Kianm Export Limited IPO

01At a glance

What the company does: converts raw unfinished fabric into finished textiles by preparation, dyeing or printing and finishing, at two facilities in Rajkot, Gujarat, making African print fabric, modern apparel fabric, sarees and other ethnic fabric, and also processing customers' own fabric on a jobwork basis (DRHP p.29, DRHP p.193).

Who pays it: buyers of African print fabric in Nigeria, Guinea, Tanzania and Senegal, and domestic buyers of apparel fabric and sarees; the top ten customers were 42.46% of FY26 revenue (DRHP p.30, DRHP p.32).

Why it is raising money: ₹1,554.00 million to acquire 35.29% of Ultra Denim Limited, ₹1,500.00 million for working capital, ₹708.00 million for machinery and ₹367.92 million invested in the subsidiary Usha Cotton for its machinery, with general corporate purposes left blank (DRHP p.109).

How fast it has grown: revenue rose from ₹2,447.79 million in FY24 to ₹3,830.12 million in FY26, about 25.1% a year, and profit after tax from ₹88.12 million to ₹421.92 million, about 118.8% a year (our arithmetic, DRHP p.78).

The one thing to understand: the customer base turns over. The prospectus discloses that top ten customers who ceased to be customers the following year accounted for 42.85% of FY25 revenue and 38.29% of FY24 revenue (DRHP p.31).

02The business, in plain words

Unfinished woven cloth, called greige fabric, is worth a fraction of finished cloth. Preparation, dyeing or printing and finishing is what turns one into the other, and it is a service as much as a product: about 6.60% of FY26 revenue was jobwork on fabric the customer supplied (DRHP p.29).

A fabric buyer in Lagos or Surat needs printed cloth → it places a purchase order → the company prepares, dyes or prints and finishes greige fabric at Rajkot → the company keeps what is left after greige fabric, chemicals, power, labour and interest.

The business began as Mira Processors, a proprietorship of Rajeshbhai Parshotam Malaviya, which traded white-label sarees from 2007, began making African print fabric on jobwork in 2013 and started exporting in July 2016; the company acquired that business, by then Mira India Fashion, under a business transfer agreement dated July 1, 2024 (DRHP p.193, DRHP p.194).

Modern apparel fabric started in FY23, other ethnic fabric in January 2025, the Revelo saree brand in April 2026, the Orcoss ethnic dress range in April 2026 and Middle Eastern style fabrics in July 2026 (DRHP p.29, DRHP p.193, DRHP p.194). The company has undertaken two strategic acquisitions since July 1, 2024 (DRHP p.48). Both manufacturing facilities are at Rajkot and both sit on land held on leasehold rights only (DRHP p.36, DRHP p.57).

Earnings equation: Profit = metres processed × (price − greige fabric, chemical and power cost) − employee cost − interest. In FY26 cost of materials consumed was ₹2,700.10 million and manufacturing expenses ₹365.81 million against revenue of ₹3,830.12 million, with employee cost ₹165.06 million and finance cost ₹85.19 million (DRHP p.78).

03Where the money comes from

Source: DRHP p.29.

African print fabric fell from 69.86% of revenue in FY24 to 51.24% in FY26, while modern apparel fabric rose from 13.68% to 29.60% and sarees from 0.72% to 10.28% (DRHP p.29). All African print fabric is exported, and no other product has been exported in the last three years (DRHP p.32).

Source: DRHP p.32.

The top ten customers were 62.34% of revenue in FY24, 56.63% in FY25 and 42.46% in FY26, so concentration has fallen (DRHP p.30). What has not fallen is turnover in the list: the top ten customers of FY25 who were no longer customers in FY26 had produced ₹1,413.28 million, 42.85% of that year's revenue from contracts with customers, and the equivalent FY24 figure was ₹904.69 million, 38.29% (DRHP p.31). There are no long-term sale agreements; the company works on purchase orders and delivery schedules that customers may amend or cancel (DRHP p.31).

04The growth record

Source: DRHP p.78, DRHP p.79, DRHP p.134.

Net worth was ₹447.40 million, ₹209.39 million and ₹533.06 million; net debt ₹962.96 million, ₹1,282.76 million and ₹1,378.84 million, or 4.60, 3.18 and 2.47 times EBITDA; return on equity 19.30%, 69.36% and 113.66%; return on capital employed 16.39%, 51.33% and 43.35% (DRHP p.77, DRHP p.134). Our arithmetic over the two years from FY24 to FY26: revenue rose about 25.1% a year and profit after tax about 118.8% a year; EBITDA margin widened 601 basis points and PAT margin 713 basis points (DRHP p.78, DRHP p.134).

