Parswam Fashion Limited IPO

01At a glance

What the company does: designs, sources and markets men's and kids' bottom-wear (denim jeans, cotton pants, denim shorts and formal trousers) under the brands Par Swam, VAMA and Pre-Pad; it buys the fabric and has the garments cut, stitched and washed by independent job workers, and owns no factory (DRHP p.153, DRHP p.29).

Who pays it: wholesalers, multi-brand outlets, retailers and one departmental store, 141 customers in FY26 (DRHP p.35, DRHP p.159). Wholesalers brought 71.98% of FY26 revenue (DRHP p.35). The largest customer, not named, was 12.22% of FY26 revenue, the top five 35.08% and the top ten 50.26% (DRHP p.38). Gujarat and Kerala together were 87.70% of FY26 revenue (DRHP p.31).

Why it is raising money: ₹16.8 crore of the fresh issue is for working capital in FY27; the general corporate purposes amount is blank (DRHP p.97, DRHP p.98). There is no offer for sale (DRHP p.3).

How fast it has grown: revenue from operations from ₹20.0 crore in FY24 to ₹30.1 crore in FY26, about 22.7% a year, and profit after tax from ₹0.92 crore to ₹3.1 crore, about 84.7% a year (our arithmetic, DRHP p.111).

The one thing to understand: profit has not turned into cash. Over FY24 to FY26 the company reported ₹5.1 crore of profit after tax and an operating cash outflow of ₹1.9 crore (our arithmetic, DRHP p.62, DRHP p.63), because finished-goods stock rose from ₹3.7 crore to ₹12.4 crore and money owed by customers stayed above ₹12 crore (DRHP p.241, DRHP p.61). Working capital ran at 213 days of sales in FY26 (DRHP p.100).

02The business, in plain words

What Parswam Fashion does

The business began as a partnership firm, M/s Siddhi Vinayak Creation, under a deed dated January 1, 2018; it became Parswam Fashion Private Limited on June 5, 2024 and a public company with a fresh certificate dated August 29, 2024 (DRHP p.3, DRHP p.182). The firm's business was transferred to the company under an agreement dated October 14, 2024 (DRHP p.47). The registered office and warehouse are at Samet Business Park, Khokhara, Ahmedabad (DRHP p.3).

The chain, as the document describes it (DRHP p.164, DRHP p.165, DRHP p.167):

• Design: the promoters and the sales and marketing team set styles, fits, colours and washes each season; samples go to customers for feedback first (DRHP p.166).
• Fabric: denim and cotton fabric and trims are bought from 81 suppliers, mostly in Gujarat, and delivered straight to the job workers (DRHP p.158, DRHP p.168).
• Making: 37 independent job workers in Gujarat cut, sew, wash and finish the garments on their own machines; the company keeps title to the cloth it issues (DRHP p.156, DRHP p.167).
• Checking and packing: finished garments are checked, branded and packed, then held at a 7,333 square foot warehouse in Ahmedabad (DRHP p.154, DRHP p.168).
• Selling: through wholesalers, multi-brand outlets, retailers and a departmental store, against purchase orders with no long-term contracts (DRHP p.169).

A wholesaler or shop in Gujarat, Kerala or another state places a purchase order → the company issues fabric and its design to a job worker, who makes the garments → the company checks, brands and packs them under Par Swam or a customer's label → it is paid the wholesale price, often months later (DRHP p.167, DRHP p.169, DRHP p.100).

As of March 31, 2026 the company offered over 37 styles in more than 10 colours, 915 active SKUs, four product categories and 17 size variants (DRHP p.153). Prices run from ₹350 to ₹800 a piece in the business chapter and from ₹300 to ₹800 in the abridged prospectus, and the average selling price in FY26 was ₹418.95 (DRHP p.153, AP p.2). Denim jeans were 79.86% of FY26 revenue (DRHP p.32). Kids' bottom-wear was added in 2018 (DRHP p.153). Women's bottom-wear is at a pilot stage, with commercial sales begun in FY27 according to the business chapter (DRHP p.161).

The company also makes garments under other brands' labels: private labelling was 5.12% of FY26 revenue against 0.82% in FY24 (DRHP p.153). It had 12 employees at August 31, 2026, three of them in top management, and a quality team of one person (DRHP p.170, DRHP p.168). It uses Tally software for sales, purchases and stock (DRHP p.170).

Earnings equation: Revenue = pieces sold × average price per piece. The document gives both: 7,19,308 units in FY26 at an average of ₹418.95 (DRHP p.111, DRHP p.153). Section 04 uses them.

03Where the money comes from

By business model (DRHP p.153):

By channel, share of revenue from operations (DRHP p.35):

Online sales were ₹6,000 in FY26 (DRHP p.35); the risk factors put online at 0.6% of FY26 revenue (DRHP p.42). There are no exports: all revenue is domestic (DRHP p.245).

By state, share of revenue from operations (DRHP p.31, DRHP p.32):

Gujarat revenue rose from ₹0.76 crore in FY24 to ₹14.0 crore in FY26, while Kerala went from ₹16.2 crore to ₹12.4 crore (DRHP p.31). The company had a presence in 15 states and 2 union territories (DRHP p.31).

Through the year, the fourth quarter brought 47.57%, 54.74% and 52.29% of sales (DRHP p.102); the risk factors print the same three numbers against the years in the opposite order (DRHP p.36).

