Madhur Knit Crafts
Madhur Knit Crafts Limited is a textile manufacturing company specializing in the production of fabrics, blankets, winter wear, garments, and other textile products. The company operates an integrated yarn-to-cloth manufacturing process based in the textile hub of Ludhiana, Punjab.
Price Band
₹95 - ₹100
Lot Size
2400 Shares
Issue Size
₹27.00 Cr
Fresh Issue
₹27.00 Cr
OFS
N/A
Registrar
AI Sentiment Score
Listing Price
₹100.00
vs Issue: ₹100 (0.00%)
📅 IPO Timeline
✓
Open
Aug 24
✓
Close
Aug 27
✓
Allotment
Aug 28
✓
Refund
Aug 31
✓
Demat
Aug 31
✓
Listing
Sep 1
✨ AI Analysis & Prediction
+90.8%
predicted listing gain
The prediction is adjusted downwards due to weak institutional demand (QIB 1.01x) and a high Debt-to-Equity ratio (2.28), which offsets the positive impact of a small float scarcity and strong ROE. The lack of GMP and low NII interest suggest a flat to marginally positive listing.
💪 Strengths
- Strong recent PAT growth from 1.7Cr to 11.03Cr
- High Return on Equity (37.42%)
- Integrated yarn-to-cloth manufacturing process
⚠️ Weaknesses
- High Debt-to-Equity ratio of 2.28
- Lack of listed peer benchmarks for valuation
🚀 Opportunities
- Expansion via solar panel installation for cost reduction
- Scaling in the Ludhiana textile hub
🛡️ Threats
- Volatility in textile raw material prices
- High leverage risk in a cyclical industry
🎯 Objectives of the IPO
| Requirement / Purpose | Amount (₹ Cr) |
|---|---|
| Funding capital expenditure for the purchase of Solar panel | ₹4.00 |
| Working Capital Requirement of the Company | ₹14.10 |
| Prepayment or repayment of a portion of certain outstanding borrowings availed by the Company | ₹17.40 |
| General Corporate Purposes | ₹35.50 |
📊 Financial Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | Rs 89.00 Cr | Rs 108.00 Cr | Rs 172.00 Cr |
| Net Profit / PAT (₹ Cr) | Rs 1.00 Cr | Rs 2.00 Cr | Rs 11.00 Cr |
| EBITDA / Op. Profit (₹ Cr) | Rs 6.00 Cr | Rs 8.00 Cr | Rs 23.00 Cr |
| Borrowings (₹ Cr) | Rs 34.00 Cr | Rs 58.00 Cr | Rs 67.00 Cr |
| Total Assets (₹ Cr) | Rs 65.00 Cr | Rs 91.00 Cr | Rs 123.00 Cr |
| ROCE % | NA | 10.00% | 25.00% |
Debt/Equity
2.28
📋 Live Subscription Status
QIB
1.01x
NII
0.74x
Retail
2.30x
Total
1.50x
Updated: Sep 1, 2026 5:01 PM
💼 Reservation Quota
QIB
50.00%
Retail
35.00%
NII
15.00%
📈 Shareholding & Anchor Lock-In
🔗 Important Links & Lead Managers
- Check Allotment StatusCheck Now →
- Registrar WebsiteVisit →
- Download DRHP ProspectusDownload PDF 📥
- Download RHP ProspectusDownload PDF 📥
Lead Managers / Merchant Bankers
This issue is managed by Hem Securities Ltd., and Share India Capital Services Pvt. Ltd.
Disclaimer: The information provided on this page is for educational and informational purposes only and does not constitute financial advice. IPO investments are subject to market risks. AI-generated analysis is based on publicly available data and may not be accurate. Grey Market Premium (GMP) is unofficial and highly speculative. Always consult a qualified financial advisor and read the DRHP/RHP carefully before making investment decisions.
Established in August 1997, Madhur Knit Crafts Limited has evolved into a comprehensive textile player. While the company was founded in the late 90s, it significantly scaled its commercial production starting in 2013, initially focusing on the blankets segment before diversifying its product portfolio to cater to a broader market.
The company's business model is based on an integrated yarn-to-cloth manufacturing process. This vertical integration includes several critical stages: knitting, dyeing, printing, brushing, polishing, sueding, stentering, bonding, and finishing. By controlling the entire value chain, the company can maintain quality and operational efficiency.
Madhur Knit Crafts serves a diverse client base comprising consumer, industrial, and institutional customers. Its strategic location in Ludhiana, Punjab, provides a competitive advantage by ensuring seamless access to raw materials, a robust network of suppliers, and efficient logistics and distribution channels.
Operational scale is supported by its dedicated manufacturing facility in Punjab. The company's growth is reflected in its rapid revenue acceleration over the last few fiscal years, transitioning from a small-scale operator to a significant regional textile manufacturer.
The company is promoted by Arun Gupta, Piyush Gupta, and Chirag Gupta, who have steered the organization from its inception through its expansion into integrated textile manufacturing.
Madhur Knit Crafts is launching an SME IPO on the NSE to raise approximately ₹27.00 Crores. The entire issue consists of a fresh issue of equity shares, with no Offer for Sale (OFS), indicating that the promoters are not offloading their stake. The price band is set at ₹95 to ₹100 per share, with a minimum lot size of 2,400 shares requiring an application amount of ₹2,40,000.
The proceeds from the fresh issue are earmarked for strategic growth and liability management. Specifically, ₹4.00 Crore is allocated for capital expenditure to purchase solar panels, ₹14.10 Crore for working capital requirements, ₹17.40 Crore for the prepayment or repayment of outstanding borrowings, and ₹35.50 Crore for general corporate purposes.
Financial performance has shown an aggressive upward trend. Revenue grew from ₹108.41 Crores in 2024 to ₹171.76 Crores in 2025, while Net Profit (PAT) saw a massive jump from ₹1.70 Crores in 2024 to ₹11.03 Crores in 2025. By February 2025, the company had already reported a PAT of ₹12.35 Crores, indicating strong momentum.
From a valuation perspective, the company boasts an impressive ROE of 37.42% and ROCE of 33.49%. However, the debt-to-equity ratio stands at a high 2.28, which is a point of concern for conservative investors. There are no listed comparable peers provided for a relative P/E valuation, making the issue's pricing harder to benchmark.
Key strengths include the integrated manufacturing process and the recent surge in profitability. Conversely, the high leverage and the inherent volatility of the textile sector pose significant risks. Investors should weigh the strong growth metrics against the high debt levels before deciding on a long-term investment.