TNA Solutions
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 4:1 bonus issue in July 2026 expanding insider equity at zero cost.
- Persistent negative operating cash flow across all 3 years (-Rs. 18.47 crore in FY26).
- Working capital lock-up in trade receivables (Rs. 36.54 crore / 128 debtor days) and inventory (Rs. 36.06 crore).
- High customer concentration with top 10 clients generating 83.82% of FY26 revenue.
- Common pursuits and Rs. 2.00 crore trade advances with promoter partnership firm Avni Impex.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
TNA Solutions Limited is an Indore-based manufacturer of home textile products, including bed sheet sets, pillow shells and covers, towels, and top-of-bed products (comforters, mattress protectors, quilts).
What this company actually does — full breakdown ▾
Originally formed as TNA Solutions LLP in 2021 and converted into a public limited company in June 2024, TNA Solutions Limited operates as a B2B manufacturer and B2C retailer of home textile products. The company procures greige fabric from weavers, engages third-party processing houses for weaving/dyeing/printing, and performs cutting, stitching, embroidery, finishing, packaging, and quality control at its 56,000 sq. ft. leased facility in Indore, Madhya Pradesh. In FY26, B2B manufacturing contributed 99.60% (Rs. 104.1650 crore) and B2C sales (under brand 'Ambra Linens') contributed 0.40% (Rs. 0.4223 crore) of total revenue from operations (Rs. 104.5872 crore). Geographically, export sales to 10 overseas jurisdictions accounted for 52.03% (Rs. 54.4122 crore) and domestic sales accounted for 47.97% (Rs. 50.1750 crore). The top 10 customers generated 83.82% of FY26 operational revenue, while top 10 suppliers accounted for 76.41% of purchases.
Focused asset-light value-added finishing model, export footprint across 10 overseas jurisdictions, ERP-integrated operations, and international quality/sustainability certifications (OEKO-TEX Standard 100, GOTS, SCAN, SEDEX-SMETA, BCI).
The Offer
Follow the Money — Use of Proceeds
- Funding of capital expenditure requirement towards civil construction of the new manufacturing unit and purchase of plant and machinery
- Funding long-term working capital requirements
- General Corporate Purposes
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.
88% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 104.5872 | 81.486 | 35.8508 |
| Net Profit (₹ Cr) | 9.5835 | 6.658 | 2.6874 |
| PAT Margin | 9.16% | 8.17% | 7.5% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Demand and our read of the filing are broadly in the same territory.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 28.4% | Revenue increased due to expansion of export operations across overseas jurisdictions and higher customer order volumes across sheeting and pillow pair product categories. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 43.9% | PAT increased driven by 99% growth in export sales, higher duty drawback incentives, unrealized foreign exchange gains, and lower relative material consumption growth. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 110.2% | Trade receivables expanded sharply due to export sales growth representing 81.40% of total receivables and longer commercially agreed credit periods provided to overseas customers. | Structural |
| Inventories (FY26 vs FY25) | ↑ 46.3% | Inventories increased due to raw material stocking and work-in-progress maintained to support expanding order execution and capacity utilization. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↓ 7.0% | Operating cash flow remained negative at -Rs. 18.4727 crore in FY26 (compared to -Rs. 17.2580 crore in FY25) due to working capital lock-up in trade receivables and inventory. | Structural |
Headwinds
- High customer concentration with top 10 buyers accounting for 83.82% of FY26 revenue company persistent
Dependency on a limited group of key B2B customers exposes revenues to order cancellation or non-renewal of customer contracts. - Persistent negative operating cash flow across all three restated financial years company persistent
Working capital absorption in trade receivables (128 debtor days) and inventory leads to sustained negative operating cash flows. - Fluctuations in raw material prices of cotton and greige fabric sector persistent
Volatile raw material costs and job-work processing charges can compress operating EBITDA margins if cost increases cannot be passed on to clients.
