- Our view
- May Subscribe
- Market cap then
- ~INR 182.51 Cr.
- Price band
- INR 96 to 102 per share
Game Changers Texfab sources customer-specified fabrics through an asset-light deemed manufacturing model and sells through B2B and B2C channels. Minerva Capital Research Solutions recommends May Subscribe for investors with higher risk appetite, citing the company’s FY25 margin improvement and expansion plans; the IPO price band is INR 96 to 102 per share.
About Game Changers Texfab
Incorporated as a private limited company on April 6, 2015, Game Changers Texfab sources fabrics to customer specifications from suppliers. Its deemed manufacturing model keeps the business asset light. The company sells through B2B and B2C channels, both offline and online, and has two brands, “TradeUNO” and “Fall in Love”. It also imports technical textiles and has exclusive distributorship agreements with two Chinese companies for PVC fabric and Outdoor Fabric.
Game Changers Texfab IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 96 to 102 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 182.51 |
| Exchange | BSE SME |
| Min. Lot Size (Retail | HNI) | 2,400 | 3,600 |
| Issue Opens on | 28-Oct’25 |
| Issue Closes on | 30-Oct’25 |
| Listing Date | 4-Nov’25 |
| No. of shares pre-issue (#) | 1,25,16,814 |
| Fresh Issue of Shares (#) | 53,76,000 |
| Offer for Sale (#) | - |
| No. of shares post-issue (#) | 1,78,92,814 |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 54.84 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
| QIB shares offered | <=50% |
| Retail shares offered | >=35% |
| NII (HNI) shares offered | >=15% |
| Registrar | Skyline Financial |
| Book Running Lead Managers | Corpwis Advisors |
Objects of Issue (INR Cr.)
- Working capital requirements: 25.50
- Funding capital expenditure towards construction of new stores: 15
- Funding working capital: [●]
Strengths
- Store expansion: The company plans to open six stores in Tier 1 and Tier 2 cities using IPO proceeds and four additional stores from internal accruals. The expansion is planned to be completed gradually by the end of FY27.
- Focus on higher-margin products: The company is increasing its focus on technical textiles, where gross margins can be 18% to 20%. Management claims technical textile sales can grow 5 times in FY26 compared with FY25 (2.92 Cr.).
- Management growth expectations: Management expects revenue to grow by 38% CAGR and profit by 61% CAGR over the next 3 years. These are management expectations.
- Margin improvement: FY25 gross margin was 19.6%, compared with 12.8% in FY24; EBITDA margin was 16.1%, versus 6.9% in FY24. The company also says advance payments to suppliers can earn cash discounts of 3% to 7%.
Game Changers Texfab Key Financials
| Particulars (INR Cr.) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (excl. other inc.) | 100 | 98 | 116 |
| Growth Rate Y-o-Y % | - | (2.6)% | 18.1% |
| EBITDA (excl. other inc.) | 1.3 | 6.7 | 18.6 |
| EBITDA % (excl. other inc.) | 1.3% | 6.9% | 16.1% |
| PAT | 0.61 | 5.72 | 16.16 |
| PAT % | 0.5% | 4.4% | 10.4% |
| Debt (Short+Long) | 7.4 | 10 | 9.7 |
| Debt/Equity | 1.58x | 1.12x | 0.46x |
| ROE % | 11.3% | 47.7% | 57.5% |
| ROCE % | 9.5% | 33.9% | 57.2% |
The report also presents gross margin, equity, NWC, NWC days and CFO / EBITDA %.
Revenue and profitability increased in FY25, while reported NWC days rose to 86 from 34 in FY24.
Business and Revenue Mix
FY25 revenue was predominantly B2B (86.75%) and offline (99.20%). B2C contributed 13.25%, while technical textiles accounted for 2.58% of revenue. The company had two stores; Udyog Vihar was its flagship store.
| Revenue | FY23 | FY24 | FY25 |
|---|---|---|---|
| From B2B | 97.33% | 95.01% | 86.75% |
| From B2C | 2.67% | 4.99% | 13.25% |
| From Offline Sales | 99.55% | 98.53% | 99.20% |
| From Online Sales | 0.45% | 1.47% | 0.8% |
| From Non Technical Textiles | 88.10% | 98.82% | 97.42% |
| From Technical Textiles | 11.90% | 1.18% | 2.58% |
| Other than Deemed Manufacturing | 98.02% | 85.79% | 88.86% |
| From Deemed Manufacturing | 1.98% | 14.21% | 11.14% |
Industry and Peers
The report cites an expected expansion in the domestic textile and apparel industry from 160 Billion in 2023 to 350 Billion by 2030, with a CAGR of 10%. It also states that the Indian Textile Market is expected to grow at a CAGR of 11.5%-12.5% till 2028. The RHP-listed peers are T T Ltd. and Bhandari Hosiery Exports Ltd.
The report notes that the company expects technical textiles to contribute 22% of total revenue by FY28. It also states that the current average B2B order size is around Rs. 3 lakhs.
Management
- Ankur Aggarwal: Promoter, Executive Director and Chief Financial Officer, age 38 years, with an overall 19 years of experience in textiles.
- Sanjeev Goel: Managing Director, age 55 years, with 17 years of experience in Information & Technology and 8 years of business experience with GCTFL.
Shareholding
| Particulars | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter & Promoter Group | 98.67% | 69.02% |
| Public | 1.33% | 31.98% |
| Total | 100.00% | 100.00% |
IPO Valuation and Our View
The issue is valued at a P/E ratio of 11.29x based on FY25 PAT. The report describes this as fairly valued, citing the asset-light model and higher margins compared with the peer. Minerva Capital Research Solutions recommends May Subscribe for investors with higher risk appetite, for listing gains.
- INR 96 to 102 per share
- IPO price band
- ~INR 182.51 Cr.
- Implied market capitalisation
- May Subscribe
- Recommendation
Key Risks
- Industry competition: The textile industry is described as highly capital intensive, competitive and fragmented.
- Customer concentration: The top customer contributed 14.74% of FY25 revenue; the top 10 contributed 71.29%.
- Related-party business overlap: Shree Balaji Tirpal Pvt Ltd. and M/s Capitol Enterprises, related promoter group companies, are in a similar business, which may lead to a conflict of interest.
- Technical textile supplier dependence: The report identifies complete dependence on Chinese suppliers to grow the technical textile segment.
- Deemed manufacturing model: Reliance on deemed manufacturing units was low at 11.14% in FY25.
Our View
The report’s rationale for the IPO centres on improved FY25 margins, planned store expansion and a proposed push into technical textiles. It recommends May Subscribe for investors with higher risk appetite, while highlighting customer concentration, Chinese supplier dependence and the competitive nature of the industry.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
- By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
- There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.
Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness.
The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions.
Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent.
This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%