Parswam Fashion customers: how concentrated the revenue is

Source: DRHP p.38, DRHP p.159, DRHP p.160. The customers are not named "due to absence of consent" (DRHP p.160). The largest customer brought ₹3.7 crore in FY26 (DRHP p.38). Read from the filing: revenue does depend on a small group, in numbers: half of FY26 sales came from ten customers out of 141, and the share has risen from 44.37% in FY24 (DRHP p.159, DRHP p.38). The company served 182, 187 and 141 customers in FY24, FY25 and FY26 and had 21 repeat customers bringing 16.10% of FY26 revenue (DRHP p.159). Customers order on purchase orders, with no long-term contracts (DRHP p.38).

On the supply side, the largest supplier was 15.20% of FY26 purchases, the top five 45.75% and the top ten 63.50%, against 70.06% for the top ten in FY24 (DRHP p.159). Suppliers are not named (DRHP p.39). Purchases from Gujarat were 92.62% of FY26 raw material purchases (DRHP p.167).

04The growth record

Parswam Fashion financials: revenue, profit and margins

Source: DRHP p.61, DRHP p.62, DRHP p.63, DRHP p.111, converted from ₹ lakh. Revenue from operations went from ₹20.0 crore in FY24 to ₹30.1 crore in FY26 (DRHP p.111). Profit after tax went from ₹0.92 crore to ₹3.1 crore, so ₹0.92 crore → ₹3.1 crore (DRHP p.111). The company's EBITDA adds finance cost and depreciation to profit before tax and takes out other income; its PAT margin is struck on total income (DRHP p.111).

Our arithmetic over FY24 to FY26: revenue grew about 22.7% a year (our arithmetic, DRHP p.111), which is also the company's own figure; profit after tax grew about 84.7% a year (our arithmetic, DRHP p.111); EBITDA grew about 58.1% a year (our arithmetic, DRHP p.111). EBITDA margin moved from 9.83% to 16.32%, up 649 basis points, so 9.8% → 16.3% rounded (DRHP p.111). Year by year, revenue rose 5.11% in FY25 and 43.24% in FY26 (DRHP p.278, DRHP p.276).

The year ends on March 31 throughout. For FY24 and the first half of FY25 the figures are those of the partnership firm: the restated statements take October 1, 2024 as the cut-off between the firm and the company (DRHP p.212). Restatement changed profit: FY24 profit after tax was ₹1.0 crore audited and ₹0.92 crore restated, and FY25 was ₹0.80 crore audited for the company plus ₹0.29 crore for the firm, ₹1.0 crore restated, mainly for gratuity, bad debt provisions and depreciation (DRHP p.259). The statutory auditor has expressed no qualification or emphasis of matter for the periods covered (AP p.8).

What sits around the record:

• Cash: operating cash flow was −₹0.04 crore in FY26, −₹0.74 crore in FY25 and −₹1.1 crore in FY24 (DRHP p.63). Cash and bank balances were ₹0.11 crore at March 31, 2026, almost all of it cash in hand (DRHP p.63).
• Stock and customers' dues: inventory, all finished goods, was ₹12.4 crore at March 31, 2026 (DRHP p.241). Receivables older than one year were ₹1.8 crore of the ₹16.1 crore gross receivables (our arithmetic, DRHP p.242). Receivable days were 228 in FY24 and 194 in FY26, so 228 → 194 (DRHP p.100). Working capital was 213 days of sales in FY26 (DRHP p.100).
• Other income was ₹0.06 crore in FY26, about 1.3% of profit before tax (our arithmetic, DRHP p.62).
• Debt: borrowings were ₹7.9 crore at March 31, 2026 and debt to equity 0.81 times, so 0.8× (DRHP p.285). Net of ₹0.11 crore of cash, borrowings were about 1.6× FY26 EBITDA (our arithmetic, DRHP p.61, DRHP p.111). Borrowings were ₹9.5 crore at August 31, 2026 (DRHP p.267). Return on capital employed was 26.85% in FY26, so 26.9% rounded (DRHP p.111).
• Customers and suppliers: the largest customer was 12.22% of FY26 revenue, so 12.2%; the top five 35.08%, so 35.1%; the top ten 50.26%, so 50.3% (DRHP p.38). Gujarat and Kerala were 87.70% of FY26 revenue, so 87.7% (DRHP p.31). The top ten suppliers were 63.50% of FY26 purchases, so 63.5% (DRHP p.159).
• Related parties: sales to a related party were nil in FY26, against ₹0.25 crore in FY25 (DRHP p.43).
• Contingent liabilities: ₹0.36 crore at March 31, 2026, a GST demand on the former partnership firm (DRHP p.64).
• Cases: no criminal, regulatory or material civil cases against the company or the promoters, and no tax cases against the promoters (DRHP p.287, DRHP p.289).
• Use of the issue: ₹16.8 crore of the fresh issue is for working capital (DRHP p.97).
• Industry: men's and kids' bottom-wear apparel, textiles and apparel in the fixed list (DRHP p.153).

05What the growth is made of

Revenue from operations rose ₹10.1 crore from FY24 to FY26 (our arithmetic, DRHP p.111). The document gives units and an average price, so the increase can be split:

• Volume: units sold rose from 4,38,452 in FY24 to 4,84,745 in FY25 and 7,19,308 in FY26, up 64.1% over the two years (DRHP p.111, our arithmetic).
• Realisation: revenue per unit was about ₹456.5 in FY24, ₹434.0 in FY25 and ₹418.9 in FY26 (our arithmetic, DRHP p.111); the company gives ₹418.95 for FY26 (DRHP p.153).
• Split: at the FY24 realisation, the extra 2,80,856 units account for about ₹12.8 crore; the lower price per unit took away about ₹2.7 crore, which leaves the ₹10.1 crore rise (our arithmetic, DRHP p.111).

