GMP IPO Watch
Madhur Knit Crafts IPO 2026 – Day 3 Update
Madhur Knit Crafts Limited's SME IPO is currently open for subscription and will close on August 27, 2026.
The company has fixed a price band of ₹95 to ₹100 per share, while the shares are proposed to list on the NSE SME platform on September 1.
An important point for investors is the corrected issue structure. The IPO comprises up to 53,26,800 equity shares, including a market-maker reservation of 2,66,400 shares.
Madhur Knit Crafts IPO Details
| Particular | Details |
|---|---|
| IPO Type | NSE SME IPO |
| Issue Type | Book Built Issue |
| Total Issue | ₹53.27 Crore |
| Total Shares | 53,26,800 |
| Issue Structure | Fresh Issue |
| Price Band | ₹95 – ₹100 |
| Face Value | ₹10 |
| Lot Size | 1,200 Shares |
| Retail Minimum | 2,400 Shares |
| Minimum Investment | ₹2,40,000 |
| Market Maker Shares | 2,66,400 |
| IPO Open Date | August 24, 2026 |
| IPO Close Date | August 27, 2026 |
| Allotment | August 28, 2026 |
| Listing Date | September 1, 2026 |
| Listing Platform | NSE SME |
At the upper price of ₹100, a retail investor needs ₹2.40 lakh for the minimum 2,400-share application.
Madhur Knit Crafts IPO Subscription Today
Investor participation has remained relatively measured during the first part of the issue.
As of around 11:10 AM on August 26, the IPO was subscribed approximately 0.51 times overall.
| Category | Subscription* |
|---|---|
| QIB | 1.01x |
| NII | 0.33x |
| Retail | 0.68x |
| Overall | 0.51x |
*Live figures as of approximately 11:10 AM on August 26, 2026. Subscription figures can continue changing during the trading day.
The QIB portion has already crossed the 1x mark, while retail demand has improved compared with the earlier bidding days.
What Does Madhur Knit Crafts Do?
Madhur Knit Crafts operates in the textile manufacturing industry, with its operations based in Ludhiana, Punjab.
The company is involved in manufacturing knitted fabrics and textile products that serve customers across the garment and textile value chain.
Its business broadly follows:
yarn → knitting → fabric processing → finished textile products → garment/textile customers.
Ludhiana itself is an established textile-manufacturing cluster, providing access to suppliers, skilled labour and a broader textile ecosystem.
Latest Financial Performance Shows Strong Earnings Growth
The company's recent financial numbers show a sharp improvement compared with earlier periods.
| Financial Metric | FY2024 | FY2025 | Latest Period |
|---|---|---|---|
| Total Revenue | ₹108.41 Cr | ₹171.76 Cr | ₹194.79 Cr |
| EBITDA | ₹8.07 Cr | ₹23.40 Cr | ₹25.77 Cr |
| PAT | ₹1.70 Cr | ₹11.03 Cr | ₹12.35 Cr |
| Total Assets | ₹90.60 Cr | ₹122.59 Cr | ₹159.97 Cr |
The latest reported period shows ₹194.79 crore in revenue, ₹25.77 crore EBITDA and ₹12.35 crore PAT.
The improvement becomes more significant when compared with FY2024, when PAT stood at only ₹1.70 crore.
Revenue Scale Has Expanded Rapidly
Madhur Knit Crafts reported revenue of ₹108.41 crore in FY2024 and ₹171.76 crore in FY2025.
That represents a substantial increase in business scale.
The latest reported revenue of approximately ₹194.79 crore indicates that the company has continued to expand beyond its FY2025 level.
The important question after listing will be whether this growth can continue without putting excessive pressure on working capital.
IPO Proceeds Will Support the Operating Business
The ₹53.27 crore IPO is a fresh issue, meaning the funds raised are intended for the company's requirements rather than an exit by existing shareholders.
The company plans to deploy IPO proceeds toward several areas:
| IPO Objective | Purpose |
|---|---|
| Working Capital | Support business operations |
| Debt Repayment | Reduce borrowings |
| Solar Panels | Energy-related investment |
| General Corporate Purposes | Other requirements |
| Issue Expenses | IPO-related costs |
These objectives show that Madhur Knit Crafts is using the IPO for a combination of growth funding, balance-sheet improvement and operational investment.
Working Capital Is Important for Textile Manufacturing
Textile manufacturing can require substantial working capital.
A manufacturer typically needs money for:
raw materials → yarn inventory → manufacturing → finished inventory → customer credit → collection.
As revenue expands, more money can become tied up in this operating cycle.
This makes the company's decision to allocate IPO proceeds toward working capital particularly relevant.
If fresh IPO capital reduces dependence on short-term borrowing, the company could gain greater flexibility to handle larger customer orders.
Solar Investment Could Help Manage Energy Costs
Madhur Knit Crafts also plans to invest part of the IPO proceeds in solar panels.
Energy is an important operating cost for textile manufacturers because machinery can run for extended periods.
Solar infrastructure could potentially provide:
lower grid-power dependence + better energy-cost visibility + reduced long-term electricity expenditure.
