Madhur Knit Crafts SME IPO draws 55% subscription; retail portion booked 81%
Textile manufacturer Madhur Knit Crafts’ ₹95–₹100-per-share SME IPO was subscribed 55% on day three, led by 81% retail participation. The issue is due to close on August 27, with NSE SME listing expected September 1. Grey-market indications point to a potential 16% premium, though GMP is unofficial and volatile.
What happened
Textile manufacturer Madhur Knit Crafts’ SME IPO was 55% subscribed on day three, with retail demand at 81%. The ₹95-₹100 issue is expected to list on September
Key facts
- IPO price band: ₹95-₹100 per share
- Lot size: 1,200 shares
- Day 3 subscription: 55%
- Retail subscription: 81%
- NII subscription: 25%
- QIB subscription: 1.01x
- GMP: ₹16
- Estimated listing price: ₹116
- Expected listing premium: 16%
- Fresh issue: 53.28 lakh shares
- FY2025 income: ₹171.76 crore
- FY2025 PAT: ₹11.03 crore
- 11 months ended February 28, 2026 income: ₹194.79 crore
- 11 months ended February 28, 2026 PAT: ₹12.35 crore
- Debt repayment proceeds: ₹20.85 crore
- Working-capital proceeds: ₹15.92 crore
- Solar-panel purchase proceeds: ₹3.68 crore
Why this matters
The retail-heavy subscription and limited overall uptake suggest textile peers may find capital-market receptivity strongest for clearly differentiated growth stories with stronger institutional participation.
What to watch
- Final subscription multiple at the August 27 close and category-level demand composition.
- Any late institutional or HNI demand that changes the quality of the order book.
- Grey-market premium sustaining, widening, or collapsing ahead of allotment and listing.
- Allotment data, listing-day opening price, traded volume, and delivery percentage.
- Changes in cotton/yarn costs, export demand, textile-sector pricing, or working-capital conditions that could affect earnings after listing.
- Track final-category subscription, especially non-institutional and QIB bids, for confirmation that demand extends beyond retail.
- Monitor grey-market premium direction and unofficial application-market activity, while treating both as sentiment indicators rather than valuation signals.
- Assess issue proceeds deployment, customer concentration, working-capital needs, and textile-margin exposure before extrapolating a listing premium into long-term performance.
- Prepare for thin SME secondary-market liquidity, wider bid-ask spreads, and potentially sharp price moves after the expected September 1 listing.