Tailwinds
- Setting up a new manufacturing unit to increase production capacity by 67.77% company
Civil construction and machinery acquisition for the new unit will expand capacity by 35,39,878 meters per annum to meet export demand. - Expanding global compliance certifications (OEKO-TEX, GOTS, SEDEX-SMETA, BCI, SCAN) company
Global compliance certifications enable deeper penetration into new overseas jurisdictions across North America, Europe, and Asia-Pacific.
| Facility | Period | Utilisation |
|---|---|---|
| Existing Indore Unit (Stitching/Finishing Facility - Installed Capacity 5,223,386 Metres) | FY26 | 75.0% |
| Existing Indore Unit (Stitching/Finishing Facility - Installed Capacity 2,498,698 Metres) | FY25 | 72.6% |
| Existing Indore Unit (Stitching/Finishing Facility - Installed Capacity 1,310,506 Metres) | FY24 | 70.0% |
Movements the filing does not explain
- Pre-IPO 4:1 Bonus Issue Capitalizing Reserves FY27 — On July 14, 2026, the company issued 12,000,000 bonus shares (4:1 ratio) at Rs. 0.00 per share by capitalizing reserves, expanding pre-issue equity capital to 15,000,000 shares.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-08
- Pre Application Start2026-09-29
- Bidding Start2026-09-30
- Bidding End2026-10-06
- Allotment Process Start2026-10-07
- Allotment Finalization2026-10-08
- Listing Day2026-10-09
- Mandate End2026-11-17
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 104.59 | 81.49 | 35.85 |
| Other Income | 5.86 | 2.64 | 0.46 |
| Total Income | 110.45 | 84.13 | 36.32 |
| Cost of Materials Consumed | 64.32 | 61.17 | 27.89 |
| Purchases of Stock-in-Trade | 76.73 | 57.81 | — |
| Changes in Inventories | 0.99 | -9.49 | -4.94 |
| Employee Benefit Expense | 6.22 | 5.46 | 1.83 |
| Finance Cost | 4.95 | 3.16 | 1.24 |
| Depreciation & Amortisation | 0.70 | 0.37 | 0.21 |
| Other Expenses | 24.32 | 14.08 | 6.11 |
| Total Expenses | 97.56 | 74.75 | 32.18 |
| Profit Before Exceptional Items and Tax | 12.89 | 9.38 | 4.14 |
| Exceptional Items | 0.00 | 0.00 | 0.00 |
| Profit Before Tax | 12.89 | 9.38 | 4.14 |
| Tax Expense | 3.30 | 2.72 | 1.45 |
| Profit After Tax | 9.58 | 6.66 | 2.69 |
| EPS - Basic | 6.41 | 4.73 | — |
| EPS - Diluted | 6.41 | 4.73 | — |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 3.00 | 2.85 | 0.00 |
| Reserves & Surplus | 32.94 | 20.01 | 4.98 |
| Net Worth | 35.94 | 22.86 | 4.98 |
| Long-term Borrowings | 5.40 | 1.37 | 0.99 |
| Short-term Borrowings | 40.89 | 24.36 | 10.42 |
| Total Borrowings | 46.29 | 25.73 | 11.41 |
| Trade Payables | 6.15 | 5.47 | 5.07 |
| Current Liabilities | 52.57 | 33.19 | 18.31 |
| Total Liabilities | 94.21 | 57.47 | 24.33 |
| Property, Plant & Equipment | 7.38 | 3.20 | 0.88 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Intangible Assets | 0.15 | 0.08 | 0.01 |
| Investments | 0.05 | 0.06 | 0.00 |
| Inventories | 36.06 | 24.64 | 18.52 |
| Trade Receivables | 36.54 | 17.39 | 3.92 |
| Cash & Equivalents | 0.09 | 3.27 | 0.09 |
| Current Assets | 85.94 | 54.12 | 23.39 |
| Total Assets | 94.21 | 57.47 | 24.33 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | -18.47 | -17.26 | -8.57 |
| Capital Expenditure | -5.57 | -2.66 | -0.68 |
| Net Cash from Investing Activities | -5.57 | -2.66 | -0.68 |
| Net Cash from Financing Activities | 20.86 | 23.07 | 9.12 |
