Gleaming Apparels Limited IPO

01At a glance

What the company does: knits yarn into fabric and stitches knitted garments for men, such as polo T-shirts, crew-neck T-shirts, hoodies, sweatshirts, joggers, shorts and tank tops, from one rented factory at Focal Point, Ludhiana, and also sells knitted fabric and some yarn (DRHP p.134, DRHP p.136, DRHP p.154).

Who pays it: garment makers, private labels, brands and buyers in India and abroad; 56 customers in FY26 (DRHP p.149, DRHP p.146). Punjab brought 71.58% of FY26 product sales and exports 28.35%, to the USA, Nigeria, Panama and South Africa (DRHP p.143, DRHP p.144). The largest customer brought 19.90% of FY26 revenue and the top ten 68.40% (DRHP p.150).

Why it is raising money: ₹8.5 crore of the fresh issue is for working capital and ₹7.0 crore to repay bank loans; the general corporate purposes amount is blank (DRHP p.86). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹24.6 crore in FY24 to ₹54.5 crore in FY26, about 49.0% a year, and profit after tax from ₹2.9 crore to ₹9.9 crore, about 84.9% a year (our arithmetic, DRHP p.55).

The one thing to understand: profit rose but cash did not come in. Over FY24 to FY26 the company reported ₹17.1 crore of profit after tax and a net operating cash outflow of ₹1.7 crore (our arithmetic, DRHP p.55, DRHP p.56), because money owed by customers went from ₹6.3 crore to ₹28.2 crore (DRHP p.54).

02The business, in plain words

What Gleaming Apparels does

Gleaming Apparels makes and trades textile products and ready-made garments for men (DRHP p.134). The business has three parts (DRHP p.134, DRHP p.136):

• Garments: polo T-shirts, crew-neck T-shirts, hoodies, sweatshirts, joggers, shorts, tank tops and jackets, made to each buyer's design, size and colour, with embroidery, printing, jacquard collars and similar details (DRHP p.136).
• Fabric: single jersey, pique, fleece, honeycomb, French terry, auto stripe, interlock and rib knit, used in its own garments and also sold to other makers (DRHP p.136, DRHP p.139, DRHP p.140).
• Yarn: cotton, polyester and blended yarn bought from suppliers in Ludhiana, used in-house and sometimes traded (DRHP p.141, DRHP p.147).

A buyer sends a design and an order → the company buys yarn, knits it into fabric, sends the fabric to outside units for dyeing, then cuts, stitches, finishes and packs the garments → it ships them in India or abroad → it is paid by the buyer and, on exports, also earns government rebates under the ROSCTL scheme and duty drawback (DRHP p.147, DRHP p.148, DRHP p.210).

The company was set up on November 25, 2021 in Ludhiana as Gleaming Apparels (OPC) Private Limited, a one-person company, and became Gleaming Apparels Limited, a public company, on December 16, 2024 (DRHP p.161). Before it, Ritu Bansal ran a garment business under the name Ritu Apparels, a proprietorship (DRHP p.167).

The factory at Plot E-235, Phase IV, Focal Point, Ludhiana is rented from Ritu Bansal under an agreement dated February 7, 2026 that runs to February 24, 2028 (DRHP p.154). Dyeing is done by outside units, and some stitching steps go to job workers at busy times (DRHP p.36, DRHP p.145). It had 40 employees on its rolls at July 31, 2026 and four contract workers in July 2026 (DRHP p.152).

It holds ISO 9001, ISO 14001 and ISO 45001 certificates issued on May 19, 2025 (DRHP p.162).

Earnings equation: Revenue = garment pieces sold × price per piece + fabric sold × price per kg, plus export rebates. The document gives pieces and kilograms produced, not sold, and gives no prices (DRHP p.151, DRHP p.152).

03Where the money comes from

By business line (₹ crore, share of product sales):

Source: DRHP p.136, converted from ₹ lakh. Garments were 64.47% of FY26 product sales, 43.74% in FY25 and 62.70% in FY24 (DRHP p.136). Export rebates (ROSCTL licences and duty drawback) added ₹0.96 crore in FY26 (DRHP p.210).

By place: domestic sales were ₹38.4 crore in FY26, of which Punjab ₹38.4 crore, 71.58% of product sales; exports were ₹15.2 crore, 28.35% (DRHP p.143, DRHP p.144). Exports were 46.39% in FY24 and 17.19% in FY25 (DRHP p.144). In FY26 the USA took ₹7.5 crore, Nigeria ₹4.8 crore, Panama ₹2.7 crore and South Africa ₹0.14 crore (DRHP p.144).

