Kaytex Fabrics IPO lists today. GMP at Rs 14 signals modest premium

Textile manufacturer Kaytex Fabrics is set to debut on the NSE SME platform on Tuesday riding into the secondary market on the back of robust investor demand and a grey market premium (GMP) of Rs 14, or 8% above the IPO price of Rs 180 per share.

The Rs 69.81 crore IPO received an enthusiastic response, getting oversubscribed 42.70 times overall. Retail investors subscribed 47.85 times, while HNIs and QIBs saw bids at 43.19x and 31.16x, respectively — reflecting solid interest across the board.


Kaytex Fabrics, which offers fast-fashion fabrics and garments under brands like Rasiya, Kaytex, and Darbaar-e-Khaas, plans to use the IPO proceeds to expand its warehouse and sales office in Amritsar, invest in advanced processing machinery, and meet working capital needs.

With a strong order book, diversified customer base, and FY25 PAT of Rs 16.9 crore on revenue of Rs 153.2 crore, the company enters the market at a P/E of 15.65x on post-issue earnings, and a market cap of around Rs 264 crore.

Analysts expect a steady listing, with upside limited by valuation concerns flagged in the IPO note — though strong retail participation and modest GMP suggest some room for early-day gains.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)



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