Textile IPOs in India involve textile companies offering shares to the public for the first time. These IPOs provide investment opportunities and help companies raise funds for expansion, driving growth in the dynamic and evolving textile industry.
Content:
- Overview of the Textiles IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- Kalahridhaan Trendz Limited
- About the Company
- Advantages of Investing in Textiles Sector IPOs
- Disadvantages of Investing in Textiles Sector IPOs
- Role of the Textiles Industry in the Economy
- How to invest in Textiles IPOs?
- Future Outlook of Textiles IPOs in India
- Textiles IPOs in India – FAQ
Overview of the Textiles IPOs in India
Textiles IPOs in India reflect the industry’s dynamic growth, as companies launch initial public offerings to raise capital for expansion and modernization. These IPOs offer investors opportunities to participate in the evolving textile market, driven by increasing domestic and export demand.
By going public, textile companies gain access to funds for upgrading technology, expanding production capacity and improving market reach. For investors, these IPOs provide a chance to diversify portfolios and benefit from India’s growing prominence in the global textile industry.
IPO Fundamental Analysis
Signoria Creation Limited
Signoria Creation Ltd’s financial results for FY24 show steady growth, with Sales rising to ₹19.54 crores from ₹19.15 crores in FY23. Net Profit increased to ₹2.41 crores, while EPS decreased to ₹5.07 from ₹20.81 in FY23, indicating stronger efficiency.
Revenue Trend: Sales grew slightly from ₹19.15 crores in FY23 to ₹19.54 crores in FY24, reflecting stable demand. Despite this, the company managed to improve profitability with better cost management and operational efficiency.
Equity and Liabilities: Equity Capital grew significantly from ₹1.11 crores in FY23 to ₹4.76 crores in FY24, while Reserves increased from ₹4.72 crores to ₹11.54 crores. Total Liabilities increased from ₹23.37 crores to ₹31.2 crores.
Profitability: Operating Profit rose from ₹3.85 crores in FY23 to ₹4.14 crores in FY24, with Operating Profit Margin (OPM) improving from 20.10% to 21.19%, indicating enhanced operational efficiency and higher profitability.
Earnings Per Share (EPS): EPS dropped significantly from ₹20.81 in FY23 to ₹5.07 in FY24, due to higher equity base and cost pressures, but still indicates positive profitability for shareholders.
Return on Net Worth (RoNW): The RoNW for FY24 was a solid 21.8%, demonstrating efficient use of equity capital to generate profits, although lower compared to FY23’s high EPS.
Financial Position: Total Assets grew from ₹23.37 crores in FY23 to ₹31.2 crores in FY24, driven by an increase in other assets from ₹15.93 crores to ₹18.51 crores, reflecting growth in financial strength.
Shree Karni Fabcom Limited
Shree Karni Fabcom Ltd financial results for FY24 show strong growth, with Sales maintaining ₹127 lakhs. Net Profit rose significantly to ₹15 lakhs, up from ₹5 lakhs in FY23. EPS reached ₹19.87, reflecting solid performance.
Revenue Trend: Sales remained stable at ₹127 lakhs in both FY23 and FY24, indicating steady revenue from its core product offerings. Despite constant sales, the company improved profitability through better cost control.
Equity and Liabilities: Equity capital increased from ₹5 lakhs in FY23 to ₹7 lakhs in FY24. Reserves grew significantly from ₹14 lakhs to ₹61 lakhs, showing enhanced financial stability, while total liabilities increased from ₹141 lakhs to ₹164 lakhs.
Profitability: Operating Profit surged from ₹15 lakhs in FY23 to ₹25 lakhs in FY24, with Operating Profit Margin (OPM) improving from 12% to 19%, demonstrating more efficient cost management and higher profitability.
Earnings Per Share (EPS): Shree Karni Fabcom’s EPS reached ₹19.87 in FY24, significantly higher than previous years. The notable growth from ₹5 in FY23 reflects improved profitability and value for shareholders.
Return on Net Worth (RoNW): The RoNW for FY24 stands at a robust figure, showing efficient use of equity capital to generate strong profits, a marked improvement compared to FY23, with no data available for FY22.
Financial Position: Total Assets grew from ₹141 lakhs in FY23 to ₹164 lakhs in FY24, supported by an increase in other assets from ₹84 lakhs to ₹107 lakhs, highlighting the company’s growing financial base.
Kalahridhaan Trendz Limited
Kalahridhaan Trendz Ltd financial results for FY24 show strong growth with Sales rising to ₹194 lakhs from ₹184 lakhs in FY22, while Net Profit increased to ₹8 lakhs from ₹2 lakhs in FY22, reflecting substantial improvements across key metrics.
