Kaytex Fabrics Limited IPO

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Kaytex Fabrics Ltd. is a leading fast-fashion fabric solutions and manufacturing company, specializing in producing textile and fashion products by combining technology, design, and traditional craftsmanship. The company manages the entire process from yarn production to finished fabric, ensuring high-quality standards and quick adaptation to changing market demands. The company offers a wide range of fabric solutions, including cotton, viscose, modal, acrylic, nylon, linen, and polyester, focusing on digital printing to meet the fast-paced needs of the fashion industry.

Business Model

Kaytex Fabrics operates with three main business streams:

a) Product Revenue: Manufacturing fabrics and ready-to-stitch garments under both branded and non-branded segments.
b) Service Revenue: Processing fabrics under job work agreements for third-party clients.
c) Others: Sale of packaging materials and scrap.

Core Competencies and Technology

Kaytex Fabrics Ltd. excels in:

1. Digital Textile Printing: A modern technique that enables high-quality, customizable fabric designs with faster setup times, reduced material usage, and less environmental waste. This technology allows the company to produce intricate, personalized designs for various industries including fashion, home décor, and activewear.

2. Weaving and Jacquard: The company uses advanced weaving and jacquard technology to create a variety of fabric types, each with unique textures, strength, and appearance.

3. Computerized Embroidery: By utilizing automated systems, the company integrates traditional embroidery techniques with digital tools, producing consistent, high-quality designs.

Product Portfolio

i) Fabrics: The company specializes in manufacturing various fabrics for fashion and industrial uses, focusing on customization and flexibility.

ii) Womenswear: The company has expanded into fashion products, including ready-to-stitch suits, co-ord sets, shawls, scarves, and stoles, catering to current fashion trends.

iii) Self-Supported Roofing and PEB: Additionally, the company manufactures self-supported roofing systems and pre-engineered buildings (PEB), serving customers across various industries.

Market Reach and Strategy

Kaytex Fabrics Ltd. serves both large-scale and small-scale markets, focusing on Tier 1, Tier 2, and Tier 3 cities. The company also operates in rural and semi-urban areas, offering both branded and unbranded products through a well-established distribution network. The company’s own brands, such as “Rasiya” and “Darbaar-e-Khaas,” cater to markets in Northern India, while also working as a partner for other apparel brands to create products tailored to their customers.

Manufacturing Facilities and Production Capacity

The company operates two major manufacturing units in Sanand, Gujarat, and Cheyyar, Tamil Nadu, with a combined installed capacity of 103,800 MTPA for PEBs. Additionally, Kaytex uses mobile manufacturing units for self-supported roofing, allowing it to serve a wide geographical area.

Objects of the Kaytex Fabrics Limited IPO:

Company proposes to utilize the Net Proceeds from the offer towards the following objects: 1. Funding capital expenditure for construction of additional warehouse facility in Amritsar (₹2.55 crore) 2. Funding capital expenditure for construction of dedicated sales office in Amritsar (₹3.73 crore) 3. Funding capital expenditure towards purchase of advanced fabric processing system for existing processing unit in Amritsar (₹5.01 crore) 4. Funding incremental working capital requirements (₹30 crore) 5. General corporate purposes.
DRHP of Kaytex Fabrics Limited IPO
RHP of Kaytex Fabrics Limited IPO

Kaytex Fabrics Limited IPO Details:

Open Date: Jul 29 2025
Close Date: Jul 31 2025
Total Shares: 38,78,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 69.81 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 171-180 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

1. Sanjeev Kandhari, is the Chairman and Managing Director of the Company. He completed his pre-university examinations (commerce group) from Guru Nanak Dev University, Amritsar. He has been on the Board since the company’s incorporation and brings nearly thirty years of experience in the textile manufacturing industry. He is responsible for supervising the overall performance of the Company and plays a key role in formulating growth strategies while providing guidance to the Key Managerial Personnel and Senior Management. 2. Amit Kandhari is the Wholetime Director and Chief Financial Officer of the Company. He holds a Bachelor’s degree in Commerce from Punjab University, Chandigarh. He has been a member of the Board since the company’s inception and has approximately thirty years of experience in the textile manufacturing industry. He oversees the operations and expansion of the finance division and supervises various functions within the Company, including finance, production, and compliance. 3. Shelly Kandhari is the Non-Executive Director of the Company. She completed her Bachelor’s in Arts from Guru Nanak Dev University, Amritsar. She has been on the Board since August 24, 2024, but has been associated with the company in various roles since 2009. Her responsibilities include overseeing functions such as designing, procurement, and administration. She has around fifteen years of experience in the textile manufacturing industry.

Financials of Kaytex Fabrics Limited IPO:

Particulars FY 2024-25 FY 2023-2024 FY 2022-2023
Revenue from Operations 152.78 124.94 99.18
Product Revenue 139.43 106.15 82.53
Service Revenue 12.41 18.02 16.02
EBITDA 30.06 22.42 12.78
EBITDA Margins 19.68% 17.95% 12.89%
PAT 16.9 11.3 5.59
PAT Margins 11.06% 9.05% 5.64%
ROCE 33.25% 32.72% 25.81%
Debt to Equity Ratio(In Times) 0.76 1.06 1.28
Operating Cash Flows 12.97 0.9 6.53

Comparison With Peers:

Companies Revenue (in cr) EBITDA Margins PAT Margins ROCE D/E Ratio MCap (in cr) P/E
Kaytex Fabrics Limited 152.78 19.68% 11.06% 33.25% 0.76 264.58 15.66
Veekayem Fashion and Apparels Limited 321 7% 2.38% 14% 2 148 19.3
Banswara Syntex Limited 1293 8% 1.70% 21.80% 0.81 500 22.8
Donear Industries Limited 914 9% 3.49% 13.20% 1.66 539 16.9

Lead Manager of Kaytex Fabrics Limited IPO:

  1. Socradamus Capital Private Limited

Registrar of Kaytex Fabrics Limited IPO:

  1. Bigshare Services Private Limited

Discussion on Kaytex Fabrics Limited IPO:

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