Read from the filing: the rise came from volume, with the average price per piece falling about 8% over two years. The document does not say whether the lower average comes from price cuts, cheaper styles, more kids' wear, more sales to wholesalers or more private-label work.

By customer and place: Gujarat added ₹13.2 crore of revenue from FY24 to FY26 while Kerala fell ₹3.8 crore (our arithmetic, DRHP p.31). Wholesalers added ₹12.2 crore while multi-brand outlets fell ₹0.77 crore and retailers ₹1.6 crore (our arithmetic, DRHP p.35). The management discussion puts FY26 growth down to "a higher volume of orders executed during the year, along with the addition of new customers" (DRHP p.276), though the customer count fell from 187 to 141 (DRHP p.159).

Margins: gross margin, revenue less materials, job work and the change in stock, was 18.34%, 20.05% and 23.88% in FY24, FY25 and FY26 (DRHP p.168). The document gives no reason for the rise beyond growth in revenue being faster than material cost (DRHP p.277). No new capacity, acquisition or accounting change is involved: the company had no material acquisition in the period (DRHP p.114).

06Earnings quality

The item that needs explaining is stock. Finished-goods inventory went from ₹3.7 crore at March 2024 to ₹7.2 crore at March 2025 and ₹12.4 crore at March 2026, about 3.4 times, while revenue rose about 1.5 times (DRHP p.241, our arithmetic). The increase in inventory took ₹5.2 crore of cash in FY26 and ₹3.5 crore in FY25 (DRHP p.63).

The company says all inventory at each year end was less than six months old (DRHP p.101) and links the build-up to "uninterrupted production" and higher volumes (DRHP p.101). The notes value all stock as finished goods (DRHP p.241), while the risk factors describe it as raw materials, work in progress and finished goods (DRHP p.31).

On receivables, ₹16.1 crore was owed by customers at March 31, 2026 before a provision of ₹0.07 crore; ₹1.8 crore of it was more than a year old and ₹0.37 crore more than three years old (DRHP p.242). The company booked ₹0.07 crore of bad debts in FY26 (DRHP p.246).

On payables, dues to micro and small enterprises were ₹3.2 crore at March 31, 2026 and ₹6.4 crore a year earlier (DRHP p.236). The note reports no interest due or paid on delayed payments to them (DRHP p.237), while payable days were 178 in FY26 (DRHP p.100).

How costs are booked: job-work charges, ₹7.7 crore in FY26, sit inside "cost of material consumed" as direct expenses along with fabric purchases of ₹20.4 crore (DRHP p.245). That is why the document says material cost was 93.11% of total income in FY26 (DRHP p.271). Transport and freight were ₹0.07 crore in FY26 (DRHP p.246). Rent is nil in all three years (DRHP p.246).

07The balance sheet

At March 31, 2026 total assets were ₹30.2 crore: inventories ₹12.4 crore, trade receivables ₹16.0 crore, property, plant and equipment ₹1.1 crore, long-term loans and advances ₹0.28 crore, other current assets ₹0.26 crore and cash ₹0.11 crore (DRHP p.61). Against them: trade payables ₹11.2 crore, short-term borrowings ₹5.6 crore, long-term borrowings ₹2.3 crore, provisions and other liabilities ₹1.2 crore, and net worth ₹9.8 crore (DRHP p.61).

Borrowings of ₹9.5 crore at August 31, 2026 (DRHP p.267, DRHP p.268):

Promoters' unsecured loans were ₹0.02 crore at that date (DRHP p.267). The IndusInd facilities are secured on the company's assets, on office premises I6 and I7 at Samet Business Park and on a bungalow at Gokul Park, Maninagar, which the document says are owned by Palak Bohra, Anand Bohra, Garima Bohra and Arvind Bohra, with personal guarantees of Arvind Bohra, Anand Bohra, Palak Bohra and Aditya Bohra (DRHP p.267, DRHP p.234). The lenders' approval is needed for a change in board, dividends, new borrowing or expansion; both IndusInd and ICICI have given no-objection letters for the issue (DRHP p.46, DRHP p.292).

Source: DRHP p.285, DRHP p.97. The capitalisation statement leaves the post-issue column blank (DRHP p.285). Contingent liabilities were ₹0.36 crore, a GST demand on the former firm; there are no capital commitments (DRHP p.64). The company has no subsidiary, holding company or joint venture (DRHP p.185).

08What the money is for

Parswam Fashion IPO objects: what the money is for

Source: DRHP p.97, DRHP p.99. 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.97).

Working capital, ₹16.8 crore: the whole amount is to be used in FY27 (DRHP p.98). The company's own estimate puts net working capital at ₹38.5 crore in FY27, against ₹16.3 crore at March 2026, to be funded by ₹16.8 crore from the issue, ₹16.7 crore of internal accruals and ₹5.0 crore of borrowings (DRHP p.99, DRHP p.100).

It assumes inventory of 166 days, receivables of 190 days and payables cut from 178 to 118 days, which it says will let it pay suppliers sooner for better prices (DRHP p.100, DRHP p.103). The estimate includes ₹3.0 crore of short-term loans and advances and ₹3.9 crore of other current assets, against nil and ₹0.26 crore at March 2026 (DRHP p.99).

