Grandmaa International Limited IPO

01At a glance

What the company does: converts yarn into knitted fabric, makes woven and knitted shoe vamps (the upper part of a shoe) and flat knit and circular knit garments such as sweaters and pullovers, and trades yarn bought from outside India, from one plant in Ludhiana, Punjab (DRHP p.148, DRHP p.161).

Who pays it: business customers, almost entirely: footwear makers, wholesalers, exporters and traders; direct sales to consumers were 0.06% of FY26 sales (DRHP p.35, DRHP p.163). The largest customer brought 22.48% of FY26 revenue, the top five 52.68% and the top ten 71.50% (DRHP p.36). Read from the filing: the largest customer's ₹19.0 crore matches the company's FY26 sales to Goldstone International Private Limited, a promoter group company (DRHP p.36, DRHP p.68, DRHP p.215).

Why it is raising money: ₹30.0 crore of the fresh issue goes to repaying loans and ₹12.0 crore to working capital; the general corporate purposes amount is blank (DRHP p.105). There is no offer for sale (DRHP p.58).

How fast it has grown: revenue from ₹38.7 crore in FY24 to ₹86.6 crore in FY26, about 49.5% a year, and profit after tax from ₹5.2 crore to ₹10.6 crore, about 42.3% a year (our arithmetic, DRHP p.63).

The one thing to understand: the business changed shape inside two years. In FY24 knitted fabric was 84.17% of sales and exports were nil; in FY26 garments were 44.99%, traded yarn 32.98% and exports 37.19% (DRHP p.161). Over the same two years the money customers owed went from 91 days of sales to 163 days (DRHP p.41).

02The business, in plain words

What Grandmaa International does

Grandmaa International makes textile products for the footwear and garment trades (DRHP p.148). It has four lines:

• Shoe vamps: the vamp is the front and top of a shoe's upper; the company knits or weaves them from polyester, nylon and spandex yarn, heat-sets them and cuts them with laser machines (DRHP p.149, DRHP p.151).
• Garments: sweaters, pullovers, cardigans, knitted jackets, sweatshirts and tops in acrylic, wool and cotton (DRHP p.151, DRHP p.152).
• Knitted fabric: sold to manufacturers and traders, or used in its own garments (DRHP p.161).
• Yarn trading: yarn bought outside India and supplied to Indian businesses (DRHP p.161).

A footwear maker or garment buyer sends a design → the company makes a sample and gets it approved → it buys yarn, knits or weaves, cuts, stitches and finishes → it invoices against the order (DRHP p.150, DRHP p.156, DRHP p.167).

The company was incorporated on December 30, 2020 and became a public company on August 11, 2023 (DRHP p.184). On March 31, 2023 it took over PC Jain Overseas, the sole proprietorship of the promoter Jaideep Jain that made shoe components and knitted fabric, by a slump sale for ₹3.6 crore (DRHP p.187). The registered office and the only plant are at Village Khwajke, Rahon Road, Ludhiana (DRHP p.161).

It holds Startup India recognition and a certificate of eligible business under Section 80-IAC of the Income Tax Act (DRHP p.149, DRHP p.317). It had 58 permanent employees at July 31, 2026 (DRHP p.170). It sells a few garments under its own brand on e-commerce sites (DRHP p.152).

Earnings equation: Revenue = pairs of vamps × price per pair + garment pieces × price per piece + tonnes of fabric × price per tonne + yarn traded × margin. The document gives pairs, pieces and tonnes produced but no prices or quantities sold, so the equation cannot be filled in from the filing (DRHP p.166).

03Where the money comes from

By product (₹ crore):

Source: DRHP p.161, DRHP p.257, converted from ₹ lakh. Product sales add up to ₹84.3 crore in FY26; the other ₹2.3 crore of revenue from operations is duty drawback of ₹0.78 crore and sale of ROSCTL duty-free scrips of ₹1.5 crore (DRHP p.257). The product table on page 161 prints FY24 shares that add to more than 100% (DRHP p.161). Trading was 2.78% of FY24 sales and 32.29% of FY26 (DRHP p.162). No product margin is given.

By place: exports went from nil in FY24 and ₹0.04 crore in FY25 to ₹31.4 crore in FY26, 37.19% of sales (DRHP p.161). Punjab was 61.21% of FY26 sales (DRHP p.162). The document does not say which products were exported or to which countries. The company says export sales carry a credit period of at least 120 days (DRHP p.296).

