Madhur Knit Crafts IPO Day 1: Subscription status, review — here's what you need to know
- Madhur Knit Crafts IPO opened on August 24, 2026, with total subscription at 0.04x.
- Retail investors drove a 100% jump to 0.08x, while QIBs remain at 0x.
- The company reported FY 2026 revenue of ₹194.69 crores and PAT of ₹12.35 crores.
- IPO proceeds will fund debt repayment (₹20.85 crores) and working capital (₹15.92 crores).
- Key risks include high geographical concentration in Punjab and customer dependency.
*this image is generated using AI for illustrative purposes only.
Madhur Knit Crafts IPO opened today, August 24, 2026. The total subscription stands at just 0.04x, with retail investors leading the pack at 0.08x. Qualified Institutional Buyers (QIB) have not yet participated, registering 0x. The textile manufacturer’s IPO is priced between ₹95 and ₹100 per share.
Subscription Status
The IPO witnessed a slow start on Day 1, but momentum picked up in the retail segment. Here is the breakdown of the subscription data as of the latest update:
| Category | Subscription Multiple |
|---|---|
| QIB | 0 x |
| NII (bHNI) | 0.01 x |
| NII (sHNI) | 0.01 x |
| Retail | 0.08 x |
| Total | 0.04 x |
Intra-day timeline on 24-08-2026
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.01x | 0.04x | 0.02x |
| 12:15 | 0.00x | 0.01x | 0.08x | 0.04x |
Retail jumped +100.0% today (from 0.04x to 0.08x), driving the total subscription up by 100% from 0.02x to 0.04x. QIBs have yet to show interest, leaving the overall subscription significantly below the fully subscribed mark.
About the Company
Madhur Knit Crafts Limited is a textile manufacturing company incorporated in 1997, operating from Ludhiana, Punjab. The company has transitioned to a fully integrated yarn-to-cloth manufacturing model, producing knitted fabrics, blankets, anti-pilling fabrics, sherpa fabrics, and garments. It operates state-of-the-art facilities with advanced machinery imported from Korea, Taiwan, and China. Key management includes MD Arun Gupta and Director & CFO Piyush Gupta.
Financial Highlights
The company has shown growth in revenue and profit over the last three years. Below are the standalone financials:
| Particulars | FY 2026 (Feb) | FY 2025 | FY 2024 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 194.69 | 171.63 | 108.38 |
| Total Profit/PAT (₹ crores) | 12.35 | 11.03 | 1.70 |
| Total Equity (₹ crores) | 43.61 | 29.49 | 16.24 |
Revenue grew from ₹108.38 crores in FY 2024 to ₹194.69 crores in FY 2026. Profitability also improved significantly, with PAT rising from ₹1.70 crores to ₹12.35 crores over the same period.
Objects of the Issue
The proceeds from the IPO will be utilized for the following purposes:
- Debt Repayment: ₹20.85 crores for prepayment or repayment of outstanding borrowings.
- Working Capital: ₹15.92 crores for working capital requirements.
- Capital Expenditure: ₹3.67 crores for purchasing solar panels.
- General Corporate Purposes: No specific amount allocated.
Risk Factors
- High geographical concentration: More than 90% of revenue is derived from Punjab, exposing the company to region-specific risks.
- Customer concentration: Top 10 customers contributed 34.14% of total revenue in February 2026.
- Negative cash flows: The company reported negative cash flows from operating activities in FY 2025 (-₹255.82 lakhs) and FY 2024 (-₹367.70 lakhs).
Offer Details
- Price Band: ₹95.00000 - ₹100.00000
- Issue Size: 342000 - 500000
- Min Bid Qty: 2400 shares
- IPO Open Date: 2026-08-24
- IPO Close Date: 2026-08-27
Will the lack of Qualified Institutional Buyer (QIB) participation on Day 1 signal a potential listing price discount or failure to meet minimum subscription requirements by the close on August 27?
How might Madhur Knit Crafts' heavy reliance on Punjab for over 90% of its revenue impact its valuation in light of recent regional economic or logistical disruptions?
Given the company's history of negative operating cash flows despite rising profits, will investors view the IPO proceeds allocated to debt repayment as a critical necessity or a red flag for financial health?
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