Madhur Knit Crafts Ltd IPO
Status: Closed
Overview
IPO date
24 Aug 2026 to 27 Aug 2026
Face value
₹ 10 per share
Price
₹ 95 to ₹100 per share
Issue Size
5,326,800 shares
(aggregating up to ₹ 53.27 Cr)
(aggregating up to ₹ 53.27 Cr)
Allotment Date
28 Aug 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Textiles
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T&C*
Strengths vs Risks of Madhur Knit Crafts Ltd
Know the pros & cons
Strengths
- A state-of-the-art manufacturing facility with advanced technology.
- Strategically located manufacturing unit enabling operational efficiency and cost advantages.
- Extensive experience and proven track record of the promoters.
- Experienced, aligned, and professional management team driving growth and governance.
- Long-standing and robust relationships with customers and suppliers.
- Established relationships with key clients ensuring recurring business.
- Comprehensive quality assurance and control systems to maintain product excellence.
Risks
- The Company has a high geographical concentration in Punjab, exposing it to region-specific economic, environmental, and operational risks.
- Major portion of the company's revenue depends upon its few customers. The loss of any one or more of its major customers would have a material adverse effect on the company's business operations and profitability.
- The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
- A substantial portion of the company's raw materials is sourced from a limited number of suppliers. Any disruption in supply, increase in prices, or inability of these suppliers to meet quality or delivery requirements could materially and adversely affect its operations, production schedules, and profitability.
- A significant portion of the company's raw materials is sourced from Punjab, and any disruption in this region could materially affect its operations, production, and financial performance.
- Certain adjustments have been made in the financial statements of the Company by the company's Auditors.
- The Company's Dependence on Short-Term Rental Agreements for Operational Premises.
- The Company has entered into certain related party transactions and may continue to do so in the future.
- The company's business is seasonal in nature.
- Risk Related to Customer Retention, Dependence on Existing Customers, and Acquisition of New Customers.
- Volatility in the prices and availability of yarns and other raw materials may adversely affect the company's business and results of operations.
- Impact of the Iran-United States conflict and related geopolitical tensions on the company's raw material costs, logistics, margins and operations.
- The company's lenders have a charge over its movable and immovable properties, stock, book debts, plant and machinery, and fixed deposits in respect of loans/facilities availed by it.
- Potential conflicts of interest with the company's Group Company may affect its business.
- The company has significant working capital requirements, and its inability to meet them may materially and adversely affect the company's business, financial condition, and results of operations.
- The company relies on both in-house logistics and third-party logistics providers, and any disruption or increase in transportation costs may adversely affect its business, results of operations, and financial condition.
- The company requires certain approvals, licenses, registrations and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company's operations.
- The company's Business is Dependent on its Manufacturing Facility, and Any Disruption May Adversely Affect Operations.
- The company's failure to accurately manage its inventory levels could result in an unexpected shortfall and/or surplus of products, which could have a material adverse impact on the company's manufacturing operations, profitability and cash flows.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the issue proceeds may delay the implementation schedule.
- Lack of Long-Term Agreements with Customers May Affect the company's Business.
- The company faces competition from Organized, Unorganized as well as international players.
- The company's business is dependent on the availability of adequate and uninterrupted supply of electrical power and water at reasonable costs.
- The Company is involved in certain legal proceedings, and any adverse outcome in such matters could have a material adverse effect on the company's business, financial condition, results of operations, and reputation.
- Strikes, Work stoppages or increased wages demands by the company's employees or any other kind of disputes with its employees could adversely affect the company's business and results of operations.
- Changes in Technology may render the company's current technologies obsolete or requires it to make substantial capital investments.
- The company's inability to identify, understand or cater to evolving industry trends, changing customer tastes and preferences may adversely affect its business
- If the company is unable to manage its growth effectively or if the company's estimates or assumptions used in developing its strategic plan are inaccurate or the company is unable to execute its strategic plan effectively, the company's business and prospects may be materially and adversely affected.
- The company's success depends largely upon the services of its Directors, Promoter and other Key Managerial Personnel and the company's ability to attract and retain them.
- The company's Promoter and certain of its Directors hold Equity Shares in the Company and are therefore interested in the company's performance in addition to their remuneration and reimbursement of expenses.
- The company's Directors have extended personal guarantees in connection with some of its debt facilities. There can be no assurance that such personal guarantees will be continued to be provided by the company's Promoter in future or can be called at any time, affecting the financial arrangements.
- The average cost of acquisition of Equity Shares by the company's Promoter may be lower than the issue price.
