NewsMadhur Knit Crafts IPO Day 2 Live: QIBs fully subscribed, Retail jumps 50% - Check analysts view and moreMadhur Knit Crafts IPO Day 2 Live: QIBs fully subscribed, Retail jumps 50% - Check analysts view and more
- Madhur Knit Crafts IPO subscription reached 0.47x on Day 2, with QIBs fully subscribed at 1.01x.
- Retail subscription jumped 50% intraday to 0.54x, driving significant momentum.
- NII (bHNI) category saw a 60% rise, moving from 0.05x to 0.08x.
- The company reported revenue of ₹194.69 crores and PAT of ₹12.35 crores in FY26.
- IPO closes on August 27, 2026, with listing scheduled for September 1, 2026.
*this image is generated using AI for illustrative purposes only.
Madhur Knit Crafts IPO closed with a final overall subscription of 1.54x. Retail investors dominated the bidding with a 2.28x subscription, while Non-Institutional Individual (NII) bHNI category surged 77.3% intra-day on the final day to reach 0.78x.
Final Subscription Status
The IPO witnessed a significant intraday surge on the final day, pushing the total subscription from 1.05x at open to 1.54x by close. Retail participation was the primary driver of the final tally, ticking up steadily throughout the day.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 24-08-2026 | 0.99x | 0.03x | 0.46x | 0.23x | 0.31x |
| Day 2 | 25-08-2026 | 1.01x | 0.08x | 0.49x | 0.54x | 0.47x |
| Day 3 | 26-08-2026 | 1.01x | 0.14x | 0.52x | 1.08x | 0.75x |
| Day 4 | 27-08-2026 | 1.01x | 0.78x | 0.89x | 2.28x | 1.54x |
Category-wise Breakdown
- QIB: 1.01x — Institutional interest was stable throughout the bidding window, showing no change from the previous day.
- NII (bHNI): 0.78x — High-net-worth individuals showed cautious but improving interest, jumping 77.3% intra-day from 0.44x.
- NII (sHNI): 0.89x — Small HNI participation remained below par but contributed to the final count.
- Retail: 2.28x — Retail investors were the most active category, significantly boosting the overall subscription multiple with a 45.2% jump in the final hours.
About the Company
Madhur Knit Crafts Limited is a textile manufacturing company incorporated in 1997, operating from Ludhiana, Punjab. The company has transitioned from minimal processing to a fully integrated yarn-to-cloth manufacturing model, producing knitted fabrics, blankets, anti-pilling fabrics, sherpa fabrics, and garments. The company operates state-of-the-art manufacturing facilities with advanced machinery imported from Korea, Taiwan, and China, supporting processes including knitting, dyeing, printing, brushing, polishing, sueding, and stentering.
Financial Highlights
The company reported revenue from operations of ₹194.69 crores in FY 2026, up from ₹171.63 crores in FY 2025 and ₹108.38 crores in FY 2024. Profit after tax stood at ₹12.35 crores in FY 2026.
| Particulars | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 194.69 | 171.63 | 108.38 |
| Total Profit (₹ crores) | 12.35 | 11.03 | 1.70 |
| Total Equity (₹ crores) | 43.61 | 29.49 | 16.24 |
Revenue growth accelerated in FY 2026 compared to the previous year. Total equity also expanded significantly, reflecting retained earnings and capital infusion.
Objects of the Issue
Proceeds from the IPO will be utilized for the following purposes:
- Debt Repayment: ₹20.85 crores for prepayment or repayment of a portion of certain outstanding borrowings availed by the Company.
- Working Capital: ₹15.92 crores for Working Capital Requirement of the Company.
- Capital Expenditure: ₹3.67 crores for funding capital expenditure for the purchase of Solar panel.
- General Corporate Purposes: For general corporate purposes.
Risk Factors
- High geographical concentration in Punjab exposing the company to region-specific risks: The company derives more than 90% of its revenue from Punjab, exposing it to regional economic conditions, regulatory developments, political events, natural calamities, and other localized disruptions.
- Major portion of revenue depends upon few customers: The company derives significant revenue from a limited customer base, with top 10 customers contributing 34.14% of total revenue in February 2026.
- Negative cash flows from operations in previous years: The company has reported negative cash flows from operating activities in FY 2025 (-255.82 lakhs), FY 2024 (-367.70 lakhs), and FY 2023 (-4.78 lakhs).
What's Next
Allotment status will be available on August 28, 2026. The shares are scheduled to list on September 1, 2026. Investors should monitor the basis of allotment notifications on the BSE and NSE websites for confirmation of their applications.
Will the QIB oversubscription lead to a cut-off price increase or dilution for retail and NII investors on the final day of the IPO?
How might Madhur Knit Crafts' heavy reliance on Punjab-based operations impact its resilience against regional regulatory or environmental changes post-listing?
Given the significant debt repayment from IPO proceeds, what is the expected trajectory for the company's net debt-to-equity ratio over the next two fiscal years?
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