| Net Change in Cash | -3.18 | 3.18 | -0.13 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 16.8 | 15.3 | 15.4 |
| EBIT Margin (%) | 16.2 | 14.9 | 14.8 |
| PAT Margin (%) | 9.2 | 8.2 | 7.5 |
| Return on Equity (%) | 26.7 | 29.1 | 53.9 |
| Return on Capital Employed (%) | 21.7 | 25.8 | 32.8 |
| Return on Assets (%) | 10.2 | 11.6 | 11 |
| Leverage | |||
| Debt / Equity (x) | 1.29 | 1.13 | 2.29 |
| Net Debt / EBITDA (x) | 2.49 | 1.74 | 2.02 |
| Interest Coverage (x) | 3.6 | 3.96 | 4.33 |
| Liquidity | |||
| Current Ratio (x) | 1.63 | 1.63 | 1.28 |
| Quick Ratio (x) | 0.95 | 0.89 | 0.27 |
| Efficiency | |||
| Asset Turnover (x) | 1.11 | 1.42 | 1.47 |
| Receivable Days | 128 | 78 | 40 |
| Inventory Days | 126 | 110 | 189 |
| Payable Days | 21 | 24 | 52 |
| Cash Conversion Cycle (days) | 233 | 164 | 177 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | -1.93 | -2.59 | -3.19 |
| Accruals Ratio (%) | 29.8 | 41.6 | 46.3 |
| Capex / Depreciation (x) | 7.95 | 7.29 | 3.18 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 9.2% | 8.2% | 7.5% |
| Asset Turnover (Revenue / Assets) | 1.11x | 1.42x | 1.47x |
| Equity Multiplier (Assets / Net Worth) | 2.62x | 2.51x | 4.88x |
| = Return on Equity | 26.7% | 29.1% | 53.9% |
| Tax Burden (PAT / PBT) | 0.74x | 0.71x | 0.65x |
| Interest Burden (PBT / EBIT) | 0.72x | 0.75x | 0.77x |
| Operating Margin (EBIT / Revenue) | 17.1% | 15.4% | 15% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- In FY26 the company reported a profit of 9.58 cr while operating cash flow was NEGATIVE at -18.47 cr. Reported earnings did not convert into cash. This is the single divergence most worth understanding in any set of accounts, and the filing is the place to look for why.
- Receivable days rose from 40 in FY24 to 128 in FY26. The company is booking revenue faster than it is collecting it, which ties up cash and raises the question of who is not paying.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
7 of 8 inputsAn eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.637 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 0.647 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | — | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.283 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 1.182 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 1.218 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 1.023 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.2978 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
The filing does not disclose every input the model needs, so we withhold the composite score rather than substitute a guess. The components we could compute are above.
Altman Z″-Score (emerging markets)
Z″ = 8.39 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.354 |
| X2 — Retained Earnings / Total Assets | 0.35 |
| X3 — EBIT / Total Assets | 0.189 |
| X4 — Net Worth / Total Liabilities | 0.381 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 8.39 |
Piotroski F-Score (adapted)
2 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✗Positive operating cash flow
- ✗Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✗Current ratio improving
- ✓Gross margin improving
- ✗Asset turnover improving
The Final-Year Check
oursNot from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.