Grandmaa International customers: how concentrated the revenue is

Source: DRHP p.36, DRHP p.163. Revenue does depend on a few customers: ten customers brought ₹60.3 crore of FY26 sales (DRHP p.36). The percentages are worked on product sales of ₹84.3 crore, not on revenue from operations of ₹86.6 crore (DRHP p.36, DRHP p.161). No customer is named in the table, and there are generally no long-term agreements with customers (DRHP p.35).

Read from the filing: the largest FY26 customer's ₹18.96 crore is the same figure as FY26 sales to Goldstone International Private Limited in the related-party note, and the ninth customer's ₹2.8 crore matches sales to Receptive Sports Technologies Private Limited; the FY25 second customer's ₹8.5 crore matches FY25 sales to Goldstone (DRHP p.36, DRHP p.68). Both companies are in the promoter group (DRHP p.215). Together they were ₹21.8 crore, about 25.1% of FY26 revenue (our arithmetic, DRHP p.68).

On the supply side, the top ten suppliers were 86.33% of FY26 purchases and the largest 19.55% (DRHP p.35). There are no long-term supply arrangements (DRHP p.34).

04The growth record

Grandmaa International financials: revenue, profit and margins

Source: DRHP p.62, DRHP p.63, DRHP p.64, DRHP p.163, converted from ₹ lakh. Revenue went from ₹38.7 crore in FY24 to ₹86.6 crore in FY26 and profit after tax from ₹5.2 crore to ₹10.6 crore (DRHP p.63). The company's EBITDA leaves out other income (DRHP p.163).

Our arithmetic over FY24 to FY26: revenue grew about 49.5% a year and profit after tax about 42.3% a year (our arithmetic, DRHP p.63); EBITDA grew about 31.7% a year (our arithmetic, DRHP p.163). EBITDA margin moved from 24.05% to 18.65%, down 540 basis points, so from 24.1% to 18.7% rounded (DRHP p.163). Gross margin, revenue less materials, traded goods and the change in stock, went from about 34.5% to about 23.2% (our arithmetic, DRHP p.63). Most of FY25's growth came in revenue, not profit: profit after tax rose 4.05% that year (DRHP p.300).

The year ends on March 31 throughout. The restatement changed profit only a little: FY26 ₹10.5 crore audited and ₹10.6 crore restated, FY25 ₹5.6 crore audited and ₹5.5 crore restated (DRHP p.232). The audit reports for FY24 and FY25 carried an emphasis of matter that balances of debtors and creditors were subject to confirmation; FY26 had none (DRHP p.274).

What sits around the record:

• Cash: operating cash flow was ₹5.6 crore in FY26 after −₹3.0 crore in FY25 and −₹3.9 crore in FY24 (DRHP p.64). In FY26 receivables absorbed ₹21.0 crore while a fall in inventory released ₹13.7 crore (DRHP p.64).
• Other income was ₹1.1 crore in FY26, ₹0.62 crore of it a foreign exchange gain, about 8.8% of profit before tax of ₹12.9 crore (our arithmetic, DRHP p.63, DRHP p.258).
• Debt: borrowings were ₹40.6 crore at March 31, 2026 (DRHP p.62), debt to equity 1.13 times, about 1.1× (DRHP p.163), and net of ₹0.07 crore of cash about 2.5× FY26 EBITDA (our arithmetic, DRHP p.62, DRHP p.63). Return on capital employed was 24.68%, so 24.7% rounded (DRHP p.163). Finance cost was ₹3.5 crore in FY26 (DRHP p.63).
• Customers and suppliers: the largest customer was 22.48% of FY26 revenue, so 22.5% rounded, the top five 52.68%, so 52.7%, and the top ten 71.50%, so 71.5% (DRHP p.36); the top ten suppliers were 86.33% of FY26 purchases, so 86.3% (DRHP p.35).
• Related-party sales: sales to Goldstone International Private Limited and Receptive Sports Technologies Private Limited were ₹21.8 crore in FY26 (our arithmetic, DRHP p.68).
• Receivables: 163 days of sales at March 2026, against 91 at March 2024 (DRHP p.41).
• Contingent liabilities: a bank guarantee of ₹0.13 crore given to customs, and no capital commitments (DRHP p.66).
• Export obligation: ₹28.3 crore of exports still owed under the EPCG scheme at the date of the DRHP, against ₹17.5 crore at March 31, 2026; the customs duty saved was ₹4.7 crore (DRHP p.66).
• Capacity: combined utilisation was 88.54% in FY26, so 88.5% rounded (DRHP p.163).
• Use of the issue: ₹30.0 crore of the fresh issue is for debt repayment and ₹12.0 crore for working capital (DRHP p.105).
• Cases: no criminal, regulatory, tax or material civil cases against the promoters or directors (DRHP p.311, DRHP p.312).