The objects have not been appraised by any bank, and no monitoring agency will be appointed because the issue is below ₹50 crore; the audit committee will monitor use (DRHP p.107).

Into the business the fresh issue of up to 31,10,400 shares, at a price not yet set (DRHP p.97). To selling shareholders nothing: there is no offer for sale (DRHP p.3).

09Who is selling

Parswam Fashion IPO offer for sale: who is selling

Nobody. The issue is a fresh issue of up to 31,10,400 shares of ₹10, amount not set (DRHP p.82), and the offer for sale is marked "Not Applicable" (DRHP p.3, AP p.1). If all the new shares are issued they are about 28.0% of the post-issue capital (our arithmetic, DRHP p.82). The promoters and promoter group will not take part in the issue (DRHP p.95). The capital structure table still carries the heading "Promoters (also the Promoter Selling Shareholders)" above the promoters' average cost (DRHP p.90), which appears to be a leftover label: no promoter is listed as selling anywhere in the document.

10Promoters

The promoters are Anand Bohra, Arvind Bohra, Palak Bohra, Garima Jain and Aditya Bohra (DRHP p.201). The document states that Anand Bohra is the spouse of Palak Bohra, the brother of Arvind Bohra and the father of Aditya Bohra, and that Arvind Bohra is the spouse of Garima Jain (DRHP p.190, DRHP p.191). Holdings: Anand Bohra and Arvind Bohra 21,60,000 shares each (27.00% each), Palak Bohra and Garima Jain 16,00,000 each (20.00% each) and Aditya Bohra 3,20,000 (4.00%), 98.00% in all (DRHP p.89).

• Anand Bohra, 49, Chairman and Managing Director since May 14, 2026, a director since June 5, 2024, B.Com III year, about 8 years in fashion and denim; in charge of strategy, product development and sales (DRHP p.186, DRHP p.189).
• Arvind Bohra, 47, Chief Financial Officer since May 12, 2026, B.Com (Honours), about 8 years in the fashion textile industry; a director from June 5, 2024 until ceasing on August 11, 2026 (DRHP p.198, DRHP p.194).
• Palak Bohra, 47 in the management chapter and 46 in the promoter chapter, Whole-Time Director from August 13, 2026, M.A. (History), about 8 years in the industry; ceased as a director on May 20, 2026 and was re-appointed on August 13, 2026 (DRHP p.187, DRHP p.202, DRHP p.192).
• Garima Jain, 42, Operations Head, B.Com and M.A. (Sociology), with the partnership firm from January 1, 2018 (DRHP p.199).
• Aditya Bohra, 23, Whole-Time Director since May 14, 2026, B.A. (Special), about 2 years in operations, marketing and e-commerce (DRHP p.187, DRHP p.190).

The business chapter says the promoters have "collective experience of over 30 years" (DRHP p.154), and the commissioned industry report says they have worked in garments since 2005 (DRHP p.151); the individual profiles give about 8 years each (DRHP p.189). The trademark Par swam was registered on October 24, 2008 in the name of Siddhi Vinayak Creation (DRHP p.293). The document calls the promoters first-generation entrepreneurs (DRHP p.48).

Pay: remuneration to the five was ₹0.41 crore in FY24 as partners and ₹0.63 crore in FY26, Anand Bohra ₹0.15 crore, Arvind Bohra ₹0.15 crore, Palak Bohra ₹0.12 crore, Aditya Bohra ₹0.09 crore and Garima Jain ₹0.12 crore (our arithmetic, DRHP p.65, DRHP p.66). Approved ceilings now are ₹0.40 crore a year for Anand Bohra and ₹0.30 crore a year each for Palak Bohra and Aditya Bohra (DRHP p.191, DRHP p.192).

Loans: in FY26 Anand Bohra lent the company ₹2.9 crore and was repaid ₹3.0 crore, and Arvind Bohra lent ₹1.7 crore and was repaid ₹1.9 crore; the balances owed to the promoters at March 31, 2026 were below ₹0.02 crore (DRHP p.66, DRHP p.67). Interest on these loans is not shown separately in the related-party table (DRHP p.66).

Other businesses: Anand Bohra and Arvind Bohra are shareholders and directors of Parswam Creation Private Limited; Arvind Bohra is proprietor of Siddhi Vinayak Creations, which bought goods from the company worth ₹0.25 crore in FY25 and ₹0.08 crore in FY24 (DRHP p.201, DRHP p.66). The promoter group entities are Parswam Creation Private Limited and four HUFs (DRHP p.207). The company says it has no group companies (DRHP p.208). The document names no non-compete arrangement.

Promoter group exemption: the company applied to SEBI on September 16, 2026 for exemption from naming Jayanti R. Banthiya, described as the sister of Arvind Bohra and Anand Bohra, and any connected entities as promoter group; the application is pending (DRHP p.38, DRHP p.39).

Guarantees and pledges: personal guarantees and property mortgages for the IndusInd loans, as in section 06 (DRHP p.267). No promoter shares are pledged (DRHP p.95).

Cases: no outstanding criminal, regulatory, material civil or tax proceedings against any promoter (DRHP p.287, DRHP p.289).