- Cash conversion fell sharply in the final year: operating cash flow was -1.93x profit in FY26, against -2.59x in FY25. Profit rose; the cash behind it did not follow at the same rate.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0%
Contingent liabilities of 0.00 cr against a net worth of 35.94 cr — 0% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0x
Short-term borrowings of 40.89 cr against cash of 0.09 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 0%
Managerial remuneration to the promoter group was 0.00 cr against a profit of 9.58 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth9.58 ÷ 35.94What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)17.84 ÷ (35.94 + 46.29) = 17.84 ÷ 82.23Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue18.54 ÷ 104.59Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth46.29 ÷ 35.94How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost17.84 ÷ 4.95How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(36.54 ÷ 104.59) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days126 + 128 − 21How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT-18.47 ÷ 9.58Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(9.58 − -18.47) ÷ 94.21 = 28.06 ÷ 94.21The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹70.00 × 20,408,000 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash142.86 + 46.29 − 0.09What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA189.06 ÷ 18.54The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT142.86 ÷ 9.58The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹6.39 EPS pre → ₹4.70 EPS postThe fresh issue expands the share count by 26.5%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
Offer price ÷ weighted average cost of acquisition₹70.00 ÷ ₹0.58Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)14.91 ÷ 43.9%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO 4:1 Bonus Issue Expanding Insider Shareholding at Nil Cost
In July 2026, the company issued 12,000,000 bonus shares (4:1 ratio) at Rs. 0.00 per share by capitalizing reserves, expanding pre-issue equity capital to 15,000,000 shares and reducing promoter average acquisition costs to Rs. 2.00 per share.
Source: p.81, 82, 92Persistent Negative Operating Cash Flow Driven by Export Working Capital
Operating cash flow remained negative across all three restated years (-Rs. 18.4727 crore in FY26) as working capital was heavily locked up in trade receivables (Rs. 36.5384 crore / 128 days) and inventory (Rs. 36.0552 crore / 201 days).
Source: p.28, 33, 62Overlap in Business Lines with Promoter Partnership Entity Avni Impex
Promoters maintain interests in partnership firm Avni Impex engaged in fabric trading; the company executed a non-compete agreement in July 2026 and held Rs. 2.0000 crore in outstanding trade advances as of FY26.
Source: p.34, 66, 196Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Ambuj Jain
Litigation: No outstanding criminal proceedings, statutory/regulatory actions, material civil litigation, or tax claims involving the Company, Promoters, Directors, KMPs, or Group Entities.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| VTM Limited | 41.84 | — | 5.18 | — |
| Faze Three Limited | 37.35 | — | 6 | — |
At the ₹70 upper band, the issue is priced at 10.9x earnings — a 72% discount to the peer median of 39.6x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Global and Indian Home Textile Market Sizing
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Global Textile Market Size (USD billion) | 1160 | 2025 estimated global market size |
| Global Home Textile Market Projected Size by 2033 (USD billion) | 1610 | Projected 2033 market size at 4.2% CAGR |
| Indian Home Textile Market Size by 2031 (USD billion) | 16.76 | Projected 2031 Indian home textile market size at 7.08% CAGR |
Source: p.128, 130
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
On July 14, 2026 (2 months prior to RHP filing), the company issued 12,000,000 bonus shares in a 4:1 ratio at Rs. 0.00 per share by capitalizing reserves, expanding equity share capital from 3,000,000 shares to 15,000,000 shares, lowering promoter average acquisition cost to Rs. 2.00 per share.
p.77, 81, 82Operating cash flow (CFO) was negative in all three restated years: -Rs. 8.5698 crore in FY24, -Rs. 17.2580 crore in FY25, and -Rs. 18.4727 crore in FY26, as working capital was heavily absorbed by trade receivables (Rs. 36.5384 crore in FY26) and inventory (Rs. 36.0552 crore in FY26).
p.32, 33, 62, 150Promoters hold interests in partnership firm Avni Impex, engaged in the trading and distribution of home textile fabrics. The company executed a non-compete agreement on July 29, 2026, and carried trade advances of Rs. 2.0000 crore to Avni Impex as of FY26.
p.34, 66, 196The peer comparison set includes mainboard-listed home textile companies VTM Limited (P/E 41.84x) and Faze Three Limited (P/E 37.35x), yielding an average peer P/E of 39.60x.
p.112, 114Operating cash flow was negative ₹18.47 cr in FY26 while the company reported a profit after tax of ₹9.58 cr. Profit that does not arrive as cash has to be funded from somewhere else.
rule: CFO<0 & PAT>0Trade receivables grew 110.1% against revenue growth of 28.3% in FY26. Revenue may be being recognised ahead of collection.
rule: receivables growth > 1.3x sales growthShort-term borrowings of ₹40.89 cr against cash of ₹0.09 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Plant capacity utilization reached 75.00% in FY26 (3,917,540 metres produced out of 5,223,386 metres installed capacity), validating that capacity expansion supports order growth.
p.32, 158, 204Export sales expanded 99.99% to Rs. 54.41 crore in FY26, but receivables from export customers increased to 81.40% of total trade receivables, driving debtor days up from 40 days to 128 days.
p.28, 49, 137, 202Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: Maashitla Securities
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (17 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across civil construction, machinery procurement, working capital, and general corporate purposes?