05What the growth is made of

Revenue rose ₹47.9 crore from FY24 to FY26 (our arithmetic, DRHP p.63). By product, the change was (our arithmetic, DRHP p.257):

• Garments: up ₹33.3 crore, from ₹3.8 crore to ₹37.1 crore.
• Traded yarn: up ₹26.1 crore, from ₹1.1 crore to ₹27.2 crore. This is yarn bought and resold, not made (DRHP p.161).
• Knitted fabric: down ₹9.2 crore, from ₹26.8 crore to ₹17.6 crore.
• Shoe vamps: down ₹5.0 crore, from ₹6.9 crore to ₹1.9 crore.
• Export incentives: ₹2.3 crore in FY26, none before.

Volume: garment and garment panel output rose from 1.31 lakh pieces in FY24 to 10.10 lakh in FY26; vamp output fell from 8.98 lakh pairs to 2.97 lakh pairs; fabric output fell from 565.72 tonnes to 349.49 tonnes (DRHP p.45, DRHP p.46).

Exports: from nil in FY24 to ₹31.4 crore in FY26 (DRHP p.161).

Related parties: sales to the two promoter group companies went from ₹0.90 crore in FY24 to ₹21.8 crore in FY26 (our arithmetic, DRHP p.68), so they account for about ₹20.9 crore of the ₹47.9 crore increase (our arithmetic, DRHP p.68, DRHP p.63).

The document gives output in pairs, pieces and tonnes but no quantities sold and no prices, so the increase cannot be split into volume and price. That is the finding. The company itself puts FY26 growth down to "higher operating volumes" and export incentives, and says the exact drivers should be read with the product disclosures (DRHP p.300).

06Earnings quality

The item that needs explaining is receivables. They went from ₹9.6 crore at March 2024 to ₹16.8 crore at March 2025 and ₹37.7 crore at March 2026, while revenue rose by less than half that rate (DRHP p.62, DRHP p.63). The company says the FY26 rise came from export sales with credit of at least 120 days (DRHP p.296).

Of the ₹37.7 crore, ₹34.9 crore was under six months old and ₹2.9 crore older (DRHP p.252). At the same time inventory fell from ₹23.4 crore to ₹9.7 crore, which the company puts down to using opening stock (DRHP p.62, DRHP p.301). In FY26 the cost of materials and traded goods was a lower share of income partly because that opening stock was consumed (DRHP p.301).

Employee cost fell from ₹2.3 crore in FY25 to ₹1.8 crore in FY26 while revenue rose 66.03%; the company points to automation (DRHP p.63, DRHP p.301). Machinery rent of ₹0.13 crore and ₹1.1 crore of deposits for leased machines appear for the first time in FY26 (DRHP p.265, DRHP p.251). Export incentives receivable were ₹2.1 crore at March 2026 (DRHP p.256).

07The balance sheet

At March 31, 2026 total assets were ₹86.0 crore: trade receivables ₹37.7 crore, property, plant and equipment ₹13.5 crore, inventories ₹9.7 crore, capital work in progress ₹7.9 crore, other non-current assets ₹7.6 crore (₹6.4 crore of fixed deposits under lien), capital advances ₹5.4 crore, other current assets ₹2.3 crore, short-term loans and advances ₹1.8 crore and cash ₹0.07 crore (DRHP p.62, DRHP p.251). Against them: short-term borrowings ₹22.9 crore, long-term borrowings ₹17.6 crore, trade payables ₹5.0 crore, provisions ₹2.4 crore, other liabilities and deferred tax ₹2.2 crore and net worth ₹35.8 crore (DRHP p.62).

Borrowings of ₹40.6 crore were ₹33.1 crore secured and ₹7.4 crore unsecured (DRHP p.284). The secured loans are from State Bank of India (a cash credit with an export credit sub-limit, a letter of credit facility and a machinery term loan, at about 8.70%) and SIDBI (machinery term loans at 7.60% to 8.81%) (DRHP p.236, DRHP p.108).

The unsecured loans include eleven business loans of ₹0.41 to ₹0.65 crore each from banks and finance companies taken in 2024 and 2025 at 14.90% to 16.50% (DRHP p.110, DRHP p.111). The SBI facilities are guaranteed by Jaideep Jain, Hazari Lal and Seema Jain and secured on property described as owned by Jaideep Jain, including the factory land and building (DRHP p.109).