Two things about those figures are worth stating. Net worth fell from ₹447.40 million at March 2024 to ₹209.39 million at March 2025 despite ₹227.79 million of profit that year, because ₹511.81 million was paid for the acquisition of a controlling interest and charged against equity (DRHP p.77, DRHP p.79). And the return on equity of 113.66% in FY26 is measured against an average net worth that these movements had reduced (DRHP p.132). Earnings per share were ₹5.56, ₹7.54 and ₹13.92 restated for the 19-for-1 bonus of August 2026, and ₹111.21, ₹150.73 and ₹278.50 before it (DRHP p.78).

05What the growth is made of

Acquired businesses, new products and higher utilisation. The business of Mira India Fashion, the promoter's proprietorship, was transferred to the company on July 1, 2024, so FY25 and FY26 include it and FY24 does not (DRHP p.193). Two strategic acquisitions have been made since that date (DRHP p.48).

Within the product mix, the growth is in the newer lines: modern apparel fabric went from ₹334.88 million in FY24 to ₹1,133.59 million in FY26 and sarees from ₹17.63 million to ₹393.57 million, while African print fabric was ₹1,710.13 million and ₹1,962.67 million, with a fall in the last year (DRHP p.29).

Volume is visible in the capacity tables: rotary printing at the Kian-M facility went from 2.84 million metres in FY24 to 4.32 million in FY26, digital printing from 0.86 million to 3.29 million and dyeing from 0.60 million to 3.34 million, on installed capacity that changed only for digital printing (DRHP p.217). At the Usha Cotton facility, hot table and flatbed printing went from 13.90 million metres to 16.78 million and rotary printing from 18.51 million to 18.84 million (DRHP p.217). The prospectus does not print realisation per metre, so the revenue increase cannot be separated into metres and price.

06Earnings quality

Two items need explaining. The first is other income, which was ₹121.90 million in FY26 against ₹32.64 million in FY24 and is 23.6% of FY26 profit before tax; the company benefits from export promotion schemes, which the prospectus flags as conditional on meeting export obligations (our arithmetic, DRHP p.78, DRHP p.49).

The second is receivables. They rose from ₹909.21 million to ₹1,749.91 million between March 2024 and March 2026, faster than revenue, and are 167 days of FY26 revenue (our arithmetic, DRHP p.77). Operating cash flow was ₹214.14 million in FY26 against ₹421.92 million of profit, mostly because receivables absorbed ₹586.28 million (DRHP p.79). Alongside, dues owed to micro and small enterprises fell from ₹412.49 million to ₹0.76 million while dues to other creditors rose from ₹470.07 million to ₹1,224.76 million (DRHP p.77).

07The balance sheet

At March 2026, non-current borrowings were ₹377.32 million and current borrowings ₹1,057.29 million, and net debt was ₹1,378.84 million, 2.47 times EBITDA (DRHP p.77, DRHP p.134). Net worth was ₹533.06 million (DRHP p.77). Cash and cash equivalents were ₹38.50 million with ₹17.27 million of other bank balances (DRHP p.77). Trade payables were ₹1,225.52 million (DRHP p.77). Lease liabilities were ₹148.35 million against right-of-use assets of ₹142.38 million, both up sharply in FY26 (DRHP p.77).

Property, plant and equipment was ₹969.04 million (DRHP p.77). There are no contingent liabilities (DRHP p.80). Unsecured loans from the promoter's relatives stood at ₹277.66 million at March 2026, and the prospectus notes that unsecured loans can be recalled at any time (our arithmetic, DRHP p.82, DRHP p.58).

After the issue: the fresh issue of ₹5,000 million before expenses is more than nine times the March 2026 net worth of ₹533.06 million, and none of it repays the company's own borrowings (our arithmetic, DRHP p.77, DRHP p.109).

08What the money is for

Source: DRHP p.109, and our arithmetic on the shares.

The largest object is a minority stake: ₹1,554.00 million for 35.29% of Ultra Denim Limited, which the prospectus carries as its own risk factor (DRHP p.44). An independent valuation report was prepared for that acquisition, and it is the only object for which a definitive agreement has been entered into; the prospectus states that the funding requirements and deployment have not been appraised by any bank or financial institution, and that purchase orders for the equipment and machinery have not been placed (DRHP p.110, DRHP p.47). General corporate purposes are capped at 25% of gross proceeds (DRHP p.109).

