New Delhi, August 5(HS): The shares of Kaytex Fabrics debuted in the stock market today with a notable decline, disappointing IPO investors. The shares were issued at ₹180 but started trading at ₹144 on the NSE's SME platform, reflecting a 20% discount. After buying commenced, the shares rose to ₹151.20, yet investors faced a 16% loss due to the weak listing.

The ₹69.81 crore IPO was open for subscription from July 29 to July 31 and received a strong response, achieving an overall subscription of 42.70 times, with QIBs at 31.16 times, NIIs at 43.19 times, and retail investors at 47.85 times. A total of ₹57.59 crore in new shares were issued, alongside 679,200 shares sold via an offer-for-sale.The funds raised will support the construction of warehousing in Amritsar, set up sales offices, and upgrade fabric processing systems, among other needs.

The company’s financial status appears solid, with a reported net profit of ₹5.59 crore for the fiscal year 2022-23, expected to increase to ₹11.31 crore in 2023-24 and ₹16.90 crore in 2024-25, while revenue grew to ₹153.22 crore at a CAGR of over 24%.

Hindusthan Samachar / Jun Sarkar