The SME initial public offering (IPO) of West Bengal-headquartered readymade garment manufacturer Fascinate Textiles Limited completed its second day of public bidding across the bourses today, Wednesday, August 12, 2026.
Carrying an aggregate issue size of ₹66.98 crore set within an official price band parameter of ₹148.00 to ₹156.00 per share, the company is looking to raise primary capital to construct a new manufacturing unit in West Bengal, fund working capital, and pay off bank debt.
By the close of its second bidding session across the NSE SME platform, central exchange registries logged valid electronic application tokens for 4,93,600 shares against a net public offer pool of 40,78,400 shares (excluding the market maker block of 2,15,200 shares). This brings the overall subscription baseline up to 0.12 times (12% coverage).
Qualified Institutional Buyers (QIBs) continued to hold their baseline allocation fully covered at 1.00x, while retail individual investors and wealth accounts registered early volume expansion ahead of Thursday's final closing bell.
The three-day public bidding window will officially close tomorrow, Thursday, August 13, 2026.
Here is an extended, plain-English human breakdown covering Day 2 subscription metrics, business operations, financial health, valuation parameters, risk factors, and the upcoming allotment schedule.
1. Day 2 Subscription Data Breakdown
By 5:00 PM on Day 2, central exchange engines recorded total application capital worth ₹7.70 crore (calculated at the upper price band cap of ₹156 per share), covering 12% of the net public offer.
The table below summarizes the second day's performance across investor categories:
+-----------------------------------------------------------------------------------+ | FASCINATE TEXTILES LIMITED: DAY 2 SUBSCRIPTION DATA | +-------------------+-----------------+------------------+------------------+-------+ | Category | Shares Offered | Shares Bid For | Subscription (x) | Value | +-------------------+-----------------+------------------+------------------+-------+ | QIB (Institutions)| 43,200 | 43,200 | 1.00x | ₹0.67Cr | NII / HNI (Wealth)| 16,16,000 | 31,200 | 0.02x | ₹0.49Cr | Retail (RII) | 24,19,200 | 4,19,200 | 0.17x | ₹6.54Cr | Market Maker | 2,15,200 | — | — | — | +-------------------+-----------------+------------------+------------------+-------+ | Total Net Offer | 40,78,400 | 4,93,600 | 0.12x | ₹7.70Cr +-------------------+-----------------+------------------+------------------+-------+
Analyzing the Category Inflows:
- Qualified Institutional Buyers (QIB - 1.00x): Institutional buyers maintained their reserved allocation slice of 43,200 shares fully subscribed at 1.00 time, providing early anchor baseline support for the book.
- Retail Individual Investors (RII - 0.17x): Everyday retail accounts provided the primary volume build-up on Day 2, expanding their bids from 1,60,000 shares on Day 1 to 4,19,200 shares (262 application lots) on Day 2, reaching 17% coverage. Under the issue rules, retail applicants face a minimum lot size requirement of 2 lots (1,600 shares), requiring an upfront application layout of ₹2,49,600 at ₹156 per share.
- Non-Institutional Investors (NII / HNI - 0.02x): High-net-worth wealth accounts expanded their orders from 6,400 shares on Day 1 to 31,200 shares on Day 2. SME offerings carrying higher retail entry tickets (₹2.50 lakh minimum) traditionally see the bulk of their HNI bidding concentration develop on the final afternoon session.
- Market Maker Block: A dedicated block of 2,15,200 shares (~₹3.36 crore) is allocated to the designated market maker (Affinity Global / Mansi Share & Stock Broking) to support secondary market liquidity post-listing.
2. Unlisted Grey Market Premium (GMP) & Expected Listing Gains
Trading activity in the unlisted grey market channels remains quiet for Fascinate Textiles as the issue enters its final day:
- Issue Price Band: ₹148.00 to ₹156.00 per share
- Current Grey Market Premium (GMP): ₹0.00 per share (Trading Flat)
- Estimated Listing Price Range: ₹156.00 per share
- Projected Listing Gain: 0.00%
- Retail Application Lot Size: 2 Lots / 1,600 Shares (Minimum Investment: ₹2,49,600)
(Note: Grey market premiums represent informal, off-exchange quotes. A flat GMP is common for SME issues that do not carry early speculative activity. Real secondary market pricing will depend on final-day bidding volume.)
3. Business Overview: What Does Fascinate Textiles Do?
Incorporated in 2018 and headquartered in West Bengal, Fascinate Textiles Limited is an integrated manufacturer, distributor, and marketer of readymade garments, focusing primarily on children's wear, infant clothing, and casual apparel.
