NewsMadhur Knit Crafts IPO Day 2 Live: Total at 0.40x, QIBs lead - Check analysts view and moreMadhur Knit Crafts IPO Day 2 Live: Total at 0.40x, QIBs lead - Check analysts view and more
- Madhur Knit Crafts IPO subscription stands at 0.40x on Day 2.
- QIBs lead with 0.99x, while Retail is at 0.41x and NII (bHNI) at 0.06x.
- Revenue grew from ₹108.38 crores in FY24 to ₹194.69 crores in FY26.
- 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 subscription stood at 0.40x on Day 2, with QIBs leading the pack at 0.99x. The textile manufacturer’s public issue saw modest incremental interest from Retail and NII investors, but the overall demand remains well below the fully subscribed mark as the window stays open.
Subscription Status
The issue saw a marginal uptick in subscription numbers on Day 2 compared to Day 1. While the QIB category remained flat at 0.99x, there was slight movement in the NII and Retail segments. The total subscription increased from 0.31x to 0.40x.
| 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 | 0.99x | 0.06x | 0.46x | 0.41x | 0.40x |
Intra-day timeline on 25-08-2026
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.99x | 0.05x | 0.36x | 0.37x |
| 12:15 | 0.99x | 0.06x | 0.41x | 0.40x |
QIBs continue to be the primary source of interest, accounting for the majority of the subscribed amount. The NII category, combining both bHNI and sHNI, stands at a combined 0.52x. Retail participation has improved slightly but remains below 1x.
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 has shown consistent growth in revenue and profitability over the last three years. Revenue from operations grew from ₹108.38 crores in FY24 to ₹194.69 crores in FY26. Profit after tax also improved significantly during the same period.
| Particulars | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 108.38 | 171.63 | 194.69 |
| Total Profit / PAT (₹ crores) | 1.70 | 11.03 | 12.35 |
| Total Equity (₹ crores) | 16.24 | 29.49 | 43.61 |
The company reported a net cash flow of ₹1.90 crores in FY26, improving from negative cash flows in previous years. Total assets stood at ₹159.97 crores as of February 2026.
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 purchase of Solar panel.
- General Corporate Purposes.
Risk Factors
- High geographical concentration in Punjab exposing the company to region-specific risks.
- Major portion of revenue depends upon few customers, with top 10 contributing 34.14% in Feb 2026.
- Negative cash flows from operations in previous years, including FY 2025 and FY 2024.
Key Dates
- Issue Open Date: 2026-08-24
- Issue Close Date: 2026-08-27
- Allotment Date: 2026-08-28
- Listing Date: 2026-09-01
Given the weak retail and NII subscription on Day 2, is there a risk that the Madhur Knit Crafts IPO could be under-subscribed or require a price band revision before the close on August 27?
How might the company's heavy reliance on debt repayment (₹20.85 crores) as a primary use of proceeds impact its future leverage ratios and financial flexibility post-listing?
With 34.14% of revenue dependent on just ten customers, what strategies does management have in place to mitigate customer concentration risk and diversify its client base in the near term?
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