Kaytex Fabrics IPO

About Kaytex Fabrics Ltd IPO

The IPO of Kaytex Fabrics Ltd comprises fresh issue and an offer for sale. While the fresh issue is up to 31,99,200 equity shares, the offer for sale is up to 6,79,200 equity shares. It’s a 100% book-built offer. The IPO opens on TBA and closes on TBA. The credit of shares will take place on TBA. The initiation of refunds will take place on TBA and the basis of allotment will take place on TBA.

Objectives of Kaytex Fabrics Ltd IPO

• Funding capital expenditure for construction of additional warehouse facility in Amritsar
• Funding capital expenditure for construction of dedicated sales office in Amritsar
• Funding capital expenditure towards purchase of advanced fabric processing system for its existing printing, dyeing and processing unit in Amritsar
• Funding its incremental working capital requirements
• General corporate purposes

Industry Outlook

The global digital textile printing market is on a strong growth trajectory, rising from USD 3,884.3 million in CY 2020 to USD 5,670.2 million by CY 2024E at a CAGR of 9.92% and is projected to reach USD 11.67 billion by CY 2030F, up from USD 5.67 billion in CY 2024E, at a CAGR of 12.8%.

The Indian digital textile printing revenue is projected to reach USD 648.4 million in CY 2024E from USD 497.4 million in CY 2020 at a CAGR of 6.85% and it is further projected to reach USD 1,212.3 million by CY 2030F at a CAGR of 11%. This growth can be attributed to several factors, including increasing demand for customised fabrics, rapid advancements in digital textile printing technology, and a growing preference for sustainable and eco-friendly printing methods.

Company Information

Kaytex Fabrics Ltd is a fast-fashion fabric solution and manufacturing company, combining modern technology, creative design, and traditional craftsmanship to deliver high-quality textile and fashion products. It manages the entire process — from yarn to finished fabric production — ensuring consistent quality, cost efficiency, and the ability to quickly adapt to changing market demands.

Risks of Kaytex Fabrics Ltd IPO

• Variation in Demand and Changes in Customer Preferences

The company’s business is significantly influenced by consumer preferences and fashion trends, particularly in the Indian wear and fast-fashion fabrics market. The success of its products, including digitally printed fabrics, jacquard fabrics, corduroy fabrics, dobby fabrics, and ready-to-stitch garments, depends on its ability to anticipate, identify, and respond to evolving consumer demands and emerging fashion trends. Any shift in consumer preferences could impact sales volumes and reduce demand for its products.

• No Long-term Agreement for Supply of Raw Materials

The company doesn’t have long term agreements for supply of its raw materials. If it’s unable to procure raw materials of the required quality and quantity, at competitive prices, its business, results of operations and financial condition may be adversely affected. Majority of its raw materials are sourced from a few key suppliers. Discontinuation of operations of such suppliers may adversely affect its ability to source raw materials at a competitive price.

• Inability to Accurately Gauge Product Demand

The success of the company’s business relies heavily on its ability to anticipate and forecast customer demand and changing market trends. Any inaccuracies in these forecasts could result in inventory imbalances, such as excess stock that we may not be able to sell in a timely manner or at all, or under-stocking, which may hinder its ability to meet customer demand. This could adversely impact its sales, cash flows, and customer relationships.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Bigshare Services Pvt Ltd
• Book Running Lead Manager: Socradamus Capital Pvt Ltd

Business Model

A fast-fashion fabric solutions and manufacturing company, Kaytex Fabrics Ltd specialise in creating fabrics from a wide variety of fibres, including cotton, viscose, modal, acrylic, nylon, linen, and polyester. In addition to fabrics, the company has expanded into fashion products in womenswear, offering ready-to-stitch suits, co-ord sets, shawls, scarves and stoles.

The company’s product range includes quality fabrics, ready-to-stitch garments (womenswear), and modern designs that reflect current trends while maintaining the quality and skills.

Company Growth Trajectory

Kaytex’s revenue from operations jumped from ₹82.2584 crores in FY 22 to ₹124.9414 crores in FY 24. Its EBITDA margin grew from 10.61% in FY 22 to 17.95% in FY 24, while its PAT margin increased from 4.77% in FY 22 to 9.05% in FY 24. The company’s flexible business model allows it to serve different market segments, offering both branded and cost-effective non-branded solutions.

This along with its well-established distribution network and low customer concentration have contributed to the company’s growth over the years.

Market Position

Founded in 1996, Kaytex Fabrics Ltd serves a wide range of clients, from apparel brands to individual consumers. The company has built a strong and efficient distribution network that ensures its products reach customers across various markets, from Tier 1 cities to smaller towns.

This network allows it to serve a wide range of customers, including wholesalers, retailers, and apparel brands, with timely and seamless delivery of fabrics and garments. As of October 31, 2024, the company had 108 distributors in India which was instrumental in an effective supply-chain management and helped augment their sales across geographies.

How to Check Allotment Status of Kaytex Fabrics Ltd?

1. Visit the Registrar’s Website

• Visit the official website of Bigshare Services Pvt Ltd
• Choose ‘IPO Allotment Status’ from ‘Services’
• Click on any one of the servers from the given link
• Choose ‘Name of the Company’ and input either your ‘Application Number’, ‘Beneficiary ID’ or
• ‘PAN No’
• Enter captcha and click on ‘Search’ to know the status

2. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Kaytex Fabrics Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for Kaytex Fabrics Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.