The financial benefit will depend on the scale of the installation, utilisation and actual savings generated after commissioning.
Debt Reduction Can Improve Financial Flexibility
Part of the IPO proceeds is also intended for repayment of outstanding borrowings.
Reducing debt can benefit the company through:
lower borrowings → lower finance costs → improved cash flow → stronger balance sheet.
For a working-capital-intensive textile manufacturer, this can be especially useful because lower existing leverage provides more flexibility during periods of raw-material price volatility.
Textile Demand Remains the Main Growth Driver
Madhur Knit Crafts ultimately depends on demand from the downstream textile and garment industry.
Growth can come from:
domestic apparel consumption + fashion demand + garment manufacturing + exports + customer additions.
India's established textile ecosystem gives manufacturers access to a large domestic market as well as export opportunities.
However, textile demand can also be cyclical, especially when consumer spending or export orders weaken.
Raw-Material Prices Are a Key Risk
Yarn and other textile inputs can experience significant price movements.
If raw-material costs increase rapidly while customer selling prices remain fixed, profitability can come under pressure.
The operating risk looks like:
higher yarn/input costs → delayed selling-price revision → lower gross margin.
This is especially important because Madhur Knit Crafts has recorded a sharp improvement in profitability over recent periods.
Investors will want to see whether those margins can remain sustainable through different raw-material cycles.
Profit Growth Has Been Much Faster Than the Earlier Base
PAT increased from ₹1.70 crore in FY2024 to ₹11.03 crore in FY2025, while the latest reported figure stands at ₹12.35 crore.
This is a significant improvement.
But rapid profit growth from a relatively low base can make future percentage growth more difficult.
The post-listing focus should therefore shift from historical growth percentages toward:
margin stability + cash generation + working-capital control + sustainable revenue growth.
Corrected IPO Size Is Important
There has been conflicting information across some IPO-tracking platforms about the issue size.
Some sources still display an older figure of approximately ₹27 crore.
However, the updated issue structure shows an offer of up to 53,26,800 equity shares, including 2,66,400 shares reserved for the market maker. At the ₹100 upper price, this corresponds to approximately ₹53.27 crore.
For current IPO coverage, the corrected ₹53.27 crore figure is therefore the relevant one.
SME Listing Brings Additional Liquidity Risk
Madhur Knit Crafts will list on NSE SME rather than the mainboard.
SME stocks can experience:
lower trading volumes + wider bid-ask spreads + greater volatility + larger minimum investment requirements.
The minimum retail application itself is ₹2.40 lakh at the upper band.
Investors should therefore evaluate liquidity risk separately from the company's operating performance.
Key Strengths of Madhur Knit Crafts
Madhur Knit Crafts enters the IPO after a period of substantial business expansion.
Revenue increased from ₹108.41 crore in FY2024 to ₹171.76 crore in FY2025, while PAT increased from ₹1.70 crore to ₹11.03 crore. The latest reported period shows revenue of ₹194.79 crore and PAT of ₹12.35 crore.
The IPO is also entirely fresh capital and will support practical business requirements including working capital, debt repayment and solar-panel investment.
Major Risks
Madhur Knit Crafts remains exposed to the normal risks of textile manufacturing, including raw-material price fluctuations, competitive pricing, customer demand and working-capital requirements.
Investors should particularly watch:
- Sustainability of recent profit margins
- Raw-material and yarn prices
- Working-capital requirements
- Customer concentration
- Debt levels after the IPO
- Textile-sector demand
- Energy costs
- Execution of solar investment
- Operating cash flow
- NSE SME liquidity
The relatively moderate subscription seen through the morning of Day 3 also means the final bidding trend on August 27 will be worth watching.
What Investors Should Track After Listing
| Metric | Why It Matters |
|---|---|
| Revenue Growth | Business expansion |
| Production Volume | Manufacturing demand |
| EBITDA Margin | Cost efficiency |
| PAT Margin | Profit sustainability |
| Raw-Material Costs | Margin pressure |
| Working-Capital Days | Funding efficiency |
| Receivables | Collection performance |
| Borrowings | IPO debt reduction |
| Finance Cost | Deleveraging benefit |
| Solar Cost Savings | Energy efficiency |
| Operating Cash Flow | Earnings quality |
| ROCE | Capital efficiency |
For Madhur Knit Crafts, cash-flow quality and sustainability of its recently improved profitability could become more important than headline revenue growth alone.
Final View on Madhur Knit Crafts IPO
The Madhur Knit Crafts IPO is open from August 24 to August 27, 2026, with a price band of ₹95–₹100 per share. The corrected issue comprises 53,26,800 equity shares, including 2,66,400 shares reserved for the market maker, taking the total issue size to approximately ₹53.27 crore at the upper band.
As of around 11:10 AM today, August 26, the issue was subscribed approximately 0.51x overall, with QIB at 1.01x, NII at 0.33x and retail at 0.68x.
The company's financial growth has been notable, with FY2025 revenue of ₹171.76 crore and PAT of ₹11.03 crore, while the latest reported period shows revenue of ₹194.79 crore and PAT of ₹12.35 crore.