Promoter economics: the 60,00,000 shares issued on June 5, 2024 were allotted at ₹10 against the partners' capital accounts, and the 1:3 bonus of 20,00,000 shares followed on July 11, 2026 (DRHP p.83). The promoters' average cost after the bonus is ₹7.5 a share, and they acquired no shares for cash in the last year (DRHP p.90, DRHP p.91). There was no secondary sale in the 18 months before filing (DRHP p.115).

11Who already owns it

Parswam Fashion promoter holding before and after the IPO

Source: DRHP p.88, DRHP p.89, DRHP p.91; the after-issue column for the last three rows is our arithmetic. There are 80,00,000 shares of ₹10 before the issue and 7 shareholders (DRHP p.82, DRHP p.88). If all 31,10,400 new shares are issued the total becomes 1,11,10,400 shares (our arithmetic, DRHP p.82). The document puts the promoters at 70.56% of the post-issue capital, so 98.0% → 70.6% (DRHP p.91), and promoters and promoter group together at 71.28% (DRHP p.53).

The promoter group table names Neelu Sethi as sister of Anand Bohra and Arvind Bohra (DRHP p.205). Manojkumar Sethi is classed as a public shareholder in the shareholding pattern (DRHP p.88, AP p.5), while the related-party note lists Manoj Kumar Sethi as a relative of Arvind Bohra and a former partner of the firm (DRHP p.65, DRHP p.66). No fund or company holds shares.

Lock-in: 22,33,210 promoter shares, 20.10% of the post-issue capital, are to be locked in for three years as the minimum promoters' contribution; half of the rest of the promoters' holding is locked for two years and half for one year; non-promoter pre-issue shares are locked for one year (DRHP p.92, DRHP p.93).

12What changed just before the IPO

• Revenue and profit: revenue from operations went from ₹20.0 crore in FY24 to ₹30.1 crore in FY26 and profit after tax from ₹0.92 crore to ₹3.1 crore (DRHP p.111).
• Receivables: 228 days in FY24 and 194 days in FY26 (DRHP p.100).
• Promoter pay: ₹0.41 crore in FY24 and ₹0.63 crore in FY26 (our arithmetic, DRHP p.65, DRHP p.66).
• Conversion: partnership firm to private company on June 5, 2024; public company with a fresh certificate on August 29, 2024; accounting cut-off from firm to company on October 1, 2024; business transfer agreement dated October 14, 2024 (DRHP p.182, DRHP p.212, DRHP p.47).
• Bonus issue: 1:3, 20,00,000 shares on July 11, 2026, taking the count to 80,00,000 (DRHP p.83).
• Pre-IPO placement: none; the company does not plan one (AP p.9).
• Last allotment before the IPO: the bonus shares at nil price in July 2026; the last allotment for value was 60,00,000 shares at ₹10 against partners' capital in June 2024 (DRHP p.83).
• Auditor: A R Rathod & Associates, appointed as first auditor on June 5, 2024, was replaced by Rajeshkumar P Shah & Co, appointed at the annual general meeting on September 30, 2025 for five years (DRHP p.74).
• Board and officers: independent directors Balwant Singh Dabi and Vatsalya Navin Saxena from May 14, 2026; Company Secretary Kritika Gadiya from May 12, 2026; Nitin Gadia as non-executive director from June 19, 2026; Arvind Bohra ceased as director on August 11, 2026 and remains CFO; audit, stakeholders and nomination committees formed July 9, 2026 (DRHP p.194, DRHP p.195, DRHP p.198).
• Sales mix: Gujarat went from 3.80% to 46.42% of revenue and wholesalers from 47.36% to 71.98% between FY24 and FY26 (DRHP p.31, DRHP p.35).
• Debt: borrowings rose from ₹5.6 crore at March 2024 to ₹7.9 crore at March 2026 and ₹9.5 crore at August 2026; an unsecured ICICI loan at 14.60% was taken on December 31, 2024 (DRHP p.61, DRHP p.267, DRHP p.234).
• Trademark: the Par swam mark is still registered to Siddhi Vinayak Creation; the transfer application was filed on June 4, 2026 (DRHP p.47).
• Authorised capital raised to ₹11.5 crore on June 19, 2026 and the main objects altered (DRHP p.183).
• Dividend: none since incorporation (DRHP p.209).

13Capacity and expansion

Source: DRHP p.29, DRHP p.154, DRHP p.171. The company engaged 37, 27 and 14 job workers in FY26, FY25 and FY24; 9 have worked with it for more than three years, and the largest took 14.54% of FY26 job-work spending (DRHP p.156, DRHP p.29). Job-work charges were ₹7.7 crore in FY26, ₹5.4 crore in FY25 and ₹3.6 crore in FY24 (DRHP p.30). The arrangements are on purchase orders and do not reserve capacity for the company (DRHP p.30).

The issue funds no capacity: all named proceeds go to working capital (DRHP p.97). The objects chapter nonetheless refers to "anticipated commencement of operations from the expanded capacity" when explaining the FY27 inventory estimate (DRHP p.102); no expansion is described anywhere else. The warehouse units at Samet Business Park are listed as owned properties of the company in the business chapter (DRHP p.171), while the restated notes say premises I6 and I7 there are owned by four promoters and mortgaged to the bank (DRHP p.234).

14Market size and industry structure

Parswam Fashion industry: market size and growth

As claimed: the chapter is taken from a report titled “Industry Report on Textile Industry” dated September 21, 2026 by M/s B2K Analytics Private Limited, commissioned and paid for by the company for the issue (DRHP p.121). The same disclaimer paragraph later refers to an "Infomerics Analytics and Research Report" (DRHP p.121), a name that appears nowhere else in the chapter.

