Kaytex Fabrics Ltd IPO Opens 29 July - Check GMP, Allotment Status

Kaytex Fabrics Ltd has received final approvals to commence the Initial Public Offering process. Based in Amritsar, Punjab, the company is positioning itself as a growing textile and fabrics manufacturer in India. The company has demonstrated excellent recent growth, and analysts are confident that substantial growth opportunities exist. The IPO price is ₹180 per share for its ₹66.31 crore IPO, and appears like a good investment opportunity as the company is positioned to take advantage of India's growing textile and garment manufacturing sector.

The Kaytex Fabrics IPO GMP today is showing a ₹25 (13.89%) premium in the grey market which means investors would be willing to pay ₹25 over the initial share offering price, it shows good demand from the initial investing public. The grey market premium is an indicator that good investor demand exists for this textile manufacturing company IPO.

IPO Dates for Kaytex Fabrics Ltd

The Kaytex Fabrics Ltd IPO is set to open on July 29, 2025, and close on July 31, 2025. The Board of Allotment (BoA) date is expected to be August 1, 2025, with listing planned for August 5, 2025.

IPO Details Summary

The minimum bid is 1,600 shares for ₹2,88,000 for retail investors. Investors are watching very carefully the GMP of Kaytex Fabrics IPO, and the grey market premium is showing 13.89% gain, indicating good demand from investors. This is one of the promising SME IPOs in the textile sector on the BSE SME platform.

About Kaytex Fabrics Ltd

Kaytex Fabrics Limited is a new Indian company in the fabric manufacturing business located in Amritsar, Punjab. Kaytex Fabrics Limited manufactures a variety of good quality fabrics, textile products, and garment products for multiple types of industries. Kaytex provides Indian customers with value-oriented textile products and solutions. 

The company operates in the textile manufacturing space that involves producing woven/fabric, textile, garment fabrics, and leather textile products; and being a leading supplier of custom fabric for textile solutions among many different types of clients. The firm provides fabric products and services for clients who are small garment manufacturers to large textile businesses. 

Bigshare Services Pvt Ltd is the registrar for Kaytex Fabrics IPO. The company is raising ₹66.31 crores through this IPO. The fresh issue proceeds will be used for capacity expansion, modernization of manufacturing plants, working capital needs and general business purposes. On account of the growth of the textile industry in India and the demand for quality fabrics, Kaytex Fabrics Limited is in a good position to compete in the expanding Indian textile manufacturing sector.

Financial Performance of Kaytex Fabrics Ltd

The company has shown outstanding revenue growth and excellent profitability improvement in the growing textile manufacturing market.

Performance Analysis

Kaytex Fabrics Ltd delivered a notable financial report card. The company able to successfully deploy its business model allowing it to grow revenues from ₹99.3 Cr in FY23 to ₹153.2 Cr in FY25 representing a notable 54.3% growth over a two-year period. Profit after tax also increased dramatically up 167% from ₹8.2 Cr to ₹21.9 Cr. This growth momentum was also seen with EBITDA which increased from ₹12.8 Cr to ₹30.1 Cr showing much more successful operations and excellent cost management in the textile manufacturing segment of its business.

Kaytex Fabrics showed a significant increase in asset growth moving from ₹73.0 Cr to ₹125.3 Cr representing a 71.6% increase in asset growth. The company's net worth also significantly grew to ₹50.1 Cr creating a solid capital structure with excellent internal earnings generation potential. Total borrowings increased modestly to ₹38.2 Cr from ₹27.0 Cr to support business expansion while keeping debt levels manageable. Kaytex Fabrics has demonstrated the ability to upscale their operations while increasing profit margins and has set itself up for continued success and growth in the textile manufacturing segment.

IPO Share Reservation

The IPO share allocation follows standard SEBI rules for SME listings:

Strengths

1. Excellent Revenue Growth:
Revenues grew handsomely from ₹99.3 Cr to ₹153.2 Cr which reflects the excellent market penetration the textile manufacturing company was able to achieve as well as strong demand for its products.

2. Outstanding Profit Growth:
PAT improved from ₹8.2 Cr to ₹21.9 Cr which reflects excellent profitability improvement along with the operational improvements made by the management resulting in 167% growth.

3. EBITDA Excellence:
EBITDA improved from ₹12.8 Cr to ₹30.1 Cr showing much greater profitability and an improvement in operational efficiencies.

4. Strong Asset Growth:
The company was able to build its asset base from ₹73.0 Cr to ₹125.3 Cr suggesting substantial investments in its infrastructure and manufacturing capacity enhancement.

