Now Reading: Madhur Knit Crafts IPO subscribed 55% on day 3, GMP hints 16% listing pop
-
01
Madhur Knit Crafts IPO subscribed 55% on day 3, GMP hints 16% listing pop
Madhur Knit Crafts IPO subscribed 55% on day 3, GMP hints 16% listing pop
Madhur Knit Crafts’ initial public offering, open from 24 August to 27 August, was subscribed 55% by 12:25 IST on day three, data from Chittorgarh.com showed. The retail portion was 81% subscribed,…
Madhur Knit Crafts’ initial public offering, open from 24 August to 27 August, was subscribed 55% by 12:25 IST on day three, data from Chittorgarh.com showed. The retail portion was 81% subscribed, the NII portion 25%, and the QIB portion 1.01 times. The company is raising funds entirely through a fresh issue of 53.28 lakh equity shares in the price band of Rs 95 to Rs 100 apiece.
The grey market premium for the IPO stands at Rs 16, implying a listing price of Rs 116 per share, a 16% premium over the upper end of the price band. The company reported total income of Rs 194.79 crore and a PAT of Rs 12.35 crore for the 11 months ended 28 February 2026, compared with Rs 171.76 crore and Rs 11.03 crore in FY2025.
Proceeds of Rs 20.85 crore will be used to prepay or repay outstanding borrowings, Rs 15.92 crore for working capital, and Rs 3.68 crore for solar panels. Allotment is expected on 28 August, refunds on 31 August, and listing on the NSE SME platform on 1 September. SKI Capital Services is the lead manager and Skyline Financial Services the registrar.
Indian Opinion Analysis
Madhur Knit Crafts is testing the NSE SME platform in a market where investor demand for public issues has been volatile. The company’s integrated yarn-to-cloth model covers knitting, dyeing and finishing, a capital-intensive process that requires steady working capital. The IPO proceeds are directed largely at debt repayment and working capital, which reduces immediate balance-sheet risk. Retail subscription at 81% against overall 55% shows that smaller investors are driving interest, while institutional participation at 1.01x is just above the minimum. The listing on 1 September will be the first gauge of whether the market accepts the company’s valuation, given the 16% implied premium from the grey market. The NSE SME segment has fewer listing requirements than the main board, making performance after listing more dependent on company fundamentals.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