Fresh issue proceeds are allocated towards: (i) funding capital expenditure requirements for civil construction of the new manufacturing unit and purchase of plant and machinery, (ii) funding long-term working capital requirements, and (iii) General Corporate Purposes (capped at 15% of gross issue proceeds or Rs. 10.00 crore, whichever is lower).
p.32, 94, 96What is the promoters' shareholding pre-issue and post-issue, and their acquisition cost history?
Promoters Ambuj Jain, Ayush Jain, and Tanu Jain hold 68.62% pre-issue equity (10,292,500 shares out of 15,000,000 pre-issue shares) and 50.43% post-issue equity. Promoter shareholding was expanded through a 4:1 bonus issue (12,000,000 shares) in July 2026, establishing a promoter average cost of acquisition of Rs. 2.00 per share.
p.77, 80, 88, 92What are the key related-party transactions, common pursuits, and promoter guarantees?
Promoters hold partnership interests in Avni Impex (fabric trading), leading to a non-compete agreement dated July 29, 2026, and Rs. 2.0000 crore in outstanding trade advances. No managerial remuneration was paid to promoters in FY26. Promoters provided personal guarantees and collateral security for bank credit facilities of Rs. 46.29 crore.
p.34, 66, 196, 218How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT expanded from Rs. 2.6874 crore in FY24 to Rs. 6.6580 crore in FY25 and Rs. 9.5835 crore in FY26. However, Operating Cash Flow (CFO) remained consistently negative across all 3 years (-Rs. 8.5698 crore in FY24, -Rs. 17.2580 crore in FY25, and -Rs. 18.4727 crore in FY26) due to working capital lock-up in trade receivables (Rs. 36.5384 crore) and inventory (Rs. 36.0552 crore).
p.32, 33, 62, 149, 150What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed no outstanding criminal, statutory, or tax litigation. Historical delays in RoC secretarial form filings occurred due to the absence of a dedicated compliance officer, which was resolved by appointing a Company Secretary. Total trade payables stood at Rs. 6.1539 crore as of FY26. Statutory auditor M/s ATK & Associates served continuously without auditor change.
p.31, 32, 198, 218, 253What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots (minimum application size above Rs. 2.00 lakhs). Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. Pace Stock Broking Services Private Limited is the Market Maker with 272,000 reserved shares (5.03%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 5, 8, 58, 60, 253What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Initial Subscribers to MOA / Promoters (TNA Solutions LLP Conversion) | ₹10.00 | 2024-06-23 | 7.0x |
| Existing Partners / Promoters | ₹10.00 | 2024-07-09 | 7.0x |
| Existing Shareholders (Bonus 4:1) | — | 2026-07-14 | — |
| Allotted below the band — 4 entries | |||
| Anil Kumar Goel, Mohnish Jain & Others | ₹160.00 | 2024-07-12 | as disclosed |
| Anil Kumar Goel & Rajesh Hansraj Gupta | ₹211.00 | 2024-12-05 | as disclosed |
| Indo Thai Securities Limited, Mohnish Jain & Nikita Rawat | ₹233.33 | 2025-08-02 | as disclosed |
| Indo Thai Securities Limited, Vijaya Jain, Tanu Jain & Pratik Jain | ₹233.33 | 2025-08-13 | as disclosed |
The 4 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 09 Oct 2029promoter3 years4,084,000 shares (20.01% of total)
- 09 Oct 2028promoter2 years3,105,500 shares (15.22% of total)
- 09 Oct 2027promoter1 year3,103,000 shares (15.2% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
