IPO Overview
Madhur Knit Crafts Limited was originally incorporated as a private limited company on August 21, 1997, with the Registrar of Companies, Punjab, H.P. & Chandigarh. The company is a Ludhiana-based integrated textile manufacturer engaged in the production of blankets, knitted fabrics, garments, and select technical textile products. It operates an integrated “yarn-to-cloth” manufacturing model, enabling value addition across multiple stages including knitting, dyeing, printing, brushing, polishing, embossing, and finishing. Its manufacturing facility is equipped with imported machinery from Korea, Taiwan, and China, supporting both consumer textile and niche industrial fabric applications. The company is headquartered in Ludhiana, Punjab, a premier hub for India’s textile and hosiery industry.
Madhur Knit Crafts Limited is launching its SME IPO on the NSE Emerge platform, aiming to raise ₹53.27 crore at the upper price band. The issue size is up to 53,26,800 equity shares with a face value of ₹10 each, priced in a band of ₹95 to ₹100 per share. The IPO opens on 24 August 2026 and closes on 27 August 2026, with listing expected around 1 September 2026 on NSE SME.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME (Emerge) |
| Anchor Bidding Date | 21 August 2026 |
| IPO Open Date | 24 August 2026 |
| IPO Close Date | 27 August 2026 |
| Allotment Date | 28 August 2026 (Expected) |
| Listing Date | 01 September 2026 (Tentative) |
| Price Band | ₹95 – ₹100 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,40,000 (2 lots = 2,400 shares) |
| Issue Size | ₹53.27 crore (at upper band) |
| Fresh Issue | 53,26,800 equity shares |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — all proceeds will flow directly to the company for business use.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | Not more than 5,05,200 equity shares |
| Non-Institutional Investors (NII) | Not less than 22,77,600 equity shares |
| Individual (Retail) Investors | Not less than 22,77,600 equity shares |
| Market Maker | Up to 2,66,400 equity shares |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The issue is entirely a fresh issue, and no promoter or existing shareholder is exiting through this offering. All IPO proceeds will be received directly by the company.
Objects of the Issue (Fund Utilization)
The company plans to use the IPO proceeds as follows: ₹4 crore for capital expenditure towards purchase of solar panels, and ₹14.10 crore for working capital requirements. The remaining proceeds will be used for prepayment or repayment of a portion of outstanding borrowings and general corporate purposes.
- Capital expenditure for purchase of solar panels — ₹4 crore
- Working capital requirements — ₹14.10 crore
- Prepayment / repayment of outstanding borrowings
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: SKI Capital Services Limited
- Registrar to the Issue: Skyline Financial Services Private Limited
Promoters & Management
The promoters of the company are Mr. Arun Gupta, Mr. Piyush Gupta, and Mr. Chirag Gupta.
Mr. Arun Gupta serves as Promoter and Managing Director of Madhur Knit Crafts Limited. The company has built an integrated textile manufacturing platform with capabilities spanning yarn processing to finished fabrics and textile products over the years.
Company Details
Madhur Knit Crafts Limited is a textile company making home furnishing products and knitted and crocheted fabrics. Running since 1997, its range covers acrylic, woollen, printed and designer blankets, mink blankets, anti-pilling fabric, and sherpa fabric, sold through dealers in India and also exported.
Sectors Served:
- Home Textiles & Furnishings
- Winterwear & Blankets
- Specialty & Technical Fabrics
- Export Markets
Key Products:
- Acrylic, Woollen, Printed & Designer Blankets
- Mink Blankets & Floral Mink
- Anti-Pilling Fabric
- Sherpa Fabric
- Knitted & Crocheted Fabrics
Key Capabilities:
- Single consolidated facility supporting end-to-end processes including knitting, dyeing, printing, brushing, polishing, sueding, and stentering.
- Invested significantly in modernising production infrastructure through advanced equipment such as PLC-controlled multi-chamber thermal oil heating systems, warp knitting machines, dyeing units, embossing machines, and bonding systems — improving production efficiency.
- Imported machinery from Korea, Taiwan, and China
Manufacturing Facility:
- Village Seera, Sattowal Road, Rahon Road, Eros Bajra, Ludhiana – 141007, Punjab
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) |
| FY24 | ~₹108.56 | ₹1.70 |
| FY25 | ₹171.76 | ₹11.03 |
Key Financial Metrics
- Total income surged ~58% from FY24 to FY25. PAT jumped from ₹1.70 crore to ₹11.03 crore — a growth of over 548% YoY. EBITDA also increased sharply to ₹23.28 crore in FY25.
- At the upper price band of ₹100, the post-issue P/E stands at 13.35x — appearing relatively reasonable for the textile SME space.
- Borrowings remain high at ₹72.19 crore as of June 2025, with a debt-to-equity ratio of 2.28x.
- Working capital requirement stood at 43.09% of revenue — indicating a capital-intensive operating model.
Company Strengths
- Nearly three decades of operating history since 1997 — well-established brand and dealer network
- Vertically integrated manufacturing capabilities — from yarn processing to finished textile products — with advanced imported machinery.
- Strong FY25 financial turnaround — revenue grew ~58% and PAT surged over 5x compared to FY24
- Diversified product portfolio including specialty fabrics such as anti-pilling and sherpa, catering to differentiated market segments
- Entire IPO is a fresh issue — no promoter exit; funds directed entirely towards business use
- Solar panel capex planned — signals a move towards cost efficiency and sustainability in operations
Key Risks & Challenges
- Blankets are a seasonal product — most selling happens in the winter months, so sales and cash flow are concentrated in only a part of the year, creating quarterly volatility.
- Borrowings remain high at ₹72.19 crore with a debt-to-equity ratio of 2.28x — increasing financial risk. The company has also reported negative cash flows from operating activities for three consecutive years.
- More than 90% of revenue is derived from Punjab as of February 2026 — indicating significant regional concentration and limited geographic diversification.
- Textiles is a heavily competitive business with many organised and unorganised players, and blankets in particular compete largely on price.
- Yarn and acrylic fibre prices keep changing, and sharp cost increases cannot always be passed on to dealers — compressing margins.
- SME IPO liquidity risk — one lot is 1,200 shares at ₹1.20 lakh minimum at the upper band, and SME shares typically trade in low volume after listing.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