The commissioned report puts India's domestic textile and apparel market at about US$147 billion in FY2025, up from US$50 billion in FY2011, with apparel about 73.5% of it (DRHP p.133). It also cites a 2024 study commissioned by the Ministry of Textiles that valued India's textile market at ₹14,95,000 crore, of which domestic demand was ₹12,02,000 crore (DRHP p.139).

The part that is addressable: the company sells men's and kids' bottom-wear, mostly denim jeans, at ₹300 to ₹800 a piece, almost wholly to wholesalers and shops in Gujarat and Kerala (AP p.2, DRHP p.31). The commissioned report does not size men's bottom-wear, denim jeans, kids' wear, or any regional market. Its segmentation lists menswear, womenswear and kidswear by end user and fabric types, without figures (DRHP p.139, DRHP p.140). It notes that women made 55.5% of textile purchases and men 44.5% in the Ministry study (DRHP p.139).

What the company is today: FY26 revenue of ₹30.1 crore is about 0.0025% of the ₹12,02,000 crore domestic textile demand in the Ministry study (our arithmetic, DRHP p.139, DRHP p.111); the two figures are for different years. The US$ figures cannot be compared in rupees from the document, which gives no exchange rate.

Size over time: the commissioned report says the global textile market grew from US$925 billion in 2018 to US$1,115 billion in 2024, and projects US$1,612 billion by 2033 (DRHP p.130). It puts the global apparel market at US$1,359 billion in 2020 and US$1,736 billion in 2024, and projects US$2,614 billion by 2030 (DRHP p.130).

For India, the report projects the textile and apparel market at about US$250 billion by FY2030, about 11.2% a year from FY2025, with apparel projected at about US$180 billion, about 10.8% a year (DRHP p.133). These projections are the report's own. The gross value added of textiles, apparel and leather products was ₹3,97,000 crore in FY23, ₹3,93,000 crore in FY24 and ₹4,42,000 crore in FY25 at current prices (DRHP p.133).

Our arithmetic on the report's figures: global apparel grew about 6.3% a year from 2020 to 2024 (our arithmetic, DRHP p.130).

Segments: the report divides apparel by end user (menswear, womenswear, kidswear) and by fabric type (natural, synthetic, regenerated, blended), and describes denim types from rigid to stretch, slub and coloured (DRHP p.139, DRHP p.141, DRHP p.143). The company sits in menswear and kidswear, in cotton and denim (DRHP p.129).

What drives demand: the commissioned report names population growth and urbanisation, with India's urban population projected at about 600 million by 2036; rising incomes and festival and wedding demand; organised retail and e-commerce; export opportunities; technology; and fast fashion (DRHP p.145). It says the textile and apparel industry is about 2% of India's GDP and about 11% of manufacturing gross value added, employs over 45 million people and produces about 22,000 million garments a year (DRHP p.132).

Structure: the report calls the industry highly fragmented, with MSMEs holding over 80% of textile and apparel production capacity (DRHP p.148, DRHP p.152). It names Duke Fabrics (India) Limited, Parasnath Techgarments Private Limited and Radhika Collection Private Limited as apparel players, and Shikhar Prints Private Limited, Vera Synthetic Ltd. and Shree Om Shirtings Private Limited in textile production (DRHP p.148). Among denim brands it lists Levi's, Wrangler, Pepe Jeans, Spykar, Killer Jeans and Flying Machine as competition (DRHP p.151). The report does not give market shares.

Inputs and trade: cotton yarn prices fell in FY2026 as lower-cost Bangladesh and Vietnam exports cut demand for Indian goods, and synthetic yarn prices are tied to crude oil, which the report says traded above US$100 a barrel (DRHP p.142, DRHP p.144).

India's textile and apparel exports were about US$35.0 billion in FY2026 against imports of US$8.1 billion, a surplus of US$26.9 billion; exports grew about 0.2% a year from FY19 to FY26 against 5.4% for imports (DRHP p.136). Apparel imports were over US$1,717 million in FY26, 34% from Bangladesh (DRHP p.136). India ranked tenth in world apparel exports in 2024 at US$16 billion, 3.0% (DRHP p.130).

The company buys all its fabric in India and plans to add Chinese denim (DRHP p.144, DRHP p.145).

Rules: the report lists the PM MITRA textile parks with an outlay of ₹4,445 crore up to FY2028, the production-linked incentive scheme for man-made fibre apparel and technical textiles with ₹10,683 crore for FY2026 to FY2030, a ₹5,659 crore Mission for Cotton Productivity for FY27 to FY31, and the SAMARTH skills scheme, which had trained about 5,95,000 people by March 2026 (DRHP p.147).

It notes BIS standards, the labour codes and the Water and Air Acts (DRHP p.147). The company's own approvals are its incorporation, tax, Udyam, ESIC and shops and establishment registrations; a fire safety approval and a shops registration address change are pending (DRHP p.292, DRHP p.293, DRHP p.294).

What the chapter says can go wrong: swings in cotton, polyester and energy prices; fast-changing fashion that leaves unsold stock; demand volatility; a fragmented market with low-cost rivals from China, Vietnam and Bangladesh; and changes in global demand and trade policy (DRHP p.146). Its outlook adds that cost management and working capital will matter (DRHP p.152). The chapter does not discuss credit terms in wholesale apparel, the share of jeans sold through wholesalers, or prices in the ₹300 to ₹800 range.