Revenue Trend: Kalahridhaan’s Sales grew from ₹184 lakhs in FY22 to ₹184 lakhs in FY23 and ₹194 lakhs in FY24, reflecting consistent growth in the B2B textile market, driven by demand for its fabric offerings.
Equity and Liabilities: Equity capital rose from ₹6 lakhs in FY22 to ₹17 lakhs in FY24, while Total Liabilities increased from ₹103 lakhs in FY22 to ₹132 lakhs in FY24, reflecting stronger financial positioning and higher operational capacity.
Profitability: Operating Profit surged from ₹7 lakhs in FY22 to ₹14 lakhs in FY23 and ₹19 lakhs in FY24, with Operating Profit Margin improving from 4% in FY22 to 10% in FY24, signalling better cost management.
Earnings Per Share (EPS): Kalahridhaan’s EPS stood at ₹4.68 in FY24, a notable improvement compared to FY23 and FY22, which had lower profit margins, demonstrating enhanced shareholder value.
Return on Net Worth (RoNW): Kalahridhaan’s RoNW was an impressive 44.4% in FY24, indicating efficient use of equity capital. This represents significant profitability growth compared to the previous years, showcasing effective business operations.
Financial Position: Total Assets increased from ₹103 lakhs in FY22 to ₹132 lakhs in FY24, supported by fixed assets rising from ₹1 lakh in FY22 to ₹6 lakhs in FY24, reflecting a strengthened asset base for future growth.
IPO Financial Analysis
Signoria Creation Limited
| Mar 2024 | Mar 2023 | |
| Sales | 19.54 | 19.15 |
| Expenses | 15.4 | 15.3 |
| Operating Profit | 4.14 | 3.85 |
| OPM % | 21.19% | 20.10% |
| Other Income | 0.03 | 0.01 |
| Interest | 0.76 | 0.6 |
| Depreciation | 0.11 | 0.14 |
| Profit before tax | 3.3 | 3.12 |
| Tax % | 26.97% | 25.96% |
| Net Profit | 2.41 | 2.31 |
| EPS in Rs | 5.07 | 20.81 |
*Figures in Rs. Crores
Shree Karni Fabcom Limited
| Mar 2023 | Mar 2024 | |
| Sales | 127 | 127 |
| Expenses | 112 | 102 |
| Operating Profit | 15 | 25 |
| OPM % | 12% | 19% |
| Other Income | 0 | 1 |
| Interest | 5 | 4 |
| Depreciation | 3 | 3 |
| Profit before tax | 7 | 18 |
| Tax % | 35% | 20% |
| Net Profit | 5 | 15 |
| EPS in Rs | 19.87 |
*Figures in Rs. Crores
Kalahridhaan Trendz Limited
| Mar 2024 | Mar 2023 | |
| Sales | 194 | 184 |
| Expenses | 175 | 170 |
| Operating Profit | 19 | 14 |
| OPM % | 10% | 7% |
| Other Income | 0 | 0 |
| Interest | 8 | 5 |
| Depreciation | 1 | 0 |
| Profit before tax | 11 | 9 |
| Tax % | 25% | 25% |
| Net Profit | 8 | 7 |
| EPS in Rs | 4.68 | NA |
*Figures in Rs. Crores
About the Company
Signoria Creation Limited
Signoria Creation Limited, established in 2019, specializes in manufacturing and selling women’s clothing, including kurtis, tops, co-ord sets, dupattas and gowns. The company operates two units in Mansarovar and Sanganer, Jaipur, Rajasthan, ensuring quality production.
With an annual capacity of over 4.77 lakh garments in FY 2022-23, Signoria recently expanded by acquiring a plot in the RIICO Industrial Area, Jaipur, for a new manufacturing facility under construction, enhancing its operational capabilities and market reach.
Shree Karni Fabcom Limited
Shree Karni Fabcom Limited, incorporated in 2018, produces customized knitted and woven fabrics for diverse industries like luggage, footwear, medical support and apparel. Specializing in technical textiles, the company manufactures woven, knitted, coated and 100% polyester fabrics.
Equipped with modern, automated facilities, it achieves impressive production capacities across weaving, knitting and lamination. With ISO 9001:2015 certification and a strong revenue CAGR of 56.89%, Shree Karni serves manufacturers and traders in 13 Indian states.
Kalahridhaan Trendz Limited
Kalahridhaan Trendz Limited, established in 2016, specializes in textile dyeing and processing. The company manufactures and trades embroidered and grey fabrics, focusing on suiting, shirting and dress materials for the B2B market. It emphasizes quality and innovation in fabric production.
With divisions for embroidery, knitting, dyeing and printing, Kalahridhaan operates a state-of-the-art facility in Ahmedabad, Gujarat, boasting a daily production capacity of 1.00 lakh metres. It caters to diverse market needs, driving excellence in textile manufacturing.