Source: DRHP p.62, DRHP p.105, DRHP p.283. The capitalisation statement leaves the post-issue column blank (DRHP p.283). ₹30.0 crore is about 73.9% of March 2026 borrowings (our arithmetic, DRHP p.105, DRHP p.62). Prepayment charges, of up to 7% on some of the unsecured loans, are to be paid from internal accruals (DRHP p.112).

08What the money is for

Grandmaa International IPO objects: what the money is for

Source: DRHP p.105, DRHP p.117. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.84).

Debt repayment, ₹30.0 crore: the loans picked, with amounts outstanding on September 15, 2026, are about ₹14.3 crore of State Bank of India's term loan and cash credit, about ₹12.7 crore of three SIDBI term loans, and about ₹2.95 crore across the eleven unsecured business loans (our arithmetic, DRHP p.108, DRHP p.109, DRHP p.110, DRHP p.111). No loan from directors or related parties is to be repaid from the issue (DRHP p.112). All ₹30.0 crore is scheduled for FY27 (DRHP p.118).

Working capital, ₹12.0 crore: ₹5.0 crore in FY27 and ₹7.0 crore in FY28 (DRHP p.118). The company's own estimate puts the working capital it needs at ₹52.5 crore for FY27 and ₹73.6 crore for FY28, on 125 receivable days and 49 inventory days, with bank borrowings of only ₹3.0 crore and internal accruals of ₹44.5 crore and ₹63.5 crore meeting the rest (DRHP p.114). The risk factors say the ₹12.0 crore is to be deployed during FY27 alone (DRHP p.42). An order book of about ₹12.0 crore is cited in support (DRHP p.115).

The objects have not been appraised by any bank or financial institution (DRHP p.118). A monitoring agency is to be appointed if the issue exceeds ₹50 crore (DRHP p.75).

Into the business the fresh issue of up to 41,46,000 shares, at a price not yet set (DRHP p.84). To selling shareholders nothing: there is no offer for sale (DRHP p.58).

09Who is selling

Grandmaa International IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 41,46,000 shares of ₹10, and the document marks the offer for sale "not applicable" (DRHP p.1, AP p.1). The other promoter and promoter group members will not take part in the issue (DRHP p.104).

10Promoters

The promoters are Jaideep Jain and Esha Jain (DRHP p.210). The document states that they are spouses (DRHP p.211). Jaideep Jain holds 94,23,675 shares, 99.88% of the company, and Esha Jain 15 shares (DRHP p.99).

Jaideep Jain, 36, is Chairman and Managing Director, a commerce graduate with over 12 years in textiles, including making shoe uppers through the proprietorship PC Jain Overseas (DRHP p.193). Esha Jain, 36, holds an MCA and joined the board as a non-executive director on April 10, 2026 (DRHP p.193). The promoter group table lists Hazari Lal Jain and Seema Jain as Jaideep Jain's father and mother and Bhupesh Jain and Hitesh Jain as brothers (DRHP p.214). Seema Jain left the board on April 10, 2026 (DRHP p.67).

Pay: Jaideep Jain's remuneration was ₹0.28 crore in FY24 and ₹0.30 crore in FY25 and FY26, under a cap of ₹0.30 crore a year (DRHP p.67, DRHP p.195). Esha Jain was paid nothing (DRHP p.67). The company paid Jaideep Jain rent of ₹0.10 crore in FY24 (DRHP p.268).

Loans: Jaideep Jain lent the company ₹7.3 crore and was repaid ₹7.6 crore in FY26; ₹0.06 crore was owed at March 2026 (DRHP p.68, DRHP p.69).

Other businesses: the promoter group includes Goldstone International Private Limited, Receptive Sports Technologies Private Limited, Spotify Fashions Private Limited, Trishira Ventures Private Limited and the firms Goldstone International, Magan Agro Chemical and Tridha Exim (DRHP p.215). Goldstone International Private Limited makes and trades knitting machines, and both Goldstone and Receptive Sports Technologies are owned half each by Bhupesh Jain and Abhishek Jain (DRHP p.321, DRHP p.322).

The company bought ₹0.46 crore of capital goods from Goldstone in FY24 (DRHP p.68). The company has signed non-compete agreements with Goldstone International Private Limited, Receptive Sports Technologies, Spotify Fashions, Trishira Ventures and Tridha Exim (DRHP p.186). Jaideep Jain left the board of Spotify Fashions on July 12, 2024 (DRHP p.213).

Property and guarantees: Jaideep Jain transferred land and building to the company in August 2023 for 13,35,867 shares at ₹25.79, valued by a government approved valuer (DRHP p.86). Jaideep Jain, Hazari Lal and Seema Jain guarantee the SBI loans, and Jaideep Jain and Seema Jain the SIDBI loans (DRHP p.109). No promoter shares are pledged (DRHP p.100).