15Competitive position

Parswam Fashion competitors

Source: DRHP p.111, DRHP p.113, DRHP p.149, DRHP p.150, converted from ₹ lakh. Kewal Kiran's revenue is the commissioned report's FY2026 sales figure; the basis for issue price chapter gives ₹1,236.5 crore of consolidated total revenue for it (DRHP p.110). Davin Sons' revenue fell from ₹13.5 crore in FY25 to ₹8.2 crore in FY26 (DRHP p.113). Our arithmetic: Cantabil's revenue is about 28 times the company's and Davin Sons' about a quarter (our arithmetic, DRHP p.113). The business chapter names Kewal Kiran Clothing and Davin Sons Retail as listed competitors, along with regional manufacturers and wholesalers (DRHP p.169).

What the company puts forward: an asset-light model with a network of job workers, a focus on bottom-wear, a spread of suppliers and channels, and experienced promoters (DRHP p.156, DRHP p.157, DRHP p.160). It says it competes on quality at competitive prices, design and wholesale relationships in key markets (DRHP p.169).

Against that, as the document itself states: no long-term contracts with customers or suppliers, one warehouse, two states at about nine tenths of revenue, a brand whose trademark is not yet in its own name, and marketing spending that was ₹0.06 crore in FY25 and is shown as "NA" for FY26 (DRHP p.38, DRHP p.37, DRHP p.31, DRHP p.47, DRHP p.162).

16Peers the company named

Peers named in the offer document: Kewal Kiran Clothing Limited, Davin Sons Retail Limited and Cantabil Retail India Limited (DRHP p.110).

Kewal Kiran Clothing and Cantabil Retail India are each several times the company's size: ₹1,236.5 crore and ₹862.1 crore of FY26 total revenue against ₹30.2 crore (DRHP p.110). Davin Sons Retail is smaller, with ₹8.2 crore (DRHP p.110). The document gives their P/E at September 22, 2026 prices as 20.31 for Kewal Kiran, 9.50 for Davin Sons and 20.68 for Cantabil, an average of 16.83 (DRHP p.109, DRHP p.110).

The company's FY26 EPS is shown as ₹5.21 on 60,00,000 shares, the count before the July 2026 bonus (DRHP p.258); the abridged prospectus labels the same ₹5.21 "post bonus" (AP p.6). On the 80,00,000 shares now in issue the same profit is ₹3.91 a share (our arithmetic, DRHP p.258, DRHP p.82). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Parswam Fashion IPO risks

Financial: cash: operating cash flow was negative in all three years (DRHP p.63) → the business has needed borrowing and supplier credit to grow → operating cash flow was −₹1.9 crore over FY24 to FY26 against ₹5.1 crore of profit (our arithmetic, DRHP p.62, DRHP p.63).

Business: stock: finished-goods inventory reached ₹12.4 crore at March 2026 (DRHP p.241) → apparel goes out of fashion and unsold stock may have to be discounted or written off (DRHP p.31) → inventory days rose from 82 to 197 (DRHP p.100).

Customers: credit: receivables were ₹16.0 crore at March 2026 (DRHP p.61) → slow or failed collections would strain cash → ₹1.8 crore was more than a year old (our arithmetic, DRHP p.242).

Customers: concentration and place: Gujarat and Kerala were 87.70% of FY26 revenue (DRHP p.31) → a local downturn or the loss of a few wholesalers would hit sales → the top ten customers were 50.26% and wholesalers 71.98% (DRHP p.38, DRHP p.35).

Suppliers: job workers: all products are made by 37 outside job workers without reserved capacity (DRHP p.29, DRHP p.30) → delays, quality problems or labour or pollution breaches at their units would hit deliveries (DRHP p.36) → job work was 29.77% of FY26 total expenses (DRHP p.30).

Suppliers: fabric: the top ten suppliers were 63.50% of FY26 purchases, with no written agreements (DRHP p.39) → price rises may not pass through → fabric and job work together were 93.11% of FY26 total income (DRHP p.271).

Business: one warehouse: operations run from a single warehouse in Gujarat (DRHP p.37) → a disruption there would stop dispatches → insured assets were ₹2.2 crore at March 2026 (DRHP p.44).

Business: seasonality: about half of each year's sales fall in the fourth quarter (DRHP p.102) → year-end receivables and stock run high → quarterly results are not comparable (DRHP p.36).

Regulation: trademark: the Par swam mark is registered to Siddhi Vinayak Creation, not the company (DRHP p.47) → the company's ability to enforce the mark in its own name may be limited until the transfer is recorded → the transfer application was filed on June 4, 2026 (DRHP p.293).

Regulation: filings and dues: some company law forms were filed up to 701 days late, and TDS, GST and professional tax were paid late in FY25 and FY26 (DRHP p.45, DRHP p.46) → penalties may follow → the document says delays were partly "due to several reasons including liquidity issues" (DRHP p.45).

Promoters: control and exemption: the promoters and group would hold 71.28% after the issue (DRHP p.53) → they can decide matters needing a majority vote → a SEBI exemption on naming one relative as promoter group is pending (DRHP p.38).

Legal: GST demand: a demand of ₹0.36 crore for FY2018-19 is under appeal (DRHP p.43) → it may fall on the company (DRHP p.28) → it is about 12% of FY26 profit after tax (our arithmetic, DRHP p.64, DRHP p.111).