Into the business ₹5,000 million, the fresh issue (DRHP p.108). To selling shareholders the proceeds of 1,500,000 shares sold by Rajeshbhai Parshotam Malaviya, priced later (DRHP p.108).

09Who is selling

Source: DRHP p.108, DRHP p.96. The consent letter is dated September 7, 2026. The shares offered are about 5.2% of that holding (our arithmetic, DRHP p.96). No other shareholder is selling, and at the draft stage the rupee amount is not fixed.

10Promoters

The promoters are Rajeshbhai Parshotam Malaviya, Chairman and Managing Director, Ushaben Rajeshbhai Malaviya, Darsh Rajeshbhai Malaviya and Parth Rajeshbhai Malaviya (DRHP p.1). They hold 30,299,940 shares, 99.99% of the capital before the offer: 95.11%, 1.58%, 1.65% and 1.65% respectively (DRHP p.96). The prospectus states that the business depends substantially on Rajeshbhai Parshotam Malaviya, that one promoter has limited experience in the textiles and fabrics industry, and that Rajeshbhai Parshotam Malaviya does not have a degree (DRHP p.41, DRHP p.64).

Promoter economics: the holdings were built from the subscription to the memorandum in January 2020 at ₹10 a share, a rights issue of 1,400,000 shares in October 2023 at ₹10 for consideration other than cash, a preferential allotment of 15,000 shares in March 2025 at ₹1,000 for consideration other than cash, and the bonus of 19 shares for every one held allotted on August 27, 2026 on a record date of July 30, 2026 (DRHP p.96, DRHP p.97).

On that basis the March 2025 price of ₹1,000 is ₹50 a share after the bonus (our arithmetic, DRHP p.96). Darsh Rajeshbhai Malaviya drew ₹3.00 million of directors' remuneration in FY26 and none in FY25 or FY24; factory and machinery rent paid to Rajeshbhai Parshotam Malaviya and Ushaben Rajeshbhai Malaviya was ₹9.83 million in FY26 against ₹0.42 million in FY24 (DRHP p.81, DRHP p.82).

The promoters have given personal guarantees for the company's facilities (DRHP p.39).

Tax proceedings involving the promoters: nine direct tax cases of ₹124.61 million and four indirect tax cases of ₹3.20 million are outstanding, including an addition of ₹51.00 million made against Rajeshbhai Parshotam Malaviya for assessment year 2018-19 treating an unsecured loan as unexplained cash credit, now under appeal (DRHP p.402, DRHP p.403).

11Who already owns it

The four promoters hold 99.99% of the capital before the offer, and the prospectus carries that as a risk factor in its own right (DRHP p.96, DRHP p.56). Three individuals hold one share each, transferred in May 2026 at ₹10 (DRHP p.97). There are no pre-IPO institutional or fund investors disclosed in the pages read. Paid-up equity share capital was ₹15.15 million at March 2026, before the bonus of 28,785,000 shares allotted on August 27, 2026 (DRHP p.77, DRHP p.131).

12What changed just before the IPO

• The business of Mira India Fashion, a proprietorship of Rajeshbhai Parshotam Malaviya, was transferred to the company on July 1, 2024 (DRHP p.193).
• Two strategic acquisitions have been made since July 1, 2024, and ₹511.81 million was paid for a controlling interest in FY25 and ₹100.60 million in FY26 (DRHP p.48, DRHP p.79).
• Net worth fell from ₹447.40 million at March 2024 to ₹209.39 million at March 2025 and then rose to ₹533.06 million (DRHP p.77).
• A preferential allotment of 15,000 shares at ₹1,000 was made on March 28, 2025 for consideration other than cash (DRHP p.96).
• Acquisitions under common control from the four promoters and their relatives totalled ₹100.51 million in FY26 (our arithmetic, DRHP p.82).
• A bonus of 19 shares for every one held, 28,785,000 shares, was allotted on August 27, 2026 (DRHP p.131).
• The Revelo saree brand and the Orcoss ethnic dress range were launched in April 2026, and Middle Eastern style fabrics in July 2026 (DRHP p.29).
• Dues to micro and small enterprises fell from ₹412.49 million at March 2024 to ₹0.76 million at March 2026, while dues to other creditors rose from ₹470.07 million to ₹1,224.76 million (DRHP p.77).
• Right-of-use assets rose from ₹6.30 million to ₹142.38 million during FY26 (DRHP p.77).