Gleaming Apparels customers: how concentrated the revenue is

Source: DRHP p.150, DRHP p.29. Revenue does depend on a few customers: the largest brought ₹10.9 crore of FY26 revenue and the top five ₹27.6 crore (DRHP p.150). The table does not name them. The company had 56 customers in FY26, of which 25 had bought before (DRHP p.146). There are no long-term contracts with customers (DRHP p.244).

On the supply side, the largest supplier was 9.37% of FY26 material cost and the top ten 58.51% (DRHP p.150). All raw materials are bought in India (DRHP p.150).

04The growth record

Gleaming Apparels financials: revenue, profit and margins

Source: DRHP p.54, DRHP p.55, DRHP p.56, DRHP p.102, DRHP p.103, converted from ₹ lakh. Revenue went from ₹24.6 crore in FY24 to ₹54.5 crore in FY26 and profit after tax from ₹2.9 crore to ₹9.9 crore (DRHP p.55). The company works its EBITDA margin on total income, which includes other income (DRHP p.101). EBITDA less other income was ₹12.4 crore in FY26 (DRHP p.268).

Our arithmetic over FY24 to FY26: revenue grew about 49.0% a year and profit after tax about 84.9% a year (our arithmetic, DRHP p.55); EBITDA grew about 70.7% a year (our arithmetic, DRHP p.102). EBITDA margin moved from 18.87% to 24.36%, up 549 basis points, so from 18.9% to 24.4% rounded (DRHP p.102). Revenue rose 86.53% in FY25 and 19.01% in FY26 (DRHP p.102).

The year ends on March 31 throughout. The restatement raised FY26 profit after tax from ₹9.7 crore audited to ₹9.9 crore and lowered FY25 from ₹4.5 crore to ₹4.4 crore (DRHP p.191). The changes covered gratuity, interest on late tax and on dues to small suppliers, rent and depreciation (DRHP p.201). There are no audit qualifications (DRHP p.190).

What sits around the record:

• Cash: operating cash flow was −₹2.6 crore in FY26, −₹0.67 crore in FY25 and ₹1.5 crore in FY24 (DRHP p.56). In FY26 receivables absorbed ₹12.2 crore (DRHP p.56).
• Other income was ₹1.2 crore in FY26, 9.92% of profit before tax, so 9.9% rounded, almost all of it a foreign exchange gain of ₹1.1 crore (DRHP p.213).
• Debt: borrowings were ₹10.5 crore at March 31, 2026 (DRHP p.40), and net of ₹0.80 crore of cash and deposits about 0.7× FY26 EBITDA (our arithmetic, DRHP p.54, DRHP p.102). Return on capital employed was 39.47%, so 39.5% rounded (DRHP p.102).
• Customers and suppliers: the largest customer was 19.90% of FY26 revenue, so 19.9% rounded, the top five 50.52%, so 50.5%, and the top ten 68.40%, so 68.4% (DRHP p.150); the top ten suppliers were 58.51% of FY26 material cost, so 58.5% (DRHP p.150).
• Receivables: ₹28.2 crore at March 31, 2026, of which ₹8.5 crore more than six months old (DRHP p.207). Receivable days were 112 in FY24 and 148 in FY26, and the cash conversion cycle 183 days in FY26 (DRHP p.89, DRHP p.91).
• Related parties: advances given to related parties stood at ₹1.1 crore at March 31, 2026 (DRHP p.208).
• Late-payment interest: interest on late payments to small suppliers was ₹0.32 crore in FY26 (DRHP p.212).
• Contingent liabilities: ₹0.10 crore, an income tax demand the company disputes (DRHP p.57).
• Order book: ₹18.4 crore unexecuted at September 15, 2026 (DRHP p.144).
• Capacity: garment utilisation was 84.63% in FY26, so 84.6% rounded (DRHP p.152).
• Pay: directors' remuneration was ₹0.22 crore in FY26 (DRHP p.211).
• Use of the issue: ₹8.5 crore of the fresh issue is for working capital and ₹7.0 crore for debt repayment (DRHP p.86).
• Cases: ten small direct tax demands against the promoters, ₹0.01 crore in all; no criminal cases (DRHP p.260).