Issue-specific: the objects assume payables fall from 178 to 118 days while receivables stay near 190 days (DRHP p.100) → working capital need rises → net working capital is estimated at ₹38.5 crore for FY27 (DRHP p.100). No monitoring agency is appointed (DRHP p.107).

18Litigation and regulatory matters

Cases against Parswam Fashion and its promoters

Criminal: none by or against the company, promoters, directors, key managers or senior managers (DRHP p.287, DRHP p.288). Regulatory: no actions by statutory or regulatory authorities, and no SEBI or exchange action against the promoters in five years (DRHP p.287). Civil: no material civil cases (DRHP p.287). Tax: the GST demand is ₹0.11 crore of tax, ₹0.14 crore of interest and ₹0.11 crore of penalty, shown as a contingent liability because the company believes it has a strong case (DRHP p.43, DRHP p.44). Creditors: 3 material creditors were owed ₹3.9 crore at March 31, 2026, 24 small enterprises ₹2.3 crore and 44 others ₹5.0 crore (DRHP p.290).

The abridged prospectus carries a footnote about a company petition against "Krishna Hareshbhai Bhatt, Non-Executive Independent Director" (AP p.9); no one of that name appears on the board in the DRHP (DRHP p.186 to DRHP p.189).

19Related-party transactions

Source: DRHP p.65, DRHP p.66, DRHP p.67, converted from ₹ lakh; our arithmetic for the remuneration totals. Siddhi Vinayak Creation paid ₹0.33 crore against its earlier purchases in FY26, clearing its receivable (DRHP p.66, DRHP p.68). Partners' net drawings from the firm were ₹0.36 crore for Arvind Bohra and ₹0.19 crore for Anand Bohra in FY25 (DRHP p.66). There is no rent paid to the promoters for the premises the document says they own (DRHP p.246, DRHP p.234).

What appeared or changed in the two years before filing: partners' remuneration became directors' remuneration after the conversion; sales to Siddhi Vinayak Creation stopped after FY25; large short-term loans from Anand Bohra and Arvind Bohra began in FY25 and were mostly repaid within the year (DRHP p.65, DRHP p.66, DRHP p.67). The company says its related-party transactions are at arm's length (DRHP p.43).

20What the offer document does not say

The names of the top customers and suppliers are not given (DRHP p.160, DRHP p.39). Margins by product, by brand or for private-label work are not given. The capacity of the job workers and the share of their output taken by the company are not disclosed. The reason the average selling price fell from FY24 to FY26 is not given.

How many days of credit wholesalers receive, and how the ₹1.8 crore of receivables older than a year is to be collected, are not stated. Who owns Siddhi Vinayak Creations today, and how it relates to the former partnership of almost the same name and to the trademark owner, is not explained (DRHP p.201, DRHP p.293). The financial figures of Parswam Creation Private Limited are not given (DRHP p.201).

The issue size, price band, general corporate purposes and issue expenses are blank (DRHP p.97). The after-issue capitalisation is blank (DRHP p.285). Marketing spending for FY26 is shown as "NA" (DRHP p.162).

Some inconsistencies are recorded as document matters, not business ones: the abridged prospectus calls the restated figures "consolidated" while the company has no subsidiary (AP p.5, DRHP p.185); the FY26 EPS of ₹5.21 is labelled "post bonus" but is computed on the pre-bonus 60,00,000 shares (AP p.6, DRHP p.258); the industry chapter's disclaimer names Infomerics while the report is by B2K Analytics (DRHP p.121);

the commissioned report says its FY2025 figures for the company cover only October 2024 to March 2025 (DRHP p.150) while the restated FY25 is a full year (DRHP p.62); the quarterly sales table runs in opposite year order in two chapters (DRHP p.36, DRHP p.102); the price range starts at ₹350 in the DRHP and ₹300 in the abridged prospectus (DRHP p.153, AP p.2);

Palak Bohra's age is 47 in one chapter and 46 in another (DRHP p.189, DRHP p.202); the warehouse premises are called the company's own property in one chapter and the promoters' property in the notes (DRHP p.171, DRHP p.234); the risk factors describe inventory as raw materials, work in progress and finished goods while the notes show only finished goods (DRHP p.31, DRHP p.241);

the ratio note shows return on capital employed of 0.15 for FY26 while the KPI table shows 26.85% (DRHP p.257, DRHP p.111); the abridged prospectus footnotes a case against an independent director who is not on the board (AP p.9); the capital structure refers to "Promoter Selling Shareholders" though there is no offer for sale (DRHP p.90); the restated financial statements are filed as scanned images.

21Five questions for management

1. What explains the fall in average revenue per piece from about ₹456.5 in FY24 to ₹418.9 in FY26: price, product mix, kids' wear, private label or wholesale discounts?
2. Which customers in Gujarat drove revenue there from ₹0.76 crore to ₹14.0 crore, and how many of the top ten are wholesalers in Gujarat?
3. How much of the ₹12.4 crore of finished-goods stock at March 2026 had been sold by August 2026, and at what discount?
4. What credit period do wholesalers receive, and what has been collected since March 2026 of the ₹1.8 crore of receivables older than a year?
5. Who owns Siddhi Vinayak Creations and the Par swam trademark today, and on what terms will the mark pass to the company?

2Sources and cited facts

This study was read from 2 documents the company filed. The 208 figures it cites are listed under the document each came from, with the page and the sentence as printed.