13Capacity and expansion

Source: DRHP p.217, certified by Bhavin Rajubhai Patel, Chartered Engineer, on September 24, 2026. The dyeing capacity shown is the 38,000 metres a day the company attributes to finished dyed fabric sold as such; total dyeing capacity is about 75,000 metres a day, the rest being used for fabric that then goes through the printing machines (DRHP p.217). Three of the five process lines ran at a third of capacity or less in FY26 (DRHP p.217). The issue nonetheless funds ₹708.00 million of machinery for the company and ₹367.92 million for the subsidiary; the prospectus does not state what capacity in metres that machinery will add (DRHP p.109).

14Market size and industry structure

As claimed: the industry chapter is the 1Lattice Report, which the prospectus identifies as its source throughout and flags in a risk factor as the origin of its statistical and industry data (DRHP p.55, DRHP p.30). It puts the Indian fabrics market at ₹5.23 trillion in FY26, with apparel the largest segment at about 51%, or ₹2.64 trillion; womenswear is 50% to 60% of the apparel fabric market and ethnic categories about 60% of womenswear fabric demand (DRHP p.30).

The part that is addressable: printing, dyeing and finishing of fabric for African print markets in west and east Africa and for Indian apparel and ethnic wear (DRHP p.29, DRHP p.32).

What the company is today: ₹3,830.12 million of FY26 revenue from two facilities at Rajkot (DRHP p.78, DRHP p.217). Against the ₹2.64 trillion apparel fabric figure the commissioned report gives, FY26 revenue is about 0.1%, and the report does not size the African print export market separately in the pages read (our arithmetic, DRHP p.30).

15Competitive position

Source: DRHP p.132. The company is the smallest of the five by a wide margin: revenue is about 4% of Vardhman Textiles' and about 17% of Jindal Worldwide's (our arithmetic, DRHP p.132). Its reported return on net worth, 113.66%, is more than ten times any peer's, on a net worth of ₹533.06 million that the FY25 acquisition charge had reduced (DRHP p.77, DRHP p.132). What the company offers on its own account is a product set that spans African print, modern apparel fabric and sarees from one processing base, and an export franchise built since 2016 (DRHP p.193, DRHP p.194).

16Peers the company named

Peers named in the offer document: Vardhman Textiles Limited, Arvind Limited, Sangam India Limited and Jindal Worldwide Limited (DRHP p.132).

Source: DRHP p.132; prices are NSE closing prices of September 15, 2026. The prospectus prints the peer group P/E as a highest of 70.63, a lowest of 20.89 and an average of 40.20 (DRHP p.131). All four are integrated textile companies with spinning, weaving or garmenting alongside processing; this company processes fabric and does not spin or weave, which the peer comparison does not adjust for. No price band exists yet, so no comparison of this issue against those multiples can be made at this stage.

17Risks, in plain words

Customer churn: top ten customers who stopped being customers the next year were 42.85% of FY25 revenue and 38.29% of FY24 revenue (DRHP p.31) → the revenue base is rebuilt each year → there are no long-term sale agreements, only purchase orders that may be amended or cancelled (DRHP p.31).

One product and four countries: African print fabric was 51.24% of FY26 revenue and all of it is exported, mainly to Nigeria, Guinea, Tanzania and Senegal (DRHP p.29, DRHP p.32) → demand, currency and trade policy in four African economies drive half the business → Nigeria alone fell from 49.22% of revenue from contracts with customers in FY24 to 21.88% in FY26 (DRHP p.32).

Receivables: trade receivables rose from ₹909.21 million to ₹1,749.91 million between March 2024 and March 2026, 167 days of FY26 revenue (our arithmetic, DRHP p.77) → cash is tied up with customers in markets the company cannot easily pursue → the prospectus flags counterparty credit risk as its own risk factor (DRHP p.37).

Utilisation: three of the five process lines ran at 32.73% or less in FY26 (DRHP p.217) → fixed costs are spread over few metres, and the prospectus says as much → ₹1,075.92 million of the issue nonetheless goes into more machinery (DRHP p.216, DRHP p.109).