05What the growth is made of

Revenue rose ₹30.0 crore from FY24 to FY26 (our arithmetic, DRHP p.55). By line of business (our arithmetic, DRHP p.136):

• Garments: up ₹19.7 crore, from ₹14.8 crore to ₹34.5 crore.
• Fabric: up ₹10.2 crore, from ₹8.7 crore to ₹18.9 crore, after a peak of ₹24.5 crore in FY25.
• Yarn and waste: small in all three years.

By place, domestic sales rose from ₹12.7 crore in FY24 to ₹37.5 crore in FY25, while exports fell from ₹11.0 crore to ₹7.8 crore; in FY26 exports rose 95.11% to ₹15.2 crore and domestic sales 2.39% (DRHP p.252, DRHP p.251). The management discussion puts the FY26 rise down to export sales (DRHP p.251).

Volume: garments produced rose from 4.86 lakh pieces in FY24 to 6.98 lakh pieces in FY26, and knitted fabric from 215.70 tonnes to 309.26 tonnes, after 335.22 tonnes in FY25 (DRHP p.151, DRHP p.152).

Realisation, read from production: garment revenue per piece produced was about ₹306 in FY24 and about ₹495 in FY26 (our arithmetic, DRHP p.136, DRHP p.152). Pieces produced are not pieces sold, and finished goods stock rose from ₹0.20 crore to ₹3.7 crore over the period (DRHP p.207), so this does not separate price from mix. The document gives no quantities sold and no prices, so the increase cannot be split into volume and price. That is the finding.

Material cost fell from 78.25% of revenue in FY25 to 65.40% in FY26, which the management discussion names as the main reason profit before tax rose 116.23% (DRHP p.252). The document does not say why material cost fell so much as a share of revenue.

06Earnings quality

The item that needs explaining is cash. Receivables grew from ₹6.3 crore to ₹28.2 crore in two years, faster than revenue (DRHP p.54). At March 31, 2026, ₹8.5 crore of receivables were more than six months old, ₹2.0 crore between one and two years and ₹0.28 crore between two and three years (DRHP p.207, DRHP p.218). The company says the FY26 increase came from credit given to large buyers and export customers (DRHP p.89). No provision for doubtful debts is made (DRHP p.207).

Other signs in the accounts: interest on late payments to small suppliers rose from ₹0.02 crore in FY24 to ₹0.32 crore in FY26, and interest on late taxes from ₹0.04 crore to ₹0.22 crore (DRHP p.212). Provident fund and ESIC payments for FY24 months were made up to 925 days late (DRHP p.34). The FY26 foreign exchange gain of ₹1.1 crore was 9.5% of profit before tax (our arithmetic, DRHP p.210, DRHP p.55). The stock and debtor figures sent to the bank each quarter differed from the books; for the third quarter of FY26 the book debts were ₹26.8 crore and the amount reported was nil (DRHP p.228).

07The balance sheet

At March 31, 2026 total assets were ₹42.9 crore: trade receivables ₹28.2 crore, inventories ₹7.5 crore, short-term loans and advances ₹4.4 crore, property, plant and equipment ₹1.8 crore, cash and bank ₹0.80 crore and other items (DRHP p.54). Advances included ₹1.1 crore to related parties and ₹1.7 crore to suppliers (DRHP p.208). Cash and cash equivalents were ₹0.01 crore; the rest of the bank balance is fixed deposits, partly given as security (DRHP p.207).

Against them: short-term borrowings ₹9.4 crore, long-term borrowings ₹1.1 crore, trade payables ₹4.4 crore (₹1.7 crore of it to small enterprises), other current liabilities ₹1.7 crore, a tax provision of ₹2.6 crore and net worth ₹23.6 crore (DRHP p.54, DRHP p.206).

Borrowings of ₹10.5 crore at March 31, 2026 were: Punjab & Sind Bank cash credit ₹5.1 crore at 9.45%, packing credit ₹4.0 crore at 10.15%, two term loans of ₹0.47 crore and ₹0.80 crore, and an unsecured loan of ₹0.13 crore from Viren Bansal (DRHP p.214, DRHP p.215, DRHP p.216). The bank loans are secured on the company's current assets, on two industrial properties and a residential plot held in the name of Ritu Bansal or Ritu Apparels, a fixed deposit of ₹0.67 crore, and personal guarantees of Ritu Bansal, Amit Bansal and Ritu Apparels (DRHP p.214).

Source: DRHP p.86, DRHP p.236. The capitalisation statement leaves the after-issue column blank (DRHP p.236). If ₹7.0 crore were repaid against March 2026 borrowings of ₹10.5 crore, about ₹3.5 crore would remain (our arithmetic, DRHP p.40, DRHP p.86). Contingent liabilities were ₹0.10 crore and there are no capital commitments (DRHP p.57).