5. Market Opportunities:
The company is very well positioned to capitalize on the growing textile export opportunities in India, growing domestic garment industry in India, and the ongoing government sponsored textile promotion schemes.

6. Regional Advantage:
The company is located in Punjab which is a major textile production hub in India with good infrastructure and where skilled workforce is available.

7. Strong Financial Position:
An increase in both net worth and reserves suggests the company has excellent ability to generate cash flows and is likely in a strong financial position.

8. Good GMP:
The grey market premium is quite decent at 13.89% and indicates that there is a good level of investor confidence concerning the effect the recent developments and expansion announced had on the company‘s future.

Risks

1. Raw Material Costs:
The prices of cotton, and all other raw materials, can fluctuate materially and have a significant impact on profit margin in the textile manufacturing business.

2. Competition:
The textile industry is competitive and has a high level of competition domestically and internationally with many players vying for market share and pricing pressures.

3. Export Dependency:
Should the company operate in exports, currency variations and international trade policies could affect revenues and profitability.

4. Environmental Regulations:
Increasing environmental compliance requirements for textile manufacturing might increase operational costs.

5. Economic Cycles:
The business is based on consumer demand and fashion trends, which are subject to cyclical economic conditions.

6. Power and Infrastructure:
Textile manufacturing is a power-intensive enterprise, and the power set by national grids will impact operational costs.

7. SME Listing:
SME platforms are inferior to mainboard listings in terms of liquidity and price fluctuation.

8. Working Capital:
Textile manufacturing has a considerable working capital requirement for raw materials and inventory, impacting cash flow management.

How to Apply for Kaytex Fabrics Ltd IPO?

Step-by-step guide (when IPO opens on July 29, 2025):

1. Log in to your broker app (Zerodha, Angel One, Groww, etc.)
2. Go to the SME IPO section and select the Kaytex Fabrics Ltd IPO
3. Click "Apply"
4. Enter:
   • Lot size (1,600 shares minimum)
   • Bid price (₹180 or select Cut-Off)
   • Your UPI ID
5. Submit the application
6. Approve the UPI request in your UPI app (PhonePe, GPay, etc.)

⏰ Important: The UPI request must be approved before 5 PM on the same day or before the IPO closes on July 31, 2025.

How to Check Kaytex Fabrics Ltd IPO Allotment Status?

You can check the Kaytex Fabrics IPO allotment status through BSE SME and the registrar portal once the IPO opens.

Check On BSE SME

1. Visit the BSE official website
2. Go to the SME IPO Allotment Section
3. Select Kaytex Fabrics Ltd IPO
4. Enter PAN number or application number
5. Submit details to get the allotment status

Check On the Registrar Portal

1. Visit Bigshare Services Pvt Ltd website:
2. Select IPO allotment status
3. Choose Kaytex Fabrics Ltd IPO
4. Enter PAN or application number
5. Submit to check status

Company Address

Name: Kaytex Fabrics Ltd
Address: Batala Road, Post Office Khanna Nagar, Amritsar, Punjab, 143001
Phone: 01834009025
Email: investor@kaytexfabrics.com
Website: https://kaytexfabrics.com/

IPO Registrar

Name: Bigshare Services Pvt Ltd
Phone: +91 22 6263 8200
Email: investor@bigshareonline.com
Website: https://ipo.bigshareonline.com/IPO_Status.html
Address: 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri(E), Mumbai - 400 059

Conclusion

Kaytex Fabrics Ltd offers an appealing investment opportunity in India's textile manufacturing industry. The company has delivered strong growth in total revenue from ₹99.3 Cr to ₹153.2 Cr, and positive movement in profitability from a five-year average PAT of ₹4.0 Cr to ₹21.9 Cr, which clearly indicates better execution capabilities of the management and operational excellence. Given its focus on textiles, and geographical positioning in Punjab's textile manufacturing centre, Kaytex Fabrics is well-positioned to take advantage of India's textile growth and export opportunities. 

The IPO price is ₹180 per share with the issue size of ₹ 66.31 Cr. With a good GMP of 13.89% indicating comprehensive demand and investor confidence in their future growth, Kaytex Fabrics looks to be well priced for a high-growth textile manufacturer with strong fundamentals. 

Investors should be mindful of the risk of raw material input costs, competition, and environmentally- driven compliance obligations in the textile sector. For some investors, if they are okay with these manageable risks and the characteristics surrounding meta SME listings, Kaytex Fabrics could be a great investment opportunity in the textile manufacturing business.

Disclaimer : This analysis is for learning purposes and not financial advice. Please consult a financial advisor before making investment decisions.

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