Madhur Knit Crafts IPO

Madhur Knit Crafts IPO is a book-built issue worth ₹53.27 crore. The IPO consists entirely of a fresh issue of 53.27 lakh equity shares.

SKI Capital Services Limited was the book-running lead manager to the issue, and Skyline Financial Services Private Limited was the registrar. For detailed information on the company's financials, business operations and associated risks, investors are advised to refer to the Madhur Knit Crafts IPO RHP.

About Madhur Knit Crafts Limited

Madhur Knit Crafts Limited was originally incorporated as Madhur Knit Crafts Private Limited on August 21, 1997, under the Companies Act, 1956. Subsequently, the company was converted into a public limited company and renamed Madhur Knit Crafts Limited on January 30, 2025. The company is headquartered in Ludhiana, Punjab.

Madhur Knit Crafts operates in the textile manufacturing industry and has developed a vertically integrated yarn-to-cloth business model. The company is engaged in the manufacturing and processing of knitted fabrics, blankets, garments and select technical textile products, managing multiple stages of production including knitting, dyeing, printing and finishing operations.

The company commenced its commercial operations in 2013 and has gradually expanded its manufacturing capabilities through investments in machinery and infrastructure. Its manufacturing facility is located in Ludhiana, which is one of India's major textile hubs and provides access to suppliers, skilled labour and established textile infrastructure.

Madhur Knit Crafts derives a majority of its revenue from knitted cloth products, which contributed more than 85% of revenue in FY2025. Apart from knitted fabrics, the company also manufactures blankets, garments and undertakes job-work activities for customers. Its operations are primarily focused on the domestic market, with a significant concentration of business in Punjab.

The company's growth strategy focuses on expanding its presence in technical textiles, strengthening its vertically integrated manufacturing operations, improving working capital efficiency and increasing its geographical reach across India. It is also investing in renewable energy infrastructure through a proposed solar power project aimed at reducing energy costs and improving long-term operational efficiency.

Industry Outlook

• India's textile industry remains one of the country's largest manufacturing sectors, supported by strong domestic consumption, established production capabilities and a large raw material base.
• The knitted fabric and garment segments continue to benefit from growing demand for apparel, winterwear and home textile products across domestic markets.
• Technical textiles are emerging as an important growth segment within the broader textile industry, creating opportunities for manufacturers to diversify their product portfolio beyond traditional textile applications.
• Vertically integrated manufacturers are increasingly gaining competitive advantages through better control over quality, production timelines, inventory management and operating efficiencies.
• Ludhiana remains one of India's key textile manufacturing clusters, offering access to suppliers, skilled labour, established logistics networks and supporting infrastructure for textile businesses.
• The adoption of energy-efficient technologies and renewable energy solutions is becoming increasingly important for textile manufacturers as they seek to lower operating costs and improve sustainability credentials.
• The industry continues to face competitive pressures from organised, unorganised and international players, making operational efficiency, product quality and customer relationships critical success factors.

Madhur Knit Crafts IPO Objectives

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

• Fund capital expenditure towards the installation of a 1,500 KW rooftop solar power plant to reduce electricity costs and support sustainability initiatives.
• Strengthen working capital resources to support inventory procurement, receivables management and growing operational requirements.
• Prepay or repay a portion of the company's outstanding borrowings amounting to approximately ₹2,085 lakh.
• Improve the overall debt profile and reduce finance costs through repayment of existing debt facilities.
• Enhance operational efficiency through renewable energy generation and lower dependence on grid electricity.
• Support future business expansion and operational scalability through increased financial flexibility.
• Meet general corporate purposes and issue-related expenses.

Financial Performance of Madhur Knit Crafts Limited

Madhur Knit Crafts Limited Peer Details Comparison

Strengths and Opportunities of Madhur Knit Crafts IPO

1. The company operates a vertically integrated yarn-to-cloth manufacturing model, providing better control over quality, production schedules and operational efficiency.
2. Madhur Knit Crafts has reported strong financial growth, with revenue increasing from ₹89.33 crore in FY2023 to ₹171.64 crore in FY2025.
3. Profitability has improved significantly, with PAT rising from ₹0.90 crore in FY2023 to ₹11.03 crore in FY2025.
4. The company has established manufacturing operations in Ludhiana, one of India's leading textile manufacturing hubs.
5. A diversified product portfolio comprising knitted fabrics, blankets, garments and technical textile products provides multiple revenue streams.
6. The planned solar power project is expected to generate meaningful electricity cost savings and improve long-term profitability.
7. The company has demonstrated improving financial ratios, including an improvement in its debt-equity ratio from 3.56x in FY2024 to 1.69x as of February 28, 2026.
8. Growing opportunities in the technical textiles segment can support product diversification and future business expansion.
9. Debt repayment through IPO proceeds may strengthen the balance sheet and improve future earnings by reducing finance costs.

Risks and Threats of Madhur Knit Crafts IPO

1. The company has significant geographical concentration, with a substantial majority of revenue generated from Punjab, exposing it to regional economic and operational risks.
2. Revenue concentration among a limited number of customers may adversely impact performance if key customer relationships are lost.
3. The business depends on a limited number of suppliers for raw material procurement, creating supply-chain concentration risk.
4. The company has reported negative operating cash flows in previous financial periods, which may impact future liquidity if such trends recur.
5. Operations are dependent on a single manufacturing facility, making the business vulnerable to operational disruptions.
6. The textile business is working-capital intensive and requires substantial funding for inventory and receivables.
7. Demand for several products is seasonal in nature, particularly winterwear-related products, causing fluctuations in revenue and profitability.
8. The company faces intense competition from organised, unorganised and international textile manufacturers.
9. Fluctuations in yarn and other raw material prices, along with geopolitical developments affecting petrochemical-based inputs, could adversely affect margins.

Madhur Knit Crafts IPO Reservation

Madhur Knit Crafts IPO Promoter Holding

The promoters of the company are Arun Gupta, Piyush Gupta and Chirag Gupta.

Madhur Knit Crafts IPO Prospectus

• Madhur Knit Crafts IPO RHP

Madhur Knit Crafts IPO Registrar and Lead Managers

Madhur Knit Crafts IPO Lead Managers

• SKI Capital Services Limited

Registrar for Madhur Knit Crafts IPO

Skyline Financial Services Private Limited

• Contact Number: 011-26812682
• Email Address: ipo@skylinerta.com

Madhur Knit Crafts IPO Registrar

How To Apply for Madhur Knit Crafts IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Madhur Knit Crafts IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Madhur Knit Crafts IPO?

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2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of Madhur Knit Crafts IPO

Registered Office: Village - Seera, Sattowal Road, Rahon Road, Eros Bajra Road, Ludhiana, Punjab, 141007.

Phone: 9878009690

E-mail: ipo@mkcpl.in