08What the money is for

Gleaming Apparels IPO objects: what the money is for

Source: DRHP p.86, DRHP p.95. The rupee size of the fresh issue depends on a price not yet set (DRHP p.86).

Working capital, ₹8.5 crore: ₹1.0 crore in FY27 and ₹7.5 crore in FY28 (DRHP p.87). The company puts its working capital need at ₹31.5 crore at March 2026, ₹38.5 crore at March 2027 and ₹71.0 crore at March 2028, with receivable days held at 148 (DRHP p.88, DRHP p.89). These estimates rest on the company's own revenue assumption of ₹70.1 crore for FY27 and ₹106.3 crore for FY28 (DRHP p.89); the figures are the company's, not newboard's.

Repayment, ₹7.0 crore: ₹3.0 crore of the Punjab & Sind Bank cash credit and ₹4.0 crore of its packing credit, which stood at ₹9.0 crore together on August 31, 2026, with no prepayment penalty (DRHP p.94). The document says lenders' consent has been obtained (DRHP p.92). After repaying, the company says it may need fresh working capital loans (DRHP p.40).

The objects have not been appraised by any bank or financial institution, and no monitoring agency will be appointed because the issue is below ₹50 crore (DRHP p.65).

Into the business the fresh issue of up to 25,00,000 shares, at a price not yet set (DRHP p.86). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Gleaming Apparels IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 25,00,000 shares of ₹10, and the document marks the offer for sale "NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES" (DRHP p.1). The promoters and the promoter group will not take part in the issue (DRHP p.84).

10Promoters

The promoters are Amit Bansal and Ritu Bansal (DRHP p.180). The document states that Ritu Bansal is the spouse of Amit Bansal, that Vanita Jindal, a non-executive director, is the sister of Amit Bansal, and that Vishesh Bansal, the marketing head, is the son of both (DRHP p.178). Ritu Bansal holds 26,78,400 shares, 45.48% of the company, and Amit Bansal 17,85,585 shares, 30.32% (DRHP p.81).

Ritu Bansal, 48, is Managing Director and Chairman, a director since the company was formed in November 2021, with a Bachelor of Arts and over 26 years in ready-made garments, earlier through the proprietorship Ritu Apparels (DRHP p.165, DRHP p.167). Amit Bansal, 49, is Whole-Time Director and Chief Financial Officer, a director since November 26, 2024, who passed Class XII and has over 10 years in apparel manufacturing and trading (DRHP p.165, DRHP p.167). Export sales and overseas buyers are handled directly by the Whole-Time Director (DRHP p.152).

Pay: each promoter was paid ₹0.11 crore in FY26 (DRHP p.169). The terms approved in May 2025 allow a basic salary of ₹1.0 crore a year each for five years (DRHP p.169). Directors' remuneration was ₹0.17 crore in FY24 and ₹0.22 crore in FY26 (DRHP p.211).

Other businesses: Amit Bansal owns the proprietorship Radiant Exports, Ritu Bansal owns Ritu Apparels, and both are directors and 50% shareholders of Infinity Apparels Private Limited (DRHP p.181, DRHP p.185). Infinity Apparels is in a similar line of business and its registered office is the same Focal Point address as the company's (DRHP p.184, DRHP p.185). The promoter group also includes M/s. Kraft Apparel Co. and East Punjab Traders (DRHP p.183).

Property and guarantees: the factory is rented from Ritu Bansal, and properties in the name of Ritu Bansal and Ritu Apparels secure the company's bank loans along with the promoters' personal guarantees (DRHP p.154, DRHP p.214). No promoter shares are pledged (DRHP p.79).

Past matters: Amit Bansal was disqualified as a director from November 1, 2018 to October 31, 2023 for non-filing of returns and accounts of Ajanta Hosiery and Exports Private Limited, and the company cannot trace the order removing the disqualification (DRHP p.29).

Cases: ten direct tax demands against the promoters, ₹0.01 crore in all; no criminal, regulatory or material civil cases (DRHP p.260).

Promoter economics: Ritu Bansal subscribed for all 14,88,000 shares issued before 2025, 1,00,000 at ₹10 in 2021 and 2022 and 13,88,000 at ₹12.50 in February and March 2023 (DRHP p.74). On October 7, 2024 Ritu Bansal gifted 5,95,195 shares to Amit Bansal and transferred one share each at ₹10 to five relatives and others (DRHP p.80). Both then received bonus shares on September 24, 2026 (DRHP p.80). Weighted average cost for the promoters is not printed in this document as a single figure.

