A West Bengal-based readymade garment maker opens its Rs 66.98 crore NSE SME Emerge issue on August 11 — steady growth on paper, but the sharp profit jump from FY25 onwards deserves a closer look.
A Barasat-based readymade garment manufacturer plans to raise Rs 66.98 crore via the NSE SME Emerge platform.
Fascinate Textiles Ltd. (FTL), a maker of menswear, womenswear and childrenswear with a strong focus on kids’ clothing, opens for subscription on August 11 with the issue closing on August 13. The company is listing on NSE SME Emerge.
Inside the Business
Fascinate Textiles Ltd. (FTL) makes readymade garments from a single manufacturing facility in Barasat, North 24 Parganas, West Bengal. Its product range spans menswear, womenswear and childrenswear, with a significant portion of output focused on garments for kids — t-shirts, joggers, vests, leggings, shorts and infant wear.
The company works with large-format retailers and wholesalers in the domestic market. Its design process is two-sided — samples are developed both in response to buyer briefs and mood boards, and through its own in-house design team. Once a sample is approved, production kicks off at the Barasat facility.
FTL is an ISO 9001:2015 certified company, which supports its compliance with international trade norms and helps with cross-border shipments where certification matters.
The manufacturing setup is largely integrated. FTL procures yarn, sends it out to external job workers for knitting and dyeing, and then handles cutting, printing, stitching and finishing in-house — though a portion of stitching is outsourced. A meaningful part of the production infrastructure is automated, including automatic printing and sequencing machines, which helps with consistency and volume handling.
The Indian readymade garment segment is a large and structurally growing market, driven by rising disposable incomes, urbanisation and the shift from unbranded to branded clothing. Kids’ clothing in particular has been a fast-growing category. However, the segment is also highly competitive and fragmented, with thousands of players across every price point and city.
As of March 31, 2026, FTL had a total headcount of 254 employees, including 148 contract workers — a compact operational base typical for a mid-sized SME garment manufacturer.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 11, 2026 |
| Issue Closes | August 13, 2026 |
| Listing | NSE SME Emerge |
| Price Band | Rs 148 – Rs 156 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 66.98 crore |
| Fresh Issue | Rs 53.94 crore (34,57,600 shares) |
| OFS | Rs 13.04 crore (8,36,000 shares) |
| Lot Size | 1,600 shares (multiples of 800 thereafter) |
| Min. Retail Investment | Rs 2,49,600 |
| Post-IPO Market Cap | Rs 214.67 crore |
| IPO Constitutes | 31.20% of post-IPO equity |
| BRLM | Affinity Global Capital Market Pvt. Ltd. |
| Registrar | Cameo Corporate Services Ltd. |
| Market Maker | Giriraj Stock Broking Pvt. Ltd. |
From the fresh proceeds, Rs 25.15 crore is earmarked for incremental working capital, Rs 12.35 crore for capex on an additional manufacturing facility, Rs 2.68 crore for repayment or prepayment of borrowings, and the balance for general corporate purposes. The issue is underwritten to the tune of 15% by Affinity Global and up to 85% by Giriraj Stock Broking.
Post-IPO, paid-up equity moves from Rs 10.30 crore to Rs 13.76 crore.
The promoter and selling stakeholder average cost of acquisition is Rs Nil, Rs 2.05, Rs 4.08 and Rs 5.55 per share. This reflects earlier share issuances between Rs 15 and Rs 949 (between March 2021 and July 2025) and a 6-for-1 bonus issue in August 2025.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 28.90 | 60.28 | 117.23 |
| PAT | 0.48 | 5.81 | 15.10 |
| PAT Margin | 1.65% | 9.65% | 12.89% |
| RoCE | 11.66% | 42.41% | 54.82% |
Revenue has grown from Rs 28.90 crore in FY24 to Rs 117.23 crore in FY26 — a fourfold jump in two years, driven by higher volumes to large-format retailers and expansion in the kidswear category.
The bottom line has moved even more sharply. PAT has climbed from Rs 0.48 crore in FY24 to Rs 15.10 crore in FY26 — a 31x jump. PAT margin has stepped up from 1.65% to 12.89%, and RoCE has jumped from 11.66% to a striking 54.82%. In a highly competitive and fragmented readymade garment segment — where thousands of players compete on price and OEMs squeeze suppliers hard — this scale of margin expansion in the two years before an IPO raises the obvious question about sustainability.
Average EPS over three years is Rs 9.30 and average RoNW is 44.34%. At the upper band of Rs 156, the P/E works out to 14.22x on FY26 earnings and a much higher 36.97x on FY25 — a wide gap that shows how much the valuation rests on FY26 profits being repeatable. The issue is priced at a P/BV of 5.11 on pre-IPO NAV and 2.51 on post-IPO NAV of Rs 62.05 per share.
Listed peers Iris Clothing and Kewal Kiran Clothing trade at P/E multiples of 59.1 and 21.4 respectively (as of August 7, 2026), though these are much larger mainboard companies and not strict apples-to-apples comparisons.
Risks to Consider
The margin jump from 1.65% to 12.89% in two years is the biggest question mark. Garment manufacturing is a low-margin, high-competition business where scale, buyer relationships and cost control matter more than pricing power. Margins of this size in a pre-IPO year deserve careful reading of the RHP.
Rising trade receivables are a red flag. This can indicate customers taking longer to pay, which ties up working capital and increases bad-debt risk. The Rs 25.15 crore earmarked for working capital reflects this reality.
Customer concentration is a typical risk for SME garment makers — a handful of large-format retailers and wholesalers likely drive most of the revenue. Losing a major buyer, or a change in sourcing strategy, could dent order flow.
The segment is intensely competitive and fragmented, with pricing power hard to build. Input cost pressures — cotton, yarn, dyes, labour — that aren’t passed through can hurt margins.
Regional concentration is another concern. FTL’s operations are entirely in West Bengal, making it vulnerable to local labour, power or logistics disruptions.
Analyst View
Fascinate Textiles has posted growth in both revenue and profits over the reported periods, and its focus on childrenswear — a fast-growing sub-category within readymade garments — gives it some tailwind. The move to add a second manufacturing facility suggests genuine capacity expansion plans rather than just balance-sheet clean-up.
That said, the FY25 and FY26 profit jumps in a fragmented and price-competitive segment raise red flags on sustainability, and rising trade receivables need watching. Priced at 14.22x FY26 and 36.97x FY25, the issue looks aggressively priced relative to average earnings, note analysts.