+-----------------------------------------------------------------------------------+ | FASCINATE TEXTILES BUSINESS AT A GLANCE | +-----------------------------------+-----------------------------------------------+ | Core Focus Area | Readymade Apparel Manufacturing | | | (Kidswear, Menswear & Womenswear) | +-----------------------------------+-----------------------------------------------+ | Core Product Line Depth | T-shirts, Joggers, Vests, Leggings, Shorts, | | | Infant Wear & Casual Wear Sets | +-----------------------------------+-----------------------------------------------+ | Primary Manufacturing Hub | Integrated Apparel Unit in West Bengal | +-----------------------------------+-----------------------------------------------+ | Core Distribution Geographic Hubs | West Bengal, Karnataka, and Southern/Eastern | | | Indian Wholesale & Retail Distribution Hubs | +-----------------------------------+-----------------------------------------------+ | Manufacturing Model | In-house cutting, stitching, printing, and | | | finishing alongside contract job-work | +-----------------------------------+-----------------------------------------------+
Core Business Operations:
1. Specialization in Children's Apparel
Fascinate Textiles derives a major portion of its operating revenue from manufacturing children's wear and infant apparel. The kidswear segment in India represents a resilient, high-volume product category because parents continuously buy new clothing as children outgrow sizes, reducing vulnerability to broader economic slowdowns.
2. Integrated Manufacturing Process
The company operates an integrated garment manufacturing facility in West Bengal equipped with automated fabric-cutting tables, multi-head embroidery systems, screen printing setups, and industrial stitching lines. Managing production in-house allows the company to maintain quality control and meet quick turnaround schedules for wholesale distributors.
3. B2B Wholesale & Distributor Network
Rather than tying up capital in company-owned retail outlets, Fascinate Textiles distributes its apparel products through a network of regional garment wholesalers, multi-brand outlets (MBOs), and institutional clothing distributors across Eastern and Southern India.
4. Detailed Financial Performance (FY24 to FY26)
An audit of the company's restated consolidated financial statements shows rapid top-line growth and expanding operational and net profit margins over the last three fiscal years.
+-----------------------------------------------------------------------------------+ | FASCINATE TEXTILES: 3-YEAR FINANCIAL PERFORMANCE | +-------------------------------+-------------------+-------------------+-----------+ | Financial Metric (₹ in Cr) | FY24 | FY25 | FY26 | +-------------------------------+-------------------+-------------------+-----------+ | Revenue from Operations | 28.89 | 60.28 | 117.09 | | Total Income | 28.90 | 60.28 | 117.23 | | EBITDA | 1.63 | 9.98 | 24.00 | | EBITDA Margin (%) | 5.64% | 16.56% | 20.47% | | Net Profit After Tax (PAT) | 0.48 | 5.81 | 15.07 | | PAT Margin (%) | 1.66% | 9.64% | 12.86% | | Total Assets | 25.45 | 42.26 | 92.75 | | Total Debt / Borrowings | 12.33 | 18.21 | 26.02 | | Net Worth | 4.45 | 10.45 | 31.44 | | Return on Net Worth (RoNW %) | 10.79% | 55.60% | 47.93% | +-------------------------------+-------------------+-------------------+-----------+
Key Financial Observations:
- Multi-Fold Top-Line Scale: Operating revenue expanded from ₹28.89 crore in FY24 to ₹60.28 crore in FY25, before surging to ₹117.09 crore for the full fiscal ended March 31, 2026 (a 2-year surge of 305%). This top-line momentum was driven by higher production volumes at its West Bengal unit and deeper distribution into Southern Indian markets like Karnataka.
- Explosive Profit Expansion: Net profit after tax (PAT) jumped from ₹0.48 crore in FY24 to ₹5.81 crore in FY25, before reaching ₹15.07 crore in FY26 (a massive 159% YoY net profit surge). PAT margins expanded from 1.66% in FY24 to 12.86% in FY26 as higher manufacturing scale lowered fixed factory overheads per garment.
- Elite Return Ratios: The company operates with high capital returns, delivering a Return on Net Worth (RoNW) of 47.93% in FY26 (up from 10.79% in FY24), supported by a manageable debt-to-equity leverage ratio of 0.83x.
5. Structure of the Offer & Objects of the Issue
The ₹66.98 crore public offer is structured across a fresh issue and an offer for sale:
+-----------------------------------------------------------------------------------+ | IPO CAPITAL STRUCTURE BREAKDOWN | +-----------------------------------+-----------------------------------------------+ | Total Issue Size | ₹66.98 Crore (42,93,600 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Fresh Issue Component | ₹53.94 Crore (34,57,600 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Offer for Sale (OFS) Component | ₹13.04 Crore (8,36,000 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Price Band | ₹148 to ₹156 per share | +-----------------------------------+-----------------------------------------------+ | Face Value | ₹10 per share | +-----------------------------------+-----------------------------------------------+ | Market Maker Block | 2,15,200 Shares (₹3.36 Crore Value) | +-----------------------------------+-----------------------------------------------+ | Lead Manager (BRLM) | Affinity Global Capital Market Private Ltd | +-----------------------------------+-----------------------------------------------+ | Registrar to the Issue | Cameo Corporate Services Limited | +-----------------------------------+-----------------------------------------------+
How Will Fresh Issue Capital Be Deployed?
Out of the ₹66.98 crore total issue size, ₹53.94 crore represents fresh primary capital coming directly onto the company's balance sheet:
- Working Capital Requirements (₹19.03 Crore / 35.3%): Apparel manufacturing requires heavy upfront cash deployment to purchase cotton yarn and finished fabrics, as well as managing extended credit cycles for wholesale distributors.