11Who already owns it

Gleaming Apparels promoter holding before and after the IPO

Source: DRHP p.79, DRHP p.81; the after-issue column is our arithmetic. There are 58,89,345 shares of ₹10 before the issue and 10 shareholders (DRHP p.51, DRHP p.84). If all 25,00,000 new shares are issued the total becomes 83,89,345 shares (our arithmetic, DRHP p.51), and the promoters' 75.80% becomes about 53.2%, so 75.8% → 53.2% (our arithmetic, DRHP p.81). The document leaves the after-issue percentages blank (DRHP p.81).

The three outside holders came in through 1,65,334 compulsorily convertible preference shares issued at ₹272 each to Lalit Dua on January 14, 2025, raising ₹4.5 crore (DRHP p.75, DRHP p.56). These were converted on September 23, 2026 into 4,75,115 shares at ₹94.65 each, allotted to Roopsi Agarwal, Amit Kumar Agarwal and RGSL Investment LVF (DRHP p.74). After the bonus, the price works out to ₹31.55 a share (DRHP p.105).

The document does not explain how the preference shares passed from Lalit Dua to the three allottees. RGSL Investment LVF holds 8.05% before the issue (DRHP p.79). All pre-issue shares will be locked in, the promoters' 16,77,872 shares for three years (DRHP p.77, DRHP p.82).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹24.6 crore in FY24 to ₹54.5 crore in FY26 and profit after tax from ₹2.9 crore to ₹9.9 crore (DRHP p.55).
• Receivables: 112 days of revenue in FY24 and 148 days in FY26 (DRHP p.89).
• Directors' pay: ₹0.17 crore in FY24 and ₹0.22 crore in FY26 (DRHP p.211).
• Public company: converted from a one-person private company to a public company on December 16, 2024 (DRHP p.61).
• Gift of shares: Ritu Bansal gifted 5,95,195 shares to Amit Bansal on October 7, 2024 (DRHP p.80).
• Pre-IPO placement: 1,65,334 preference shares at ₹272 a share, January 2025, to Lalit Dua (DRHP p.75).
• Last allotment before the IPO: the preference shares were converted into 4,75,115 shares at ₹94.65 a share on September 23, 2026 (DRHP p.74).
• Bonus issue: 2:1 on September 24, 2026, 39,26,230 shares (DRHP p.75).
• Share split: none appears in the share capital history (DRHP p.74).
• Auditor: Vishal P Gupta & Associates resigned on April 10, 2025 and Rajesh Mehru & Co. was appointed on April 25, 2025, then for five years from FY26 (DRHP p.66).
• Board and officers: Amit Bansal and Vanita Jindal joined the board on November 26, 2024; Ritu Bansal became Managing Director and Amit Bansal Whole-Time Director from May 2025; Pankaj Kumar Sinha and Manish joined as independent directors on May 29, 2025; Avnee Harjai became company secretary on January 1, 2026 (DRHP p.171, DRHP p.179). The audit committee was formed on January 19, 2026 (DRHP p.172).
• Registered office: moved from Punjab Apparel Park, Doraha to Focal Point, Ludhiana on March 25, 2025 (DRHP p.161).
• Capital: authorised capital raised to ₹10.2 crore on August 31, 2026 (DRHP p.162).
• Late filings: nineteen company law filings were made late, by 3 to 1,428 days, seven of them small-enterprise returns filed on September 28, 2026, and one such return was still not filed at the date of the document (DRHP p.31, DRHP p.32, DRHP p.33). A share transfer in physical form after becoming a public company is before the Registrar for adjudication (DRHP p.30, DRHP p.31).
• Dividend: none in the last three financial years (DRHP p.187).

13Capacity and expansion

Source: DRHP p.151, DRHP p.152, certified by Power Engineers and Erectors on September 22, 2026. Garment utilisation went from 58.90% in FY24 to 73.39% in FY25 and 84.63% in FY26; knitting utilisation was 53.26%, 82.77% and 76.36% (DRHP p.151, DRHP p.152).