- The Company has availed unsecured loan from parties other than bankers and financial institutions which is repayable on demand. Any demand from the lender for repayment of such unsecured loan may affect its cash flow and financial condition.
- The company is highly dependent on its Promoters and the company's management team, and key managerial personnel and the loss of any key team member may adversely affect its business performance.
- If the company is unable to obtain, protect or use its intellectual property rights, the company's business may be adversely affected.
- Past delays in filings and incomplete documentation may expose the company to regulatory penalties, scrutiny, and reputational risks, potentially affecting operations and future fundraising.
- The company cannot assure you that its will be able to secure adequate financing in future on acceptable terms, in time, or at all.
- The company is exposed to the risk of delays or non-payment by its clients and other counterparties, which may also result in cash flow mismatches.
- Any disputes with customers regarding product quality, performance, or logistics services may lead to delayed or withheld payments, which could materially and adversely affect the company's business, operations, and financial condition.
- The company has experienced delays and defaults in the payment of statutory dues, including taxes, duties, and other government levies.
- If the company is unable to recruit, train and retain qualified personnel, its business may be materially and adversely affected.
- Any change in government laws could affect the flow of the company's operations and disrupt its business activities.
- Upon completion of the Issue, the company's Promoters/Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
- Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect the company's business prospects, results of operations and financial condition.
- The company may not be successful in implementing its business strategies.
- Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company's financing arrangements.
- Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by the company's major shareholders may adversely affect the trading price of its Equity Shares.
- The requirements of being a public listed company may strain the company's resources and impose additional requirements.
- Stringent environmental, health and safety laws and regulations or stringent enforcement of environmental, health and safety laws and regulations may result in increased liabilities and capital expenditures and adversely affect the company's business, prospects, financial condition and results of operations.
- The company's inability to establish internal control systems could cause operational errors which may adversely affect its business.
- Interest rate fluctuations may adversely affect the Company's business.
- The company's growth will depends on its ability to build the company's brand and failures to do so will negatively impact its ability to effectively compete in this industry.
- The company's directors does not have experience of a listed company and in the absence of such experience, it could adversely affect its corporate governance and business operations of the Company.
- External shocks like the COVID-19 pandemic may have an impact on the company's business and operations.
- The company's future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The market capitalization to revenue, market capitalisation to tangible assets, and enterprise value ("EV") to EBITDA, based on the Issue Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.
- You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
- The company cannot assure you that its Equity Shares will be listed on the NSE EMERGE in a timely manner or at all, which may restrict your ability to dispose of the Equity Shares.
- Sale of Equity Shares by the company's Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
- There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- The Issue price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.
Madhur Knit Crafts Ltd Peer Comparison
Understand the company’s industry standing
Madhur Knit Crafts Limited
Kaytex Fabrics Ltd
Face Value
10
10
Standalone / Consolidated
Standalone
Consolidated
Total Income Rs. Cr.
171.635
162.8346
EPS-Basis
8.51
12.79
EPS-Diluted
8.51
12.79
NAV Per Share
22.75
79.27
P/E-Basic EPS
11.75
4.69
P/E-Diluted EPS
---
---
RONW(%)
37.42
14.96
Latest NAV Period
---
---
Latest NAV
---
---
How to check the allotment status of Madhur Knit Crafts Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 24 Aug 2026 & closes on 27 Aug 2026.
Madhur Knit Services Limited was originally incorporated as a private limited company as 'Madhur Knit Crafts Private Limited' on August 21, 1997, with the Registrar of Companies, Punjab, H.P & Chandigarh. Subsequently, the name of the Company was changed to 'Madhur Knit Services Limited' with effect from January 28, 2025.
The Company was founded by Mr. Arun Gupta with the objective of becoming a textile manufacturer focused on product development and process efficiency. The Company commenced its commercial operations in 2013 with a focus on manufacturing blankets, thereby establishing a presence in the winter textile segment. Since FY 2021, the Company has grown into a diversified textile business offering a wide range of fabrics and garments. Although the Company has ventured into technical textiles, including paint roller fabrics that require precision processes such as chemical coating and lamination, revenue from these segments remains minimal, with the bulk of operations driven by consumer textile products.
The Company's operations are strategically located in Ludhiana, a well-established textile hub, providing access to a reliable network of suppliers, raw materials (such as yarns), logistics service providers, and national distribution channels. Over the years, the Company has transitioned from minimal processing to a fully integrated yarn-to-cloth manufacturing model, focusing on complete value addition from converting yarn into finished cloth and producing high-quality textile products. The Company operates from a state-of-the-art manufacturing facility equipped with textile machinery imported from Korea, Taiwan, and China, supporting a wide range of processes including knitting, dyeing, printing, brushing, polishing, sueding, and stentering.