Advantages of Investing in Textiles Sector IPOs
The main advantages of investing in textiles sector IPOs include diversification, growth potential, capital appreciation and industry resilience. Textiles are a staple industry with strong demand, making them a reliable option for long-term investors looking to capitalize on emerging market trends.
- Diversification: Investing in textiles sector IPOs offers portfolio diversification, reducing risks associated with single-sector exposure. The sector’s stability and varied sub-categories provide opportunities to balance investments across different market cycles.
- Growth Potential: The textiles industry is expanding with innovations and increasing domestic and international demand. IPOs in this sector offer early-stage access to companies poised for rapid growth, driven by both domestic consumption and export potential.
- Capital Appreciation: Textiles sector IPOs often provide significant capital appreciation as the companies scale. Early investors benefit from increased stock values due to the sector’s growing importance, both locally and globally.
- Industry Resilience: The textiles sector is relatively recession-proof, driven by consistent consumer demand. This resilience makes it an attractive investment, offering stability even during market downturns, as people continue to buy essential clothing and textile products.
Disadvantages of Investing in Textiles Sector IPOs
The main disadvantages of investing in textiles sector IPOs include market volatility, high competition, supply chain risks and regulatory challenges. Investors should be cautious of fluctuations in raw material costs and the sector’s dependency on global market trends, which may affect long-term returns.
- Market Volatility: The textile sector is prone to market volatility due to fluctuations in raw material costs, demand cycles and international trade dynamics. Such volatility can result in price swings, making investments less predictable and riskier.
- High Competition: The textile industry is highly competitive, with numerous established players and low barriers to entry. New entrants face significant challenges in gaining market share, which can affect the performance of IPO companies in a crowded marketplace.
- Supply Chain Risks: Textile companies are vulnerable to disruptions in their supply chains, such as changes in raw material availability, shipping delays and geopolitical tensions. These disruptions can negatively impact production costs and profit margins.
- Regulatory Challenges: The textile sector is subject to stringent regulations concerning labour, environmental impact and quality standards. Compliance with evolving regulations can increase operational costs and failure to meet these standards could lead to legal and financial repercussions.
Role of the Textiles Industry in the Economy
The textile industry plays a crucial role in the economy by driving employment, fostering innovation and contributing to exports. It is one of the largest sectors globally, supporting millions of jobs and generating significant revenue through domestic and international sales.
Additionally, the industry boosts other sectors like agriculture and retail. Textile production supports the farming of cotton, wool and other fibres, while retail and fashion contribute to consumer spending. Its growth stimulates overall economic development by driving industrialization and creating new business opportunities.
How to invest in Textiles IPOs?
To invest in Textiles IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future Outlook of Textiles IPOs in India
The future outlook for textiles IPOs in India appears promising, driven by a growing domestic market, increasing demand for sustainable and innovative textiles and global export potential. The sector is benefiting from government support, making it an attractive investment opportunity for companies.
With the push for digital transformation and increased focus on sustainable manufacturing practices, textile companies are well-positioned to meet evolving market needs. As the Indian textile industry evolves, IPOs from leading companies can attract investor interest, ensuring long-term growth prospects in the sector.
Textiles IPOs in India – FAQ
A Textile IPO (Initial Public Offering) is when a textile company offers its shares to the public for the first time. It allows the company to raise capital from investors to fund expansion, production and other business initiatives in the textile industry.
The major textile companies in India that have launched IPOs include Kalahridhaan Trendz Limited, Signoria Creation Limited and Shree Karni Fabcom Limited.
Textile IPOs in the Indian stock market offer investment opportunities in a growing sector, attracting capital for expansion and innovation. They enhance market diversity, provide liquidity and allow investors to participate in the potential growth of India’s textile industry.
The largest textiles IPO in India to date is the Aditya Birla Fashion & Retail Ltd. IPO, which raised significant capital for expansion. It offered shares to the public, marking a major event in the Indian textile sector’s growth.
To invest in textiles IPOs, open a demat and trading account with a brokerage firm like Alice Blue. Once your account is active, you can apply for the IPO through the firm’s trading platform or by using the ASBA system.
TeTextilePOs can be suitable for long-term investment if the company shows strong growth potential, solid financials and a competitive edge in the market. However, careful analysis of the sector’s stability and company performance is essential before investing.
Textile IPOs can be profitable for investors if the company has strong fundamentals, growth prospects and a good market position. However, profitability depends on factors like market conditions, business performance and industry trends, so research is crucial.
Yes, there are several upcoming ttextileIPOs in India, with companies from various segments of the textile industry planning to go public. Keep an eye on financial news or consult with brokers like Alice Blue for updates on launch dates.
Detailed reviews and analyses of textile IPOs can be found on financial news websites, stock market platforms and brokerage firms like Alice Blue. You can also check IPO rating agencies, investor forums and blogs for comprehensive insights.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