The factory has two circular knitting machines with 2,400 kg a day of capacity, more than 100 sewing machines rated at 2,750 pieces a day, cutting machines for 1,500 pieces a day and collar machines for 5,000 collars a day (DRHP p.151). Property, plant and equipment was ₹1.8 crore at March 2026, of which plant and machinery ₹0.60 crore (DRHP p.209). The issue funds no capital spending (DRHP p.86). The document does not say how higher garment output would be met beyond job work, so the step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

Gleaming Apparels industry: market size and growth

As claimed: the company did not commission an industry report; the chapter says its disclosures are "on the basis of the data available on the internet" (DRHP p.43). The chapter says its information "has been extracted from various websites and publicly available documents" and that nobody connected with the issue has verified it (DRHP p.112).

It quotes the IMF's April 2026 World Economic Outlook, the India Brand Equity Foundation, Fortune Business Insights and IMARC Group (DRHP p.115, DRHP p.123, DRHP p.129, DRHP p.131). At the widest level, Fortune Business Insights puts the global textile market at US$1,065.45 billion in 2025 and projects US$1,955.50 billion by 2034, 7.11% a year, with Asia Pacific holding 44.17% in 2025 (DRHP p.120).

It values the global apparel market at US$1,749.67 billion in 2025 and projects US$2,307.04 billion by 2034, 3.52% a year (DRHP p.127). IMARC puts the India apparel market at US$88 billion in 2025 and projects US$117.05 billion by 2034, 3.16% a year (DRHP p.130).

The part that is addressable: the company makes knitted casual garments for men, mostly sold to other businesses, and knitted fabric (DRHP p.134, DRHP p.136). The nearest figure in the chapter is IMARC's India menswear market, US$21.9 billion in 2025, which IMARC projects at US$42.4 billion by 2034, 7.24% a year (DRHP p.131). That is a retail market for all men's clothing, formal and casual. The chapter gives no size for knitwear, for business-to-business garment supply or for the Ludhiana cluster.

What the company is today: FY26 revenue of ₹54.5 crore, of which garments ₹34.5 crore and exports ₹15.2 crore (DRHP p.55, DRHP p.136, DRHP p.144). The chapter states the market in US dollars and the company's sales are not retail sales, so this study does not work out a market share.

Size over time: India's textiles and apparel industry is about 2% of GDP and about 11% of manufacturing gross value added as of February 2026, and employs more than 45 million people (DRHP p.123). India's exports of textiles and apparel were US$32.63 billion in April to February of FY26, ready-made garments US$14.53 billion of it, 45% (DRHP p.124). The chapter states two different end points for the domestic market: "US$ 2.3 billion by 2030" at a 10% growth rate, and US$350 billion by 2030 (DRHP p.123, DRHP p.126). Both are the cited source's projections; the gap between them is not explained.

Segments: Fortune Business Insights divides textiles into technical, home, apparel and industrial textiles, and expects apparel textiles to hold 30.30% in 2026; by fibre, synthetic fibres 68.05% in 2026 (DRHP p.122). In India, IMARC divides apparel into mass, premium and luxury, with mass at 71.6% of the market in 2025 (DRHP p.130). The company describes itself as focused on affordable clothing (DRHP p.38).

What drives demand: rising incomes and city growth, online shopping, casual and athletic wear, and changing fashion trends, as the cited sources list them (DRHP p.128, DRHP p.131, DRHP p.133). Government support includes the PM MITRA textile parks, the production-linked incentive scheme with ₹405 crore in the Union Budget 2026-27, and the India and United Kingdom trade agreement giving duty-free access (DRHP p.125, DRHP p.126).

Structure: IMARC says organised retail is about 45% of Indian apparel sales as of 2025, and that the unorganised part creates pricing pressure (DRHP p.131). The company says its segment is fragmented and dominated by unorganised suppliers (DRHP p.41). The chapter names retailers such as Reliance Trends, Pantaloons and Zudio, and online sellers Myntra, Ajio and Flipkart, as players in the market (DRHP p.129, DRHP p.130). It names no garment makers that compete with the company.

Inputs and trade: India's cotton crop for 2025-26 is estimated at 292.15 lakh bales of 170 kg (DRHP p.124). The company uses polyester, spun, acrylic, cotton and blended yarns, all bought in India, and depends fully on outside suppliers for them (DRHP p.29, DRHP p.150).

Rules: the business works under the Factories Act and the new labour codes, foreign trade and customs law, GST and the small enterprises law (DRHP p.156, DRHP p.158, DRHP p.159). It holds a factory licence to December 31, 2027, a white category registration from the Punjab Pollution Control Board, a fire certificate to September 1, 2028 and an importer-exporter code (DRHP p.263).