Cases: no criminal, regulatory or tax cases against the promoters or directors (DRHP p.311, DRHP p.312).

Promoter economics: Jaideep Jain subscribed 7,500 shares at par in 2020, took 24,75,000 rights shares at par in April 2022 and 10,00,000 at par in December 2022, 28,00,000 at ₹25.79 in August 2023 for land and building and a loan, and 31,41,225 bonus shares in March 2026 (DRHP p.99). The abridged prospectus puts the average cost at ₹11.36 a share (AP p.8). Esha Jain received 10 shares as a gift in July 2023 and 5 bonus shares (DRHP p.99). No shares were allotted in the 18 months before filing other than the bonus (DRHP p.127).

11Who already owns it

Grandmaa International promoter holding before and after the IPO

Source: DRHP p.99, DRHP p.94. There are 94,35,000 shares of ₹10 before the issue and seven shareholders (DRHP p.84, DRHP p.100). If all 41,46,000 new shares are issued the total becomes 1,35,81,000 shares (DRHP p.84) and the promoters' 99.88% becomes about 69.4%, so 99.9% → 69.4% (our arithmetic, DRHP p.99). Promoters and promoter group together go from 99.99% to about 69.5% (our arithmetic, DRHP p.99). The document leaves the after-issue percentages blank (DRHP p.99).

No fund, company or other investor outside the promoter group holds shares. The two public holders, Rajinder Sharma and Ajay Kumar, hold 15 shares each (DRHP p.94). 27,26,000 of Jaideep Jain's bonus shares, 20.07% of the post-issue capital, are to be locked in for three years as the minimum promoters' contribution (DRHP p.101).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹38.7 crore in FY24 to ₹86.6 crore in FY26 and profit after tax from ₹5.2 crore to ₹10.6 crore (DRHP p.63).
• Receivables: receivable days went from 91 in FY24 to 163 in FY26 (DRHP p.41).
• Promoter pay went from ₹0.28 crore in FY24 to ₹0.30 crore in FY26 (DRHP p.67).
• Borrowings went from ₹26.1 crore at March 2025 to ₹40.6 crore at March 2026 (DRHP p.62).
• Business taken over: PC Jain Overseas, Jaideep Jain's proprietorship, on March 31, 2023, for ₹3.6 crore (DRHP p.187).
• Conversion: the private company became a public company with a fresh certificate dated August 11, 2023 (DRHP p.3).
• Land and building: transferred by Jaideep Jain for shares at ₹25.79 on August 4, 2023 (DRHP p.86).
• Bonus issue: 1:2, allotted March 2, 2026, 31,45,000 shares (DRHP p.87).
• Pre-IPO placement: none; no shares were issued in the 18 months before filing except the bonus (DRHP p.127).
• Last priced allotment: 28,00,000 shares at ₹25.79 on August 4, 2023 (DRHP p.86).
• Share split: none in the last year (DRHP p.103).
• Auditor: no change in the last three years; K R Aggarwal & Associates is statutory and peer review auditor (DRHP p.81, DRHP p.73).
• Exports and related parties: exports began in FY26, and sales to Goldstone International Private Limited went from ₹0.90 crore in FY24 to ₹19.0 crore in FY26 (DRHP p.161, DRHP p.68).
• Board and officers: Esha Jain joined the board and Seema Jain left it on April 10, 2026; three company secretaries have served since August 2023, and a full-time chief financial officer was appointed with effect from September 7, 2026 (DRHP p.67, DRHP p.40).
• Earlier attempts to list: a DRHP filed with BSE SME on August 29, 2023 was not taken forward, one filed with NSE Emerge on August 5, 2024 was returned, and a refiling with BSE planned for January 29, 2025 was withdrawn (DRHP p.34).
• Dividend: none declared since incorporation (DRHP p.216).

13Capacity and expansion

Source: DRHP p.45, DRHP p.166. Utilisation is given only for the plant as a whole, 66.64%, 72.24% and 88.54% over FY24 to FY26, because the same knitting machines can make vamps, garment panels or fabric; each product's capacity assumes it alone is made (DRHP p.45, DRHP p.46). The KPI table gives FY24 utilisation as 66.44% instead (DRHP p.163).

Capital work in progress was ₹7.9 crore and capital advances for plant and machinery ₹5.4 crore at March 2026, which the company describes as being for expansion (DRHP p.62, DRHP p.296). The document does not say what is being added, when it will be ready, or how it is being paid for beyond the loans already drawn. The issue carries no capital expenditure object (DRHP p.105). The document gives pieces and tonnes but not prices, so the step from capacity to revenue cannot be made here.