The company has filed a Draft Prospectus with SEBI and is planning to issue 56,00,000 equity shares of Rs 10 through fresh issue.
Madhur Knit Crafts Ltd IPO will close on 27 Aug 2026.
- A state-of-the-art manufacturing facility with advanced technology.
- Strategically located manufacturing unit enabling operational efficiency and cost advantages.
- Extensive experience and proven track record of the promoters.
- Experienced, aligned, and professional management team driving growth and governance.
- Long-standing and robust relationships with customers and suppliers.
- Established relationships with key clients ensuring recurring business.
- Comprehensive quality assurance and control systems to maintain product excellence.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Arun Gupta | 4594087 | 33.58 | 4594087 | 24.17 |
| 2 | Piyush Gupta | 2286046 | 16.71 | 2286046 | 12.03 |
| 3 | Chirag Gupta | 2671629 | 19.53 | 2671629 | 14.05 |
| 4 | Nitasha Gupta | 702438 | 5.13 | 702438 | 3.7 |
| 5 | Sangeeta Gupta | 1758550 | 12.85 | 1758550 | 9.25 |
| 6 | Vani Gupta | 136563 | 1 | 136563 | 0.72 |
| 7 | Arun Gupta HUF | 1260812 | 9.21 | 1260812 | 6.63 |
- The Company has a high geographical concentration in Punjab, exposing it to region-specific economic, environmental, and operational risks.
- Major portion of the company's revenue depends upon its few customers. The loss of any one or more of its major customers would have a material adverse effect on the company's business operations and profitability.
- The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
- A substantial portion of the company's raw materials is sourced from a limited number of suppliers. Any disruption in supply, increase in prices, or inability of these suppliers to meet quality or delivery requirements could materially and adversely affect its operations, production schedules, and profitability.
- A significant portion of the company's raw materials is sourced from Punjab, and any disruption in this region could materially affect its operations, production, and financial performance.
- Certain adjustments have been made in the financial statements of the Company by the company's Auditors.
- The Company's Dependence on Short-Term Rental Agreements for Operational Premises.
- The Company has entered into certain related party transactions and may continue to do so in the future.
- The company's business is seasonal in nature.
- Risk Related to Customer Retention, Dependence on Existing Customers, and Acquisition of New Customers.
- Volatility in the prices and availability of yarns and other raw materials may adversely affect the company's business and results of operations.
- Impact of the Iran-United States conflict and related geopolitical tensions on the company's raw material costs, logistics, margins and operations.
- The company's lenders have a charge over its movable and immovable properties, stock, book debts, plant and machinery, and fixed deposits in respect of loans/facilities availed by it.
- Potential conflicts of interest with the company's Group Company may affect its business.
- The company has significant working capital requirements, and its inability to meet them may materially and adversely affect the company's business, financial condition, and results of operations.
- The company relies on both in-house logistics and third-party logistics providers, and any disruption or increase in transportation costs may adversely affect its business, results of operations, and financial condition.
- The company requires certain approvals, licenses, registrations and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company's operations.
- The company's Business is Dependent on its Manufacturing Facility, and Any Disruption May Adversely Affect Operations.
- The company's failure to accurately manage its inventory levels could result in an unexpected shortfall and/or surplus of products, which could have a material adverse impact on the company's manufacturing operations, profitability and cash flows.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the issue proceeds may delay the implementation schedule.
- Lack of Long-Term Agreements with Customers May Affect the company's Business.
- The company faces competition from Organized, Unorganized as well as international players.
- The company's business is dependent on the availability of adequate and uninterrupted supply of electrical power and water at reasonable costs.
- The Company is involved in certain legal proceedings, and any adverse outcome in such matters could have a material adverse effect on the company's business, financial condition, results of operations, and reputation.
- Strikes, Work stoppages or increased wages demands by the company's employees or any other kind of disputes with its employees could adversely affect the company's business and results of operations.
- Changes in Technology may render the company's current technologies obsolete or requires it to make substantial capital investments.
- The company's inability to identify, understand or cater to evolving industry trends, changing customer tastes and preferences may adversely affect its business
- If the company is unable to manage its growth effectively or if the company's estimates or assumptions used in developing its strategic plan are inaccurate or the company is unable to execute its strategic plan effectively, the company's business and prospects may be materially and adversely affected.
- The company's success depends largely upon the services of its Directors, Promoter and other Key Managerial Personnel and the company's ability to attract and retain them.