What the chapter says can go wrong: raw material price swings in cotton, polyester and viscose, supply chain disruptions, and return rates of 35% to 50% in some online apparel categories (DRHP p.131). The risk factors add seasonal demand for hoodies, sweatshirts and winter wear, pricing pressure from competitors and exchange rate swings on exports (DRHP p.37, DRHP p.38, DRHP p.40).

15Competitive position

Gleaming Apparels competitors

Source: DRHP p.103, DRHP p.104, DRHP p.105, converted from ₹ lakh. Gokaldas Exports' revenue is about 73 times the company's, S.P. Apparels' about 29 times and Bhandari Hosiery's about 5.1 times (our arithmetic, DRHP p.103, DRHP p.104, DRHP p.105). Gokaldas and S.P. Apparels are shown consolidated and Bhandari Hosiery standalone (DRHP p.98).

What the company puts forward: knitting and garment making under one roof, a location in the Ludhiana knitwear cluster, repeat customers, an order book and promoters with experience (DRHP p.141, DRHP p.143, DRHP p.144, DRHP p.146). Against that: one rented factory, owned by a promoter; a group company in the same line of business at the same address; no registered trademark; dyeing done outside; and buyers who can switch on price (DRHP p.154, DRHP p.38, DRHP p.37, DRHP p.36).

16Peers the company named

Peers named in the offer document: Gokaldas Exports Limited, Bhandari Hosiery Exports Limited and S.P. Apparels Limited (DRHP p.102).

Gokaldas Exports and S.P. Apparels are garment makers many times the company's size, with lower margins; Bhandari Hosiery is the closest in size, about 5.1 times its revenue, with a margin of 2.77% (DRHP p.104, DRHP p.105). The document gives their P/E as 52.58, 9.19 and 24.12 on September 25, 2026, an average of 28.63 (DRHP p.98, DRHP p.99). The company's FY26 EPS is ₹22.12 basic and ₹16.77 diluted on ₹10 shares, after the bonus (DRHP p.97, DRHP p.98). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Gleaming Apparels IPO risks

Customers: slow payment: receivables were ₹28.2 crore at March 2026, more than half of FY26 revenue (DRHP p.54) → money that is owed cannot pay suppliers or banks, and old dues may not all be collected → ₹8.5 crore was more than six months old and no provision is made (DRHP p.207).

Financial: cash use: operating cash flow was negative in FY25 and FY26 (DRHP p.35) → growth has been funded by bank credit, equity and supplier credit, and the issue money for working capital assumes receivable days stay at 148 → operating cash flow was −₹2.6 crore in FY26 (DRHP p.56).

Customers: concentration: the top ten customers brought 68.40% of FY26 revenue (DRHP p.28) → losing one large buyer would leave a gap that is hard to fill quickly, as there are no long-term contracts → the largest customer brought ₹10.9 crore in FY26 (DRHP p.150).

Business: one region and one plant: Punjab was 71.58% of FY26 product sales and all production is in one Ludhiana factory (DRHP p.28, DRHP p.143) → floods, labour or power trouble in the region would hit both sales and output → parts of Punjab flooded in July and September 2025 (DRHP p.28).

Promoters: property and conflict: the factory is rented from Ritu Bansal to February 2028, and Infinity Apparels Private Limited, owned by both promoters, is in a similar business (DRHP p.154, DRHP p.38) → the company's home and some of its business depend on promoter decisions → after the issue the promoters would hold about 53.2% (our arithmetic, DRHP p.81).

Regulation: compliance record: nineteen company law forms were filed late, by up to 1,428 days, and provident fund and ESIC dues were paid up to 925 days late (DRHP p.32, DRHP p.34) → penalties may follow and the record shows weak controls until recently → interest on late tax and small supplier dues was ₹0.54 crore in FY26 (our arithmetic, DRHP p.212).

Financial: currency: exports were 28.35% of FY26 product sales and there is no hedging policy (DRHP p.144, DRHP p.41) → a stronger rupee would cut rupee revenue and profit → a foreign exchange gain of ₹1.1 crore was part of FY26 profit (DRHP p.210).

Issue-specific: the objects are not appraised and there is no monitoring agency (DRHP p.38, DRHP p.43) → use of the money rests on the board and audit committee → ₹7.5 crore of the working capital money is scheduled only for FY28 (DRHP p.87).

