Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Kaytex Fabrics Ltd IPO (KAYTEX), ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
What is Shariah Compliance?
Shariah compliance refers to the adherence to Islamic law, which governs various aspects of life, including financial transactions. When it comes to investments, certain criteria must be met to ensure that they are permissible under Shariah law. For example, investments should avoid sectors related to alcohol, gambling, pork, and any form of interest (Riba), etc.
Analyzing Kaytex Fabrics Ltd IPO (KAYTEX)
Company Name: Kaytex Fabrics Ltd
Industry: Other Textile Products
Listing At: NSE SME
Overview:
Kaytex Fabrics Private Limited, established in 1996, is a trusted partner for fashion brands, designers, and retailers around the world. The company has grown into a key player in the fashion industry, offering more than just textiles. It provides the foundation on which fashion brands build their success.
Kaytex Fabrics is not just a fabric supplier-it is a partner in innovation, speed, and growth. Whether working with an established brand or an emerging designer, the company supports creativity and efficiency across the fashion spectrum with high-quality fabrics, unstitched garments, and cutting-edge digital printing.
Focused on innovation, Kaytex Fabrics uses disruptive digital printing technology and offers a fully integrated production process. This modern approach has allowed the company to move beyond traditional methods and become a driving force in today’s fast-paced fashion market.
Kaytex serves the organized fashion industry and also maintains strong connections with unbranded retail markets. This wide reach ensures the company is accelerating growth at all levels of the market.
With a strong commitment to quality, sustainability, and advanced technology, Kaytex Fabrics brings creative visions to life. It is more than a fabric manufacturer—Kaytex is shaping the future of textiles.
Shariah Status
The IPO is Shariah Compliant, please see below image.
Additional Considerations:
When opting for Shariah-compliant investments, it is essential to regularly check the status in our App. This ensures that the evolving nature of businesses or other financial data does not compromise the compliance status of your investments.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Tue, Jul 29, 2025 |
| IPO Close Date | Thu, Jul 31, 2025 |
| Tentative Allotment | Fri, Aug 1, 2025 |
| Initiation of Refunds | Mon, Aug 4, 2025 |
| Credit of Shares to Demat | Mon, Aug 4, 2025 |
| Tentative Listing Date | Tue, Aug 5, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 31, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 1,600 | ₹2,88,000 |
| Individual investors (Retail) (Max) | 2 | 1,600 | ₹2,88,000 |
| S-HNI (Min) | 3 | 2,400 | ₹4,32,000 |
| S-HNI (Max) | 6 | 4,800 | ₹8,64,000 |
| B-HNI (Min) | 7 | 5,600 | ₹10,08,000 |
Financials
Kaytex Fabrics Ltd.’s revenue rose by 23%, from ₹125.03 crore in FY24 to ₹153.22 crore in FY25. Profit after tax (PAT) increased by 49%, reaching ₹16.90 crore in FY25 from ₹11.31 crore the previous year. EBITDA grew from ₹22.43 crore to ₹30.06 crore. The company’s assets rose from ₹95.92 crore to ₹125.27 crore, and net worth improved from ₹33.55 crore to ₹50.07 crore. Reserves and surplus also increased to ₹38.57 crore. However, total borrowings rose slightly from ₹35.51 crore to ₹38.15 crore, reflecting higher funding needs. Overall, the company showed steady financial growth.
KPI
| KPI | Values |
|---|---|
| ROE | 40.43% |
| ROCE | 33.25% |
| Debt/Equity | 0.76 |
| RoNW | 33.76% |
| PAT Margin | 11.06% |
| EBITDA Margin | 19.68% |
| Price to Book Value | 4.13 |
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Kaytex Fabrics Ltd IPO is currently ₹32, representing 17.78% premium over the issue price.
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.