday, August 5, 2025
• UPI Mandate Deadline: 5 PM on July 31, 2025

Investment Details: Minimum Bid Amount Set at ₹2.88 Lakh

Retail investors can bid for a minimum of 2 lots (1,600 shares) requiring an investment of ₹2,88,000, while HNIs must apply for at least 3 lots (2,400 shares). The lot size is set at 800 shares, and bids must be placed in multiples of this lot.

Financials Reflect Consistent Growth and Operational Strength

As per restated consolidated financials, Kaytex Fabrics Ltd. has reported a 23% increase in revenue from ₹125.03 crore in FY24 to ₹153.22 crore in FY25, and a 44% rise in PAT, reaching ₹21.91 crore in FY25 from ₹15.20 crore in the previous year. EBITDA rose to ₹30.06 crore, while net worth improved to ₹50.07 crore, reflecting strong profitability and capital efficiency. The company’s reserves and surplus stood at ₹38.57 crore, with total borrowings of ₹38.15 crore, indicating a moderate leverage position.

KPIs Highlight Competitive Profitability and Efficient Capital Use

The company’s return on equity (ROE) stood at 40.43%, showcasing efficient use of shareholder capital. The return on capital employed (ROCE) was 33.25%, underlining productive asset utilization. Other indicators include a debt-to-equity ratio of 0.76, RoNW of 33.76%, PAT margin of 11.06%, and EBITDA margin of 19.68%. The price-to-book value stands at 4.13, while post-issue P/E is expected to rise to 12.07x, maintaining a reasonable valuation range in the SME space.

Peer Comparison Reveals Kaytex’s Advantage in Profitability and Growth

In comparison with peers as of March 31, 2025, Kaytex’s EPS of ₹14.70, RoNW of 33.76%, and P/E ratio of 9.45x (pre-IPO) reflect higher profitability and stronger investor returns than peers such as Banswara Syntex Ltd (EPS ₹6.25, RoNW 3.83%), Donear Industries Ltd (EPS ₹6.13, RoNW 13.59%), and Veekayem Fashion and Apparels Ltd (EPS ₹13.01, RoNW 13.76%). This suggests Kaytex holds a competitive edge in both earnings quality and return metrics within the textile SME space.

Use of IPO Proceeds: Expanding Infrastructure and Technology

The net proceeds from the IPO will be directed towards:

• ₹2.56 crore for constructing a new warehouse in Amritsar
• ₹3.73 crore for a dedicated sales office
• ₹5.01 crore for purchasing advanced fabric processing systems
• ₹30 crore for incremental working capital
• Remaining for general corporate purposes

About Kaytex Fabrics Ltd.: Textile Innovator with Strong Market Reach

Founded in January 1996, Kaytex Fabrics Ltd. is a fast-fashion textile manufacturer integrating technology and design. The company offers digital printed fabrics, jacquard, corduroy, dobby fabrics, and ready-to-stitch womenswear under brands like “Rasiya”, “Kaytex”, and “Darbaar-e-Khaas”. It caters to both urban and rural markets with a blend of traditional styles and modern trends. With 612 permanent employees, Kaytex has built a diverse customer base—serving 455, 447, and 497 clients in FY24, FY23, and FY25, respectively.

With a robust growth track record, expanding operations, and promising financials, the Kaytex Fabrics IPO presents a compelling opportunity for investors in the textile sector. Its competitive metrics and market visibility underscore strong potential for post-listing performance.

REF: https://nsearchives.nseindia.com/content/ipo/RHP_KAYTEX.zip

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