18Litigation and regulatory matters

Cases against Gleaming Apparels and its promoters

Criminal: none against or by the company, promoters, directors or key managers (DRHP p.258, DRHP p.259, DRHP p.260). Regulatory: no actions by statutory or regulatory authorities (DRHP p.258). Group company: no litigation against or by Infinity Apparels Private Limited (DRHP p.258, DRHP p.259). Creditors: five material creditors were owed ₹2.2 crore and twenty small enterprises ₹0.42 crore at March 31, 2026 (DRHP p.260, DRHP p.261). Tax filing: the income tax return for AY 2025-26 was not filed on time, and an updated return with additional tax is required (DRHP p.225).

19Related-party transactions

Source: DRHP p.58, DRHP p.59, converted from ₹ lakh. The group companies named are Infinity Apparels Private Limited and the proprietorships Gleaming Apparels, Radiant Exports, Krafts Apparels and Ritu Apparels (DRHP p.58). The table groups amounts by type, not by counterparty. Balances at March 31, 2026: advance to suppliers that are group companies ₹1.1 crore, trade receivable from group companies ₹0.58 crore, salary payable to relatives ₹0.37 crore and rent payable ₹0.13 crore (DRHP p.59, DRHP p.60). Key managers also lent ₹0.30 crore and were repaid ₹0.56 crore in FY26 (DRHP p.59).

What appeared or changed in the two years before filing: the promoters became paid directors with five-year terms from May 2025, the factory rent agreement with Ritu Bansal was signed on February 7, 2026, sales to group companies fell from ₹2.4 crore in FY25 to ₹0.15 crore in FY26, and advances to group companies rose to ₹1.1 crore at March 2026 from nil a year earlier (DRHP p.169, DRHP p.154, DRHP p.58, DRHP p.59). The company says these transactions were at arm's length (DRHP p.42).

20What the offer document does not say

The customers in the concentration table are not named. Quantities sold and prices are not given, so growth cannot be split into volume and price. Margins by business line are not given. Why material cost fell from 78.25% to 65.40% of revenue in FY26 is not explained (DRHP p.252). Which customers owe the ₹8.5 crore that is more than six months old is not said (DRHP p.207).

How the preference shares issued to Lalit Dua came to be converted into shares held by Roopsi Agarwal, Amit Kumar Agarwal and RGSL Investment LVF is not explained (DRHP p.75, DRHP p.74). What RGSL Investment LVF is, and who owns it, is not described. How much of the advances to related parties is to which entity is not stated (DRHP p.208).

Financial details of Infinity Apparels Private Limited are left to the company website (DRHP p.185). The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.86). The after-issue shareholding is blank (DRHP p.81). The management discussion refers to a section on significant developments after March 31, 2026 that does not appear (DRHP p.261).

Some inconsistencies are recorded as document matters, not business ones: the conversion of preference shares is given as 4,75,115 shares in most places and 4,74,025 in one note (DRHP p.74, DRHP p.224); the preference shares are dated January 14, 2025 in the capital structure and January 8, 2025 in the accounts (DRHP p.75, DRHP p.203); the FY24 customer and supplier concentration rows carry the same percentages, 25.89%, 43.83% and 75.39% (DRHP p.150);

the receivables ageing for March 2026 is headed November 30, 2026 (DRHP p.218); the accounts say there are no dues to small enterprises while ₹1.7 crore was owed to them at March 2026 (DRHP p.227, DRHP p.206); the industry chapter puts the Indian textile market at US$2.3 billion and US$350 billion by 2030 (DRHP p.123, DRHP p.126);

the global apparel market is US$1.9 trillion in one passage and US$1,749.67 billion in another for 2025 (DRHP p.124, DRHP p.127); employees were 33 at March 2026 and 40 at July 2026 while only two were registered for provident fund (DRHP p.153, DRHP p.152); and the strategy section mentions spinning which the company does not do (DRHP p.147).

21Five questions for management

1. Who owes the ₹8.5 crore of receivables more than six months old at March 2026, how much has been collected since, and why is no provision made?
2. What explains the fall in material cost from 78.25% to 65.40% of revenue in FY26: product mix, prices, or the shift from fabric trading to garments?
3. How did the preference shares issued to Lalit Dua at ₹272 come to be held by Roopsi Agarwal, Amit Kumar Agarwal and RGSL Investment LVF, at what price, and who stands behind RGSL Investment LVF?
4. What business does Infinity Apparels Private Limited do today, with which customers, and why were ₹1.1 crore of advances given to group companies at March 2026?
5. With garment capacity at 84.63% used, how will the company make the extra output its working capital plan assumes, and how much of it would go to job workers?

1Sources and cited facts

This study was read from 1 document the company filed. The 188 figures it cites are listed under the document each came from, with the page and the sentence as printed.