Shree Balaji Mala Textiles Set to Debut with ₹18.9 Crore IPO as SME Segment Momentum Builds

Shree Balaji Mala Textiles Set to Debut with ₹18.9 Crore IPO as SME Segment Momentum Builds​

Shree Balaji (Mala) Textiles, a prominent Kolkata-based contract manufacturer and wholesaler of cotton sarees, has officially announced its maiden public issue scheduled to open on July 22.

The company joins a busy week for the SME segment, becoming the third firm to launch an IPO after Gulf Lloyds (India) and Metalic Technoforge. The issuance is expected to draw significant attention from retail and institutional investors seeking growth in the textile manufacturing space.

Issue Details and Valuation Framework​

The B2B saree manufacturer aims to raise Rs 18.9 crore through the initial sale of 27 lakh shares. The issue is priced at an upper band of Rs 66-70 per share, which establishes a company valuation of Rs 69 crore.

The IPO is structured as an entirely fresh issue with no offer-for-sale component. Interested investors can participate in the subscription period starting July 22 until the closing date on July 24. Additionally, the anchor book will be opened for one day on July 21 to accommodate institutional interest.

Strategic Allocation of IPO Proceeds​

Management has outlined a clear roadmap for the utilization of capital raised from the public offering. The company intends to deploy Rs 16.5 crore of the net proceeds specifically to meet its working capital requirements.

The remaining funds will be earmarked for general corporate purposes. This liquidity injection is expected to bolster the operational capabilities of the company as it continues to scale its manufacturing and distribution footprint.

Manufacturing Strength and Market Reach​

Operating from a dedicated manufacturing facility in Jetpur, Gujarat, Shree Balaji (Mala) Textiles maintains a strong foothold in the cotton saree market. Currently, approximately 90 percent of the company's revenue is generated from the sale of cotton sarees.

The brand, known as Mala Saree, enjoys an expansive distribution network across the country. This includes a robust infrastructure of more than 105 brokers, 13 dealers, 69 wholesalers, and a sprawling network of approximately 3,000 retailers.

Robust Financial Performance and Growth Trajectory​

Financial data highlights a period of steady growth for the firm. For the fiscal year ended March 2026, the company reported a profit of Rs 5.85 crore, marking an 18.4 percent increase compared to the Rs 4.9 crore recorded in the previous year.

Revenue during the same period also saw a positive trajectory, rising 9.8 percent to reach Rs 212 crore from the previous year's Rs 193 crore. The company’s equity shares are proposed to be listed on the BSE SME platform.

Listing Management and Governance​

GYR Capital Advisors has been appointed as the book running lead manager to oversee the Shree Balaji Mala IPO. The firm will manage the subscription process and ensure a smooth transition for the company from a private entity to a publicly listed player on the BSE SME exchange.