14Market size and industry structure

Grandmaa International industry: market size and growth

As claimed: the company did not commission an industry report; the chapter draws on the World Bank, the India Brand Equity Foundation (IBEF) website and 6Wresearch web pages, and the company says it has neither verified the data nor sought the sources' consent (DRHP p.44, DRHP p.136, DRHP p.145).

At the broadest level, IBEF says the Indian textile and apparel industry is about 2% of GDP and about 11% of manufacturing gross value added, and employs more than 45 million people (DRHP p.141). It quotes forecasts that the domestic textile and apparel market could reach US$225 billion by 2025, growing 10% to 12% a year, and projects the market at US$350 billion by 2030 (DRHP p.141, DRHP p.145).

The same page also prints a projection of US$2.3 billion by 2030 for "the market for Indian textiles and apparel", which does not agree with the other figures (DRHP p.141).

The part that is addressable: the company sells knitted fabric, knitted and woven shoe vamps, knitwear and traded yarn (DRHP p.161). The chapter gives no rupee or dollar size for any of these. For knitted fabric it gives only growth rates: 9.47% a year from 2021 to 2024, 1.13% in 2024, and a 6Wresearch projection of 13.89% a year to 2031 (DRHP p.145). For textile fabrics it gives 16.51% a year from 2021 to 2024 and 8.77% in 2024, with a projection of 13.77% a year from 2025 to 2031 (DRHP p.147). For textile yarn it projects growth of only 0.82% in 2025 rising to 1.36% by 2029 (DRHP p.147).

What the company is today: FY26 revenue of ₹86.6 crore (DRHP p.63). Because the chapter sizes none of the company's segments in money, no market share can be worked out from the filing.

Size over time: the chapter's figures are for the wider sector. Technical textiles were valued at US$29 billion in 2024 and are projected by IBEF at US$45 billion by 2026 (DRHP p.141). India's textile and apparel exports were US$35.52 billion in FY26 against imports of US$8.49 billion; ready-made garments were the largest export at US$15.77 billion, 44% (DRHP p.142). The global apparel market is put at US$1.9 trillion in 2025, with growth of 4.1% a year projected to 2034 (DRHP p.142). India produces about 22,000 million garment pieces a year (DRHP p.142).

Segments: the chapter splits the sector into fibres, yarn, fabric, garments, home textiles and technical textiles, and names the decentralised power loom, hosiery and knitting segment as the largest (DRHP p.140). The company sits in knitting, knitwear and footwear components. For shoes with knitted uppers, the only footwear figure, the chapter says Indian imports of such shoes fell at a compound rate of 16.42% a year from 2020 to 2024 and by 81.76% from 2023 to 2024, with Vietnam, the Netherlands, China, Spain and Panama the top sources (DRHP p.146).

What drives demand: rising household incomes, urbanisation and demand from housing, healthcare and hospitality (DRHP p.145); government schemes such as PM MITRA parks, with seven parks and an outlay of ₹4,445 crore approved, and a textiles PLI scheme with ₹405 crore budgeted for 2026-27 (DRHP p.144, DRHP p.143); and trade agreements, including the India and United Kingdom agreement giving duty-free access to 99% of goods (DRHP p.142).

Structure: the chapter itself names no competitors. It mentions Sutlej Textiles, Vardhman and Arvind only for their investments (DRHP p.143). The business chapter says the company competes with organised and unorganised makers of footwear components, fabric and garments, without naming any (DRHP p.168).

Inputs and trade: the company's main inputs are polyester, nylon, spandex, acrylic, wool and cotton yarns; prices of the synthetic yarns move with crude oil and petrochemical prices (DRHP p.34). India's cotton crop for 2025-26 is estimated at 292.15 lakh bales of 170 kg (DRHP p.142). The traded yarn is bought from suppliers outside India (DRHP p.161).

Rules: the business works under the Factories Act, the Indian Boilers Act and Boiler Regulations, the Legal Metrology Act, pollution control laws and the National Textile Policy, and its exports draw on schemes such as RoDTEP (DRHP p.175, DRHP p.176, DRHP p.177). Its consents to operate from the Punjab Pollution Control Board run to December 31, 2027, and its factory licence to December 31, 2026 (DRHP p.318, DRHP p.317). Capital goods imported under the EPCG scheme carry an export obligation (DRHP p.166).

