Madhur Knit Crafts

Madhur Knit Crafts (New IPO): GMP, Profit, Price & expert review

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Madhur Knit Crafts Limited is a vertically integrated textile manufacturer specializing in home-furnishing products and knitted fabrics. It is widely recognized for its diverse range of mink, acrylic, and woolen blankets, as well as specialized textiles like Sherpa and anti-pilling fabrics. Operating from a state-of-the-art facility with machinery from Korea and China, it caters to both domestic and international markets.

Madhur Knit Crafts Limited operates through a robust distribution network of nearly 150 dealers across major Indian states, including Punjab, Haryana, and Delhi. While primarily focused on the domestic market, it also exports internationally, maintaining a competitive, growth-oriented presence.
It was incorporated on August 21, 1997 and is currently led by Mr. Arun Gupta.

Madhur Knit Crafts Limited has filed DRHP with SEBI for a proposed IPO consisting entirely as Fresh Issue of 56,00,000 Equity Shares & no Offer for Sale (OFS).

Subscription date to apply for the IPO is yet to be announced. Price band for the IPO is also pending to be declared.

Check DRHP
Check IPO Allotment
Visit Official Website
Issue Size:56,00,000 Equity shares
Fresh Issue:56,00,000 Equity shares
Offer for Sale:NIL
Price Range:TBA
Lot Size:TBA
GMPPending

Madhur Knit Crafts Limited important data points

Revenue, PAT, EBITDA

YearFiscal 2025
Networth₹ 29.48 Cr
Revenue:₹ 171.63 Cr
EBITDA₹ 23.27 Cr
PAT₹ 11.03 Cr
EBITDA Margin:~13.56%
PAT Margin~6.43%
Face Value:₹ 10

IPO important dates

Open Date:TBA
Close Date:TBA
Anchor Investor BiddingTBA
Allotment Date:TBA
Refunds & Demat CreditTBA
Tentative Listing Date:TBA

Use of Proceeds

PurposeAmount
Capital Expenditure~ ₹ 4.00 Cr
Working Capital Requirement~ ₹ 14.10 Cr
Borrowing prepayment/repayment~ ₹ 17.40 Cr
General Corporate PurposeBalance

Madhur Knit Crafts Limited Financial Data

202320242025
Revenue (₹ Cr)₹ 89.3₹ 108.4₹ 171.6
PAT (₹ Cr)₹ 0.9₹ 1.7₹ 11.0
Asset (₹ Cr)₹ 64.6₹ 90.6₹ 122.6
Net Worth (₹ Cr)₹ 14.5₹ 16.2₹ 29.5

Madhur Knit Crafts Limited IPO Grey Market Premium

DateIPO PriceIPO GMPProfit per lot
11-Mar₹ –₹ –₹ –
10-Mar₹ –₹ –₹ –
09-Mar₹ –₹ –₹ –
08-Mar₹ –₹ –₹ –
07-Mar₹ –₹ –₹ –
Madhur Knit Crafts

Madhur Knit Crafts Limited IPO Pros & Cons

Strengths:

  • High Revenue Growth: Revenue grew by 58% in FY25, showing strong demand for its textile products.
  • Profitability Surge: Net profit jumped significantly from ₹1.7 crore in FY24 to ₹11 crore in FY25.
  • Vertical Integration: Operates a fully integrated facility from knitting to printing, ensuring better quality control.
  • Market Diversification: Serves both domestic and international markets with a varied product range like blankets.
  • Expansion Initiatives: IPO proceeds are earmarked for solar energy and capacity expansion to boost future margins.

Risks:

  • High Debt Levels: The company has a high Debt-to-Equity ratio of 2.28, posing financial risk.
  • Cash Flow Issues: Reports show negative cash flow from operations, indicating difficulty in generating liquid cash.
  • Credit Rating Concerns: Rated as “Issuer Not Cooperating” by CARE Ratings due to lack of information.
  • Micro-cap Volatility: As an SME listing, the stock may face lower liquidity and higher price volatility.
  • Industry Competition: Operates in the highly fragmented and competitive textile sector with low pricing power.

Madhur Knit Crafts Limited Promoters – Pre offer equity (Approx)

Promoters%Shares
Arun Gupta~34.26%
Chirag Gupta~19.92%
Piyush Gupta~17.05%
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Madhur Knit Crafts Limited Lot Size details

Application TypeLot SizeNo. of LotNo. of SharesInvestment Amount
Retail (Min)–1–₹ –
Retail (Max)–13–₹ –
HNI (Min)–14–₹ –
HNI (Max)–66–₹ –
Big HNI (Min)–67–₹ –

Lead Managers / Registrars of Madhur Knit Crafts Limited

Lead / Book Running Lead ManagersSKI CAPITAL SERVICES LIMITED
Registrar (RTA)SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

Madhur Knit Crafts Limited FAQ

  • It is a vertically integrated manufacturer of blankets, knitted fabrics, and home-textile products.
  • Madhur Knit Crafts is raising funds via IPO to fund debt repayment, working capital, solar plant installation, and general corporate growth initiatives.
  • The issue size of the IPO consists of 56 lakh fresh equity shares and will list on NSE Emerge.
  • Key risks include high debt-equity levels, potential raw material price volatility, and heavy dependence on its Ludhiana facility.
  • Potential upsides are robust revenue growth, high profitability margins, experienced leadership, and strategic diversification into sustainable energy projects.
  • Investors can apply through ASBA via net banking or using UPI through registered stock brokers once the IPO opens for subscription.

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