The largest object is a minority stake: ₹1,554.00 million, 37.3% of the stated objects, buys 35.29% of Ultra Denim Limited, which is not control (our arithmetic, DRHP p.44, DRHP p.109) → the prospectus carries the risk that the anticipated benefits may not be realised → purchase orders for the machinery objects have not been placed (DRHP p.47).

Debt and guarantees: net debt was ₹1,378.84 million at March 2026 against net worth of ₹533.06 million (DRHP p.77, DRHP p.134) → financing covenants limit operating flexibility and the promoters have given personal guarantees → unsecured loans from promoter relatives of ₹277.66 million can be recalled at any time (our arithmetic, DRHP p.38, DRHP p.39, DRHP p.58, DRHP p.82).

Related-party logistics: Globe Insight Forwarders LLP, a promoter group entity, was paid ₹54.32 million in FY26 for clearing, forwarding, shipping and transport, 1.42% of revenue (our arithmetic, DRHP p.81, DRHP p.82) → the export chain runs through a related party → the prospectus flags that dependence as a risk (DRHP p.62).

Promoters' tax matters: nine direct tax cases of ₹124.61 million and four indirect tax cases of ₹3.20 million are outstanding against the promoters, including an addition of ₹51.00 million treating an unsecured loan as unexplained cash credit (DRHP p.402, DRHP p.403) → the promoter who is also the selling shareholder is the subject of the largest of them.

Sites and approvals: both manufacturing facilities and the registered office are on land held on leasehold rights only (DRHP p.57) → a lease that is not renewed stops production → operations are concentrated in two facilities in the same city (DRHP p.36).

Issue-specific: the promoters hold 99.99% before the offer (DRHP p.96); export promotion scheme benefits depend on meeting export obligations (DRHP p.49); and there have been delays in payment of statutory dues (DRHP p.60).

18Litigation and regulatory matters

There are no criminal proceedings, regulatory or statutory actions or material civil proceedings against the company, its subsidiaries, promoters, directors, key managerial personnel or senior management, and no disciplinary action by SEBI or a stock exchange against the promoters in the last five financial years (DRHP p.400, DRHP p.401, DRHP p.402).

The two material tax matters described are an addition of ₹4.25 million with a demand of ₹2.23 million against Ushaben Rajeshbhai Malaviya for assessment year 2022-23, which the prospectus states has been paid in full with an application for immunity from penalty pending, and the ₹51.00 million addition against Rajeshbhai Parshotam Malaviya for assessment year 2018-19, under appeal (DRHP p.403).

19Related-party transactions

Source: DRHP p.81, DRHP p.82. Related-party dealings in FY26, excluding loan movements and the acquisitions under common control, come to ₹107.01 million, 2.79% of revenue (our arithmetic, DRHP p.81, DRHP p.82). Unsecured loans owed to Ushaben Rajeshbhai Malaviya and Darsh Rajeshbhai Malaviya stood at ₹168.08 million and ₹109.58 million at March 2026 (DRHP p.82). The business of Mira India Fashion, a proprietorship of the chairman, was acquired for ₹15.00 million recorded in FY25 (DRHP p.82).

20What the offer document does not say

Realisation per metre is not disclosed, so the revenue increase cannot be separated into metres and price. The names of the top ten customers, and why customers producing more than 40% of revenue stopped buying in the following year, are not disclosed. The capacity in metres that the ₹1,075.92 million of new machinery will add is not stated.

The valuation of Ultra Denim Limited behind the ₹1,554.00 million payment for 35.29% is not printed, though the prospectus says an independent valuation report exists. The terms and repayment dates of the ₹277.66 million of unsecured promoter loans are not set out. The price band, the issue expenses and the amount for general corporate purposes are left blank at this stage.

21Five questions for management

1. Why did top ten customers producing 42.85% of FY25 revenue stop buying in FY26, and what share of FY26 revenue came from customers who were not customers in FY25?
2. What was realisation per metre for African print fabric, apparel fabric and sarees in each of FY24, FY25 and FY26?
3. At what valuation is 35.29% of Ultra Denim Limited being acquired for ₹1,554.00 million, what were that company's FY26 revenue and profit, and what governance rights come with a 35.29% stake?
4. How much of the ₹1,749.91 million of receivables at March 2026 was owed by African customers, and how much was more than 180 days old?
5. What capacity in metres will the ₹1,075.92 million of new machinery add, given that three of five process lines ran below 33% utilisation in FY26?

1Sources and cited facts

This study was read from 1 document the company filed. The 96 figures it cites are listed under the document each came from, with the page and the sentence as printed.