What the chapter says can go wrong: the World Bank text it reproduces projects global growth slowing to 2.5% in 2026, with energy prices raised by conflict in the Middle East and Brent crude averaging US$94 a barrel, and risks tilted to the downside (DRHP p.136). It warns that renewed conflict or trade tensions could disrupt shipping and trade (DRHP p.138). The chapter also notes US tariffs as a challenge to textile exports (DRHP p.142). These are general risks; the chapter does not discuss pricing, seasonality or competition in knitwear or shoe uppers.

15Competitive position

Grandmaa International competitors

Source: DRHP p.126, DRHP p.127, converted from ₹ lakh. The company says the peers are not strictly comparable in nature or size (DRHP p.123). K.P.R. Mill's revenue is about 77 times the company's and Active Clothing's about 3.7 times (our arithmetic, DRHP p.126, DRHP p.127).

What the company puts forward: knitted and woven vamps, in-house yarn covering, design and sampling, connected fabric and garment lines, a Ludhiana location in a textile and knitwear centre, Startup India recognition and an order book of about ₹12.0 crore (DRHP p.164, DRHP p.165). Against that: one plant, ten customers bringing 71.50% of sales, the largest of them a promoter group company, no long-term customer or supply contracts, and directors with no listed-company board experience (DRHP p.40, DRHP p.36, DRHP p.35, DRHP p.49).

16Peers the company named

Peers named in the offer document: K.P.R. Mill Limited and Active Clothing Co. Ltd (DRHP p.123).

K.P.R. Mill is a large integrated maker many times the company's size; Active Clothing is a garment maker about 3.7 times its revenue with a much lower margin (DRHP p.126, DRHP p.127). The document gives their P/E as 43.71 and 15.78 on September 25, 2026, an average of 29.75 (DRHP p.122, DRHP p.123). The company's FY26 EPS is ₹11.25 on ₹10 shares and its weighted average EPS ₹8.58 (DRHP p.121). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Grandmaa International IPO risks

Customers and related parties: read from the filing, the largest customer, 22.48% of FY26 sales, matches the sales to the promoter group company Goldstone International Private Limited, and related-party sales were about 25.1% of FY26 revenue (DRHP p.36, DRHP p.68) → a large part of the growth depends on companies owned by the promoter's family, at prices set between related parties → sales to Goldstone went from ₹0.90 crore in FY24 to ₹19.0 crore in FY26 (DRHP p.68).

Financial: cash and receivables: receivables reached 163 days of sales and ₹37.7 crore at March 2026 (DRHP p.41, DRHP p.62) → profit is recorded long before it is collected, and the company's own plan assumes 125 days → profit after tax of ₹21.3 crore over three years came with net operating cash outflow of ₹1.3 crore (our arithmetic, DRHP p.63, DRHP p.64).

Financial: debt: borrowings were ₹40.6 crore at March 2026, including unsecured business loans at 14.90% to 16.50% (DRHP p.62, DRHP p.110) → finance cost rose to ₹3.5 crore in FY26 → the issue's ₹30.0 crore is about 73.9% of March 2026 borrowings (our arithmetic, DRHP p.105, DRHP p.62).

Regulation: export obligation: the company imported machinery under the EPCG scheme and owed ₹28.3 crore of exports at the date of the DRHP (DRHP p.66) → if it does not export enough in time it must pay back the duty saved with interest → the duty saved is ₹4.7 crore (DRHP p.66).

Legal: tax and company law: a GST show cause notice of ₹0.52 crore alleging excess input tax credit and suppression of facts for March 2021 to March 2023 is pending, and the company has applied to the Registrar of Companies to adjudicate allotments made in April 2022 and August 2023 (DRHP p.311, DRHP p.36) → penalties may follow → 23 company law forms and 53 PF, ESI, TDS and GST payments or returns were late, one form by 596 days (DRHP p.37, DRHP p.38, DRHP p.39).

Business: one plant and a shrinking core: all manufacturing is at one Ludhiana plant (DRHP p.40) → any stoppage halts production → vamp output fell from 8.98 lakh pairs in FY24 to 2.97 lakh pairs in FY26 while garments rose (DRHP p.45, DRHP p.46).

Issue-specific: earlier filings: the company filed DRHPs in 2023 and 2024 that were not taken forward or were returned, partly over a land use approval and a cash flow eligibility rule (DRHP p.34) → the issue structure and figures have changed between filings → this is at least the third filing (DRHP p.34).

18Litigation and regulatory matters

Cases against Grandmaa International and its promoters

Criminal: none by or against the company, promoters, directors or key managers (DRHP p.310, DRHP p.311, DRHP p.313). Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors (DRHP p.310, DRHP p.311). Tax: none against promoters or directors (DRHP p.312).