- CAPEX for New Manufacturing Facility (₹12.40 Crore / 23.0%): Earmarked to construct a new manufacturing facility and acquire automated stitching, cutting, and finishing machinery to scale up garment production.
- Debt Repayment / Prepayment (₹2.68 Crore / 5.0%): Directed to pay down outstanding bank borrowings to lower finance costs.
- General Corporate Purposes & Issue Expenses: Allocated to cover administrative expenses, sales expansion, and issue processing fees.
Understanding the Offer for Sale (OFS):
The remaining ₹13.04 crore is an Offer for Sale (OFS) of 8.36 lakh shares by promoter selling shareholders. OFS proceeds go directly to the selling shareholders.
6. Valuation Analysis & Peer Group Comparison
At the upper price band cap of ₹156 per share, Fascinate Textiles is priced at a trailing Price-to-Earnings (P/E) multiple of 10.64x based on its restated FY26 diluted EPS of ₹14.66, establishing a post-issue corporate market capitalization of approximately ₹160.30 crore.
Let's compare this with listed apparel and clothing peers in India:
+-----------------------------------------------------------------------------------+ | PEER GROUP VALUATION COMPARISON | +-----------------------------------+--------------------+--------------------------+ | Company Name | Trailing P/E (x) | Primary Product Focus | +-----------------------------------+--------------------+--------------------------+ | Fascinate Textiles (At ₹156) | ~10.64x | Readymade & Kidswear | | Iris Clothings Ltd | ~54.90x | Children's Wear Brand | | Kewal Kiran Clothing Ltd | ~21.70x | Branded Menswear (Killer)| | Lux Industries Ltd | ~38.20x | Hosiery & Innerwear | +-----------------------------------+--------------------+--------------------------+
Valuation Summary:
At 10.64x FY26 trailing earnings, Fascinate Textiles is entering the exchange portals at an attractive, value-oriented valuation structure compared to listed kidswear peer Iris Clothings (~54.9x P/E) and apparel major Kewal Kiran (~21.7x P/E).
With revenue touching ₹117 crore, a 47.93% RoNW efficiency, and PAT reaching ₹15.07 crore, the low P/E multiple provides a strong fundamental margin of safety for incoming public investors.
7. Core Strengths vs. Key Business Risks
Investors evaluating this SME issue should consider the following competitive advantages and risk factors:
Key Strengths:
- Disciplined Valuation (10.64x P/E): Priced at roughly 10.6x FY26 earnings, offering a significant valuation discount compared to listed apparel peers.
- Explosive Financial Growth: Revenue grew 305% over two years to ₹117.09 crore, with PAT reaching ₹15.07 crore in FY26.
- Focus on Resilient Kidswear Market: Manufacturing children's clothing provides steady, year-round volume demand.
- Strong Capital Efficiency: Delivering a Return on Net Worth (RoNW) of 47.93% in FY26.
Key Risk Factors:
- Customer Concentration Risk: The company's top 5 customers contributed 56.32% of total revenue in FY26. Losing any key wholesale distributor could impact top-line sales.
- Geographic Dependence: Over 80% of sales originate from West Bengal and Karnataka, exposing operations to regional economic policies or localized supply chain disruptions.
- Raw Material Price Volatility: Fabric and cotton yarn prices fluctuate based on raw cotton crop yields and global commodity trends. Unhedged fabric price spikes can affect operating EBITDA margins.
8. Application Matrix & Timeline
With the bidding window closing tomorrow, here is the schedule for allotment finalization and listing:
- Public Bidding Closes: Thursday, August 13, 2026 (5:00 PM IST)
- Basis of Allotment Finalization: Friday, August 14, 2026
- Refund Initiations & Unblocking of Bank Funds: Monday, August 17, 2026
- Credit of Shares to Demat Accounts: Monday, August 17, 2026
- Official Exchange Listing (NSE SME): Tuesday, August 18, 2026
- Designated Registrar: Cameo Corporate Services Limited
Application Size Matrix:
- Retail Minimum & Maximum: 2 Lots (1,600 Shares) — ₹2,49,600
- Small HNI (sNII) Minimum: 3 Lots (2,400 Shares) — ₹3,74,400
- Big HNI (bNII) Minimum: 9 Lots (7,200 Shares) — ₹11,23,200
Conclusion: What Should You Watch for on Day 3?
Fascinate Textiles presents a compelling financial growth story backed by a 3-year revenue jump to ₹117 crore, 47.9% RoNW returns, and an attractive 10.64x trailing P/E entry multiple.
With Day 2 subscription reaching 0.12x overall (supported by 1.00x QIB coverage), watch how retail and wealth categories build up their final order blocks ahead of Thursday's 5:00 PM closing deadline.
Post Excerpt
A complete Day 2 analysis of the ₹66.98 crore Fascinate Textiles SME IPO. Bids reached 0.12x on Day 2 with QIBs at 1.00x and retail at 0.17x. Read our full review of company financials, readymade kidswear manufacturing, valuation (10.64x trailing P/E), risk factors, and timeline ahead of tomorrow's close.