Fascinate Textiles IPO

Fascinate Textiles IPO is a book-built issue worth ₹66.98 crore. The IPO comprises a fresh issue of 0.35 crore shares aggregating to ₹53.94 crores and an offer for sale of 0.08 crore shares aggregating to ₹13.04 crores.

Affinity Global Capital Market Private Limited is the book-running lead manager to the issue, while Cameo Corporate Services Limited is the registrar. Giriraj Stock Broking Private Limited is the market maker for the issue. For detailed information on the company's financials, business operations, and associated risks, investors are advised to refer to the Fascinate Textiles IPO RHP.

About Fascinate Textiles Limited

Fascinate Textiles Limited was originally incorporated as a private limited company on February 9, 2017. The company was subsequently converted into a public limited company and renamed Fascinate Textiles Limited on May 21, 2025. The company is headquartered in Barasat, West Bengal and operates in the readymade garments manufacturing industry.

The company is engaged in the manufacturing of readymade garments across multiple categories, including kidswear, infant wear, menswear and womenswear. Its product portfolio comprises T-shirts, joggers, vests, leggings, shorts and infant wear products designed to cater to a broad consumer base.

Fascinate Textiles operates an integrated manufacturing facility in Barasat, West Bengal, supported by automated machinery, in-house design capabilities, sample development processes and multi-stage quality control systems. The company is certified under ISO 9001:2015 and SEDEX standards, reflecting its focus on quality management and responsible manufacturing practices.

The company primarily follows a B2B business model, manufacturing garments based on customer orders and approved samples. This order-driven approach helps optimise production planning and minimise the risk of excess inventory. During FY26, the company generated a significant majority of its revenue from domestic sales while maintaining a small export presence in markets such as Saudi Arabia and the UAE.

Fascinate Textiles' growth strategy is centred on expanding manufacturing capacity, strengthening working capital, enhancing operational efficiencies and increasing its market presence across garment segments. Through the proposed IPO, the company aims to fund a new manufacturing facility, reduce borrowings and support future business growth.

Industry Outlook

1. The global apparel market was valued at approximately US$1.84 trillion in 2024 and is expected to grow steadily over the coming years, supported by rising consumer demand, fashion trends and increasing disposable incomes.
2. India's apparel market was valued at around US$222.08 billion in 2024 and is projected to expand at a strong pace, driven by urbanisation, growing retail penetration and increasing consumer spending.
3. The Indian apparel industry benefits from favourable demographics, a large domestic consumer base and increasing demand for branded and organised garment products.
4. The kidswear segment remains a significant opportunity, with the Indian children's apparel market valued at approximately US$24.56 billion in 2024 and expected to continue its growth trajectory.
5. Manufacturers are increasingly focusing on automation, product innovation and quality standards to improve efficiency and meet evolving customer requirements.
6. The organised apparel sector continues to gain market share from unorganised players as consumers increasingly prefer quality-certified and branded products.

Fascinate Textiles IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

1. Meet the company's working capital requirements to support business growth and operational expansion.
2. Repay or prepay certain outstanding borrowings, thereby reducing the debt burden and associated finance costs.
3. Fund capital expenditure towards the establishment of a new manufacturing facility in Barasat, West Bengal.
4. Purchase plant and machinery required for the proposed manufacturing expansion project.
5. Support the company's future growth plans by enhancing production capacity and operational capabilities.
6. Meet general corporate purposes and issue-related expenses.

Strengths and Opportunities of Fascinate Textiles IPO

1. Strong revenue growth over the last 3 financial years.
2. Significant increase in profitability and earnings.
3. Established presence in the garments manufacturing industry.
4. Diversified product portfolio across age groups.
5. ISO 9001:2015 and SEDEX certifications.
6. Integrated manufacturing and quality control capabilities.
7. Strong ROE and operating margins in FY26.
8. Capacity expansion planned through IPO proceeds.
9. Growth potential from the expanding Indian apparel market.

Risks and Threats of Fascinate Textiles IPO

1. High dependence on a limited number of customers.
2. Negative operating cash flows in recent years.
3. Working-capital-intensive business model.
4. Revenue concentration in a few geographical markets.
5. Dependence on a single manufacturing facility.
6. Exposure to raw material price fluctuations.
7. High competition in the apparel industry.
8. Dependence on labour availability and productivity.
9. Customer payment delays may affect liquidity and cash flows.