- The company's Promoter and certain of its Directors hold Equity Shares in the Company and are therefore interested in the company's performance in addition to their remuneration and reimbursement of expenses.
- The company's Directors have extended personal guarantees in connection with some of its debt facilities. There can be no assurance that such personal guarantees will be continued to be provided by the company's Promoter in future or can be called at any time, affecting the financial arrangements.
- The average cost of acquisition of Equity Shares by the company's Promoter may be lower than the issue price.
- The Company has availed unsecured loan from parties other than bankers and financial institutions which is repayable on demand. Any demand from the lender for repayment of such unsecured loan may affect its cash flow and financial condition.
- The company is highly dependent on its Promoters and the company's management team, and key managerial personnel and the loss of any key team member may adversely affect its business performance.
- If the company is unable to obtain, protect or use its intellectual property rights, the company's business may be adversely affected.
- Past delays in filings and incomplete documentation may expose the company to regulatory penalties, scrutiny, and reputational risks, potentially affecting operations and future fundraising.
- The company cannot assure you that its will be able to secure adequate financing in future on acceptable terms, in time, or at all.
- The company is exposed to the risk of delays or non-payment by its clients and other counterparties, which may also result in cash flow mismatches.
- Any disputes with customers regarding product quality, performance, or logistics services may lead to delayed or withheld payments, which could materially and adversely affect the company's business, operations, and financial condition.
- The company has experienced delays and defaults in the payment of statutory dues, including taxes, duties, and other government levies.
- If the company is unable to recruit, train and retain qualified personnel, its business may be materially and adversely affected.
- Any change in government laws could affect the flow of the company's operations and disrupt its business activities.
- Upon completion of the Issue, the company's Promoters/Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
- Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect the company's business prospects, results of operations and financial condition.
- The company may not be successful in implementing its business strategies.
- Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company's financing arrangements.
- Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by the company's major shareholders may adversely affect the trading price of its Equity Shares.
- The requirements of being a public listed company may strain the company's resources and impose additional requirements.
- Stringent environmental, health and safety laws and regulations or stringent enforcement of environmental, health and safety laws and regulations may result in increased liabilities and capital expenditures and adversely affect the company's business, prospects, financial condition and results of operations.
- The company's inability to establish internal control systems could cause operational errors which may adversely affect its business.
- Interest rate fluctuations may adversely affect the Company's business.
- The company's growth will depends on its ability to build the company's brand and failures to do so will negatively impact its ability to effectively compete in this industry.
- The company's directors does not have experience of a listed company and in the absence of such experience, it could adversely affect its corporate governance and business operations of the Company.
- External shocks like the COVID-19 pandemic may have an impact on the company's business and operations.
- The company's future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The market capitalization to revenue, market capitalisation to tangible assets, and enterprise value ("EV") to EBITDA, based on the Issue Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.
- You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
- The company cannot assure you that its Equity Shares will be listed on the NSE EMERGE in a timely manner or at all, which may restrict your ability to dispose of the Equity Shares.
- Sale of Equity Shares by the company's Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
- There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- The Issue price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.
The Issue type of Madhur Knit Crafts Ltd is Book Building - SME.
The minimum application for shares of Madhur Knit Crafts Ltd is 2400.
The total shares issue of Madhur Knit Crafts Ltd is 5326800.
Initial public offering of 53,26,800 equity shares of face value of Rs.10 each (the "Equity Shares") of Madhur Knit Crafts Limited ("MKCL" or the "Company") for cash at a issue price of Rs. 100 per equity shares (including a share premium of Rs. 90 per equity share) (the "Issue Price"), aggregating to Rs. 53.27 Crores ("The Issue"), comprising a fresh issue of 53,26,800 equity shares aggregating to Rs. 53.27 Crores by the company ("Fresh Issue"). There is no offer for sale component in the issue. Out of the issue, 2,66,400 equity shares of Rs.10/- each aggregating to Rs. 2.66 Crores were reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. 50,60,400 equity share of face value of Rs. 10 each at an issue price of Rs. 100 per equity share aggregating to Rs. 50.60 Crores is hereinafter referred to as the "Net issue". The issue and the net issue will constitute 28.02% and 26.62%, respectively, of the post issue paid up equity share capital of the company.
The face value of the equity shares is Rs. 10/- each.
Price Band: Rs. 100/- per equity share of face value of Rs. 10/- each.
The floor price is 10 times of the face value of the equity shares.
Bids can be made for a minimum of 2,400 equity shares and in multiples of 1,200 equity shares thereafter.