The risk factors put tax matters at ₹0.52 crore in three cases, while the litigation chapter lists ₹0.40 lakh of income tax and ₹2.51 lakh of TDS beside the GST notice (DRHP p.43, DRHP p.310). Group companies: no litigation (DRHP p.312, DRHP p.313). Creditors: two material creditors were owed ₹4.7 crore at March 31, 2026 (DRHP p.313). Corporate law: 23 forms filed late, all since filed with additional fees and no penalty (DRHP p.37).

19Related-party transactions

Source: DRHP p.67, DRHP p.68, converted from ₹ lakh. Jaideep Jain was repaid ₹7.6 crore in FY26 and ₹4.8 crore in FY24, and a further ₹3.8 crore of loans was converted into shares in FY24 (DRHP p.268, DRHP p.68). Goldstone International, a firm, lent the company ₹0.75 crore in FY25 and was repaid in the same year (DRHP p.68). At March 2025 Goldstone owed ₹6.2 crore and Receptive Sports ₹1.8 crore, 36.87% and 10.55% of trade receivables; at March 2026 no related-party receivable is shown (DRHP p.69).

What appeared or changed in the two years before filing: sales to Goldstone rose from ₹0.90 crore to ₹19.0 crore, sales to Receptive Sports began in FY25, Jaideep Jain's loans to the company resumed in FY26, and non-compete agreements were signed with five promoter group entities (DRHP p.68, DRHP p.186). The company says its related-party transactions are at arm's length and certified by the statutory auditor (DRHP p.69).

20What the offer document does not say

Customers are not named, except where their amounts match the related-party note. Prices, quantities sold and revenue by product are not given in a form that splits growth into volume and price. Product or segment margins are not given. Which products were exported, to which countries and to which buyers, is not stated. The industry chapter sizes none of the company's markets in money (DRHP p.145).

What the ₹7.9 crore of capital work in progress and ₹5.4 crore of capital advances are for, and when they will be ready, is not described (DRHP p.62). The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.105). The after-issue shareholding is blank (DRHP p.99). Financial details of the group companies are left to the company website (DRHP p.322).

Some inconsistencies are recorded as document matters, not business ones: the abridged prospectus describes the company as a retail diamond jewellery business selling under the brand "Omara" above textile tables (AP p.3) and the MD&A refers to "ornaments production" (DRHP p.295); the order book of about ₹12.0 crore is dated March 31, 2026 in one place and September 30, 2026 in another (DRHP p.115, DRHP p.165);

the land and building deal is 13,35,867 shares at ₹25.79 in the capital structure and 13,35,350 shares at ₹25.80 in the properties table (DRHP p.86, DRHP p.172); the factory land is listed as company property but the SBI security calls it owned by Jaideep Jain (DRHP p.172, DRHP p.109); the bonus is 1:2 in the capital structure and 19:1 in the share capital note (DRHP p.87, DRHP p.233);

FY24 utilisation is 66.64% and 66.44% (DRHP p.46, DRHP p.163); working capital from the issue is spent in FY27 in the risk factors and over FY27 and FY28 in the objects (DRHP p.42, DRHP p.118); the monitoring agency is conditional on one page and described as appointed on another (DRHP p.75, DRHP p.119); the auditor's peer review certificate carries different numbers and dates (DRHP p.73, DRHP p.219);

the group company is called Goldstone International Limited with a private company CIN and is said to have no interest in supplying machinery although it sold the company capital goods in FY24 (DRHP p.321, DRHP p.322, DRHP p.68); and FY25 other expenses are ₹2.4 crore in the MD&A against ₹2.3 crore restated (DRHP p.301, DRHP p.63).

21Five questions for management

1. What were the quantities and average prices of garments, fabric, vamps and traded yarn sold in FY24, FY25 and FY26, so that growth can be split into volume and price?
2. On what terms and at what prices does the company supply Goldstone International Private Limited and Receptive Sports Technologies Private Limited, and what do those companies do with the goods?
3. Who are the export customers, what share of the ₹37.7 crore of receivables at March 31, 2026 they owe, and how much of it has been collected since?
4. What is the ₹7.9 crore of capital work in progress, when will it start producing, and how much of the ₹28.3 crore EPCG export obligation falls due in each of the next three years?
5. Why did vamp output fall from 8.98 lakh pairs to 2.97 lakh pairs over FY24 to FY26, and what utilisation does each line run at on its own?

2Sources and cited facts

This study was read from 2 documents the company filed. The 187 figures it cites are listed under the document each came from, with the page and the sentence as printed.